Evaluating Selection Methods
Chapter 5
Aids for Recruitment and Selection
Bernard O’Meara
Chapter Learning Objectives
After reading this chapter and undertaking the review questions and case study you will:
• Appreciate the range of recruitment and selection aids available • Understand the roles that these aids play • Determine the most appropriate aids for specific circumstances • Ensure reliability and validity are appropriate • Be able to identify potential areas of discrimination • Build equity and fairness into appropriate processes
5.1. Recruitment and Selection Aids
In order for recruiters to identify the most appropriate applicant for a position, they need to use a variety of aids. These aids are used to confirm information gained from résumés and application forms as well as material from interviews. This should provide a good insight into each applicant as different perspectives are considered.
The aids should complement each other and collectively give the recruiter a better holistic perspective of each applicant. Each component of recruitment and selection needs to be weighted rather than full reliance on one aspect such as an interview.
An interview and the results of participating in an assessment centre may each be weighted at 40%, with the remaining 20% divided between objective confirmation of past performance (reference checks) and interaction with team members the applicant will work with.
These aids can include any form of testing, trial or probationary period, atten- dance at assessment centres, the use of game theory or any other methods that help to objectively assess the strengths of applicants.
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Interviews can be flawed due to bias, incorrect interpretation of replies to ques- tions, body language, incomplete questioning techniques and by using inexperienced interviewers. Similarity-attraction theory suggests that interviewers will select those candidates with the personality, traits, interests and values closest to themselves. Thus interviews alone do not capture the whole person (Roebken, 2010).
Recruitment and selection aids can confirm or refute information gathered about candidates or they can provide new and different perspectives that interviews alone would not expose. Candidates will be drawn from different organisations, different communities and may have quite different personalities. Thus strategic decisions about reinforcing or challenging existent culture need to be thoroughly considered in order to appoint the right person for the right reasons.
Staff within the organisation need to understand the rationale for using a variety of aids to appoint applicants. They also need to have confidence in the processes and trust the judgment of the interviewers. The processes need to be transparent, defensible and agreed upon. The applicants also need to understand the different components of recruitment and selection aids and how these are used.
If the image of the organisation is that it empowers staff and involves them in decision making and provides growth opportunities, then the organisation will attract people who embrace these ideas. Applicants will expect recruitment and selection aids that allow them to demonstrate these capacities. Recruiters need to have a purpose for each aid they use in recruitment and selection and complement other components (Kausel & Slaughter, 2011).
Recruitment and selection aids can take many forms. Employer branding and image have been discussed previously; however, creating the right image of the orga- nisation for current staff and the community is a legitimate means of becoming a preferred employer of choice (Mandhanya & Shah, 2010).
Members of the community who are attracted to the organisation because of its branding, image or identity will apply for positions once it is known that vacancies exist. It can also lead to people delivering their résumés to the organisation (walk- ins) as a means of communicating to the organisation their interest in working there despite an absence of vacancies.
The standing and reputation of an organisation will create a larger pool of applicants where these are positive. However, if the reputation of the organisation is not strong then a smaller applicant pool may be expected, probably with more unsuitable applicants applying.
5.2. The Role and Purpose of Testing
One frequently used aid is testing. The term testing covers a very broad range of tools that help give an insight into candidates. Organisations use talent management systems to store detailed information about staff. The profile of staff allows the organisation to plan ahead and develop their staff accordingly. The software sys- tems can integrate different components of other data storage systems and this pro- vides an excellent overview of the talent in the organisation and how it is being developed.
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The emphasis on talent has caused large organisations to rethink the role of recruitment and selection, personnel and human resource managers. The title Talent Acquisition Manager/officer is now widely used to emphasise the importance of this role to the organisation and its future. Other titles such as Knowledge Acquisition and Retention Managers are also growing in popularity. These changes in title recog- nise the impact that recruitment and selection have upon organisations.
Pre-employment tests can provide specific information that interviews and résumés cannot. A significant number of résumés contain inaccurate information as job seekers attempt to market themselves in the best way possible. With high levels of unemployment, job seekers attempt to differentiate themselves from other job seekers, and in doing so omit some details or exaggerate others such as job title, responsibilities and salary (Van Steenwyk, 2008).
The introduction of Freedom of Information (FOI) legislation across the globe means that employers are reluctant to comment on the performance of previous staff. This feedback may be sought by applicants who are unsuccessful in applying for a position. Instead employers are more inclined to confirm information given by applicants, such as duties associated with jobs, dates of employment, and avoid areas where interpretation or judgment are sought.
Interviews are also flawed but are still the most widely used employment tool. However, interviewer bias and applicant nervousness can lead to a misinterpretation of the information given by applicants. In order to offset the flaws involving résumés and interviews, employers use various forms of testing to gain a better insight into the ‘fit’ between applicants and an organisation.
Large organisations not only want reliable and consistent tests but they want tests that can be used anywhere around the world where they operate. Pre- employment tests need to be effective, efficient and ‘applicant friendly’. The overall purpose for tests is to aid in deciding who the best applicant is.
Online testing can be linked directly to talent management software within the organisation to create an individual profile of applicants. The online tests can be competency oriented to determine levels of expertise in undertaking a task, reason- ing through a problem, determining client focus of applicants as well as aiding in the appointment of executive staff (Frauenheim, 2011).
However, some tests are cultural specific and are less valid as predictors of per- formance in all sectors of the workforce or other countries. This means that global organisations use different tests in different countries in order to reduce bias and inaccuracy. Online tests which are consistent and reliable allow organisations to use a standard test bank that, ideally, can be used to predict performance accurately, irrespective of country bias, or help determine the degree of fit between an organisa- tion’s culture and applicants.
5.2.1. Psychometrics
Psychometric testing refers to any standardised test that attempts to measure or assess a person’s cognitive ability or aspects of their personality. However, the need to measure or assess cognitive capacity and personality should be work related and
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is necessary. These are conducted by staff or consultants with a specialisation in psychology in order to ensure the metrics are accurately interpreted and are job relevant.
The term ‘metric’ is used as this refers to something that can be measured while the term ‘psych’ refers to the psychological make-up of an individual. In order to gain a clearer insight into applicants, organisations attempt to measure aspects to determine if a short-, medium- and long-term fit can be achieved.
External applicants are drawn from other organisations and their community, and it is their cumulative life story and achievements that organisations try to mea- sure in their applicants.
When applicants apply for a position they bring with them many attributes, per- sonal and professional achievements, knowledge, experience and aspirations.
Some of these can be assessed during interviews or by past performance. An edu- cational qualification indicates an applicant has achieved a certain level of educa- tion and is readily identified. Other applicant attributes are not as easily identified, however discrimination must be avoided at all times.
Applicants may bring the following background and characteristics with them:
Education — The level of education can be determined by the level achieved, such as secondary college or university certificates, diplomas, degrees and higher degrees. This illustrates the standard achieved but does not indicate if the appli- cant can apply the concepts learnt, nor does it reflect the potential of the appli- cant to undertake higher levels of education.
Work experience — Where an applicant has work experience, interview questions can be used to probe the depth of understanding the applicant has of the role. Previous promotions may indicate the applicant has the potential to be promoted further.
However, while an applicant may have been promoted in previous roles, employers need to know what it was that made the applicant successful, i.e. levels of com- mitment, motivation, enthusiasm, luck or something else. Previous success is not always a predictor of future success, and job testing may be considered to deter- mine the suitability of an applicant.
Life experience — As people gain new experiences, they learn from these and grow as individuals. Spending a year on an exchange program in another country may not at first appear work related.
However, it may indicate the desire for mobility, cultural diversity and appreciation, independence and the desire for personal and professional growth and challenge. These aspects may be dealt with during interviews or reference checks, or they may be difficult to determine because the applicants may not necessarily be aware of their personal drive.
Achievements — Throughout their lives people will achieve many things, some of which are clear while others are not. Consistent achievements in education, work life, sporting activities, community service and other areas may indicate drive and an achievement-oriented individual.
Thus organisations seek to determine the level of achievement across the applicant’s life — both personal and professional — to gauge consistency. Reviewing
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achievements in a person’s work life only does not show consistency and tells only half a story.
Graduates entering employment in their chosen career path may lack work experi- ence but have several educational, sporting and other achievements that indicate their true potential.
Expectations — Everyone has expectations to some extent. These can be developed by work and life experiences, or by the wording of job advertisements, feedback through social media or from discussions with family, friends, acquaintances and colleagues.
All people will want to be treated with dignity and respect. Many will seek ample wages and salaries, recognition, challenging work, promotion opportunities. Some will not want promotion or an increase in authority or responsibility.
However, the degree of fit between the organisation and applicants can, in part, be determined by accurately identifying and understanding the expectations of both parties. This can be difficult if a person is appointed to a position that will lead to promotion, then later the organisation finds that the person is not fit for pro- motion into the desired position.
Organisations also try to match applicants to their:
• Culture • Structure • Orientation or view of staff as assets or liabilities • Known competency or knowledge gaps • Strategy and future direction • Wage and salary policies • Cost structure • Environment • Talent bank
In the case of small organisations, only very basic information about applicants may be sought and even an intuitive approach used. However, in large organisations and those involved in highly competitive markets, the investment in staff is signifi- cant and essential.
These organisations can fit new employees into their talent banks, include them in succession planning and create individual career maps to optimise the potential of each new staff member. These organisations build success and sustain- able competitive advantage through a mutually beneficial relationship with their staff.
5.2.2. Types of Tests
There are a variety of psychometric tests available. These are administered by quali- fied psychologists who understand the role and purpose of such tests and the
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terminology associated with them. However, a number of consultants train staff the use of some tests which can be administered by non-psychologists.
Personality and traits — Each person has a level of commitment, drive, motiva- tion and enthusiasm, values and belief systems that they have developed throughout their lives. These are more difficult to assess via interview questions and reference checks unless the applicant has a reputation for these attributes or is known to the organisation.
There are people who lack confidence and therefore frequently seek a supervisor to verify the accuracy or quality of their work. Others may prefer minimal supervi- sion or intervention. Some people work well in teams while others may prefer to work alone.
Also the interpersonal and communication skills of people will vary. In terms of fit between applicants and an organisation’s culture, structure and strategic impera- tives decisions will need to be objectively made about each applicant’s suitability. A trait is a constant characteristic of an individual.
The assessment and understanding of personality is just as challenging as the assessment of cognitive capacity. An organisation may seek to appoint a marketing manager with a very sociable manner who will be expected to entertain clients. This may be a higher priority than attention to detail or financial prowess.
The assessment of personality solely through the lens of interviews is severely lim- ited. It is also subjective and must be work related. Personality may be impacted by health, recent severe events such as deaths in an applicant’s family and at times may vary to suit specific situations. However, some traits are entirely consistent.
Throughout the recruitment and selection stages, organisations try to gain as much information as possible about the applicants in order to match them against the position’s selection criteria (performance factors or knowledge, skills, and other attributes and competencies). For highly competitive organisations, this means gath- ering data including the aspects listed above.
Personality traits can include the following:
• Cooperativeness • Dominance • Original thinking • Socialisation • Flexibility • Responsibility • Conscientiousness • Tolerance
However, while a number of personality inventories exist, a large amount of testing revolves around the Big Five Personality Characteristics Inventory. These include:
• Extroversion • Agreeableness • Conscientiousness • Emotional stability • Openness to experience
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This particular inventory condenses the range of traits to those considered critical to the workplace. This instrument takes about 45 minutes to complete but needs to be interpreted by a qualified psychologist (Gatewood & Feild, 2001).
However, Gurven, von Rueden, Massenkoff, Kaplan, and Vie (2013) found that when the five factor model was applied to non-traditional areas such as forager- farmers, the model was not consistent and could not be applied universally. The effects of culture and socioeconomic background have an impact.
Research by Arthur, Woehr, and Graziano (2001, p. 671) also argue that:
Several distinctive characteristics of personality testing raise impor- tant conceptual, methodological, and practical questions. A general implication is that personality assessment and testing in employment contexts is more complicated than it would appear. Practitioners and researchers must be cognizant of these issues in the application of per- sonality tests to employment decision making.
The use of personality testing must be justifiable, non-discriminatory and well- considered if they are to be used as reliable predictors of job performance. An appropriate weighting must also be given to them. However, other tests are more job specific and accurate predictors of performance.
People will react differently depending upon the situation they find themselves in. In an interview setting, applicants may act as they believe the interviewer expects them to act. In this instance the interviewer needs to determine the superficial role being played from the core traits of the individual.
This takes exceptional competence, and unskilled interviewers may well misinter- pret the individual’s situational response and assume that the traits being displayed are core traits. Hence, qualified psychologists can play an important role in assisting organisations gain a true insight into the personalities of applicants.
As people will often act as they believe they are expected to act when seeking appointment to a position, many organisations are surfing social media websites to get a better indication of how staff and potential staff really act. People often say candidly what they think on social media sites.
The use of social media can complement personality and cognitive assessment or, in some cases, replace it. Because the investment in staff can be substantial, employ- ers need ways to ensure they choose wisely. However, poor behaviour on a social media website does not mean the applicant or employee will bring such behaviour to the workplace, and discrimination needs to be avoided in favour of objectivity and fair mindedness.
5.2.3. Cognitive Capacity/Ability Tests
Each individual has a different level of intellect and only a very basic assessment of this can be made during interviews. Reference checks may not be helpful if the applicant’s current employer ‘helps’ the person leave their job and go to another employer because they are not currently successful in their present job.
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Also, previous achievement in challenging positions may indicate a level of cogni- tive capacity but it does not predict the effective use of this capacity or the attain- ment of a higher level of cognitive capacity in the future.
These tests can be referred to by many names: cognitive capacity tests, cognitive ability tests, mental ability tests, intelligence tests or IQ tests. Each person has a range of cognitive abilities which can be measured by separate tests designed to measure these abilities in individuals. An individual score can be achieved by indivi- duals undertaking a test designed to measure a specific ability.
The score is then compared to other normative scores to determine where this person’s score fits compared to others. Thus a person’s individual score can indicate if they are above average, below average or average when their score is compared to the broader populace.
However, Gardner and Deadrick (2012) conducted research on cognitive ability tests and found that when differential validity (difference between subgroups and the relationship between performance predictors and selection criterion) was applied to these tests they disadvantaged African-American and minority applicants com- pared to Caucasian applicants.
General cognitive ability tests attempt to measure a range of these abilities simul- taneously and combine to form an overall score derived from the individual scores achieved. The overall score can also be compared to a known range of scores to determine where the applicant’s score fits compared to others.
Gatewood and Feild (2001, p 571) list some of the abilities measured by cogni- tive-based tests. These include:
• Conceptual classification • Conceptual foresight • Figural classification • Figural identification • General reasoning • Intuitive reasoning • Logical evaluation • Memory span • Numerical fluency • Ordering • Semantic relations • Spatial orientation • Verbal comprehension • Visualisation
These cognitive abilities are all different to each other, and before the correct test can be identified for use in recruitment and selection it must be determined what needs to be measured and why it relates to the job.
A young graduate with a bachelor’s degree has already shown that his or her cognitive abilities have been stretched by achieving a university degree. This may indicate a base level for an applicant, and organisations may test the person to
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determine how far above this level the person’s abilities can take them. This may indicate their future promotability.
An organisation would want a manager who understood concepts and could rea- son through issues as they arose. A manager would also need to recognise semantic nuances and have strong verbal comprehension competencies.
Global-based organisations may seek staff who appreciate cultural diversity and the positive role it can play. They may seek staff who can analyse data and evaluate the potential of new markets, plan and sequence activities to give the organisation its competitive advantage.
However, as O’Meara and Petzall (2007) point out, in the Australian higher edu- cation sector, potential university CEOs are not tested at all. Instead applicants are judged on their previous experience and perceived contribution to previous universi- ties, and this is used as a basis for selecting candidates. Initial interviews with selec- tion panels last, on average, 45 minutes.
Applicants may also be required to address the university executive and its board or council and be judged on their mental agility and ability to respond to questions posed and their ability to articulate a vision for the university.
In this instance, tests are not seen as providing any greater insight into appli- cants. The recruitment and selection strategy includes activities that require appli- cants to demonstrate their cognitive abilities rather than measure them via testing. There are alternatives to formal testing but their reliability varies.
Mechanical ability tests can be given to technicians, fitters and turners, mechanics and those designing, building and maintaining machines to determine their level of technical competence as well as their ability to think through solutions to problems. Thus, some testing can focus specifically on areas such as machinery while others can be used to assess competencies and personal traits.
5.2.4. Graphology
A unique form of assessment is the use of graphology — the systematic analysis and study of handwriting. Graphology has been used to identify health issues of the wri- ter, hidden potential, career counselling and assessing personality compatibility. The analysis is based on 300 different handwriting characteristics, such as the size of the writing, slant, shape, letter width, links, loops, page layout and the writer’s pressure on the paper (King, 1998).
A review of The British Institute of Graphology (TBIG) (2013) website shows areas related to recruitment and selection as being used for determining career choices, management development, personal development, recruitment, pre- interview screening and integrity/security assessments.
Graphologists will ask an applicant for a brief one-page written self-description during an interview and use this as a part of his or her evaluation. While Brody (2010) argues that there is no scientific evidence for the use of graphology, he sug- gests that those wishing to evaluate the use of graphology in selection practices
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should not weigh the outcomes too highly. He suggests that selectors should be extremely cautious about using the results of graphology.
All strategic recruitment and selection aids need to be considered on their merits. The psychology of graphology suggests that people express themselves by the con- tents of their written material as well as the way they write. A common example of this is where an angry or frustrated person pushes the pen harder into the paper rather than flow over it smoothly.
5.2.5. Situational Judgment Tests
Situational Judgment Tests (SJTs) are relatively easy tests to administer and score and used in management, supervisory and graduate recruitment. Applicants are given a problem to analyse as well as a number of possible responses to the problem from which they choose the best option or are asked to rank the possible responses. Because they are based on plausible situations that applicants may have encoun- tered or could encounter, they are more readily accepted by managers and applicants.
Salter and Highhouse (2009, pp. 392�393) use the following example developed by Weekley, Ployhart and Baughman (2006):
One of the people who reports to you doesn’t think he or she has any- where near the resources (such as budget, equipment, and so on) required to complete a special task you’ve assigned. You are this per- son’s manager.
Possible responses include:
• Tell him/her how he/she might go about it • Give the assignment to another employee who doesn’t have the same objections • Tell the person to ‘just go do it’ • Ask the person to think of some alternatives and review them with you • Provide the employee with more resources
The SJT is different to hypothetical questions used in interviews and/or assess- ment centres.
Instead they use empirically keyed standardised response alternatives developed in the item development stage. While there is debate as to what SJTs actually mea- sure (common sense, good judgment and so on), there is evidence supporting the use of these as predictors of future job-based performance.
Assessors can contrast questions such as What would you do in this situation? With deeper questions such as What should you do in this situation? The latter ques- tion may allow an insight into applicants’ thought processes, predicted behaviour, priorities and personal values as applicants explain the rationale for deciding what they should do.
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5.3. Reliability and Validity
The concepts of reliability and validity were raised in Chapter 3. While these con- cepts need to apply to all aspects of strategic recruitment and selection such as inter- views and even question types and techniques, they are especially relevant to all types of assessment tools (testing). Reliability and validity allow psychologists and HR practitioners to confirm that tests being administered are appropriate and assess what they are supposed to assess.
5.3.1. Reliability
In terms of staff selection, Gatewood and Feild (2001, p. 115) refer to reliability as ‘the degree of dependability, consistency or stability of scores on a measure (either as predictors, criteria or other variables) used in selection research’.
Whenever an assessment tool is used, the staff administering the test need to have confidence that it consistently measures the same criteria in all applicants. Reliability also means that if applicants are retested then the same or similar results should be achieved. If reliability is not possible then the assessment tool is unreliable and may give inaccurate results. Its use may then be inadvisable.
Reliability can be estimated, and at a basic level an assessment tool may be high, medium or low in reliability. Psychologists and statisticians calculate the reliability of tests and errors of measurement prior to their release for use.
Errors may impact the reliability of assessment tools and the source of errors considered. The reliability may vary between geographic regions and countries and reflect different work patterns, cultural and ethnic variations, levels of experience, areas of expertise and education. Research shows that applicants often try to manip- ulate the outcome of tests by positing what the assessor or organisation would deem to be an ‘ideal employee’ and answer test questions accordingly. Those able to dis- cern critical performance criteria are better able to portray themselves via test responses as the ideal employee (Klehe et al., 2012).
At a pragmatic level, sources of error can be caused by interviewer’s perception or by the applicant’s mental and physical health, mood, levels of motivation and stress. Applicants may not fully understand how they are required to complete a selection aid or may find environmental issues such as heating, cooling, seating, noise and interruptions distracting, resulting in low levels of reliability (Gatewood & Feild, 2001, p. 122).
In this case a comparison between an applicant’s interview outcomes and an assessment tool results may give conflicting perspectives. Where there are variations in expected or actual outcomes, the sources of these errors need to be identified wherever possible and the results reconciled. In respect to differences in age and cognitive ability tests, Brough et al. (2011) found that older staff were as cognitively competent as younger staff. The impact for ‘Boomerangers’, those older people returning to the workforce after retirement, meant that their cognitive abilities were not substantially lower than their younger colleagues.
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Hence in recruitment and selection a variety of tools need to be used in order to confirm or refute the outcomes of other tools such as interviews, reference checks, assessment centres, trial periods and testing. Each tool or aid needs to be appropri- ately weighted.
Thus interviews or testing are weighted too highly but may be weighted similarly when they are used to assess the same applicant criteria. Criteria to be assessed arise from job analysis and competency profiling which needs to be extremely accurate, as it forms the basis of assessing applicant suitability and matching applicants with the organisation’s strategic direction.
Also, where tests are used to predict the applicant’s suitability and capability to a job and its organisation, multiple approaches need to be used in order to ensure the reliability of the data. Given the cost of recruitment and selection as well as their impact on organisational performance, it is sensible to confirm applicant’s suitabil- ity by a variety of means.
Other assessment aids include feedback from the applicant’s colleagues, different but similar tests, observation, completing a diary, asking applicants to write about themselves, i.e. essays about their lives, priorities, work history, work ethics, aspira- tions, motivators and so on.
However, the use of more subjective types of assessment introduces the subjectiv- ity of the rater or scorer or interrater reliability. An assessor using subjective means of assessment uses his or her own subjectivity to interpret the results, and this can contaminate the objective reliability of the assessment outcomes. This provides another reason to use multiple assessment tools.
5.3.2. Test-Retest Reliability
In an ideal situation if a person scored an outcome in a test and then was retested some time later, then the two scores should be identical — in an ideal situation. However, in reality, the closer the outcomes the higher the test reliability.
Factors that can influence the test-retest reliability outcome include:
• Sufficient time has passed so that a person’s memory of the test does not affect the test-retest reliability
• Determining if no significant event has occurred to the applicant that might affect him or her between the test and retest
• When only one item has been measured and it is appropriate to retest the applicant
The test-retest reliability may be important to measure stability over a period of time, especially where organisations need consistency when measuring across large numbers of applicants.
5.3.3. Interrater Reliability
In most cases the interpretation of applicant tests are scored objectively. On other occasions the rater must use his or her own judgment and in doing so introduces
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bias. In the case of interviews and observers, multiple raters are used to offset the bias introduced by other raters and to assess the degree of objectivity.
In the case of interviews, the use of a panel interview allows for the assessment of the level of objectivity and bias used. This helps the organisation to reduce bias as much as possible along with discrimination and to ensure the interview is as legally defensible as possible.
5.3.4. Parallel-Test Reliability
Another way of measuring reliability is to administer two different tests. However, each test must:
• Have the same number and types of items • Have the same level of difficulty • Have the same averages and standard deviation scores
Once the reliability and equivalence are confirmed between the tests, then tests can be administered at any time. Parallel forms of test reliability are not common, but once determined they can be used sequentially or only one test administered.
5.3.5. Internal Consistency
Gatewood and Feild (2001, p. 129) refer to internal consistency as ‘…the extent to which all parts of a measure (for example items or questions) are similar in what they measure… A high estimate of internal consistency suggests that respondents’ answers to one part are similar to their responses on other parts of the measure’.
However, a measure where applicant responses do not affect responses to other questions is not internally consistent. Internal consistency means that each part of the test is interrelated and, therefore, if an applicant can answer one part, he or she should be able to answer other parts effectively.
5.4. Validity
It is possible for an assessment tool to be reliable but not actually measure what it is supposed to measure. High levels of reliability do not necessarily lead to high levels of validity. Validity refers to the inferences that can be made from the scores on a test or measure, and different inferences can be made regarding a criterion (Gatewood & Feild, 2001, p. 162).
A job analysis may suggest that applicants with certain characteristics are more desirable in a job than those without them. An inference may be made that this is the case but it cannot be proven. An inference can be made regarding each criterion identified through job analysis but these need to be verified as accurate and neces- sary — they need to be valid (Arnold, Silvester, Patterson, Robertson, Cooper, & Burns, 2005, p. 151).
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5.4.1. Criterion-Related Validity
One of the most common forms of validity is criterion-related validity. This refers to the degree of accuracy between a criterion and the predictive capacity of the assessment tool being used. Criterion-related validity is high if applicants achieve high scores on a predictor assessment, and once employed or when completing simi- lar tests or tasks also achieve high criterion performance, while the reverse is also true.
Such a strong correlation between high predictor scores and high actual perfor- mance infers high validity of the test. The test accurately predicts performance of applicants and measures what it is supposed to measure.
The level of validity is expressed as a coefficient with the number one expressing perfect or ideal validity and the number zero indicating no validity at all. The higher the coefficient, the higher the level of validity; where organisations use such testing through consultant or in-house psychologists it is wise to know the level of reliabil- ity and validity prior to approving their use as predictive tools.
A job description for an Information Technology manager may state that the successful applicant must be familiar with such technology and be able to quickly and effectively analyse and resolve disruptions when they occur. This criterion can be assessed by reviewing applicants’ employment history, feedback from their col- leagues, their qualifications, or by getting them to outline their approach to resol- ving problems during interviews.
Where management experience is required to successfully undertake the role, interviewers may ask situational questions such as ‘tell me how you have resolved disruptive issues previously?’ As a complement to other tools, applicants could be asked to undertake problem-solving or cognitive ability tests to determine if they can think creatively and quickly where necessary.
The results of such tests can be viewed in relation to responses to interview ques- tions, record of previous work history and achievements and feedback from collea- gues. Other tests specific to the role may be conducted as well. Where there is consistency and the successful applicant fulfils the role effectively, the measure of the criteria is higher.
It is sensible to ensure that only properly researched tests with a proven record of high levels of reliability and validity are used in recruitment and selection strategies. Sources of error should be discussed and minimised as much as possible and tests should only be administered and interpreted by professionally qualified staff. An appropriate weighting should be determined and used in conjunction with a range of other weighted selection tools.
5.4.2. Concurrent Validity
In concurrent validity, both criterion and predictive data are collected at the same time regarding current employees and hence referred to as concurrent validity. Where job analysis is used to identify critical knowledge, skills, attributes (KSAs)
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for a job, tests can be identified that measure what is required to be successful (pre- dictive) in these job tasks.
At the same time, criterion data is gathered, such as output, quality, timeliness, performance management feedback or other criteria related to the job (criteria). The tests are considered to be valid predictors of performance if statistically significant relationships with criteria exist.
5.4.3. Predictive Validity
Instead of collecting predictive and criteria data together, predictive validity involves the collection of data over a period of time (Gatewood & Feild, 2001, p. 168). Once a high correlation is determined regarding the relationship between predictive and criterion validity data, the tests can be given to applicants and not current employees.
The predictive validity of the tests has been verified via concurrent means and can be used with a degree of confidence in predicting the performance of applicants in the job. Concurrent validity processes confirm the validity of tests given to exist- ing staff so they can be given to applicants.
5.4.4. Other Forms of Validity
Face validity refers to the perception of the applicants undertaking such tests. When applying for vacant positions and being required to undertake tests, applicants expect the test to be relevant to the job explained to them. If there is a clear link between the job and the test then applicants will be much more amenable to under- taking the test.
However, where the link is tenuous then applicants may be more cautious about completing the result and a potential source of errors may arise unnecessarily. In order to reduce applicant’s stress and to increase the levels of reliability and validity, it is wise to explain the role that the test will play in the selection process. Giving applicants an overview of the weighting of all aspects of the selection process, including tests, and answering any questions they may have will lead to a much smoother process.
It is usual for interviewers to give an overview of the selection processes and weightings to the applicants during the initial interview. Effective communication is essential so that applicants understand the processes involved and there are no sur- prises. The interviewers need to be able to answer applicants’ questions and show that they have a clear understanding of the processes themselves and support the use of tests and other assessment tools. This is especially the case where interviewers do not administer the test themselves.
Content validity refers to the capacity of a test to cover a representative sample of the criterion being tested. The test must cover all essential aspects of the criterion in order to assess applicants’ knowledge. The content covered by the test should assess
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the knowledge and behaviour of a person who would typically be familiar with such a role.
A person applying for the position of a commercial aeroplane pilot would clearly need to demonstrate a knowledge of avionics and how to respond when warning lights come on. The applicant may be required to demonstrate skills in a simulator to show he or she can captain the plane.
However, a commercial pilot also needs to know about the use of radar, weather patterns and their impact, communications, how to access airspace over different countries on international routes and emergency procedures. An applicant may also need to demonstrate his or her navigation skills, knowledge of de-icing practices, security requirements, processes at airports and how to avoid restricted airspace.
In this case the employer may use several different tests to assess the applicant’s competence or use one of more integrated tests that assess applicant’s competence across the range of knowledge, competence and experience. It would be expected that a typical commercial pilot would have a thorough knowledge of all these aspects of the role while training could be used to reinforce any areas lacking experience.
The role of a commercial pilot is substantial and carries a great deal of responsi- bility for passengers, crew and the aircraft. Thus content validity would be achieved if a representative sample of the role or part of it were fully assessed. A test of avio- nics would allow applicants to demonstrate competence in this area but if other important areas were not assessed then the test would have low content validity. The employer could not be confident that the applicant had a sound knowledge of the necessities of being a commercial pilot.
Construct Validity is a term that refers to the psychological characteristics deemed necessary to successfully and effectively perform a task or job. Every appli- cant brings with them a myriad of constructs or psychological characteristics such as intelligence, communication ability, motivation, ability to work in a team or work independently and leadership.
As applicants leave one employment system to join another, they bring with them an accumulation of experience, knowledge, values and belief systems. It is these characteristics that make them attractive to potential new employers, who determine if this accumulation adds value to their talent bank. Not all employers will seek the same constructs in new employees but will seek those they believe are most valuable to their system of employment and in enhancing strategic talent.
However, as people have a number of different intangible but observable con- structs, organisations strive to identify which constructs make their staff successful. This can mean deconstructing the psychological characteristics of individuals and attempting to measure the constructs deemed value adding. Tests can be used to measure the constructs provided the correct constructs have been identified.
According to Gatewood and Feild (2001, p. 184), ‘Construct validity is a research process involving the collection of evidence used to test hypotheses about relation- ships between measures and their constructs’.
Once a desired construct is identified, different tests and tools can be used to determine if the tests (indicants) actually measure what they are supposed to
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measure. As more evidence is gathered to support the precept that the tests are accu- rately measuring the constructs they are supposed to measure, the level of construct validity increases.
If a test is not reliable, it is not valid. If a test is valid, it must first be reliable, but every test that is reliable need not be valid. Those engaged in strategic recruitment and selection need not be psychologists but they do need to understand the termi- nology and how/why these are applied.
5.5. Situational Testing
5.5.1. Assessment Centres
An assessment centre is an artificial environment created to allow applicants to undertake a range of activities designed to demonstrate their cognitive abilities and traits to observers. The assessment centre allows observers, organisational staff and/or consultant psychologists to see how applicants deal with different scenarios in a practical setting.
Over a period of hours or days applicants focus on the tasks they are involved in and it becomes more difficult for them to maintain a facade for the observers. Eventually, core traits will become evident and give the observers a fairer indication of applicants. Applicants are informed early in the selection process that they may be required to attend an assessment centre and told the role and purpose of this form of assessment with respect to other selection tools to be used.
While the use of assessment centres is generally used to assess and employ gradu- ates, it is not restricted just to graduate recruitment. Participants in assessment cen- tres are given a range of activities to undertake and complete, and each task is designed to test their constructs in a practical way. The fit between individual parti- cipants and the organisation is assessed through various activities. The participants are observed and therefore assessment centres are subject to the rigours of reliability and validity.
While the duration of the assessment centre varies, most have a similar structure. Job analysis is undertaken and the core criteria are identified and form the basis for the assessment centre activities. Thus the constructs being assessed are all job related. Sources of errors from participants, e.g. nervousness, are assessed through observation and considered. However, non-job related constructs such as a partici- pant’s personality may be observed and trained assessors help guide selectors to the core constructs such as interpersonal and communication skills.
The activities undertaken can vary depending on the constructs necessary to suc- cessfully meet the job criteria being assessed. Garavan (2007, pp. 155�156) outlines these and include the following:
In-basket exercises — In one in-basket exercise, participants were placed in the role of a regional bank manager and given two hours to reply to 30 customer
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complaints regarding poor customer service, low performance and HR issues. Graduates had to prioritise the severity of the complaints and complete a typed report regarding the issues that had to be emailed to the chief assessor.
Similar scenarios can be developed that assess participants’ communication compe- tence as well as their capacity to analyse core issues, make decisions, adhere to time constraints as well as plan and organise their activities. These individual constructs may infer a level of participant’s intelligence, however they relate to specific aspects of the job to be filled.
Leaderless group activities — In this activity, randomly selected groups of four or five graduates were brought together and given a structured problem and they were allowed 15 minutes to read a two-page overview of the problem. They then had to identify ways to resolve the problems and any other issues that needed addressing. They then came together for 40 minutes to discuss the problems as a group and told that at the end of this time they would need to give a 10-minute presentation outlining their analysis and recommendations.
In this case it is important to note that no leader of the group was appointed by the assessors.
Instead the participants had to decide how best to resolve the problem, address issues that were identified, work together and produce an acceptable presenta- tion. This exercise was used to identify participants’ problem solving skills, analy- tical competence, their ability to influence and work with others, their delegation, goal orientation, presentation and communication abilities.
These constructs may be generic characteristics desired in all graduates but they are important for those destined to fill senior management roles within organisations. Graduates are targeted as they have demonstrated their learning capacity by gaining a qualification and have ‘learnt how to learn’ and can enhance an organi- sation’s talent bank and bring in new ideas.
Case scenarios — Case scenarios are used in assessment centres to assess applicants’ characteristics and to confirm those already identified by other tests. The case scenarios reported by Garavan (2007) involved management issues in actual organisations. The graduates were given 65 minutes to read the case and prepare a typed report analysing the issues raised and appropriate recommendations. The reports were then emailed to the chief assessor. In all instances where material had to be emailed to the chief assessor that person then distributed the material to the other assessors for comment and discussion.
As all material had to be typed and emailed to the chief assessor, the computer lit- eracy of participants was also being assessed as well as the content matter. The case scenarios required analysis, prioritisation, problem solving, timeliness and appropriate recommendation that were well argued and targeted. While some constructs were being reassessed, new or different constructs were also being identified and compared to the actual job criteria.
Interview simulations — Interview simulations require each graduate to have a one-on-one interview with a trained interviewer lasting 30 to 40 minutes. Each interview was observed by two assessors while the interviewer used a series of structured probing and behavioural questions related to the job criteria pre- viously identified as core to the job.
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The interview allowed the assessors to view applicants’ performance without other graduates being present. While the focus was on job criteria, the interview allowed assessors the opportunity to determine how graduates perform in groups and by themselves and how closely they meet the job criteria.
Oral presentations — Oral presentations are also used to assess the participant’s abilities. The graduates had 20 minutes to choose a topic amongst several topics available to them and they had 10 minutes to make their presentation which was observed by two assessors. The assessors were looking at how organised, struc- tured and logical the presentation was as well as how the presenter generated interest and enthusiasm and how convincing and informative their arguments were (Garavan, 2007, p. 155).
Garavan (2007) found that assessment centres did have a role to play in predict- ing person-organisation fit. Graduate performance at assessment centres could be used to determine job appropriateness and the use of high socialisation practices, and effective training and development tended to enhance graduate fit and performance.
The interaction between the trained assessors and the organisation is important in order to ensure the constructs being assessed are the correct constructs for a spe- cific job. Once there is a thorough and agreed understanding of what the assessment can achieve and how, then both parties can focus on how best to assess participants. Participants need to be given feedback at the conclusion of the assessment centre and this needs to be done in a positive and constructive manner.
A variation of assessment centres is the developmental assessment centre (DAC). The focus of the DAC is on developing existing staff in an organisation. There is a clear benefit when the staff within an organisation are given the opportunity to par- ticipate in a DAC which in itself may be motivational. This opportunity may signal to those staff that they are valued and appreciated and that the organisation is will- ing to invest in their futures.
Another benefit following the DAC is that unambiguous feedback can be given to participants and opportunities given to them to put into practice what they learnt at the DAC. This process can certainly engage staff and can effectively enhance the cur- rent talent bank of the organisation through developing existing staff. Organisations that embrace the People-Performance-Profit/Other outcomes approach will see the strategic benefits of this, while cost-conscious organisations may find it an expen- sive exercise (Applebaum, Hartel, & Shapiro, 1998).
5.5.2. Game Theory, Simulations and Innovative Selection Tools
The use of game theory has become common in many contemporary situations. In defining game theory, Dixit and Skeath (1999, p. 3) state that:
When you think carefully before you act—when you are aware of your objectives or preferences and of any limitations or constraints on your actions, and choose your actions in a calculated way to do the
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best according to your own criteria—you are said to be acting ration- ally. Game theory adds another dimension to rational behaviour, namely interaction with other equally rational decision makers. In other words, game theory is the science of rational behaviour in inter- active situations.
Game theory involves decision making and an awareness of the impact of that decision on others and the outcome of the game. In an education and assessment situation, the term ‘game’ does not include games of chance but instead refers to games where players compete with each other and differ only in their decision mak- ing, interpretation of any rules and strategic intent.
The inclusion of game theory in the recruitment and selection processes may allow assessors to observe, via games, an applicant’s competitiveness, logic, strategic thinking and goal orientation.
Computer simulations have been used in higher education and management edu- cation programs as learning and assessment tools. The ‘Muck Game’ is used to aid in the transfer of knowledge to engineering students. In the game, students must construct a 30-metre high dam of rock and clay.
Students must consider variables such as weather, resources, supervisors and labour budgets, timelines, and health and safety. The students must create a plan and work to that plan. Where educators see major deviations to the student plan, they intervene to get the student to stick to the plan or to reassess resource needs or the plan itself. The game forms part of student assessment together with traditional approaches such as coursework and exams (Long, Mawdesley, & Scott, 2009).
The innovation game is used in higher education to teach students the interaction of strategic and operational decision making and their impact on new products. Again, this game is used as a teaching methodology to aid students’ understanding of real-life situations and make them more job ready. They learn how resources need to match desired outcomes and how investment can be used wisely to reposition pro- ducts and organisations in specific industries (Yalabik, Howard, & Roden, 2012).
Games and computer simulations are harder to fake and the outcome provides selection assessors an ‘honest signal’. Bangerter, Roulin, and Konig (2012, p. 719) define signalling theory as follows:
Signalling theory therefore addresses the conditions under which exchange of accurate information is possible among rational indivi- duals with partly divergent interests.
While organisations send positive signals to applicants via competitive salaries and benefits, excellent promotion possibilities and social reputation within the com- munity, they seek positive signals from applicants. From a systems perspective, organisations with an excellent track record in social, ethical and environmental responsibility are signalling to applicants that they are positive in employment and the broader community. The signal infers that such organisations are aware of com- munity expectations and positively respond accordingly.
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The use of computer simulations and games also signals to applicants that they are technologically competent and innovative in their thinking. Graduates, man- agers and those who are technology literate can engage in assessment tasks using a medium with which they are familiar and would be used by some smaller organisa- tions and most medium to large organisations.
However, despite the best intentions of proactive and innovative organisations, some selection methods may disadvantage minority groups as previously mentioned. Applicants may have impairments that are not initially observable, such as Dyslexia, Asperger’s syndrome or one of the other Autism Spectrum Disorders.
An understanding of these conditions may allow disadvantaged or disabled appli- cants to successfully join the workforce of an organisation. This might require an organisation to educate other staff on likely situations such as poor social skills and interaction, provide additional time to complete allocated tasks or assign a mentor to help the person initially. A person with Obsessive Compulsive Disorder may be an excellent employee in situations where attention to detail is critical. In any event, any form of discrimination is not only illegal but sends a very strong negative signal to the community (Goldman & Lewis, 2011).
5.6. Social Networking
Social media has become a means by which people share information, ideas, views and comments with specific individuals such as friends and colleagues in protected areas. Alternatively, people can share their views and ideas in the public domain where anybody searching social media can access this information.
In 2011, a survey of 800 human resource practitioners and consultants in the United States showed that 89% were either currently using social networking or planned to use it as a recruitment and selection tool. Sophisticated software pro- grams used by online search agencies can advertise job vacancies via client staff who use social networking. The people who receive the vacancy information can pass it on to colleagues using their own social network sites and they, in turn, pass it on to those who may be interested in the position (Adams, 2011).
This approach builds upon staff referrals but achieves an outcome because staff have social network sites where they can share information privately or publicly. Once the information is received, the recipients pass it on to their contacts who, in turn, pass it on to their contacts. However, recipients would refer it to their contacts who would be interested in the job.
Thus each social network contact filters the information and refers it to suitably qualified friends, relations and colleagues. They would not refer a position for an accountant to an engineer but they would send it to contacts who were accountants or knew accountants.
The information sharing aspect of social networking can be used by consultants and organisations to create a cascade of information to users. This approach cir- cumvents the need to post job vacancies on noticeboards and intranets but is still extremely effective in identifying suitable candidates.
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The same research showed that 70% of those seeking to appoint new staff also examine the candidates’ social media profiles. This is done to gain a better insight into the people they are considering hiring. Social networking websites such as MySpace, Facebook, LinkedIn and Twitter reflect the likes and dislikes of the people who use them and organisations can learn a lot about candidates simply by visiting their social networking websites.
While social networking can be a positive recruitment and selection tool, it can also be the reason why people are not employed, or, in some cases why staff are fired. Davison, Maraist, and Bing (2011) cite two scenarios where social networking has had negative consequences.
The first concerns a young lady who has applied for a position as a camp coun- sellor over summer. Despite a very successful interview and providing excellent references, she is not offered the position as employers checked her MySpace web- site showing pictures of her binge drinking.
The second example concerns a man who has been required to work late on a project that he believes is not worth spending time on. Frustrated he sends a ‘tweet’ saying he hates his job and will leave the organisation as soon as he can. The tweet is read by managers of the organisation who then fire him the next day.
These scenarios illustrate the benefits and pitfalls of social network use to both employers and candidates. They demonstrate how these networks can be used in recruitment and selection as the sites contain personal information about people that may help an organisation decide to employ or not employ a person.
These sites are not totally private and people uploading information to them may be unaware that potential employers are using them as a means of determining if they are suitable for employment or not. Certainly the more strategic organisations troll social networking and other sites looking for talent but do not give added weight to such sites.
Organisations can deal directly with individuals rather than go through consul- tants or other agencies or advertise in other forms of media. This creates a very fast and economical means of identifying and employing suitably qualified staff (Aarts, 2011).
5.7. Referrals from Crowdsourcing and Innovation Management
Crowdsourcing is becoming a management tool as crowds are used in mainstream areas of organisations. Crowds can be connected to organisations via technology which allows organisations to access and coordinate crowds and use these in a vari- ety of ways not previously considered.
Boudreau and Lakhani (2013) identify four ways of using crowdsourcing to address corporate challenges. One of these is the use of crowdsourcing to meet labour and talent needs. In this way organisations can create a platform where desired talent can be accessed on a needs basis and at a highly competitive cost.
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Third-party organisations such as oDesk, CloudCrowd, Freelancer and others match the need of organisations with the desired talent base.
This may be considered a means of outsourcing as a match between specific com- petence and talent needs occurs on an individual basis but using non-standard employment. Crowdsourcing can be a source of full-time staff, or suitably qualified candidates may be referred to the organisation by members of the crowd.
Another excellent source of standard employment candidates may be those iden- tified by the third-party organisations as meeting the short-, medium- and long-term needs of the organisations relying on them. In any event this relationship opens up strategic opportunities for both non-standard and standard forms of employment as required.
5.8. Offers
When an offer of employment is made it forms a contract between the organisation and the successful applicant. The contract may be subject to local, state or national laws and may require specific inclusions such as flexibility.
In Australia, the Fair Work Act (2009) requires each new employee to receive a Fair Work Statement from their new employer upon commencement of employment or shortly thereafter. The statement contains 10 National Employment Standards which act as a safety net of minimum terms and conditions of employment.
These include:
1. A maximum standard working week of 38 hours for full-time employees, plus ‘reasonable’ additional hours
2. A right to request flexible working arrangements to care for a child under school age, or a child (under 18) with a disability
3. Parental and adoption leave of 12 months (unpaid), with a right to request an additional 12 months
4. Four weeks paid annual leave each year (pro rata) 5. Ten days paid personal/carer’s leave each year (pro rata), two days paid com-
passionate leave for each permissible occasion, and two days unpaid carer’s leave for each permissible occasion
6. Community service leave for jury service or activities dealing with certain emer- gencies or natural disasters. This leave is unpaid except for jury service
7. Long service leave 8. Public holidays and the entitlement to be paid for ordinary hours on those days 9. Notice of termination and redundancy pay
10. The right for new employees to receive the Fair Work Information Statement
The Fair Work Ombudsman can investigate claims of non-compliance, educate employers and employees as well as commence proceedings those who breach work- place laws (Fair Work Ombudsman, 2010).
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Each country will have its own standards, work-based legislation and enforce- ment agency dealing with such issues. Multinational organisations need to consider the requirements of each nation where they operate.
Those organisations employing a resource maximisation strategy tend to exceed national standards in each country as they set their own benchmark higher to protect the rights of their staff. This signals to staff they are valued and appreciated.
Letters of offer and contracts of employment will also include other information including the following:
• Commencement time and date • Induction program • Hours of work • Wage or salary including information about bonus or other incentives where they
apply • Specific requirements such as overtime, travel • Reporting relationship • Place(s) of work • Levels of responsibility and authority • Benefits including financial and non-financial • Uniforms • Performance reviews • Training and education • Personal and professional development
Each letter is generally crafted to the individual and only contains those elements that will apply to that person. It summarises the agreed salary and conditions dis- cussed at the conclusion of the appointment process.
Prior to appointment, many of the details listed previously need to be considered and agreed upon so that all parties within the organisation know the parameters between which discretion is allowed or not. Of course, if an organisation finds an outstanding applicant these parameters may need to be reviewed.
It is not uncommon for organisation advertising for a graduate in a given area to advertise that applicants must have/ideally have at least two years’ experience. However, if an exceptional applicant who has just graduated applies, then organisa- tions may see strategic advantages in employing the recent graduate.
The letter of offer confirms information discussed privately or at the conclusion of the appointment process. The contract of employment sets out the agreed terms and conditions of the job so that both parties enter into the contract fully under- standing what has been agreed to. The contract of employment must be clear, easy to understand and the language used must not be confusing or ambiguous. This is a legal contract.
While wages, salaries and benefits are discussed and agreed upon, they still form part of the letter of offer and contract of employment. However, wages and salaries do more than compensate employees for the contribution to an organisation.
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The quantum of wages or salary paid to employees reflect to the community how much staff are valued by their employer. Those more highly valued will be paid more and have a greater amount of disposable income. This will allow them to buy goods and services that others on a lower salary cannot afford.
They may live in more affluent suburbs, travel overseas for holidays more fre- quently or purchase more expensive cars. The wage or salary paid to staff reflects how valued they are by an organisation and can determine their social status in the community.
This, in turn, impacts upon their self-esteem as they try to determine their worth to an organisation compared to colleagues. This complex relationship between worth and social status/self-esteem further impact upon the organisation/ community system and the roles staff play in each. It is worthwhile considering the components of offers and contracts of employment from the applicant’s perspective.
5.9. Psychological Contracts
However, there is another contract that has been referred to earlier. This is the psy- chological contract. The psychological contract is defined as:
An individual’s belief regarding the terms and conditions of a recipro- cal exchange agreement between that focal person and another party … a belief that some form of a promise has been made and that the terms and conditions of the contract have been accepted by both parties.
So, in terms of careers, the psychological contract represents informal, unwritten understandings between employer and employee(s). From the employees’ point of view, the psychological contract is the agree- ment that they think they have with their employer about what they will contribute to the employer via their work, and what they can expect in return. (Arnold et al., 2005, p. 532)
The psychological contract involves the interpretation of discussion and corre- spondence between employer and employee and their respective perceptions of what both will contribute and gain. Because this involves a subjective process, the two parties may not share the same perception. Thus it is wise to clarify this unwritten contract to ensure both parties have the same understanding.
In the recruitment and selection of new staff, the interviewers are the people appli- cants deal with the most. This can lead applicants to construct perceptions about the organisations and expectations based on their interaction with interviewers.
Once the interviewers withdraw after an applicant is appointed, the new employee may feel somewhat vulnerable; hence, it is important that the interviewers be involved in the induction program and engage in less formal but frequent interac- tion with new staff.
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This will reinforce the view that new staff are not alone once they commence and gives them the opportunity to discuss any unforeseen issues that may have arisen. This approach keeps recruiters involved with new staff, and feedback can be used as part of their organisational diagnostics to remedy any negative issues before further staff are appointed.
The psychological contract may be positively or negatively reflected in comments by new staff on their social media websites, depending upon their experiences. In the public domain areas of social networking such comments can be read by employers, fellow staff and others thinking of seeking work with the same employer.
In the private domain of social network sites, new staff can confide in their friends and family their real experiences and feelings. If they know of people consid- ering employment with their employer then they are more likely to forward their comments to such people either to encourage or discourage them.
In any event the psychological contract is a powerful influence on new staff and how they portray their job and employer to others in the community. These individual experiences inform the decisions of other job seekers in the organisation/ community system. Psychological contracts may differ between age groups and culture. Research by Zhao and Chen (2008) found that younger Chinese workers are more individualistic in nature and form transactional psychological contracts with their employer.
However, staff with an internal locus of control tend to form relational psycholo- gical contracts with their employers. Interestingly, this finding only applied to Chinese workers, which indicated that a number of different aspects impact upon the formation of a psychological contract, including cultural factors. The research also indicated that personality plays a part in forming the contract and helps explain why different people employed in the same role form different types of contracts.
A perceived breach of a psychological contract by an employee can heavily impact upon the employee’s commitment, motivation and level of job satisfaction. In extreme cases this leads to the employee leaving the organisation and potential unrest with other employees if they agree that a breach of the psychological contract did occur (Gerber, Grote, Geiser, & Raeder, 2012).
Saunders and Thornhill (2006) also found in their research that permanent employees with a relational psychological contract reacted differently when forced into temporary employment.
Some could not accept the transition and saw it as a breach of the psychological contract while the organisation tended to treat this situation in a very transactional manner. More staff-oriented organisations created a gradual transition to allow staff to slowly accept the new relationship and how the organisation viewed their employment. This was necessary for staff moving from a relational contract to a transactional psychological contract.
5.9.1. Listing Expectations
Graduates and those entering the workforce for the first time may have little experi- ence in how to effectively prepare for interviews and résumés. For such people the
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experience will be new and they will tend to infer cues from the processes and their interaction with selection staff. If the recruitment and selection processes are deemed appropriate, engaging and inclusive, then the applicant’s experience will be positive. Where applicants view recruitment and selection as a positive experience, this may result in a more productive psychological contract being established between the applicant and the organisation. Thus the processes themselves are assessed by applicants and can influence their decision to join an organisation as well as create their job/organisation expectations for the future.
Variations between the new holder’s expectations of the job and job realities can lead to ‘feelings of disillusionment, frustration, and turnover…’ (Scholarios, Lockyer, & Johnson, 2003, p. 183). The better the experience, the better the transi- tion to stable employment — the reverse is also true.
In 2001, Curtis and Wright (2001, p. 59) stated that replacing key staff can exceed 150% of the person’s annual gross salary. The costs included:
• Separation costs • Temporary replacement costs • Recruitment and selection costs • Induction and training costs
However, when a new recruit leaves an organisation, typically in the first 12 month of employment, the person takes with him or her the knowledge, experience, creativity and the investment the organisation has put into the person. The invest- ment can be through training and education, experiential learning, developmental opportunities, career maps, succession planning and inclusion in the talent bank.
These activities are designed to enhance the new staff’s learning curve or experi- ence. When young or inexperienced staff join an organisation it takes time for them to learn the job to the point where they can undertake it with minimum assistance. Enhancing the learning curve means to become more competent faster. With staff turnover the talent bank diminishes.
The link between unrealistic job expectations and staff dissatisfaction and turn- over has been well documented as noted above. The reason for a variance in real and pre-employment expectations can vary. A person engaged in high-level sociali- sation pre-employment may assume that this is the norm but find that this is not the case with his or her supervisor or colleagues.
Reducing anxiety but ensuring the person knows what to expect when he or she joins the organisation is important. This may mean that all staff coming into con- tact with new employees may need to display similar behaviour and be consistent and supportive, which signals to the employees that they are valued and have made the right choice by joining the organisation.
It may be appropriate in the pre-employment stage to ask the successful appli- cants what their expectations are. Such a discussion may involve elements identified in earlier chapters such as control over their job, employment stability and security, promotability, adequate remuneration and the like.
However, expectations of applicants also include relational areas with staff. In many instances socialisation with staff the person will work with may assist in
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identifying unrealistic expectations. Where organisations use self-directed teams, it is common for all members of the team, as well as other staff the person will come in contact with, to be involved at different stages of the appointment processes.
Wickramasinghe and Wickramanayake (2013) recommend that applicants do as much research on the job and the organisation as possible. Post-employment, new staff will want to have their actual and potential expertise recognised and respected and will want to identify with the organisation.
Inclusivity and openness will be appreciated by new staff especially when selection staff ensure that the person does not have any unrealistic expectations about the job, the organisation or relational matters. These can be monitored during induction and orientation and on an ongoing basis especially during the first 12 months when new staff tend to leave organisations.
5.10. Direct and Indirect Discrimination and Their Impact
As mentioned in earlier chapters, any form of discrimination is illegal and sends negative signals to the broader community. There are of course exceptions such as in the Arts where a male dancer or an actor plays a male role or for health and safety reasons persons of a certain height need to be employed to operate dangerous equipment.
However, while every effort can be made via effective strategic recruitment and selection, other staff in the organisation need to be made aware of the types of dis- crimination, their impact on all staff, but especially new staff, and the legal conse- quences of engaging in discrimination.
Prior to recruitment and selection, it is recommended to engage in organisational diagnostics to identify any issues that need to be resolved before a new staff member is engaged. Issues may include poor communication, personality clashes, role ambi- guity, disruptive team or group dynamics, inappropriate organisational structure, unequal distribution of tasks or responsibilities and counterproductive cultures or subcultures — and discrimination.
A review of requested transfers from teams, sections, departments and the organi- sation as a whole can indicate problem areas. A similar review of all voluntary and involuntary termination of staff can also yield a wealth of information. Where exces- sive transfers or terminations occur, the root cause needs to be determined and, where possible, permanently resolved. If these issues are not resolved, then exposing new staff to them increases the probability that these staff will leave as well.
While gathering data for job analysis and job enlargement or job enrichment, it becomes necessary to discuss these with staff who work in the same area. A 360° review of the job and its environment will include discussions with supervisors and managers, colleagues and those who report to the position where this occurs. Where the position is part of a team then each team member will need to be involved. Where an internal supplier-customer working relationship is employed, all within this chain will need to be involved in discussions.
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These discussions need not be too long or overly time consuming. Whilst gather- ing information about a job, strategic selectors analyse and evaluate the interactions and impacts on the new employee. This includes determining why the job is vacant, why staff have been transferred from the area and why staff have left the organisa- tion. Included in this is a review of any possible types of direct or indirect discrimination.
At times staff have beliefs which can influence their thinking, such as ‘A woman could not do that job’ or ‘he should be able to lift that package without help’. These forms of discrimination may not be evident or they may be very subtle in nature but those to whom they are directed will detect them and act accordingly. Differences in personality and temperament are often overlooked and selectors need to be discern- ing (Connor, 2009).
5.10.1. Fairness and Equity
All staff expect to be treated fairly and equitably. Fairness, equity and comparative justice are interlinked to the point where it is common for them to be interchange- able. Within this mix is social justice. Alm (2010, p. 309) notes this is in respect to egalitarianism ‘…how much a person of a certain centrally important good should have or get depends on how much of a good others persons have or get…all persons have a claim to be equal with others…’.
The concepts of equity and fairness involve comparisons which people make with others in similar positions. It suggests that all things being equal every person should be treated the same and share in any benefits. The concepts may be inter- preted differently by different persons and the distinction may be due to perceptual differences. One person compares what he or she gets with what others get.
Context is also important to fairness and equity. A person in an organisation may have a creative idea and pass this on to management. Other staff may then be involved in turning the idea into reality. If the idea saved the organisation money and sought to share the benefits with those involved, the question becomes who gets what benefit or reward?
In the case of the person who thought up the idea he or she may argue that the organisation benefitted due to his or her idea and without that idea no benefit could be gained. The other staff who turned the idea into reality would argue that without their input the idea would remain just that — an idea.
Similar issues of context and relativity arise with salary and benefits, promotions, bonuses, redesigning jobs and their environment, redistribution of workload and levels of authority and responsibilities. Any perceived difference in relativity or con- text can lead to staff making assumptions and feeling undervalued. As a conse- quence this may impact upon morale, motivation and productivity.
Issues of fairness and equity need to be resolved by understanding the perception of each individual involved through discussion prior to any planned changes. If a person is going to receive more than another person for valid reasons, early discus- sion with the key individuals may be useful. The person who believes himself or
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herself may not agree with the outcome but he or she will acknowledge that other points of view exist and the organisation has made an effort to explain the perceived discrepancy.
The concepts of equity and fairness are raised frequently and publicly with respect to CEO salaries, bonuses, share issues as well as the total package a CEO gets when he or she leaves an organisation. The community concern is understand- ably supported by other staff in the organisation who are paid far less. Research suggests that the compensation of CEOs has a range of effects on other staff within the organisation, including staff turnover.
CEOs are in a unique position within organisations and whilst they are con- cerned with fairness, self-interest may override this concern in the case of their own compensation. Reporting to a Board they are able to garner higher levels of com- pensation for themselves and they determine the salaries of their immediate subordinates.
However, smaller wage increases are passed on to staff lower in the organisation and this widens the gap between senior management and lower level employees. This may not be the case in every organisation. Research indicates that if staff perceive they are underpaid in respect to their CEO and with regard to other organisation then higher levels of staff turnover may occur (Wade, O’Reilly, & Pollock, 2006).
5.11. Traditional and Non-Traditional Reference Checks
(Confirmation Material)
A reference check is where an applicant has provided the contact details of people who will attest to the person’s background, character or experience in the work- force. Referees are only contacted once the applicant agrees to let selectors contact them. In some instances where applicants are currently employed it is understand- able that applicants do not wish their employer know they are seeking alternative employment.
Some organisations use reference checks as a recruitment screening device to reduce the number of applicants for a position. Other organisations use reference checking as a tool to confirm data gathered through interviews, assessment centres or social activities. However, where references are sought from applicants, it is very rare that a referee will not provide an excellent reference. Applicants nominate refer- ees who will support them and give them good references.
Hence discussion about reference checks raises the question of their worth if applicants know in advance that the referee will support them. It may be that the job of an applicant in another organisation may be sufficiently different to render the use of reference checks useless. Often it is more useful to seek verbal than writ- ten feedback from referees, who may be more candid than if they have to provide a written reference, particularly in view of the existence of FOI legislation.
In most countries FOI legislation means that applicants can access recruitment and selection documentation, test results and the feedback from referees.
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As this may create a legal issue, organisations limit the amount of information divulged during a reference check. The details that can be released include com- mencement and termination dates, job titles and roles, wage or salary particulars and perhaps the reason for leaving. Such feedback can only confirm or refute what the applicant has provided.
In a study by Branine (2008, p. 506) on graduate recruitment and selection across 326 organisations that recruit graduates directly, 90% required references. Of this 90%, approximately 34% requested references after a job offer had been made. This was seen as a confirmation tool rather than a source of new information about the applicant.
While traditional selection tools such as application forms, interviews and refer- ences are still commonly used, an increase in the use of various forms of testing and assessment centres are filling the gap. In these cases employers believe they get a bet- ter insight into applicants’ suitability for roles, and as these are job focussed they can predict applicants’ performance.
Human Capital Theory states that people have a broad range of KSAs and future potential, and Sekiguchi (2007, p. 122) makes the following observation:
Employees who are expected to acquire firm-specific human capital will not need to have specific KSAs at the time of organisational entry. Because such KSAs are firm specific, job applicants have little chance of obtaining them in advance. They will obtain the KSAs after they are hired through firm-specific training.
Thus if an organisation is seeking a person to develop KSAs as they relate to the individual organisation then a reference check may not provide much suitable feed- back. This is because the organisation is seeking to employ staff who will grow with it. However, if the organisation is seeking a person to fill a specific role then a refer- ence check may confirm if the person has the necessary KSAs to complete the job. Reference checks need to be considered in the context of what the organisation wants a new employee for. Appendix F provides a reference check template.
5.12. Probationary Periods
A common practice with new employees is to employ them conditionally on a pro- bationary period. This allows the organisation to determine the competence of the individual and determine at the end of the probation period if the person should be given full-time employment or if the employment relationship should cease.
The use of probation periods may be covered by union or enterprise agreements, state or federal law or be part of the contract of employment. Probation periods may also be used when existing staff transfer to another part of the organisation. Whilst on probation, new employees have the same rights and benefits as full-time employees.
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The new employee will undertake the job he or she has been offered so both the organisation and the new employee can determine if a longer-term relationship will work. Regular interaction with the selection officers and the new employee is essen- tial and reinforces the belief that the person is valued.
Throughout the period of probation, the performance of the new employee will be monitored and feedback given to the person. It is common for several people to be involved in monitoring the new employee so that different perceptions can be considered. Prior to the completion of the probation period, this group will meet to discuss the performance of the new employee in terms of quality of work, timeliness, the need for training, efficiency, output and understanding of the job and future potential.
The length of the probation period can vary. In Australian higher education the probation period of non-executive academics is between three and five years and the probation period for administrative staff is between three and six months. Probation reviews are necessary in order to give feedback to new employees and they are given the opportunity to address any issues that may arise throughout the probation period (National Tertiary Education Union [NTEU], 2013).
In some instances the probation period may be extended due to illness, change in job role or other factors, leading to staff in the organisation deciding that they can- not objectively evaluate the performance of the new employee within the agreed time frame.
Another issue raised in the use of probation periods is when staff within the orga- nisation decide prior to the conclusion of the probation period that the employee is not suited to the job. In this case a meeting of all those monitoring the new employee is generally organised to ensure there is consensus among the group and that the reasons for unsuitability to the job are fully job related. Where consensus is gained, the new employee is interviewed to get his or her perspective and to see if there are any mitigating circumstances, and the employee is counselled accordingly. If there is a clause within the contract of employment regarding the early termina- tion of new employees then employment can cease (Macdonald, 2012).
5.12.1. The Exchange/Negotiation Perspective
Throughout the recruitment and selection processes, applicants and selector will both try to extract sufficient information from the other so that they can make a decision to proceed with the processes or cease involvement. However, towards the end of the processes each party will need to decide what outcomes they want and negotiation will commence.
Negotiation is a form of communication which allows both parties to agree to a mutually beneficial outcome. It involves determining what each party wants and what they are prepared to give in return. The goals of the negotiation involve:
• Both parties feeling they have been treated fairly • Both parties will have had the opportunity to give their side of the story
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• Both parties feel they have retained some control over the process • Both parties will have achieved an outcome with which they can live
The goals as outlined by Spegel, Rogers, and Buckley (1998, p. 4) are a part of the exchange process that occur in the final stages of selection. At this point the selectors will already know the salary range they are prepared to offer the applicant, as well as other issues such as working conditions, personal and professional devel- opment and support for education.
Ideally the successful applicant will have considered the minimum salary that he or she can afford to accept. In many instances applicants will be happy to be employed and accept a trade-off between initial low salary and longer-term security, development and benefits.
However, where the applicant will add to the longer-term talent bank of the organisation, there may be some leeway for negotiation. In practical terms, the more research the applicant does the better. The research should include discovering the average salary range in the industry in which the organisation operates. This can be determined from information held by industry groups and by searching previous job advertisements or via consultant websites.
Cekada, Helmrich-Rhodes, Minnick, Nelson, and Wachter (2012) suggest that in accepting a job offer young safety professionals consider a range of aspects. However, the principles can apply to all job salary negotiations. A checklist for applicant’s salary negotiations includes the following:
• Home expenses such as mortgage, rent and insurance • Utility expenses including telephone, electricity and gas expenses • Medical expenses such as insurance programs, fitness and other health-related
items • Food expenses including groceries, eating out and related expenses • Transportation expenses such as fuel, registration and maintenance costs • Other debts including credit card debts or loans • Savings such as investments and general bank saving accounts • Miscellaneous expenses such as clothing, hobbies, vacations and entertainment
However, while the above are relatively generic, there are other issues to con- sider, such as the impact of location on the salary. Salaries may vary from city to city depending upon the comparative cost of living. If travel is involved then the appointee may get travel expenses or a company vehicle. Some organisations may provide health and dental benefits and many have retirement plans for staff.
Thus, while both parties are expected to negotiate in good faith, it is in the inter- est of both parties to understand exactly what they are agreeing to. Once an offer is accepted then both parties are expected to comply with it rather than contest it. The selectors are committing the organisation to long-term costs, not just salaries or wages, while the applicant is agreeing to a long-term income base.
Negotiating in good faith means that both parties are bargaining honestly, under- stand that commitment is required and that the outcome will be mutually agreed to
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and respected. While some negotiation is covered by industrial relations, agreements and legislation, they may also be covered by civil, contract or other form of law. The best way to negotiate is to be prepared and understand that both parties have maximum and minimum limits (Quagliato, 2008).
5.12.2. Interviewer Preparation
A meeting of all parties involved in the strategic acquisition of talent can highlight any negative factors that may impact on the processes. This includes a final review of the job analysis and selection criteria or KSAs, type of interview to be used, ques- tion types to be used and their sequence, testing or other aids to be used, references to be checked and a final review of submitted résumés.
The résumé contains an applicant’s claim about themselves and forms the basis for questions to confirm or refute the information contained in the résumé. The nature of the job will also impact upon the questions to be asked and the aids to be used.
Where a panel interview is to be used, each member needs to know their role, questions to be asked and the desired outcome of the selection strategy — a match between organisational strategic direction and talent needs with applicants. As first face-to-face impressions are made in the interview it must be right and its prepara- tion is crucial.
Where a person is being employed based on competencies required for the job, then questions and tests need to be designed around these. Alternatively, where a person is being employed based on organisational role requirements, then a differ- ently designed and targeted approach needs to be constructed.
Selectors need to be trained, subject to rigour and understand the consequences of the appointments they make. They need to be mentored and become skilled at identifying self-bias and need to be objective at all times.
5.13. Summary
This chapter has highlighted a number of recruitment and selection tools or aids. These aids assist in gaining additional information regarding applicants that can be used to confirm or refute information gained from other sources. These tools are each weighted and complement other aids.
There are a range of psychometric tests that selectors can utilise. These tests include aptitude, intelligence and personality tests and each must be used to focus on job-related criteria that are identified through job analysis. Emphasis was placed on the administering of tests by qualified staff who can accurately interpret the results and compare them to job criteria to determine fit between the job and orga- nisation with the applicant.
Each aspect of recruitment and selection must have an objective purpose and this includes testing, interviews, questions and assessment centres. Assessment centres
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