.. , Chapter
304
I 11 Choosing and Hiring Candidates
Outline Hiring Top Performers at MarineMax C hoosing Candidates
Combining Candidates' Scores Who Makes the Final Hinng Decision? Legal Issues Rel:ited to Hiring Candidates
J ob Offer Stra tegies Creating a Job Offer Compensation o~-cisions
The Employment Contract Legally Bindi ng Contracts Common Contract Content Additional Agreements
Presr nting a Job Offer Negotia ting
Negotiating with New Hires Rencgouating Contncts Derdop Your Skills: Job Offer Negotiation Tips
C losing the Deal Fairness Perce pt ions a nd Rejections
Rejecting Reneging
Hiring To p Pe rform ers at MarincMax Summary
LEARNING OBJECTIVES After slud)'ing this chapter, you should be a bit to:
Describe different ways of combi ning cand idates' scores on different assessment me thods to calculalC 111 overall score .
• Desmbc three different ways of making a final choice of whom 10 hire. Discuss the factors that innuence the content of a company's job offer. Describe the four differe nt job offer strategi cs.
• ~:;:~ different types offaimess and explain wh y Cil ndidatcs· pcrccplions of fairne ss arc impwtanl to
Ch.1ptcr 11 • Choosing and Hirin g Candidate.~ 305
Hiring Top Performers at MarineMax
n-.1uon:il boa ting a~ y~ hling retailer M~ncMax is a publicly traded, bil lion•dollar boal broker Ii-\ (l ier 50 retail t~auons. Foc~SC<l ~n prcm1umb~, stJChas Sea Ray. Boston Whaler, Mcridilln, " 11 iirJS· GndY White , and the .Fcrr~lll C~p. i\~anncMax complements its industry•leading brands !U1 ·I 51\ C, valU('-addcd SCr\'IC C.S including dedicated de\J\·ery captains, clamoom and in•Wilter CUS· ;',~::·:~~ning_. p~fessiona ll y organized Ge1a1U}'SI cruises., a no-haggle sales approach. nnd ex tensive
;(lr r·~~;p;;i::cs;Le _and continued grov,th, M~neMll.'I v,~kJ h~rd to retai n 1he high level of servic_c ,r-ooal 111 1cr.K"UOn found _ a1 smaller comparucs. TocOllunue 1lS growth. MarincMtix needs ent hu s1•
irJ r,: lcntcd. and highl y mouvatcd employees with leadershi p potential for jobs acroiS the company .3 W~\~~plflY 1,; 11ows that th~ peop le are hsrd to find Md looks f?" wa)·s to ~resen t a?peal ingjob offers Tl! tJleni. The company s managcrs know these people are 1111crestcd m int.ang1ble benefits. such 1~ 10~lenging work and 3dv~ment opportt.mities, In addition to top pay.~ MarineMax :isks you for ::
1 ~ on how it cao bcSt persuade itS top finalists lO accept 11s Job offers without rarchcti ng up its labor
,~,ismorcth:in necessary.
this paint in the book. we have focused on planning the slllfling effort. attracting appli• Lip 1~ and C\"aluating job candidates. The next stage of the staffi ng process involves choosing ,a;bh,ring tlie best fi nal ists. Because the cost of making n had hiring decis ion is often many 3r. _ chat perso n"s salary,5 not lo mention the effects of losing 3 high.potential candidate to a ::~uwr, choosi ng whom to hi re nnd persullding them to accept your offe r arc ncritkal pan of the ~tr.ncgic staffing proc_css. _ _ . , _ .
Imagi ne the fo ll ow ing evalwmon scores for two finalists for a financial analyst s pos1uon: \[:ma r,coll!d 80/ 100 on a job knowledge lest, 35/50 on a structured interview, and 45/50 on a · fSO!l Jlity and valu es test designed 10 assess her fi t wi th lhe organizati on' s culture and values.
;cored 70/ l 00 on the job know ledge test. 45/50 on lhe struccurcd interview, and 35/50 on the pi:r;onali1y and val ues tesL Based on lhciescorcs, who shou ld be hired? The answe r depends ~n th~ 11 ay the firm weights :1nd combines the scores. ff the scores arc averaged, Maria wou ld R:,ei\C ,he job offer. But if lhe structumi interview scores arc gil"cn greater weight than the other :Messmen ts, Pete might be the preferred candidate. If candidates must score at least 75 on the iob ~now ledge test, however. lhen Pete would be out of the running .
nicrc arc differe nt methods or combining candidates' assessme nt scores. All the meth• C\ls :ire relatively easy to understand, but you need to know how to use 1hem. You also need to ur,JmtJnd how to go about persuadin g the best candidates 10 join your firm. In this chilpter, we di "·u~s Ute methods used to choose candi dates a.s well as the emp loyment contract and job offer prro:c, s, negotiation, and closing the deal. After reading this chapter, you shou ld have a good umkr,t:mding of how best to choose which final ist should receive a job offer, and how to r,:r;uJd..- that person to become an employee of your finn.
CHOOSING CANDIDATES
Some cand idates lite so exem plary that to pre\"cnt the m from accepting other com panies' offers. fin ns 4u 1c kly offe r to hi re them prior 10 eval uating al l their potential ca ndidates. However, this i, unu,ual. It is more com mon to co mbine candidates' scores on a \'ariety of assessment meth ods onJ compare their overall scores to dctcnnine whom 10 hire. We disc uss how this is done next.
Combining Candidates' Scores Th,·r..- arc two "llYS of combinin g candidates' assessme nt scores so thJl they ca n be com pared 1<t1h one Jnothcr: 1hc multiple hurdles approac h and Lhc compensatory approach.
THE MULTIPLE HURDLES APP ROACH Requiring candi dates to pcrfonn 31 a Sll tisfactory level on (inc :l\S('SSment before being allowed to continue in the selection process is call ed a multiple hurd lrs app roac h. As we explained in Chapte r 9, it is common for fire fi ghter cand id ate s to be rcquin;tl to pa~s a str('ngth test (e.g., a Lest requiring them to lift 40 pounds) early in the assess• m,·nt procc s, . If cand idat es lack the phy sical capabili ties they need. the re is no point in wasting
M UL TIPLE HURD LES APPROACIJ a uorin g apprwr:I, ,,-/urtby n mdidtJtn mwt r,ufrt a pw1i11J1 scort Oil 1111 a.JStUmtnl bl-fort bt-in& ol/o,,·tdtoron1inut011i11rht~kc1ion pronu
306 Oiaph:T 11 • Choo..il\$ :inJ Hiri~ Oandid3t~
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~:~1:;:~ ::~i:u~~1\::::i;~~: ~i;i;;~~::no::~; :::i;~;na:•;~;~::~_i uate thcrn if lhcy do Toe FB I uses :i mulup!~ hurdles uppi:o:ich w~en hiring special agenis. Because ttic ·
mtiw :i l-,1l11 i,:s. problcm -so lvmg, and dec i~ro n-makmg tr eog. ~Pl-'C13l agent applicants to pas s n bioda ta inventory, Judgment t~·st before b.!1ng allowrd 10 pro<.'ccd in the dks approJ.ch is costly and takes m_orc li me , the :ippro:ich is ge ne rally used whe n the c • ;:::;.:i:::f:;:t ~;tmiancc is high-for example, when the pmon has lhe PQ tcnti: ~frZ;
Ame rican Expre ss uses a three -pan mu ltiple hurdle :bscssmcnt sys1em in which :c::;;~i;!:;s:1_1 ;;/1e current asscssme 111 arc allowed to advance 10 the next sta~:I~~
ny 's Web si 1c to rdocate. A su mm:iry rcpon is thcn e-mailed 1 dccides which appl ican ts become candidates and
:~:~:~:~t~a~d:;::: :::!:r":~~~~d~~:s1!:\:a1: : ~:::~7n;:~:1~i~::}~:;dcn_tified by : an mtcrvicw.l
THE COMPENSATORY APPROA CH \~hen yo u think about 1he bcs1 professo~ you have do y~u thmk they arc rqu:i.lly t:i.lcntcd m every w:iy? Probably not. It' s more like] tha had, fovonic professors had diffe rent talents as wdl as different combinations of them F y t }OLJr yo u might have had a profcssor _with outstanding s1orytc-l ling skill ~, whereas anoth~r:i:x::nplc, ~rofr~ors who lacked those s ki lls could ha ve been equally cffoctJ\·e because of his or her }:u '.ty 10 inspire and challenge you . The compcnso tory opp roach takes differences su h a JI. mto account. It allows high scores on so me assess ments to compen sate for Jow sco~s ;: these assess ments. For e,~ample, a compa ny might allow a candidate's success ful wor k experie;:cr compens.:ite for a lower grade poin t avcr.ige (GPA ). lo
lbcre arc severa l ways to execute th e compensat ory approach. Job ex pcns ca - each _cand1~1e's scores on the different asscssmenls as well as any note s and other inf:r::: acq uired d~nng the asscs~ men1 process. The over.i ll_ j udgment of the finn ·s job ex pens can then be used 10 integrate the differe nt scores ~nd dcte~me each ca ndidate' s total score. Their jud • men t can also be used t_o_m.'.lke the final hmng deci sion or 10 dctcnnine if a ca ndidate ad vances t the n~xc ~hasc of~e ~m~g process. However, because diffe~nt expcns arc likely to use differ- c~t cmena an_d wer~h II differently, the_ ri s_k of legal troub le s mc reases whe n this method is used, None~heless .. t~ the JOb e~pcru: ha\'e a s1gn1 fica n1 amount of experience when it comes to making ~lcct1on deci sions. and 1fthe1r acceptance of the se lec tion process is imponant, re lying on !heir Judgment can bi! appropriate.
_ J_ob ~xpcns· ra~in_gs may ~r may not produ ce the same scores as unit weighting. Unit "e1gh ung mvolvcs gavmg multiple assessme nt s equal we ight when computing a candidaic·s ~vcr.111 score. If all the assess ment me thods a finn administers arc equally useful predictors or J~b success. then uni t weighting is approprialc. Howeve r. as we di sc ussed in Cha pter 8, when different assess men ts arc made us ing different sca les (e.g., if an interview is scored on a I to JO point scale but intell igence is scored on a I tO 60 poin t sca le ) si mply adding them togclher to producc an O\"erall score does not equally weight the scores. The importance of the inte lli• gence assessment would be overweigh ted and the im pona nce of the intervi ew wou ld be undtr- weighted. In th is case. the raw scores must be standardized before being combined.
Table 11 -1 shows an example of co nvening raw 10 standardized scores that are combined using a unit weighting approac h. Ying·s score of 89/100 is J.5 standard deviali on s above a\er- :ige on lhe standardized interv iew, and Tony' s score of 60/ 100 is .4 standard deviations above a\"era~e . Ying's know~edge tes1 score of 25/40 is J .I stan dard deviation s above overage, and !:ii 5 ~ore of 35/40 1s l: 7 ~1andard deviations above ave rage , Ying 's assessment center score
0 is .9 standard devia ti on above average, and Tony's assessm ent center score of 7/10 is 1. 1 stand~ de vi ations above a\"erage. Beca use the scoring of the assessme nt methods is so dif• fcrc nt, usmg scales ra nging from I to 10 and Oto JOO and 1/icn adding candi da tes ' raw scores "ould greatl y overweight their Slruc ture d interview scores and underweight their assessment center scores. Standardizing the se sco res makes it possible 10 com pute an overa ll score for each ca ndidate that can be compared \\ith 01hcrca nd id:i1es ' O\'eral l scores. In thi s case, al though To ny
Clu!ptcr 11 • C hoosingand ll 1ringCandid.ites 30 7
th e Unit Weig hte d Ap proac h 9
-
Standa.rdi zlng an d Combi ning Raw Scores Usin
~---Ying Tony Ra w Standardized
S'. l'l.l cture d lnterv1ew 89 15
(nowledgeTest 25 1.1
;asess rn ent Center .9 Un, t We ighted Ove ra!I Score 3.5
Raw
60 35
St anda rdiz ed
.4
1.7
1.1 3.2
formed Ying on th e know ledge test and assessment ce nter , Yin g's strong perform an ce ~:~c 10 To ny's in the struc1urcd in~erv! cw resuhed in her o~·ern\l score of J .5. Th at' s greater
Tony' s overall score of 3.2, so Ymg 1s detemii ned to be the stronge r cand idate . ihon Rutional we ightin g requi.res ex pens to assign a di fferen t subjec ti \·c we ight 10 eac h assess -
cnt score. Job expcns. in e_ludmg hirin g managers, _dctenn me the weights based on the ex tent : .,.htch ihe job expcns behevc each assess ment is 1mponant to a person 's on-the-job success . \ c,ind idace ·s sco re on e~ch ru:scss~e nt method is then mu lt ipl ied by th:it assessment methoJ "s "ri£hl. and each assessme nt s weighted score is lhen added to produce an overa ll score .
ithou~h thi s approach has the advan~ge ofrecogmzin g that each score con tributes differentl y A the candidate' s overall assessment, 11 requ ires U1e jobexpens to agree on the weig hts. In addi - :~o n. there is no guarante~ that the_ex pcrts' weights will best p_redict success on the job. Clinical ~;.:ss men ts. which we discussed m Chapter 10, u1ilize the rauonal we ighti ng approac h.
Sltltisti cal weightin g involves th e use of a statistical technique. such as multiple regres· ,ion. 10 assi gn a different weight to each assessment score. A multiple regre ssion ana lysis. a JalJ analysis too l initially disc ussed in Chapter 8, is a stati stical tec hnique that identifie s the ideal wc1ghis to assig n eac h assessmen t score based on each assessment me thod 's correlation 111ihjob success and the degree to whic h the different assessme nt methods arc intercorrelated . A mul tiple regression :inalysis is the most scientific approac h to determining ho w to we ight each l,¼,,mcnt. Reca ll that the output of a multiple regression includes a fonn ula tha t looks like thi s:
Overall score = c + (b l X al) + (b2 X a2) + (b3 X a3).
Reca ll also that c is n con stant, the b's are the statistical weights appli ed to each assess- men t method to maximize the valid ity of the group of assessment methods, and the a 's arc a cand1J a1c 's scores on each of the assessme nt methods. Any number of assessmen t methods can t,e u)cd For example, if the regression equation for a salesperson looked like this:
Q1 erall ~corc = 24 + (.20 X Cog niti ve ab ility ) + ( .25 X (ntcrvicw) + (. 15 X Perso nality )
Jnd the candidate's cog nitive ability score was 70, h.i s or her imervie w score was 75, and pcrson - ~!1ty ~ore was 50, then the candidate's overall score would be 64.25:
Over.i ll sc ore= 24 + (.2 X 70 ) + {.25 X 75 } + (. 15 X 50 ) Overall score = 64.25
Tiw; O\ crall score is then used to evaluate whether the candidate should advance to the ne,t ph.l5c of the assessment process or whether a job offer shoul d be exte nd ed. Thi s method can produce bclter hiring outcomes than can either unit weight ing or rational weightings by job C\f!Cn~ . However, to be accurate, the multiple regression approach requ ires HR professi onals to collm a sa mple of several hundred or more candidates. Jf you don't have a large sample size 111th II hic h 10 work, unit weighting or rntional we ighting may be a be tte r choi ce .
CO MBINING THE MULTI PLE HURDLES AND COMPENSATORY APPROACH ES Often . some J~b requireme nts arc esse ntial to pcrfo nnin g a job, but others can compe nsate for each other, as 11c hJ.\"C indicated . For e:mmplc, a data entry candidate mig ht need to type a cenain number of 11 mds per mm utc with a minimum nu mber of errors. These ski ll s might be used as hurd les in an
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308 0,apttt 11 • Choo.si ng :mJ Hiring C:mJ1d:i1cs
mitrn.l a~.'>Css mcnt. Hoiicn·r. hi s or hcr cog niti ve abll i11 cs,!o_b knowkdgc, and [)C r-.onalit Ix· C('lfOjX'ns.'.IIOl)' focwn:. In thi s l' a:;t·: after clean ng the m11~al hurdles , the J>C rson's c~ rn1 g1i1 abil mcs, Job l:now lNgc , and personality s.c~rcs would be w~1gh trd and com bi ned 10 a cof,ln11 11t s:i.tory nrn. nnt.'r, :md the hi ghe st s.conng candi~at r offered the JOb . TI1c FBI srcci al -agc nt SC rnpen procr.'sS we mcntioncJ earlier m the chapter 1s nn example of s uch an :ipproac h_8 lccllori
fm. ,;:;u7°~~ ::~~;~l~•gfi~;l~;~.~~::;c~ ~s1:1~n1:cu~00:o:~~t::~~:lt~ rccc11c JOb ((. mcnts arc hin.'CI. Cut scores arc often dctL'nnmcd by JOb cxpcns based on the job' by a regn:ssron cqu:11100. The b,:l of a cut score is baslXI on what level of prcdi 1s m1n 1mall y acccprnblc. Jfa co mpany's talent strategy 1s to hire on ly the bcsl, th
se t at a high kH:-1. By contra.st , 1f a fim1 is focused on filling vacanci es in the than hiring peop le fo r long-1em1 careers, then a lower cu t score might be more co mpany is pursuing a cost- lcadcn;hip strategy, a lov.cr cut score might be pleatthc1argc1,:dsal.:ll)'kvel One problem\\ . offoJ54.•ne1?anvcsb.."Causcthcyresultinthcr Be-cause this can increase the ad\·crse 1mpacl o ing its cut scores to reduce the number of folsc negative s among women and min onties lower.
Cut scores can be set in 1hrec ways. If job cxpc::rts can esta blish a minima1i able compe tency level, then the cu t score can be sc i at thi s level. If the company nc~ accq,i. quickly. the first candidate who exceeds the cut score IS sometimes hired. Hov.ever b IOh11t th is approach, the fim1 n sks losi ng the opponunity to hire a more desirable candidate "w: llk.ing soon be rccruitcd. If a compan y's strategy is to hire top ta lent, 1t makes more sense 10 ° might
~ I of candidates be fore making a final hmng dccision unless an exccp1ion al can:~:%'~ ---M s Ano1her option is lo compare c:mdida!es· assessment scores 10 each other an d rank order '.hem from highest 10 lowc ~I score. One of the primary issues wi!h .using rank orderi ng is that 11 docs nm gu.'.lr.lntec that any of the c.:1nd1da1es mee t or cxcccd m1n1mum hiring standards. C scores do a better JOb of redu cing the number of unqualified people being hired. Combining d; two methods and making Job offers 10 the highest-ra nked ca nd idates who e~ceed I cut score hel ps 10 kver.igc the strengths of both approaches.
Because rank onkri ng c.:1ndid.:l1cs can result in ad\ersc impact, ii is not always a des irable way to choose your emplO)'L'CS, despite the fact that it can be highly 11a!id and cost-dfcc ti ve. Sometimes bandmg C.:ln be a beucr altemali\e , Recall that with banding, everyo ne who scores within I cc,. tain r.tnge of scores 1s con s1dercd 10 ha\·e pcrfom1cd equivalently and assigned the same grade. A student earning 98 percent in a course rcce11·cs the same A gr.tde as a st udent earn ing 93 pcttcm. Hiring v.ithin the band is then done randomly or based on other factors, suc h as the finn 's Equal Employment Opponuni t}' (EEO) or affinnati1·e action goal s, the company's desire 10 promote an internal candidate who might otherwise leave the co mpany, the experience and lang uages spo1.en by candid:ues. and so fonh . The widths of che bands arc genera ll y calculated on the ba..i s of the sundard errorofmcasurement9 described in Chap ter 8. Table l 1-2 illu stra tes the use of banding
Although bandi ng can help reduce advcnc im pac l. it doc s not alw.:1ys do so. 10 It also cannot remed y deficie ncie s in the so urcing and rccrui1i ng of qualified minoritie s. However, it can help minimize the impacl of measurement errors. After all . is someo ne with an overall assess ment
i(ljijifj Bandi ng Candidates Ca nd id ate Overall Score Band
Amy 87 v, 85 Lee 79 Pedro 78 Am ,la 78 81U 65 Tom 63 Lm 61
Chapccr 11 • Choosi ng ;ind Hin ng C;indida tes 309
• rf 87 3 \a~cl y be.Iler t~an a ca ndid~te whose sc ore is 87.J-or even 86? Probably not. No ,s ri: p,:rkc t- a c:m<hdatc s true score LS likely to be a little highe r or lower th an the score the \i;n .ictuall y rccc'.v~ s .. lllt!s,. rank ord eri ng cand idates won't always produce the most acc urate r.:
1 r t,cst turc . 1 hi s is p~icu larly tru e when the differences be twee n cand idates· scores arc
~~: 11 1 1 ~! y ,nia ll or when ,the standard_error ~f measuren:i~nl is larg~.
r- When usin g cut scores or ran_k ordcn ng, an addm onal decisio n needs to be made about uhcthrr to hire from the top of 1.he hst down, or to create n pool of fin nlists from which 10 mak e
(inal ch oin:- . 1:111 s poo l offin~lLS\s can then be ran k ordered based on over:i.1 1 or spec ific asscss - J Ali rmauvely, the candid.:l tcs can be ra ndomly selected or banded . There is no one best mcnl~ ofchoo~ing the finali sts 10 whom 10 extend job offers. At the ve ry lc:1s1 the fin n· s cutoff If.Cl:, ~hould be se t hi gh e
1 ~ou gh so the com pany' s new hires at least meet or ~xcecd .:1 ny mini-: rn )ia ndwxt s of s uccess.
Who Makes the Final Hiri n g Decision7
1 du~in:1l -organiz:1tional psyc hologi sts arc cxpens nt candi date asse ssment and test construe ·
n Human re so urce profess ional s arc experts in the staffing process. Altho ugh these pc or,l e 51affin g policies and procedures, often make initia l ~pplicant sc reen ing dccisi ons, and
her ha\C or know how to find legal and techni cal infonnat1on rcle1'ant to the assessment and cit , process, it is hiring ma nagers who arc usually respons ible fo r making actual hiring deci- :,1::s~ Bccausc the hi ring .manager will be supervising the person hired, he or she is also one of I:~ prirn:11) stakeholders in the staffin g process and should be in11olvcd in creating :m.d evaluat - 1 , staffinc po licies and procedure s. If the work is done in int erd ependent team s, it 1s also not ~nn~cornmo~ for the team s to be invol11ed in making the fin al choice.
Legal issues Related to Hiring Candid ates Legal iNleS arc prese nt throu ghout the hiring process. The ca ndidate-c hoos in g stage is no e\c,•pno n. In addit io n to the legal issues discussed in Chap1c r 3, people in 11olved in the staf~ng
rl'CC )S should be familiar with the Fair Labor Standards Act (FLS A), the Family and Medical rc .ii·c Ac t (FMLA), .:1nd the Uniform Guidel ine s on Employee Selectio n Procedures (UGESP).
TIIE FAIR LABOR STANDARDS AO The FLSA 12 covers working hours and the payme nt of owtnne or compensatory time off 10 none xempt employees. If an applicant is not hired because th.: person has previously exercised his or he r ri ghts under the FLSA (by reque sting earned ~wtime pay, for exam ple ). a coun may conclu de that the :ipplicanC s rights hove been vio lated.
TII E FAMILY AND MED ICAL LEAVE AO The A. IL A13 entitles qua lili ed applicants up to 12 11 cc ks of unpaid leave for cenain reasons. If an applic ant is not hired beca usc he or she had pre1 iously r :-.:cn:iscd his or her rights under lhe ™LA, a coun ma y co nclude that the appl!cant 's ne hts ha\'<.' be<.'n violaced . For examp le, a federal appellate coun held that an employer vw lated 1; act by failing 10 hire an applicant bec.:1use, in the opinion of her employer, she had taken a lo tof lc a\c .14
THE UNIFORM GUIOE LI NES ON EMPLOYEE SELEOJON PROCEDURES The UGESP 15
appl y (o 1hc c:ind idat<.' -c hoosi ng process when adl'crse impact is occurring . The UGESP require finns toc11 hcr clirninat,: adverse impact or justify ii through validation studies. The UGESP ge nerall y ,1 :11..- ih :1 1 c11 1 scores should be set no higher than the level necessary for new hire s to p,:rform rrofi c" 1..-ntly. Dl·tcrmining the minimum proficie ncy level is up to the comp.:lny. The UGESP al so ,1a1r 1h:11 "1hc way in whi ch nonna l expectations of proficiency within the workforce were deter- mined and th,: wa y in which the cutoff score was de1enn incd" sho uld be described.
,h 1\..: ,::-. plumed in earlier chapters, to deal with ad1•ersc impa.c1 problem s. the UG~S.P ~1,o di-..:u,, the use of":i hernati1·e procedures" that cause less ad11erse impact but that have s1m1- l~r 1:.ili d1t) to the problematic procedure. A cognitive ab il ity tc~t may do a g~job ~rcdicting J1•h ,tic. c" but ii may re sult in adverse impac t. In co ntrast, using a struc tu red mtcf\"1cw and a 11orl. , :implc may have the sa me valid ic y wit hout generati ng adverse impact. The UGES~ do nut rd1~ \ C :.i company of any of its affi mtati ve ac ti on ohligations, and ·:cn~ourage the adopuon and lmplc mcnt ation of\·oluntary affi rm :i ti vc act ion progr:i ms" fo r organ 1zat1on s that do not current ly h.n c an} ,
i
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310 Qur{ct II • ChoJsir~:anJ HmngC'arldidJlcs
AN EMPLOYER' S PREFERENCE FOR DIVE~RSITV l11e &jual Em pJoymem
~:;;~~,:~: c:i:~~s c~r::\11 c act10n an~ dLl'~rsi1 y efforts m~1on."personssubJ L'l:"tto iems and pracw:es to compon 1mp!cmentaffirma1iveacuo n
So, for c.xampk, when a com pany wants to inc n::usc the dem ographic diversit forc e. can LI make a hiri ng dem1on baSl.-d on a_pcrson 's qual1ficat1ons and a protected~ or 111 "'Clrk. such as age, r.ice, or gender, or must A common question 1s whether und legally protected charnctens tic to be public inSLJlution s(police fo rcesund mally qu.1lified for a Job, race can be used .1s a "pl us·• factor ifan "operational employer's 1·olunwy affmnall1'e actJon effons.18 Whether thi s rulrng wi ll be expand pnl'ate employe rs is unkn own . 19 The U.S. Supreme coun h.1S not ruled on the issuc .20Cti to COi·tr
It is never pcnmss ible to hire a nonqualified mrnoricy candJda1e over a qualified nomy cand1d:11c, however. In one case, a cou n held that a downsizing sc hool distri IIOruru . choose to retain a black employee in~tead of .1 white employee of equal seniority Ctb~:xild 11(11, qualifications. so lely o n the grounds of dil·ersity, e1·cn though black employees w:: 1 Hy, 111d resen led rn the sc hool dJ strict.21 As you can sec, it is imponnnt to consuh legal co ~demr>, using any legally protected characteristic as an employee se lection factor. unsc befort
Pursu ing diverse cand idates should not begm during the assessment stage of lhc h process. As 11,e have ind1ca1ed, if qualified di\·erse candidates arc not recruited and, thertf~ring noi become pan of the applicant pool, no sc lccuon sys tem can iden1ify them. If a fi nn 's ,do and recruiting activ itie s idc nt_ify and a1tr.ic t qual ifi ed. d1\·crse appli cants, then applyin:::~g assessment sys tem that has_ lmle to no adverse unpac l ~ho uld ge nerate quali1y, dive h d Successfully atlfllcti ng qualified diverse applicants clim inalcs the need for finn s 10 co ires. pro1ccted charac1em 11c a:s u plus facto r in c.1 nd1d.11c choice,n nsi er any
JOB OFFER STRATEGIES
Given the imporunce of choosing the right candidnics and the umc and money im·ested in the suff. ing process, 11 JS am~.mg how little thought oftcn _gocs into thcj~b offer process. When adccisic.c 1s made to cxtc~d a JOb o~cr, the focus should shi ft from eva luating the candidate to communQ. Lng your enthusias m for him or her and pcrsuadmg the pi:rson to choose to work for your compan Whether the JOb offer 1s standardiz~-d or whether a final ist will recci1·c an enhanced offerbecluse~ or =>he has exempl ary credentials. some thought MXluld go into both the content of the job offer and LIS prcsen ta~on . The goal of a job offer is not on ly 10 get the finalist 10 occepl the offer, but atso 10 s!IC ng~cn his or her comm!tmcn~ to the finn , enhance hi s or her enthusiasm fo r joining the company, and remforce the company s desired image as an employe r. h JS imponant to note that this docs not mc.1n misleading the finalist about the job or finn . Indeed, one of the best 1imcs to present a reafuoc JOb preview (di.cussed in Chapter 7) is after a job offer has been made and before it is llCCtpted.lJ
Parti cularly for firms wuh a talent philosophy of view ing em pl oyees as inl'estors nther than assets. the ~o b offer shou ld maximize th e employee value proposi ti on offered 10 the fi1111iM. As you learned 1n Chapter 4, the employee value proposition is the balance between the mlrinsie and cx~nn~ic r_c11,ards an employee receives by working for a particular emp loyer, It is often 1m ~s'.b!e to l1St all a job's rewards. Nonetheles s, th e Job offer should be crafted 10 appeal 10 the finalm s needs and values and close ly mirror the rewards mos! important to the fi nalist.
'.o entice the best and brighte st talent 10 join iis workforce, Google offers ilS employw perks including free cafeteria meals, free use of laundry machines a chil d care center dog• friendly offices, and an on• site doctor. Eng ineers arc also able 10 dc~·~tc 20 percent of the1~omc topro1ec1Softhe1rchoice.24
Of course, before ex tend ing a job offer 10 a finali st, u is alway s a good idea 10 reri fy the truthfulness of any s1atemen1s made by 1he appt icani th at were relied upon in assessi ng the person-for example, his or her grade point average. pnor work experience, and so fo rth. J1 1s ~lso wise for a finn to try to determmc \\hat the finalist's pri or sa lary was. Fi nall y, it is a good 1dea101dcnt1fyabackuphirc incascyourfirstchoice docs not take the job.
Ch,1pter 11 • Ch om1ng anJ tl innsCand1(.l:i1es 311
cre ating a Job Offer . . • !)I"' of JOb as well :lS orgam'."3t1onal, applicant, ex tern al, anJ legal fac tors all innuc nce the
.:i~ncof:iJoboffcr.Next ,wcd1scusscaehof 1hcsefactors
llf rvPE OF JOB ~e. type of job innue~ces the content of a JOb offe r. Job offers \Jty de pend • r ~,
1 n "hcthcr the po~iuon 15 full or P~ Umc . cxen_i pt or nonexempt from Ol'crtimc pay, and the
,n. f thC po~111on. Job offers for lo11,er•k 1·cl pos Jtlon s nrc often short er an d less de tail ed than :~:'
1 ~~ offers made to fill executi1·e l}Osi tions .
ACTORS The organ1 Lal10nal fac tors that ca n rnnuencc the co ntent of a finn's business strategy, staffing and com pensatio n slrntcgy and policy,
. ompany 's need to hire someone 1mmedrntel y. and un ion contracl s. For .: ·, mpk, a finn pu rs uing a cos t leadership or operational efficiency strategy will likel y try to ~ccr 115 labo r co~ts d~wn . A~ a resu_lt .. the co.mpany .mig ht be less willing to enri ch a job otTcr
-ompany pursuing a d1ffe rent1al1 on or innovation strategy for which hiring top talent 1s a The job offer must als~ be ti ed to the fi~'s compen sauon strategy . For example, if~
~np;i ny has a po licy of e~tcnding only, stand ard Job ~ffers- in other words, 1f it does n' t allow rniplo}ment tenn_s to d1ff~r among d1ffcrcnt ~ew h1res--1hen the choice of what 10 include in
~JO~ offer 1s constrained '. This has_a_ number of1m~li cations, inc lud ing the amou nt that a hiring rr.JnJgcrcan offer a_finahst. The hi_n ng manag er nught also have 10 get approl'a l from so meone
d~ in5!1~1;ri;:;:~~: ;~:~a:~g:i;;;~;:~;r~!r ~quity to ensure that the ,mplo)men t 1cnns of a finn's current ~m pl ~yees are as good or better 1h.1 n the tenns offered to at\\ hires . f or exa mpl~, around the mlllenn1 um, Jnva programming skill s were in shon supply .
0~ \\a~· compan ies hired Java programmers was by offcnng the m benefits and salaries chat in rnJnV cJ,cS were higher than what ex isti ng em ployees were getting. Thi s ca n, of course , create ti;ird·fechngs and lend to morale proble ms and tumo1·er.
SomL'Ume s a new hire should not be given an enhanced job offer due 10 internal equity, but ~JstnC-~ nccess11y ma y require giving the person a highe r salai;'. For example, the person could tie ,s,enua l to lead ing an iml}Onant projrc t or have speci al credentials. In the short tcnn. thi s will ~I p th.: firm maintain its staffing levels and meet an important shorHenn need. However. in the Ion ~ tam. it can be costly if the company's current employees thre.1tcn 10 resig n if their pay is wi"increa,ed to the new employee' s level of pay.
If a company needs to fill a posili on immediately, it might drcide to enric h a job offer to incn:.isc 1he likelihood that it will be accepted. By contr:ist. if a company ca n afford to wait. it rn i~ llc d~ci dc 10 presen t a mo re standard offer. Union contrac ts can also dictate many of th e 1enns 111 dcond 11io n, of th e employment relation ship and affect what must be included in a job offe r.
fACTORS RELATED TO THE FIN ALIST Fac tors rel ated to .'.l fi nali st can affect the content of a J<' ~~ffrr Thc~e factors include the finali st' s fit 11,ith the job and organil.1tion. compensation and n:1<:ll\lrc4uircmcnt s, qualificationsande xpe rie nce ,pre viouscompensatio npack.1gc, value s and n.:ed;, anJ "hcthcr the finali st has other job offers pend ing . If a finalist has good job offers from oth.:r fim1s and needs 10 m.1ke a deci sion soon, an enticing job offe r might need to be pre se nted to till· pcl'.l(,n rcl ati1·c\y quickly . Finn s so met imes make a new job offe r to a current employee 1n r•:spon ,c 10 an offer he or she rcccil"ed from another employe r (a counteroffer). Counteroffers ~f1cn tr) 10 Jt lca~t match what is being offered by the compcutor.
EXTERNAL FACTORS As we ha ve indi c:itcd. a number or external factors ca n affect Lhe con• 1rn1 of a Joh ofkr. The se fac tors include the tigh tness or the labor market, the co,t of living in an :irca. the mk and cos t of a finali st being hired by a competitor, and the market le ve l of com • ~n1J11011and rewards for the pos iti on. If the finali st is the on ly finalist the organi zation wishes li:i ~i rc . 11 might make a more generous offer 10 increase the likelihood of the person ac,·cpting 11. If the area rn which the new hire will li ve is expe nsive, some fim1 s enrich the job offer lo !(Comrn(\Uatc thi s additional expense. If the finalist has skill s 1h.1t could jcopard1 ze the co m• p,ln) s compc 11tL1·e pci-llion if he or she wa:s acquired by a competitor. enhancin g the job offer lo1r.,rc,1,c the chances it will be accepted ca n be strategic . Forexnmplc, when a hiring manager
312 Chlpl,:r 11 • O,Ol"Sm~ 3l'ld Hmng CllllJ1Jate-s
I..Oll"JOBOFFER
aj(X)offr, 1htJtro,uuisofabrW>o·· maf~lrr>oart!,pad;,gr
Resource Reference Table: Determin ing Market Comp ensati _, Levels 0 n
Amenca's Career lnfonet www acmet org College Grad Jo b Hunter: www co/leg e grad com Jobstar http.//jobstar.org Q•Net: http://onlin a onetcenter org Places Rated · www.bestpl ac es.net Sala nes Review: www sa l1n esrev1ew com S<llary com: www.sa lary.com Sa lary Expert: www.sa laryexpert com Th e R,ley Guide. www nleygu1de .com W1geweb: www.wageweb com
rn a well-kno11i-n mvc stmcnL ba nkin g finn announced he had just hired away the com best sale sperso n, he was asked. "Bui 111-·hat will he do for usr' The hiri ng manager imU:'Uor's responded, "I'm not sure, but he won ' t be making S50 milli on a year for the competitor!"l.slllcly
A firm can determine external factors, such as the cost of hvrng and typical co tion leve ls, via salary sur.·cys, consulting with _trade association s, reading employment :rllSl· vis iting com petitors' Web si tes. Trade associ_atio ns and trade mag_azin cs, empl oyment ages,~ and college placement offices can al so provide helpful com parative salary infonnation nties, the job offers finalists receive from othe r co mpan ies. Table 1 1-3 li sts some Web resou~: can be ~scfu l m determining marke t compensatio n !e,·cls. :'his i~formation can help itkotify appropna!c mark.ct-based salary ranges, but the firm must still decide what it wants its staru s:ilW?' range and a,·erage 10 be for a give n ~sition. To _cn surc its ~taning pay offers llfC fa.i r ~ consisten t. the _firm shou~d dc ve_lop a ~1ar1111g pay policy. A s1~ng pay pol icy should specif 1-1hat fac tors will be considered m se nmg the salary (e.g ., education, work cxpc rienee), l~nJ any cap on the slarting pay level (e.g., a job's salary range midpoint or a market reference poull{ an d describe any add ition:il condition s incl uding meeting internal equity standards. A statement of how excepti ons to the policy may be gran ted _~hould al so b.: included, such as documented approvalby a supenor orbyanHRMrcprescntat1vc.
LEGAL FACTORS Equal employment oppon unit y and affi rmative ac\lon goals are lhe two pn. mary lega l factors that 1nfiucncc the co nten t of a1ob offer. If a firm has an affirma ti ve action plan« 1f1t is actively pursuing diversity, its progress toward these goal s mi ght influence how high a job offer should be. If a company is having trouble gelling some subgroups of fi nalists to accept JOb offers. ennched offe rs might be necessary . Al the same time, organizat ions must ens ure that job offers arc comparable across protected ch:iracteristics to a\"oi d charge s of discrimination.
Figure 11 -1 il!ustrates the factors that can intluence the conte nt of j ob offers.
Compensation Decisions
How. precisely, do you dec ide 1,h::u 10 offe r finalis ts? As we ha ve exp lained, the type of job, a firm"s busmess strategy, and staffing and hiring po licies ca n affect the deci sion. So can external factors. suc h as tightnes s or looseness of the la bor mark et nnd the fina li st' s situa11on. A com- pany w1th a low-cost ~tracegy may offer finalists a salary al or slig htly bel ow market, bonuses tied to the ind1v 1d ual' s and the company 's pt>rformance, and a standard benefits package. A company pursui ng a differentiation ~trategy. such as billion -dollar boat broker and yacht maker Marincr-.·lax , mighc offe r :i dc~irab!e hire an above-market salary, generous benefits pack- age, personalized inducements such as a co mpan y car, ex tra vac ation ti me , or fleitible work hours, and a sign-on bonus. If the labor market is tight and it is diffi cult to attract and hitt quali fied candidates. a higher mtal rewards package and hiring inducemen ts may be rcquittd Companies arc also often willi ng to be more genero us an d flc :<ib le wit h job offers for leadcMip and ke y positions than for entry-level positions that o flen involve a more s1andardi1.cdJob offer. The total rev.ards package shou ld reinforce the firm' s human resource and staffi ng strnteg ies we ll as1 ts de si redimageandrcputa11onasanemploycr.
Another 1mpon:rnt job offe r dec isio n is 11hcther to make a low, compet itive, or high Job offe r, and 1-1hcther to leave room for funher negouation . A low job offer is one that keeps lht
Chapter 1 \ • Ch oos in g and Hi ri ng CandidJtes 313
Orgamzot/Ql'l(l/ Frie/ors Business st1111cg1c~ Staffingand
r1mJ//s1F11c1ors Thccontcntnfothcrjob offcn;1hclinahs1hasr« ciH:il Thc!ikcly\1illingncss ofthc linalistto acccptjoboffcr Thclinali s1· s ,·11lues11ndnccds Thclinalist" s compcns.a1ion and reward requ irements Thclinalist"s pre1 ious compcnsatin n andrc"ards Thclinulist" s quuhlicahonsnnd
b.ur1111/Fac1ors The tightness or loo!ioenessofthc labor marl.ct Thcmarkctk,cl ofcornpcnsution andn..·wards Thccostofli1ingin the attain 1-1hicbthe job is located Thcrisk andcost ofa lina!ist ~inghiredby a competitor
FIGURE 11 · 1 Factors That Affect th e Content of Job Otters
cr.iplo~,:r·, co~ts as low as possible by offering a below-market total rewards package, including wm rcn •auon an d benefits. Further negotiation of the offer may or may nol be al lowed . Allhou~h firm> pun.uing a cost-leadership strategy mi ght be templed to pursue this strategy to contain bbilr rns1~. 11 is not consistent with a talent phi losoph y of viewing employees as investors and i·nwura;: 1ng employees 10 stay with the firm fo r long-term careers. High-quali ty fina li sts are also le" \i~eiv 10 acce pt low JO b offers . Low offers are oflcn inappropriate for key posi tions. parti cu· l.irli 1n firms pursuing a differentiation strnte gy or n compe titive ~dvantage_ based on i~ novati ~n that rcqunn top 1alcnt. Because of the imponancc of baving qu al ity 1alcnt 1n leadership roles tn m nrcJ11i1ation, low job offers arc not likel y to be effective for leade rship positi ons in general F~r po:11ion s in whic h hi gher rates of turno\·cr arc acceptable, or when the quali ty of the pe ople hr(J 1, nut critical, pe rhaps for \ow-sk11lcd or temporary work, th is strategy can generate new hire, . althou gh at pote ntial ris k to the firm' s image and reputation as an employer: . _
A co mp<'liti,·<' j ob off<'r is one th:it offers a total rewards package that IS co mpeut1ve v.nh the nm l-.el fur that positi on. in other words. the salary , benefits, and induc~ments arc _a_bout 1Pe \a mc' as 1\hat compe titors arc offeri ng simi larly qualified candidate s for similar pos1t10ns. Funhcr nci;ouation may or may not be allowed . Alth ough they are not ~ikely to offend anyone, ,ompc lill\c JOb offer.. arc le ss likel y to ent ice top finalists to accept the Jobs offered them .
A high job ofTC'r is one that offers a total rewards package that is ~vc ~he mark el. Funh~r n,'~••ll.11 1on may or may not be allowed. Hi gh job offers have the pote ntial to increase a~ o~gam- 1,at,on\ :i11rnct11·cnc~s among workers who value material rewards n~ d enhance a firm s image
rcr uta11o n as an employer. To avoid morale problems lllllong the u current employees, s~ me finu, rrcrer to offe r one- time inducements such as si gn-on bonuses, early performance rn·1cws foi ne11 hires to ~peed up their salary increases, and greate r rc l°:ati on allowanc es .while kcepm g new lu re~· \oni;- lerm reward~ packages in line with those of thc1r other em ployee~.
CO.\IPET/TI VE JOII OFFl:."H
a1ub,,ffrrm,.h,clrrlarwr;,/rr>o'QtJs pocknxr ojfutJ u cumpt 1111 ,t ""'' 11,t markrruffrr
1/IGJJ JOB Of"FEH 01obofftr•n~lud11hr1owl rt>oanli p;,rLil!tlT<IOO ,,,ht,,,,, , U,,,ffn
J
I
314 Clupler1 1 • C'hOOS1 ng llnd Hmng CanJ id:itrs
.\LL\'llll.\l JOB Of"FE:ll When 3 firm make s a ma.\imum job orfcr, 1t 1s e.1.tendmg lhe fi nali st its and final orkr The finah st 1s in formed that th is i s the finn' s best)?b offer and th:bsolutc negouation 1s po')S iblc . A ma,;1mumJob offer can be a low, compe liti ve, or hi gh oft
I no rllnlitr
the final bl that thc compan y 1s offcnng all th111 11 c:ul afford or_ eq uitably do, the~- Sy tct1iii1 mun1cuting us sinet:~ mtcn:st 1n the finalist and. 11 hopes, reducmg or elim inating rm feelings that might ~suit from the offer being below what the fin alist expected. ~y nc111.r~, good strutegy 1f the fim1 v.unts to hire someone who:,c currc nt total rewards Pac i.a, s Cllt be 1 v.hatthecompa11ycanoffcrthcpcrson. . llCe~c"ds
Presenting a high ma.\1mum Job offe r can help fi ll a position quu: kly or c-ntice to joi n the firm . Such an offer makes sense v. hen a fi nalist has received a job offe r a top fillt!iq make a d~-c1sion quickly As 1s the case with a high JOb offc- r, a max im um job offc- r ~ d "CCds to tial to damage morale among a firm's curre nt employees who h.:i.ve lower !Ota! re wan:1s llir
""k>i« THE EMPLOYMENT CONTRACT Employment contrac ts can be 1·crbal. wnucn, or a co rnb1nation of both. Wriuen statements crally supersede 1•crb.:i.l statements. Ho11cvcr. m the absence of contrary wri tten Slate &er.- employer 1s open to legal challenges if it ~rcaks verba l promises. To be enfo rceable, lllcnts, 111 tract tha1 canr1ot be pcrfonncd or fulfilled within one year must be in writing under ;:y C\'la. of frauds. E1·cry employee has an cmplo)menl con~c t. As yo u learned in Chapter 3 'lllli1e: employment 1s an employment ~1a11on sh1p m ~-hic h c_1the~ part y can termin ate the empi ll•'NtJI ~lattonship at any time, fo r any legal reason , 111th no l1ab1hty as long as there is nocon:tnt defi nite tcm1 of employment. E1en ifan em pl oyee is h1r~d on an ··at will" basis withouian! l com mun icated in writing, there i~ sull an oral co ntract 1n pl ace 1hat in most in stances w Id 8 JUSI as cnforcc.:i.blc as a formal wnttcn agreeme nt. The big difference between the two IS :at~ term s of a wnuen agreement tend 10 be easier to prove th.:i.n those of an ora l one.M
Legally Binding Contracts A legally brndrng and enforceable employment con tract an~s when there is an offe r, ~ of that offer, and sufficient ··conside ration'" to make the co ntract va lid.~7 An offt r contaillS lhe terms and cond1tJO ns of cmploymcnl as propo sed by the employer, and possibly specific l'C(IU!ft. ments for the offer' s ~ccp tancc, such as a deadline . A job offer's tenns mu st be definite and ccrtam.andallowthcJOb candidatc toreaso nablyc xpeclthatthcbusi ncssis wi lling to be bouDd by the offe r on the tcnns proposed. Simply telling a person to ··co me work for me ncx l week~ IS too vague tobeavalidoffer.
An accepta11ct 1s a dear expression of the accepting party's agreement to the terms oftbe offer. Tiic offer mu~, be acce pted as specified m the offer, and not propose any changes. lr lht offer require s wnuen acceptance by a certai n date, the acce ptanc e must be on time and in writing to be valid . Staling. " I" II accept the offe r fo r an add itio nal SS,000 per year" is II counteroffer, and it becomes the emplo~ds choice to accept or reject it.
Co,rsideration 1s the bargained -for excha nge between the co 11trac t part ies. In other words, so mething of value must pass from one party to the other for consideration to ha\'eoccurred. Each party to the contrac t mu st gam some bene fit from the agreeme nt and in cur some ob ligation inexchanseforthatbencfit. Typ1cally,thi s involvcs a11 exchan s eoflabor forpay .
Common Contract Content
Employment contrac1s often foc us more on termination issues than on em pl oy me nt. The !cnru• na11onprov is ion s ofacontractca11includeprovisionsforoutplaccmcn t assisiancc,carccr c.oun- sclins, and supplemental bcncfits,s uch as the abili ty to con tinue investi ng in thefi nn's 40l (k) retirement plan after a person is terminated. Ho11cvcr. if a company has a fo rmal SC\"Cranct po li cy , a se parate se1·crance agreement migh1 be unnecessary . For some candi dates, the SC\'Cf• ance term s of the employme nt contract arc a very important factor. Thi s is esp;.-c ial ly true for CEOs who frequently ncgot iate fo r "golden parachutes,'' or significan t benefits inc ludi ng large severan ce pay packages if their empl oy ment is tc rmmatcd . One chief infom1 at ion office r haw his dcc1s_1 on on th c scvcrancchcnc gotratcd. Whc11 0ncco mpanyoffc redthrceyem'payi f the JOb d1dn 1
0 1'. or k out , he accepted 11 because most executive s at that leve l on ly rcccivea)'car's
se1crancc.!ll
Ch.ipter 11 • ChoosingnndllinngCand1dates 315
,Additional Ag reements
'
.-,tric li\ C co\ cna nts arc con~r?ct clauses lhal require one party to do, or 10 re frai n from doing , rt.U n th1"P · To stay co~ pell~ii·e, many companies must protect their most precious .:i.sscts-
,,. , 3p11al. client rclat1ons!up~, and trade secrets. 19 Almost all companies require emp loyees
to confidcnu a_l mfonnat1on and technical employees in\·ol\·CO in ~search and ag~ not to dll'ulge trade sec rets. lllt company also often rctams the nghts
~\'o,id, sclos111·e agreem tll/J are ime_ndcd to s~op a current or former employee from givin~ trJJe secrets or usrng confidc nttal data, hke ci.momer lists, fo r a com petitor' s benefi t. l~;~1~.:1o~ ur~ agree ments can be particularly importan t for companies rclyms on innovat ion or
~~ropnct;iry tec hnology as~ compe ~tive advantage . An example of a nondisc lo\u re clau se is, · i\fl cr cw1ra11on or 1ermmat1on of thi s agreement. {employee name] ag~es to ~spect the con - fiJ .:nti J\ll)'.,fl [company name} pate nts, trodcm11rks , and trade secrets, and not to disc lose them
10 lll)~:1c~ arJi.htional ways to protec t these assets are through nonsolic itallon and no ncompcte J~rrttn~nt~ Before 1hcir act~a l dc~ure datc_s. employees hal"c the right to notify the ir current
1 .~,wni~rs that they :ire lcavmg th eir eom parues. Howeve r, many finns include n011solicira1ion agiu r1i r ,m m their cmploy~cnt contructs to prevc?t dcpaning cmplo)'ecs from actuall y so lici t• inf lhcircustomcrs fo rbusme sso nbchal fo_flheirncw employe rs. (W hatc onsti1utcs··soli c- 11,111on" 1s inttrpn: tcd on a casc-by--casc bas.is.) However, after their employment has ended, , rnrlo)ccs generally fr~f to do so, provided they do no t divulge their forme r employers' ~JJe ~cn:ts m the proce ss.
,\'oucom pett c/a usts prevent an employee who has resi gned from joi ning a compct1 tor f,, r :i cc rtam pcnod of time . For e.'l:am ~k , _before H. J. Heinz lured Daniel O'Nei ll away from a "nior-kl'cl JOb at Ca mpbe ll Soup, 0 Nei l! had signed an agreeme nt with Campbell that pro· hih it,·J lum fro m 11orki ng fora competi tor for !Smonthsaftc r his departure . Because Campbell
5.,0p 11 a, n't wiltin g to let him go, th~ two companies eventuall y reached a :se ttlement stat· in ~ ih,il Q"Nc 1II could not work at Hein l fo r se\·en more moll\hs. When he fi nally began his ric·,1 poi,111un, O'Ne ill _had to keep a d~i ly log of his busi ness mee tings for \ I months (whic h 11 , rc nio111to~~d by an mdependent auditor) to assure no tran sfe r of trade secret s or confidential
1nfNlllJ1IOll. \n urdcr to be le ga lly enforceable, the terms of the noncompctition should be as detailed as
111 .w;ibl~ as to time, geographic area, and type of business activi ty . The agree ments can include
nt'l taking after -hours jobs with competitors or in any other way competing wi th one 's former wrnrJn) . Trad.: ~ecrcts, confide nti al information, customer lists, or the firm 's un iq ue services grncr.ill )' quali ry as legi timate bu si ness in terests that can be protected with noncompctcclau !>l:S . ,\n ~, ampk of a noncompetc agreement is as follow s:
a. IErnplo}CC name } agrees not to compete with {company name] in the practice of [type of t,us111e ss or service] whi le working for [company 11ame} and for a pe riod of \number aml mca.-,ure of time (e.g., "six months" or " 10 years")] after tem1inalion of employmen t 111thrn a rad iu s of [number\ mile s of[company name alld location] .
RESTRICTI VE CO \'E!YA.\'T
::1"';::;~: z,n;~;:1:~~ ;.;,~.:·;;,.,8, curn,,.rhms •
b. Fo r purpose s of thi s col" enant nol 10 compete, competition is defi ned as solici tin g or a,·cl·ptmg rn1p loy mcnt by , or rendering professional service s lo, any pe rson or organil a• uon that ;~ or was a client of [co mpany namcj during the tcnn of [employee namers work 111thlco111 panynamc] .33
Noncompclc agreement s lhat arc too broad in the scope of the ir time period, gcograph1- Cll rc lch. or l}pe of work tend to be overturned by the courts if challcngcd. 34 Because slate
~Jn~~r~:~~ r~~~: ~:;1:a;;~:i:i:~:~ ::u:/ ~!: ~::i:~:1~~:;~~-~~;~rts~o~:~; !ca Offering a rnn~ ulting co ntract to departing employees can al so prevent them from working for Jl0nl p1: !1tor .
Table l summarizes some of the conlent common ly co ntalnCO in an employment at rm n~nt
316 Ch.lplcr 11 • ChO\lo,tlli,) ;inJ Hmng Cand.JJ.1tc~
a .. nrun ltt1n dnr nbuig'"r/,ar ar4pruut rt mu ~.wr•/y o, J,,.,1ht r ~ :rlnKlurr <llld tt rnu uf annnpl,,y,,,t" I CO#ll1"Uet o,1U be
mm Employm e nt Contract Content Although the col"ltent of employmen t contracts van e s , depending on the industry and U\I partic;u\ar employee , here are wme e xamples of top ics frequently covered by e mp10yrn,nt contracts lo
The Job's ti de, descrrpr,o n of pos,r,on, .1nd iob duties The con t ract shou ld outline th, pos it,on and ,ts dut,es , or a reference shou ld be made to a specif,c Job d escnptJOn i lsa pro~ •ded to the finihst An employer 1lso should inc lude language allowing the CO!'np,a to assign add,t,onal dut,es , as appropnate, to the new h,re. 11)'
,~;:~~is~t~e:: ;~a 1 :i;~e1;~~.~,~~ :;i::~ei:~;beeks from the offe r 1cceptince date
• The iob's compensation , bene(;u, and 1ncent,ve pay. If any • Any l, mng mducements. S1gn •On bonuses, relocat,on eJ<penses , and so fo rth
The offer's acceptance procedures. The firm needs to spell out that by s19 n1ng the c the finaht accepts t he employment terms And cond ,t1 ons offered by the e mployer, :::: to the cond,tions 1,sted ,n the agreement. The firm should Also ins,st that th e aeceptarice of the Job offer be 1n wnt,n g . An acceptance dea d line should be included to 1llow the company to move on to the ne ~t fin1t, st ,I the offer has not been accepted by a certa in date The durat,on of the contro1ct 11 it's for I hm1te d period of t ime Hours of work The contract $hould outlin e the Job's wo rk hours v,a a stateme nt like the fol lowing "The regular workday shall cons,st of e ,ght (8) ho u rs of work. between 9 ill m and S pm .• or be worded to provide max,mum fle ~1b1hty : " Ho u rs of work Wtll vary and bt scheduled as needed •
• D1sc/a1mers . A discla imer eKPl1c1t ly l,m ,ts an employee nght, such as his or her nght 10 emp loyment, and reserves ,t for the employer. On e o f the most common disclaimers is 1 prov,sion that the employment ,s at w,11 ,! 11 is not for a speci fi c t ime penod . A statement to the effect that by a ccepting the offer, the employee 1grees 1h1t the organ1zan on has not made any prom,ses othe r than those m the wntten offer is a lso a d,sclaim e r. The nghts 10 the employee's mve n11ons a nd wori:: products. Termmar,on cnten,1 If the co ntract 1s not on an at-will bas is, it should spel l o ut any speoiic grounds for termmat1on An exp/,1nar,on of how d,sp tJtes w,/1 be ho1ndled. One way to avo ,d th e expense of 90,ng to court ,s to agree to 1rb,trate any futu re di sputes with the employee . Arbrt1111011 ii a lso generally much fist er than forma l cou rt proceed,ngs
Wri tten employment agreements may be mu h1pagc contracts o r simp le letters-both legally bind ing . Large organ 1,at1ons often lim n con1rac ts to upper management and g.i ,·e other finahsts offe r letters that rcncc1 thc 1c m1 s t h<") negouated .37 An otter lette r sta le s in clear and prec ise tcnns c .,actly \I hat the co inpcnsauon structure and te rm s of the empl oyment will be. Offer kucrs are o flen drafted, approved by lawyers, and amended as needed . Figure 11-2 sliov. s anc:o;arnp!cofaJoboffe rlener .
Statements on a Job apphcatio n blank (e .g ., a statement that prov id ing fal se in fo rmauon is ground~ for t<.'nrnnatio n), ~tatcnH.'n ts in cm plo)CC handbooks, and sta tements in o ther documents c:in be 1nterpr..-ccd as enforceahk contract, . Accordrng ly, 111 s im ponanl to check 1h cm for con• ,istency and to include a ~t:itcmcnt m the offer le tt er sim il ar to "n o verbal or written agret ments, prombe s, o r rcprcscntauons that arc not ~pccifica ll y stated in thi s o ffer, arc or will be binding upo n (co mpany) ." Consult legal coun sel about a ll co nt rac t wo rd ing.
PRESENTING A JOB OFFER
A Job offer can be presen ted 10 a finali st m wnti11g \ 13 a for mal le uer like th<.' o ne in Figure 11 •2. The terms and cond11Jons o f emp lo)men! arc ou tlmcd, and the fin:il 1st is a sked 10 either accept or reject !he offer as is . In thi s ~ituat1on, no personal contac t is made wilh th e fin :ilist and fu r• tlier n<.'gollation is not pcrmi11cd . The fin all,t mus t cnhcr rcJcct the offer or accept it as is. This approach can he s ucce ssful for co rnpan1e~ doing a lot of hinng . For e,rnmplc. pcrh:ips a limt has o pened a new loca 11o n and hundreds or c,cn lhllu sand~ of people need to be hired m D short
Ch:ip1er l l • Choosing anJ Hiring Cand1d:ites 317
1oate)
wie ___ _ _ _ _ _ _ ____ _ ____ _
nus p05ition w\U report to:
A JOb ~~:::~~~:~i~=i~i: n~ b:i=~ ~~r~~1::i!~ t:qual tiv.dee tions for taxes and other withholdings a s required by law. Upon satisfactory de uclellOn of the first 90 days ol e mployment, you may be e ligible for a bonus based C()!TlP ur meeting the goals and objectives agreed to In the performance development 0
~ ~ing process with your manager within two weeks of you r start date. The bonus P1:~ tor this year and beyond , should such a plan e xist, wiM be based on t he lormula ~eterrrnnedby thec~mpanyforthatyear. .
As discussed dunng your Intervi ew, ABC Company offers employees and their
e~:n~~1:d;:~gaert~~~~~; our ~ompany's employee benefit plan, and lringe benefits including a 401 (k) 8.l_'d t~i1ion
bursement as covered ln the enclosed pamphlet Your employee contnbut1on to ;~;ment for benefit plans Is determined annually. Twelve paid personal days, which are to Inclu de vacation days, sick days, arid personal emergency days, are accrued annually at a rate of one per month .
I would (Ike to note that your e~\oy,nent with ABC Company will be •at will ." mea ning that either you or t~e co~any may te rminate your employment at any time , for a ny or no reason , and with or without notice.
By sign ing below yo u acknowledge that this offer letter, a long with any re!erence(I docu ments. represents the entire employment agreement betwee n you and ABC eompany, and that no velbal or written agreements, promises , or representations that are not specifically stated In this offer, are or will be binding upon ABC Company. This ot!er is valid for 10 business days and our standard noncompete agreement must be signed and re turned before thls contract will be conside red van~. .
we look. forward to your arrival at our company and are confident tha t you will play a ~ey role in our company's expansion inlo new markets. Please let me know ii you have any quest io ns or if I can do anything to make your arrival easier.
Signatures
(For ABC Company) Date
(Cand•date'sname) Date
FIGURE 11 ·2 AS1mpleJobOtterlener lc u·ce Adapted fr om Heathfield s M • Job Offer Letter ," Hum anre1ource1 about com, 2006, http:/lt1umanresources .about coml(.5/ ~IC)1ampl('Va/j oboller _2.htm . :ioo6; Texas Wor kf0<ct Commi 11101\ Job Offe r letter, 2006, W\~ .twc.state .tJ<.ui/new.Jefteljob _oHer_ er.,• l'l\ ml. HR Document Center , Job Offer Letter-E~tmpt Positi on , August 1, 2002, httpJ/serv ,ce.govdehvery comlservlce/dotument . •tMP<o de:HRDO C_146
! I ij 1 I
i I
318 Ollplcr 11 • (Ji{mmg md Hmn,g C:m J1Jnt<.'>
pcnoJ of umc . Ho\1c1cr, such an offer is nol an cffccuvc way to pcr.;uade undeci ded fi m:ccpt the offrrs mOOc 10 them . Neither is the written offer likely to enhance a fi na]ist•~:~ists to a,,, mfor Jrnnmgthecompany. l'1ll$i
As we have ind icated, Lhc other ::iltcmauvc is 10 pre sent the job offer l'erbafly 'the 10- focc or by ph one. A typi cal verbal JOb offcr beg ms with un HR professional or hi~ Ci r ratt,. congratulatin g tho.' finahst and lctti_ng him or her know that 1he ~ompany is cnthus~:lnagcr h:iv111g them onboard. The Job and IL~ snl:iry and benefits arc descnbcd as well as the Work aboo.Jt and perhaps whcn the finali st can C:\.pcct lo be evaluated and given a merit raise, The fi houri asJ.cd about :my rcst:rvations he or she may have about acce pting the offe r or ifhe Or she 11.llisi IS other question s about the JOb. To pc~uadc a finalist to accept your job offer, it ,s tm hasaay appeal 10 the finalist ' s priorities :ind to address any personal co ncerns he or she migh lo sure to respond to any fin:ih sl reque sts for more mfonn:ition. L:istly, th e fi nali st sho ul~ ~ ''C. Be at least 48 hou rs to consider the offer. A phone offe r should al so be followed up with 8lvtn ofTcr. so the final ist c:in be sure th:it the dcL'.Ul s of the written offer match those con ic;·c~Tlttcn ~- - NEGOTIATING ~or C\'cry employment tcnn and conditio~, the fi~ ~ust d~cide if 1t 1s willing to nego ti ate 11 1fso, wh:it the lower and upper bou nds will be. S1m1lar ly,Job ca ndidates often establish 1 IDd bound for what they are willing to accept on ke y dimension s such as pay, be nefits, 111~ :wtr h_ours . So, what tc~s are negonablc? One su rvey fo und that the \'as t majority of HR rof, od ~1onals beliel"e s:il:ines are negotiahle. Roughly one-ha lf of HR professionals be li eve rel p ,cs- expenscs, ncx1blc work schedule s. early salary reviews, paid tim e off. and sign-on bonu= on negouablc . And :it kast 20 pe rcent of respondents felt that profe ssio11al del'clopm en t op are ucs. bonuses :ind inccn ti l'C S, 11umbcr of work hours per week , and educational assis ta:uni- nego1i:ible .38 are
Indeed, the sh ift i11 how people view employme nt co ntracts over the past 15 years has gil'en employees and applican_ts greater individual bargainmg power. A Towe rs Perrin stud found tha1 tod.1.y ' s workforce ts more sophisticated , belie r informed, and more ind ividualiru! than c1·er bcforc. 39 Clear ly, employers are fee ling more pressured to negotiate with workers as a result. As Edwar~ La_wl~r •. a compensa t_ion expen, noted: "It is increasingly likely that organiza- uon s will be making 1nd1v1du.1.l deals wnh a large number of their emp loyees. Th.i s is panieularl hkel y to be true in the case of~nowlcdge workers and managers. At the exec uti ve level, organi~ zan ons alrcady have ela borate mdividualcontractsthataredifficul tto compare an d evalu;ue . .,(J
Anothe~ s'.u~~ fo und th.1.t stud_enls who negotia ted their jo b offer received 7 to 8 percent more than thctr m1tl.'.l.l offer. Bm while 52 perce nt of the men negotiated, on ly 12 percent of the women did.J I By not negotiating their salaries, many women sacrifice more than an estimated 5500.000 by the end of their professiona l lives. Women also tend to use a more eooperathe ncgo11.1.1ion style th:in do men. although the difference is fairly small .42 The facr that there can be gender differen ces in negotiation behavio r.; and out com esJJ 1s not on ly imponant for job seekers, part1 cul.1.rly fema le~, bu t also for comp;m1es. Because starti ng sal aries are set in part through the new hire ·s negotiauon s. gender-based wage disp:iri1ies can result and grow quite sign ificant 0l"Cr nmc. Thi ~ can put finns al the risk of being sued for discrimination .
An increasmg number of emp loyers arc offering fl cx1bk benefit p.1.ckagcs with d1ffcren1 opt io ns: Often the p.1.ck.'.l.ges give employees a v:iricty of choices regarding their bene fi ts , includ· mg the ir health . dental. and di sabi lity in surance coverage. Severuncc p:iy, stock options, and profit -sh:iring pl.1.ns can als o be ncgol1ablc . Tab le 11 -5 summarizes so me com mon ly negotia1ed elcmcn tso faJ ob offer .
Negotiating with New Hire s
~edegrecto v.lucha sal.1.ryi s negotiablcdepcnd s on 1hepo~ition. 1hcmanager,t/Jc orga11iza· '. •on. an d yo ur perce ived value . The sal.1.ries for mo~! cntry •IC\'el posit ion s arc subject 10 littl e, if any, nego l1Jt1on . Lik ewise, mo~t state and fedcrJI gol'cmment jobs also hal"C rig id, non ne_g o-- uablc sa:;iry scale s based on one ' s educa tio n and experience. Howel"e r, fo r mid-level posiuons in the pm-ate sector, em pl oyers will ge nerally negotiate within ajob"ssa lary range. For ex ample.
Chapter 11 • Ch oo ~ing :ind ll1 ring Candidates 319
--- Negotiable Job Offer Elements
t~:n bonuses and other on e-tim e mducements ,~ ... sJla ry compen sa11on : perfo rmance bonuses, profit shanng , deferre d compe nsa ti on ,
~everan ce package, and stod: options R ioc,won expenses : house· hun11ng expenses and closing costs , temporary living all owanc es . · e ,,ave l e~penses, and spou HI reemployment expenses
8 e; e6ts vacauon, sick, ~nd pe rsonal dar1 (number, amount paid, and t1 m1ng). conference attenda nce , tuition reimbursement, professiona l memberships. product discounts, and stio rt •termloans .
Job.speci fic elements: th~ tim ing of the emp loyee's first pe rformance review and
~::/i~~~;:: :e~~:: d a:111~~:ealr;;~; ~t: ~ : :s~:~d::ether - b p.1.ying S.J0,000 a year might ha\"C a salary range of be twee n $36 ,000 and $44.000, and
; 1 ~~loycrs ,1il1 allow a candid:ite to negotiate ~twee n the two. An exceptional fi11ali s1 mi gh t
C£casJOn.'.l.ll)'bc offercda salary that ex.cecds the h1gh end ofthera nge ,bu1onlywith th ea pproval of the fi rm's higher- level m_a?agers. H1g1M:r-!evcl managemcn1 an d exccutil"e posi tions ge nerally offer the grea tcM opponumt1es for ne-go11:itto11 . Figure 11-3 shows the bargai ning zon e for :in
~nnuJl salary. It shou ld be noted that m:in.1.gers do not always ac t in the best inte res ts of thei r employe rs
11 1ic n they·rc negotia ting s1aning salaries. Depen ding on the sire ngth of a manager's de sire to
hm: the linalist and hi s or her motiv:iti on 10 innuence the final com pc nsa1i on p.1.ckage (perhaps
10 prt:SCI"\'<! intemal equ ity), the man:iger's negotiation tactics and goals may differ from those
of the (i nn. and ca n be costly. For example , some hiring managers might make higher job offers thJn nece ssary in an cffon to hire a desired cand idate or to red uce the ti me spent negotiating . Consequen tly, when ii comes to negotiating employment pack:iges, organ izatio ns need to align m,: rntcrc~ts of their managers with the firm 's goa ls lo ensure thai managers negoti ate as they're iuppo r,cd to. If the organization.1.I policy docs not allow salary nexibi lity, being ne.\i ble in other :irc as, suc h a~ working hours, relocation ex pen ses, and sig n- on bonuses , will increase th e hkcli· hood tha t the agent will act in the best interest ofthe organ iz.i tion . .w People ne gotiating on behal f of the company should also be give n rewards associated with their outcome s (complet ing the ,XJl on umc, negotiating tenns the fi rm desires, controlling salary costs, and so forth) .
45
To ~ucccssfully negotiate a job offer, }'Ou should try to foc us on the th ing s that mall er mos t to thi: fi nalist. If the person is a middle manager abou t to put three chil dren through college. money mJy!x-11npon:mt . Often, however, nonmonetary facto rs, including caree r advancement opponuni - o,: , . the opport unity to learn new skills. the community ' s quality of life. and nexiblc work hou rs, arc also 1mponanl to many people. Computer engi nee rs might be most e.\C itcd about the opportu- nit) to 11 ork wi th the latest technologies. A final ist who has just been laid off might put job security ll the lop of the list. Selli ng the opponunity based 011 the con ten t of the job rewanls anal ysis can be n.'lpful. pan1cu larl y when done in the con text of fi nalists' own needs and des ires.-¼ This chaptcr·s 1.k1cJ r,p Your Skills feature gi1·es you some tips on ncgoti.1.tin g a job offer.
$70,000
$65 ,000 S60.000
Thenegotia!in gzone is between$55,000 and$ 70.000
~mo sso_oo- ,---------------- ----1 Acceptable to the Job candidate
FIGURE 11 ·3 Sal;iryNegot i;it ingZone
Acceptable tothe company
I ij 1 I
320 O\.lr(s-r 11 • ChO•-'-~-mg anJ fl mng C.vhJu,bls'S
Renegotiating Contracts Wh,:n a ~r.on·, Job n:sponsib1h 11c s change. for e.,amplc, due to a promou on or re ti,ln, the ts·mis and condiu ons of his or hi:-r cmp lo}men t arc also li kely co ch~ngc Or&1n14
'" rontr:icb ,impl y con~1st of a lcncr from th,: empl oy er Other employmen t wntracts mch1de the terms and proc cond monsofc mpl oy mcnt, forc.,a rnplc , dunnganannual
Legally, bc:forc the co ntrJCtual tcnn, of a person's employment can be Chan mu~t be an offer made to the person. "h1ch he ~r shfs accepts . If ~he employee disa::!~ the new 1.-nns. ncgo11 aung will probably be rcq uir~d - However, 1f the empl oyee says n Wltb about the proix,.;;cU change. he or ~he will ha\e tacitly agrccU to the change, which wi]I ~ng binding on both partics.4~ """lJ!llt
E.U'LJCIT C.. IIPW l'\1£ \ T C'Q \TR.ICT
LIJl'UCTT E.\IPLOJ ,\IE.\'T CQ.\ TRA.CT
"""""nra,,4,,,s:th<Jtunm,..,n ef« ,.,.,,,., or, trbulconm,.-1
If an explicit employmtnt rontruct (written .or \·crbal), docs not e)l.1st, an implicit l'mlllo,, ront111ct or:inundcrst:indmg that 15notpartofa " n1ten or \erbal conlr'JC t, canstillcxht..sci ~ lrlt111 half of the Fommt 5((1 CEOs work under unplic11 coll tntcts.s 1 M~t small bus iness employ Bhly also hired w1thoot the fom1ali ty of a wnucn contract. Althoug h C)lplicit employment contracts ces l1m11ed to um on members, m 2012 ! 1.3 percent of employed P;~k in the United States v.~:: mcmbc:r:, and thus covcred by cxpllc 1t employment contracts. In some ca.scs, labor uni "orkm, tocoon.J inatc their actions in response to a finn 's breaching of the implicit contract~~ allow its "00,.crs.~3 ]mphcit employmen t con Ir.lets tend 10 be the nom1 for mo5t positions in most runi::llh
Althoug h wrincn_ rn ntracts hdp to en~urc that the em p:oycr and c?1ployce have than..! expec~auons and curtail future dispute s, few c?1p!uycr:, _r ro~ 1d_e true written contracts 10 the majonty of their employees. If employee s n:cc n·e an)tlung, II ts a letter of agreement, v. hich
DEVELOP YOUR SKILLS Job Offer Negotiation T ips
Because emp loyment is an ongoing relat1on~10 bet.Vl?en tile employee and the employer. nego11at1ngneedstobedonema way that results m a wm--wm outcome for both parties Here are sc:rne expem· suggestions for being an effective negonator ">4
• Do not look at a negovat1on as an either/or proposirion Negouatmg 1s about comprorrnse Focus on you r goal~. not onwmnmg
• ldenvfy what you can and rannot part with Identify the thmgsmost1mport;intto you(eg. yoursa lary, caree1 development.or a ~gnmgbonus)andthosethmgsthat art less1mportant(eg, rece1vmg aprest1g10uspbt1tle) Establish minimum requirements for the critical 1ssuts
• Try ro 1denufy and 115e sources of leverage leverage 1s anything tha1canhelporh1 nderaparty1nabargam- 1ngs1tuat1on Forexampfe,a nemp loyerwhomusth1re qwd.Jy 1s at a d15,1dvantage Therefo re, you might be able tonegot1a1ea beneroffe1 Mu lt1p!e 1oboffersu1nalso 1noeaseyourle11l'rag e
• Suppr~ your emotions Negotiat ions an stir emotJOns Constantlyremmdmgyourselfofyo ur goa lcanhe!pyou ach1eveanappropriate level of detachmentsothatyou con11nue1oseethedealdea1ly
• Know your BATNA BAT NA 1s an acronym for "best alternat1vetoanego11atedagreement " lt1swtl at you couldhavedonehadnonegoua11on tak. enp!ace,orwhat youw1l!do1fyoucan 't reach an agreement Th e purpose ofnego11a11on s 1stosee1fyourneeds canbebetter me t bynego11aunganagreement,cornpared1othrsllel<"! best alternative ~~ If the negot1at1ons stall, lett•ng the other s1deknmv1hatyou 'repreparedtoacceptanother
cornpany"s Jobofferordcclinethe1 r Joboffer canalsol!fp togettheprocessstartedupagain.
• Ta ke r,me ro evalua te the offer Consider the total valut of the /Ob offer, inc luding tht p b's benefits Be pcepa~ be fo re negotiating and ask for what you want 1n one sessio n If you keep saying, · 1torgot somet.hing: yo1r ap pea rd 1sorg arnzed, and 1t cannegativelyl nfl uencet1it f1 1m's expectat1onsofyouasanem ployee
• Bereal1sr1c Res ta rchyourma rket value andtypicalsalary ranges and benefits packages before you be91n negobilt- mg Aswehaveexplained,entry•level salanes areless negotiable than mid-level 01 exec utive salanes. Some organ,zat rons have li ttle flex 1brhty In terms ol what they can offer Otnershavea lot
• Pract,ce your negot1ar10n skills with a friend • D<Xumenr and be prepared to dl5cuss your skills and
accomplishments Employers are also more likely to rrwt areques t 1f youcandemons11a te whyyou need1t
• Be apprec1at1Ve and respectful Beg in the negotiation by br1e flye xpress1 ngyourapprec1at ron fortheofferyou've been given Cite specifics about your pos1t1ve impres- sions of the orga111zat1on and reinforce your good fit ~ the Job and company Don't begreedy orun reasonable, and know when to quit bargaining. Overnegotiatmg can dampenacompany'senthus1asmfo rhmngyou
• Remember rhat empb,ment ,s an CYlgOfl;J relal/Clf'ISNp. Jobnegot1c1oonsarethefoundatm ofyour c.areerwrth theatn- panylf,o.Jgettoo l1ttle,you w Wbeata d!Sd(Mllltage th'o.ql- o.ityourcarrerthere Ho.vevf'f,pushng too hardcan dMN9! yo.xrelaocostnpwr.h your employer before it E!loEl'lbeg,IS.
Chapter l l • Choos ing aml Hiring Candidates 321
J ,1 u kd and adUrc)SCS mo~c basic clements of the employment rc! auon)h1 p mclud 1n g a 1• 1~" .; J~b 11t lc anU fC)po ns1b1h t1cs, salary nnd benefits, and Mnn date . Wnncn ; on1rac ts arc f~;~y n.•,i:-r,td forh1ghcr-lcvcl posi t1onsandarc rarclyuscdforentry- lc vc lj obs . ~-~J
8 ,,au..C b1ndmg con trach for_ernploymcnt or for fu ture compcns:iuon c:in bi: created ver-
~'IJ · d:;:~ ~~~:.i::~;;:~~n~;::~t~~~ :~c~i~:~:n~::i~~1::~e: rr:·n'::11 ,cs JrC intended to be con~ctuall y bindmg , An agt/ll nu thor1Lcd by the receiver, ) UCh 1h•:rNfC))lO nal !l£Cnl f~r n cclcbnty or a_profcss1o nal athte1c,can ncgotia le on uny fi nali st' s J>
11 andngc n1 ,nuthor1Lc d by 1heorgarnzat1on,suc h asc)lecu11\·e rccruitcn;andscarchc on·
~~~n;, ,on neg oua te o~ b.:ha lf of the com~any. All emp loye es .1re age nts of 1hcir finn s. If a h1r- :,f inJ n;:~~
1 ~~
1 :~h:dil~a~r;
1 h:~:~~i.ow~~~!;'. offered, it's a bi nding o1Tcr e~c n if the mannfcr
1, 1\ll'I J
CLOSING THE DEAL ,, the)' arc co nsidering Lhe offer foll owi ng ncgo11a11on s, it is a good idea 10 stay in contact
\\~~·rinall>t~ 10 re inforce )O~r enthu siasm abou t hmng the m. and t~ ensure that they base 1hc1r ~~cp:ance or rejec11on dcd ~mn on fac ts rathc~ than assu mpuons. Fmd ou t how the finali st prc -
~cr- 1 10
1 ~ll~o;~:~:~c(:r~~l:a;:::: : ; : p~!!c~~ti:~:h:~~;~!,°J::::ln;~~/ac~;~~!~~~ i,nl
1;, di fferelll people m the comixi ny, including the fi nali st' s po1en11al coworke rs a~ d hiring ;;~J~er. \.\'hen poss ible. a call from the CEO can also send the message that the fillahs t is val-
:.! ~d that the CEO cares about the company' s cmp lo)ccs. ~• J While a" a1 tin g an ans" cr from the job finalist, do not 1um down your second choice. If
,c.:ond choice finalist was told of a deadli ne for making a decisio n, be sure 10 contac ~ the fin Jli,t t,c fo rc 1he deadline has passed 10 say ~hat the positi o~ is sull ?pen and 10 u~alc .the t1mc- hn.- Be ca re ful not to make the second or th1_rd choice finah st feel h~c a c~nsol at1?~ hire . Trc_at h"m 11 it h cnthu s1asrn:-they are strong finali sts to have ad\'anced this far m the hmng process . ~:en if )0_ur fi rst ch mcc fir:iist accepts you r offer, you r co mpany may 11a n1 !O If)' 10 hire the
~:her ~:l~~:~ 1: r :~cc~~tt~:~ at Cisco Systems often take top candidates out to dioncr 10 show the Nmpany's strong mt crest in thern .57 Offerin g, high- k \'Cl job o1Tcr rteipic nts and even ~cir six:1 us~s a iour of the area in which they will be working can help them understand what hfc w_ill be like ~f L'i<') JCCep t 1he offer. Employees wan1 10_ feel res?C<:t~ :ind assured thm the company 1s a good lit id the m Sho" ing your company as a unique ore)I.Clllng place to work call also help ~~osc the d~al. [n,ph awing 1he selling points of the job itself and the caree r de velopment opportumt 1es th~t e:ml, J, "dl as sclh ng the company· s imnge nnd brand can increase the appeal of the opportunity. 111c
JOb re~~:::~~~~;(~~~;: ~~::~~:;,ot~; ~~:~~s1:~; ~t:ct; !ei:~~:~~ the new hire 's crm irn tmenl to the company anU enhanci ng his or her abilit y to succeed on the JOb. (It can also b( hel pful to fu ture hiring e1Torts to ask what persuaded the person 10 say "ye ~,'- and what he or s~c thought of eac h company contact and lhe hiring process.) Many companies sen d com~a~y hJndhooh. "ork material s, an d other job and compan y infonnation that can case the new hire s tr.miill('n . Send in g a welcome pack.age of apparel, pen s, _etc,, with the c~m pany n_amc or logo cJnhclp1 hcncw hircfcclthnthis orhc r dccisioni s "offic1:i.l"andhclpbu 1(d comm11rnent, ,•
If the new hire is not sche duled to begin work for a fe w months, as 1s often the case "1th f'C'lple "lio arc abou t 10 graduate from college, re gular calls from the hire "s cowor~crs _and ~iring rnJnager call he lp maintain the person' s ~nthusiasm fo~ the pos1t1_on . If the nc~ lm~ l'.vc ~ 111
th m a rcaSoll ablc Jisrnncc, inviting the llew lure to celebra11ons, mcetmgs, :ind othe r act1v1t1e~ c.1~ hdp 1hc pcl"'\on begin tran si tioning to his or her new job. . . _. , .,,
To dc~:umc nl verification of the ide ntity and em pl oyment chg1b1lity of each nc" cmplO)cc. empl(n ~r.; mu\l comple te Fonn f.9_58 Forni 1-9 must be completed by the employee no later t~an Liic li~t day of "ork for pay, After gelling the fom1 :ind supporti ng docume nts from the new lure. 1r~ rniploi~r must comple te the sccolld section by the new hire 's lhin.l p;i_id day of cmploymcn_1. ~niplu)C~ may IX! fined if ~he f~ is not .compl~te. Employc•rsu:~~ ~:~
1;t :;:: :;de~::~:: COp) flfform 1-9 and make ,1 availab le fo r ms~llon upon a reqcials for thre: ·cars a1ier the d:11~ Fnfu rsc mcnt (ICE ) inve stigators or other authonzcd ~cderal is tcrm inalc(/ whichc1 er is later. rl lm,· of thccmploycc oro nc)Carafterthedntcthatcmp!oy
I
322 Chl!'lcr l l • Ch ... 'h!ng and llmng CanJi~~
FAIRNESS PERCEPTIONS AND REJECTIONS
A p,:rson's pcrccptmns of f!urncss \.\11l :affect how th e :ippl 1c:i nt re:icts to the fi , choices. induding thc p,..·rson's " 'llmgncss to :iCC\'P I the Job offer, recom mend th nn s hiriaa 01hcn..~Q conunue patroni Lrng the comp;rny, or fik a d1sc runmati on o_r other la~su~t.~lllfl,ln)' IO
Atll•ndrng 10 a pcr.on·s percepti ons ofp roccdural and 1nteract1 onal fairness w the finahs( s \.\Llltngnc~~ to acccpl a JOb offe r and reduce lhe negative spill over errC:~ 1~ o,xur \I hen applicants arc turned do\\ n fo r :i JOh. ~la_ny Jo b offer recipie nts use the Job
O Lh;u, Ctq
ncgou:auo n process to funher :asses~ the orga n1l:ill on s comm itment 10 1.hern and CYalua1cfferiAd \.\OUld be 111.c 10 11orkat the company ""~11
As you learned 1n Chap1er 7, there arc three types of fa i_mcss.6 1 Distnbuti\c ! focuses on the pcrce1Yed fa1meS) of th~· outcomes rcce1 1·cd . Candidates recei Ying a . b lll'l'lt$C promouon arc more likely to ff.-cl that the hiring outcome is fa 1 Jo Offer er that most apphcanLS for a pos mon do not uh 1ma rcly gel th e Job , fa uncss are oft en low . Procedura l fai rness addresses the pcrcei procedures used to de1cmunc the hinng outcome. If nn appl1 c:in t bclie1·cs t.ha.1 ~hew a fair chance of being promo1cd because the hiri ng man ager had a ••favorite" Candida~ &i~en of procedural f:urnc)s \\' Lil be low . The fim1' s sclccuon procedures, panicularly ui:· er sense Job rclak'dncss of the se lccu on method used, the opportunny the mclh od afforded J:l'Cl:l\e,j date to demonstrate hi s or her ab1lmcs, and the propne1y of the qu estions asked \I 111 11 candi. a candJda1e· s sense of procedural fairncss.62 I f the sc lcct1on meth od see ms unre lated 1: ~ff«-t (lacks face val1d1ty)63 or 1f inappropriatc or illc£3I questions arc a~kcd, this partic ularly incre JOb applicants' pcrccptions of unfairne ~ .6-4 In ~hort, eand1d:.i tcs prefe r selectio n methods Lh ASCs definit11c , 1ahd.Job related. and not personally invasive. 65 II art
The third t)pc of fai rne ss. intcractional fa irne ss. rc l~tes to the re spec t and interpersonal treatment candidatcs percc1\'C they rec en ed . For example, if the person negotiating the em 1 mcn1 conux1 seems unreasonab le or unhelpfu l, a candida te's interactio nal fairness pcrce! oy. arc lik_cly to be .low For example '. \.\'C kn ow o f one f~c ~lty job offer rc~i picnt wh o was \cry in: es1ed m acccpung a pos111on unul she beg:in ncgot1afln£ 1he offer wuh the dean of lhe school E1·cry reques t she mad e was quickly met wit h a "No, \IC can' t do th at." 1bc dean made no attempt 10 negotiate " ith the candid:i1c nor explain why_ she wou ld n' t do so. Ul timately, the pro~c~or w:is so turned off. shc declined the Job offer~a J0b offer that she had pre11ousl) bren nc11ed.ibout.
Rejecting
Companies and Job seekers can each rcJCCt the othe r. Rejecti ng happen s whe n the organization rCJCCtsan app!icant,candid.:11e,orfinahstor1•1ce vers a.
W HEN THE COMPANY REJECTS THE CANDIDATE Rejectio ns should be handled care full y and respectfully . After all. the company mi gh t wa nt lo recruit those whom it rej ected fo r olher Job opponun iuc s later . As "" have exp!arncd, 100. the fi n n wan ls to avoi d any negali\·e spiU• 0H:r effec ts that could res ult from ho w a candidate was rejected . So me com panies often do not give rejected external c.i nd ida1cs spec ifi c rcasons for their rcjcciion lest they be percei~ed as d1scrimmatol') .66 By contrast. in an effort to r~·ducc the ncga1ivc feeli ngs rejected cx1emal cand id ates often have, ot her firms provide their ex1crnal candida tes feedback on why they \.\Crcn't chosen and how they cou ld have done better. In one case. a co ll ege Jean ga,·e II can- didate feedback to 1hccffec1 that hcdid not have the necessary nonacademic \.\Ork experience the college va lued . The reJectcd ca nd idaie appreciated the dea n 's ca ndo r and the profossiooal dc\clopmcnt feed back. Three years la!cr the dean hi red 1hc candt datc a fter he had worled With outs ide orga nizat io ns and bt11lt up the skill sc i he had pre\·io us ly lac ked. Dc \e]opmeo1al plans can be crea ted for in1crn al candidates 10 he lp them ga in experience a nd imprO\'C their qualifications .
Rejec ting intc rn al ca ndi dates has add11 10 nal is~ uc s as these cand id:i1es are usually even more aware of thc se lection proccdurc s, h:i1·c grea ter fa miliari1 y with o the r can didates fo r com· pansons, and have more invc~1cd in the proce s~ than do external appl icants. Jn 1c rnal cand 1· dazes "ho arc not ,;elec ted or promo1cd arc also re tained as empl oyees in thei r current JOb- Conscquently. internal appl icant reacuons co uld profoun dl y imp:ict imponanl org.imzauonJl outcomes including Job sa1Jsfac1mn, morale. rctcnt1 on, :md pc rforr n:mce.67
Chap1 crl l • ChoosinganJ l linn g Cum.J11J:i1cs 323
,\ f1rn1·~ lrnman resource depanmcnt ~hould be sure 10 Leep appropriate record s of all
11 ... inb fo r equal cmplo)mcn t oppon unuy and aflim1 a11 ve act ion (EEO/AA) corn pu 1.111 on ~r~,_c,, ~uc h as :.ippltcanl llow. If II l'l'Jcctcd applicant 1s quah lied fo r II di ffcrcn1 po~111on or 7ttK' n11 ght be hired m thc futu re for the Job to whi ch he or she applied. this ca n help foc 1h· :JI€ 1]1c fu~ ure sourcin g a
nd ~nn tmg of prcquahficd app hcani.-.. ii is nnpon ant 10 notc that an
1iw 1, 1Ju~!n '1 : : 3c;:; ~0; 1.~ry\~~:~~'.ouscd for future rccruumg purposc~ wuh ou t the md1 vi dual 's
r,:r111'''1
y;HE N THE CA NDIDATE REJECTS THE COM PANY When a cand 1da11:: 1urns do\.\n a Job offer . • r,vn that made the offe r should try lo fi nd out "'hethcr the person mig ht be w1l1 1ng 10
~ 1 ; a i,cncr offe r if th e ~nn_ we~ w_111ing to negotiat e one. If the ne gotia tion process breaks
~r"" 11,crca fter, the cand idate s rt'JCct1on shou ld be promp tly and respectfully ack no\.\lcdgc~ . • humim re sources expert suggests that the pnmary re:1.SOn many people tum down JObs 1s
::au..: they were 1rcat~d poor ly during lhc hiri ng process. Al thoug h 11 cand1da1c might m111all y P'' J reaso n for rcJC~ t1ng the. firm. 1t m.ay not be the real cause . The expert suggests wa11mg ,1 \ niooth, before _askmg candidates pre_c,sely 1-'.hy they turn ed down a Job offcr.68 At thi s point, the) nugh t be w1l1mg to tal k more cand idly about their recrui ting experience.
Reneging Jrb seekers shou ld never occcpt _a~ob offer, c1:en 1crb:tlly, unless they arc \.\llhng to commit IO it. s x king ou t of a conlrac~ after It 1s acc_cpled 1s called rtntging, and is unethical. Many sc hools :::' '-::..:' :::'G:::l·'c:'G __ ___....,.-,-c- :icui·d} di scourage reneg ing among ~tr graduaung students by thrc::itcnmg to revoke their abilny bad:i11t. our •f" c<J111rar1afu, 1111 1,, 3ppl)' with other on-campus rccnntcrs or revoking their alum ni priv1legcs.<:,9 Employers should au,p1rd ll<! 'cr pressure candidates to renege on other employers. Although rc ncg ing is so metimes una\' oid• J~k due 10a ca ndida te's changing health or family circumstances , 11 ~hou!d not be taken lightly.
Employers sometime s renege on the job offers they have ex tended eandida1es-some1ime~ (,cnaftcr1hc offcrs ha\·c been accepted. Perhaps an employer's busi ness environme nt change s .n~ \pcc1cd ly. 1hc fi rni expc~ ienccs a slum p, or il is being reorganized, sold. or shut down. Often ,omrJnic> that renege on a JOb offer will gi\·e the job offer rccci\'er eompe ni>3tion for break ing L'";: con1rac1. In stead of re negi ng. it may be possible to defer the ne w hirc' s start date and offer ihcix·r~on a p:.ir11al salary in the interi m. Al ternately, it mi ght be possi ble to lure th e individual as J coJnsu han t or temporary employee and conven him or her to a fu ll -time hire :as soon as possiblc 1~ g . aflcr a hiring freeze is lifted). When many law firms extended jo b offers to summer in terns
Hiring To p Perform ers at MarineMax
To trn1 ruJ i1s lixcd laborcosts. MarincMaxnC>Cds toperw.adc toptakn11oacccp1 1tsJohofkrs "1t hou 1 Mrngthc m morc 1h an ilhas10. Bccauscsucccufulboatrdailing dcpendsondc1·clopingrela11011ships
,th ru ,lOmcl'>. and hccau)C the company foc uses on pri:mium brands, attracting. keeping. and dnd • ,r i~g 1i- employees arc ~b nne M1u ·s top priori ties . The yacht maker knows that its prople arc critical wit~,uw:-s, Asarcs ul 1.i1const.1ntlylriestohircthebcs1candida1cs tohc lpit achic1·eitsan1iciP<1tcd fu turcgrn>1th 70 Marine1'1axp.iysmore thani1scompe!itorsdo,butlhccornpan)' al so prt) vidc.sin tan- ~1t-k~. suc h a~ ch:illcngi ng work and advancement opponunities .
\l .uinc Ma~ tries 10 tailor it s job offers to each linafa1. The company is will ing to pay II hal it takes I<> ~c! 1op perfo rmers. Ho\.\ e1·er, to a1·oid o,·efl):iyi ng cmplO)'CCS. ,\ 1arir,c~ la, requires C~rxlidalc,_ lo rro,i& the company a full ~ lary hi story . MarineM:u then uses salary su!>C)S and market information t<> , hJpce;ic hjoboffer. Toa1·oidh avinghi ghli.,cdlaborcom. 1hccompany usespcrfo~ ance-ba.sed rJ> program, and so metimes negotiates guaran teed pcrforman~ bonuses fo r an cmplo)cc s lir~t )Car
: :~; 1 t~~~~l:~~~~: .~~;~~~Jn~50~:;i:~:et~~:;}~ opt1 ons to pcrsu31le so me top cand1d.ues 10
Top !>C t11te tochnician candidates arc enticed with a guaranteed opponu~1ty to bill ~ I a ccnam Jrrnuni of 11ork and increase 1hcirhourly rate byobt!liningadditionalcredcn11als. Th1 ss1gn~s 1o top k.. hm,1 .m~ 1h ,ll a job at MarineMax will pay well. MarincM ax•s s1andard bcnclits package mclude~ h,·J llh ~ n,-lib. 3 401(k) plan \\ (th an cmpl o)er ma1 ch, an employee stock purch:c.c pl an. ~d an anrac- t11c dis coun l on it.sboats.n ltsflc~i blc approach 1ocri:a1ingJobOffc~ lha1 bts1appcalto 1ts10pcand1- ~, 1rsha1hcl pcdmake Marinc~ lax:ilcadcrin i1sindus1r)'.
3.24 Qur(l'f 11 • ClllX» I[\\: !1l'ld Hmn ~ (ill1Jnl3!c~
:-:~ 9
:~: ~-c:~:: :,:;;ut: ;;l~:~:1r t~:~l~e:;ec: ~li 1: o~;s:u~e1: afll•t all, man c-ontr:let.n Beine honest and tn·:iung the new hire with respect du ring the soothe the ange; and feelings of mcqUlty the person is hkcl y to cx.pencnce. prottt er's reputation and branJ. and 1.. ... -ep the ind1v1dual mtercs. tcd m v. orkrn g for the firm
10
Summary Th.."n:'91\' d11Tm:nt wa)~ tocombinccand1datcs' scores on differe nt cannot cntKC thc best candidates to Jom the company the ;i<;.~nLS an.1 rna1.( :i tin:t.1 choice of whom to try to lure . The sy~ tcm is not as successful as 1t l.XJUld be. Although~ Slatting choi..-Y of~ mctho.b ~ d be blscJ on the nature of the Job, is oftcn cued as an 1mponant factor m Job choke, otherlltllSation v.tuch]Ob elements :ire c:,scnu.!11, and the importance of mvolvmg of a job offer, mdudmg can.-cr deve lopm ent oWMuru~~ Jobe.,?,.,,_., in the final cho1~-i: . 1k qualJty of a ..u-.uegte staffing work scht.-Julcs. and severance terms, are also im [lOrtant ~-su-m ts brg,::ly dctermuw:d by the pt,"Oplc v.ho ulum:uely act'epl cand1da1cs. ThccontcntofthcJobofforand its prcscntati to many Job offers and tx,--omc cmplO)l't.~. Rcgartllcs.softhcqual1ty ofa reinforce the organillllion·s image as an employer a,; ,,.,;~ld com.pan) ·~ sowcmg. n.,·n11ong, and assessment methods. if it talcntphJ!osophy, humanresourccst.rategy,and staffing~.ns
Takeaway Po ints I . Candidates·= on difTcrcnt assessment meti'lods can be com-
bil:IC'd 1n r. o d11Tcrcnt ,,,3ys. One w3y is tousc amu lt iplchu rdles 3PJll1).1':h "'ht.'Trl,) C31ld1d;ues must = 1, c a l)M!ing score on Jn:is..<essmembcfon: bctngallo"'·c<liocontmuconinthcscle-c- uon procns, The sa.--onJ "' ay 1s to us.c: a compc!Thltlory 3pprooch "ben:b) !l c:ind1d:11£ s h,gh )COin on some assessments can com - pclb.llc for lo"'' SCOm on othcr asscss ments.
1. A firolchoicecan be nude us1ngrut scores . .. h,ch es1ablish a min- 1mum scon: cand.tdates rn1m excecd; rank orde nng , 11h1ch orden cand!cbu:sfromthehighesttolo11cst dcpcndmgon1hei rscores;or b:lnding ..... tuchassignscand1d:lles 1ogroupsbasedontheir o, erall ~ - (Afterbeingb.lndctl,allcand1d a1esmcachgrouparccon• sidrn-d to h.:l,e performed the s:ime on lhe assessmen ts.)
J . TIie fxwn Ul3l influence the conten t of a company's job offer 1ncl\lO." thet}pcofjobaswcllastheorgan.iza11on,applicam.an d rnt:mal:indltg:llfacton
Discussion Questions I. Which :ipproac:h lo comb1mng candidates· uscssment scores
"' ould~oufa, or forchoosmgcand1da tes?Wh)'') l. ls1tethicalfor 5,0rnene11,h1r-csto reccl\ediffcren t levelsofpay
and benefits tJun other new hun? Why or "'hy not') 3. lf )oureccnedajoboffer,1ae-ma1l. "'·1thno phone orpersonal
contact.h0"'' "' OUld~ou feeP Wouldit1nfluence)OUrdrc1sionto ::icrep1theoffer"
Ex ercises I. Strait'!)' f.<rl'C'tJt" : Imagine tha1 )OU are the manager of a
McDonald 's restaurant You are pursuing a low-cost, h1gh-<jualuy scn·iceslJ31egy You believe that the assistant manager )OIi hire is cnt1c3.lto executing) ourslt31('gybeca11se1hepcrsonv.ill ha1e a gr('J.l deal of contact "'iti'I both youremplo)ces and cus- comen . Yoo ha,c ju.st firu ~hed m1ef\•1el'1ng the fi,c finaJ 1ats for the pom1on. One candida1c really ~tands out Pai Ed"'ards has thrtt}earsofrcle1r.1m.,,,orkcxpcncnceandacollaboratl\C and
4. The three compcnsal.Jon ~trn1egies firm s can ch~ from low strategy (bdo.,,,·-m:irlet compensation), competitive~ 1 (a1-m:irlet compenS3uon).andhighm3tegy(abovc-maztet I}' pcnsation). A maximum str.:uegy (compensation that is~ torJJ.
::i thrcc compcnWJons~ 5. ,\ pplicants'pcl\'('ptionsof1he di sui bu1ive, proctc1uralan,;11mer.
ac_rional fa1mc,sof1hesc1ecuon~ rocc.ss wil] influcncchow~ w1Jlrcact "'hen1hcy are ofkredJobsand rcjec tcdfor,iol,5, 'fbis canaffectwheth("rornotthcy accept th cjob offcrs,recommm;i 1heC"omp:m)' tooth('n,con1inuepatron izingthc company,orfilci di!.Criminadon.orothcr, la"'·su i!.
4. Jf)ourccciveda ,erya ppcalin gJob offcroncwcek afteraccep1 . 1ng 3 diffe ren t JOh offer 11,ith ano1hcr company. wha111oul~ )O Udo ?
5. Th mk about different job offers you ha1·c received. What mu iomeofthembet1er1han ot hen?
M: f\'1ce-om·n ted sty le that 1, i/1 fit your rc.smurunt' s culrutc 1ay .,,, ,u. She al\o !,Cored hig h on the interview, job biowlcdie. ud si mulJtionasscssmen t.s
Your pre\l0U~ assi~lan t manager had been hired 11-ilh no Job c~pcrience and had not done nearly as "''ell during the a,scssmcnt process He had Ix-en hired six mon1h1i ago for an annual sa lary of $26 ,000 with 1110 week s paid vacation, a SI.Ill· darJ hea lt h benefit> package. and aS I.OOOs ign-onbonus. You
~JJ 1 :
1 1;;r'/~ l~~u"'::~11\~~:~~-:~~~~n~;:c~;;~~;i:
1·;~\Jrt "orl,; as soon as possible. Your assignment b to ,.n lc ;
1 ,,~ offrr 1wcr to Edwards usi ng what you have learned in this
rh,IP~:, y0 11,St,lls E.trrrut: Thi, chapter's De,clop Your Skills ~- z:::11! pro' 1J(-d sn ·cra l tips ~n ncgo11a1in~ 1 job offer In thi>
,.,crci..c.)ouunJapanner w11lu1-e: _thC1.Ct1~1orole-p lay 3 jot,
,,ff,·r n~;~:1~~ ~:~~~-:~:;~~:::~~;~t;: ;;1~ :;;~ 1J Jll~~rntaii,e 3ndac hanccto bc the fin:ihs t with 5,0meone clsc.. ~::r 1n,1rucwr "ill provide you eac h wnh more information and gNllfor)ourrolc
c,\ S[STUDY
HIRING FBI AGE NTS The FBI 1,; one of_ the six ~ureau s of the U.S. Dcpmment of Ju,uccand the pnmarycnminal investiga11,·cagencyo fthe f.'Jaa l i ovcmment. The spec ial_ ag~ nts who ~·ork fo r the )1U in1cstigatc people and orgamiauons who ,·1olate fe deral ,ututes. The se violations can be re lated to organ ized crime, "h itc-collar crime, finan cial crime, civil ngh1s v1ol111ions, ~1 n\,. rohho:rics, kidnapping, terrorism, fo reign coun terintel - licc nce , and fu g111ve and drug ll'affickin g matters. Speci al i~ en t, ;tbO work with Other federa l, Slate, an d local l3W c~ forccm cnt age ncie s. The work performed by special age nts hJ, at!J il y 1mpa_c~ _on counll')' 's sec urity and the quality of lifroi :il!U S. cmze ns.
The 17131 has va lidated a series of assessment mclhods for 115 , r,:,;1 al :igcnt posi nons . To effectivel y uti lize the assess- ment,. it u,es a com binati on of multiple hurdle s and cut scores 1..i rnJJ..cu,hiring dcci sions:"
Q,i/i,1e Application fo r //rt Special Agtnt Po.si1io11 : A pr.'l11rnn ary onlinc applica ti on submitted through an FBI F1clt! Offi ce is used to determ ine if applicants meet 1hc nunim um qualification s of the position ,76 inc ludin g c1111c11, l11p, age, education. work experience, and geo - ~rJplm:: mobihly .77 P/1(1 ,t / Tr .lliug: 78 Applicants passing the second hurdl e ar~ g1, en three tests: A biodata inventory, a logical reason- ing tc~t. and a si tuational judgment test. Cand iJ atcs \lhosc
Chaptu 11 • Choosing and Hin ng Cand 1J:11e~ 325
3. O~nms v,gnmr £u1'C'ur. In this ch3?1c_r's 0 1;c"~n,~ :;nc~~:},:~ kaml'd ho"'' Mmne Ma.~ 1ues lO 1a1!or1tSJO~ O d nts. rere:ld the dida1cs. Working1nlgrou p ofthrecto!i\c stu e ran s11,cn; to v1gfll'l lc andbc prcparcd l0)h3re"' 11h 1heel,tSS)Oll ,
~.c r:o;;~~i~~s~oa~s11 is ethical for Mannc Mil.l to s~;e :if~: cnlnew hi n:-sforthcsamcJobdiffcl\' nlamounts p y
b. ~::~~s; larincM ax use a 1ow , compc11li~·c .. or higho!°:;;~c~ Why? Should the company present a m.1J1imum J
C. ::1t::~\~~:t~: ~:~~:re~ the hkelihooJ_~hat lhC top s:ilcscand1dalc5itrecn.ms11,illacccptitsjob offcr,/
they might :1 lso recei ve 11 co nditio nal letter.~f appointment, based on the detcnnination of their compcunvcne ~s and t_hc needs of the FB I. Toe final o ffer of employment 1s co nun - gcnt upon succc ss full y co mp lc tin g thc physic_al ~tness test, background in vestigation, and medical exammauon.
4. Phys ic-al Fitness Test: To pass the phy sicul fitn_ess tc~t can - didate s must perform a maximum number of sit-ups m one minute , perfo rm a timed 300-mctcr sprin t, perform a 111~ 1- mum number of push-ups, and p.:rform a timed 1½ mile run . Candidates ha\·c a total of three opponunitics to pass the phys ical fitncss tcst.80 .•
S, FBI Bocl.:grom1d l,wes1igario11: Candid ate s re ce tvmg a conditional letter of employment arc subjected to a back - ground investigation including a polygraph tes t, credit and 3JTC St checks. int erviews with assoc iat es as well as personal and bu sines s references and past employers. and verifica- tion of educational achievements . Receiving :m FBI Top Secret ~curi ty clearance is neces sary to be elig ib le for a FBI Special Ai;c nt pos ni on .81
6. Medical £w111i11mio11 : A thorough medical examinati on 1s given to asse ss whe th er any med ical iss ue could ~eg ativ~ly affcC" t the candi date's ability to perform bas ic Spcc1a! Agent job function s. Candidate s passi ng 1111 phases of 1he 1 hiring process arc ~hcdu led for a Special Agent class at I the FBI Academy . I
~cores exceed a predetermined cut score advance to the Qu estions
~~;~s~h/~~Hling:'9 Only the most competiti ve applican1 s, I. What arc the advantage s and di sadvanta ges of the FBI ha, cd on the hirin g needs of the FBI, arc sched uled for usmg a multiple hurdle s approach to select special age nts? Phase 11 Te sting. Candidate s' performance on a structured Would such a len gthy se lecti on process appeal to you or
in1rn 1rw and a written exerci se are compared 10 a cut score . .t ~~~a;~i;:,~ t~1;;~:"J0a:~~~;:~: c the chance s that the If the :1 pphc:1nc's score is at or higher th an the c~t score, appli ca nts it wants to lure ac,·rpt the joh offers extended hl· ur ~h e pass es Phase IL Can didates who pass this hurd le to them ? J arl· ~,· m a lcuc_, _in~_on_n i_ng 1h_"'_" _h,_1 thq•_ P_"_"_' _'°_d_<h_" ____ _
326 Our-,:~r l ! • Choo51n.S :inJ H,nng 0111Uldne:.
Semeste r- long Active Learning Project ~1': ho.,. cm,hdnes' :i..-se:,m;.'111 srortc) will be '°mt,1m,_-J inw l migk SN«' Lhal. C':111 N' usC'J to C"Omparc cand1dltt:s Dcscnbe how ,ou .,. 111 rcJocetht:CWJdnc p..:llll Loagruupoffin.1li)tl.nnd ho\\ )OU
\\illdccide.,.h1chof)ourfinahm\\1llrt:o:e1\cajob offer U youlc-amed inChaptcr4 ,1den11fy how) Ollrdcc1si on-11U1.i ""ll.\;(i cnat,le the company to comply with EEO:ind OlhC'r lt gaJ
Case Study Assignment: Strategic Staffing at Chern's Sc-clh.:-:irpcndL\al tht:b.id ofthelxxlk forlluschapter'sCaM: S1ud) AsMgnment.
Endnotes J - Mmlll!'.\ l:u .. - .\fanne.\lJ..\. :OU, hnp./fw \\W Jobs.net/
Job sJmanlll!'m.:i~cn -uY - ) lmne.\ l:t..\[n,·esior Rc lllion s.· M:mneMax . .2007. http J/11"'\\ manncma.t.C"Omlin,o.tor
j ")lllnnc:.\l:u.· ~lanoc)l.1.t, 2013 .1. Hmsen. F. "Ncgouaung S1.1r11ng Sal:mes for Top
Penorm~ • Worl:.jorrt Maru.gtmrm Onlmr. Jul) 2(()6. \\ \\ w. 11,octfort"e.comi'.11"C"lu\e/fc:uure/2.t/+IJ60'1ndex php.
5 Snun. B., Topgrodmg· Ho.., , Uadmg Compamn Wm by Hinng. Coaclung, an,J Krrpmg 1/it Bw Ptoplt, P11ramus, NJ. Pm:w.tt H:iU. 1999
6. Bureau of ln1•C$1.JgJuon ... Ph:l-..c I Te~ting," A.pplwwu l,ifomliJ/1on8ooklt1. Se-p1ember 1997
7 )laninu... M. ""Screening for Quahty on the Web, " Emp/opntnr .\lanogrmrnt Today, 9. I (Wimer 2004). www.shrm .org/ mu/c mt/aruclesf.!!XW11in1ei04.:o•·cr.:i.sp.
g_ FclerlJ Bure:iu of lmcsugac1on. "Your Guide co Gcmng StarU'd. - Appl,cant /njorm(l/lOII BoolJ,t. Scptembcr 1997
9 Sec Bobko. P ... Roth . P L. and Nicewander. A .. "B:inding Sdccu on Scores III Hum:in Resource Man3gcment Decisions· CurrrnI ln.rcuncies and the Effect of Conditional Stand.ml Errors: Of!anl:a!Wn<JI R,uarrh MnlwdJ, 8 (2005) ' 259-273
10. Clsco. W F .. Duu. J. Zo:kd., S . :ind Goldstein, L L.. - sl.31isuC3l Jmphcauom of Six Method~ of Test Score u~ in Penonnel Sclecuon.- Hun1'ln Pr,f1mnL111a, 4 ( 1991): 233-264
l l ~ o. R.. Aleundcr. A .. and BlITTtL G V. '"Selling Cutoff ~ - Lc~al. ~)chometnc.andProfe»ional Issues and Gwdehncs: Pmonnr /Pf)"rholog). 4!(1988 ) 21-22.
12. Sec L.S. lkp311l11Clll of Labor. ··compliance A.>sisl.1Ilcc-Fai r Llbor Sl3nd.lrds Act (Fl.SA ): "'"'wdol.go1/esa,'whd/flsa.
13 Ibid 14 Snurh ,. B,II.Sor,1h T,lr rommumca1wns, fnt, 273 F 3d 1303
/l l!h Cir 2001 ) !5 Sec. US lkparunenc of Labor, -uniform Guidelines on
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Cir- 20031. 18 Sec. for example, Pttu City of Ch,rago, 352 F.3d 1 J 11.
1115 {7th Cir 2003 ): Rr,nold1 1 Ctry of Ch,rago. 296 F.3d 52-1 . 530-31 (ith Cir. 2002 ); To/but, •• Ctt) of R,chmond, 648 F.2d 925 . 931-32 (4th Cir. 1981 ); Cot1u 1• C11y of80Jton, )23 F 3d 160. 172 o 10 ( 1st Cir 2002). U S. Equal Employment Opponurut y Comm1 rnon. '" EEOC Compliance Manual : Sc,::uon 15 R:icc and Color D1 scnm inauon," Apnl 19. 2006. \\\IW . t;'t'OC,go1/po lic~ /doc!/ra(c--(:O)orh1 ml11:'1.'_ ll5 _
19 U.S F..qu:il Employment O~ponunity Comllli ~~~u~:: ~_i~Jnce M:inual: Scrt1on 15: Race Ind
20. ::/~:~::pc~t~;r~~~~:ma~;:,A:~ :,~::t~ :~,7.7~1~
2 \\~~~~~~-!:i5.);~io7n~!n:~:~~~~°::
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;:~~I ~~:~:~;~~-~0~:;;:1'~:;tt~::;jc;:i. w" w:,:~::
Ch:cp1cr II • Choos 1ng:1nJ HinngCand1da1cs 327
.. Con tro lling R1~l ... 11h Employment Con ir:1c\'-, and Scha ll , J . "Pay Up: ~ofl -Scll S~~ic:~e~nc:r ~om, 2006. a Higher Staning Salary. Gro~ua:~ia,ur~()9 .Q1-03 g.h1m l: ;:: ~~Jd~:'.~!:n~1~::::~a7;1~ ffm. II Pa )·s to Ask f~r More. M~ 1cy," Caree rJ oumal com. 2006. w11lw cll rcct]Ouma . cumf1.a l:lf) IHringfnego1ia1d2(l()6()830-loc b.hlm . m,alln
55 . fohcr. R .. Ury, W. L ,a'.1'1 Pmton, 8 -/;;;_n;s~o ;:~:~~ - g Agrum,r11 \\l,1how Gw,ng In. New , g ·ccs to Sign
56. "Closmg lhc Deal : llow IO ':::rPr~pcc,i; ~~.:_ a]!busim:.ss.
:~=~=~::~-~~-~mcn;-hi~ng/363 - 1 1:;~-.
57 Hirsch man. C, 'Cl osi ng the Deal." HR Maga:rn r, Apn - ·
51\. ~~~c1 ion~ for Emplo)mcm El ig1bili ty8 ~~~~c~::;;j Department of liomcland Sccun l)' , ~llrch · -
59 ~;~:·~~:~;~~~ /; '.'.~~:.'.~-:~:nd Thomas, S. C . '"Ap pli ~:int Reactions 10 Sclcctmn ProccJurcs: An Upd:itcd ~1~~;
3 d
60 ~!:;;~~~a~si~ ;'' ';;";:~:~:~t;~~- Ju stic~ in . the Scl~llon ~ ss : A Rev\CII' of Rc:.carch :ind SuggcsUOIIS
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65 Smither. J W., Reilly. R.R . Millsap. R. E .. Pearlman. K . and · Stoffc)', R. W .. "Apphcant Reactions to Selection Procedure<." '
Prrsomu/ PsythQ/ogy, 46( 199))· 49- 76. 66 Han,;cn, F., "Rccm111ngon the Righ i Side ofthi· L'.l" :· WorJ..forrr
Mmwgrmrm O,r/mr. May ~(X)6. ""' w.worHorcc .coml scc t1 on/06/fc:11ure/24138/ 121.
67 Ford. D. K .. Tnnillo, D. 1- 1 . anJ Bnuc r. T. N , " Rejt:o:lcd 1.!1.1 1 Snll Then.•· Shift ing 1hc Focu< in ,\pplu:am Reacuons lu the Promotion~] CuntC.\L." /ti1rnro11(.llw/ Jmm,(11 of Sr/ect,uu and AJsr.,1mr111. l7(200))· 402-ll6
68. Hir-chm~n . '"Clu~ing the Deal ..
328 Ch3pter 11 • Choosing and Hiring Candidates
69. Scott. N .• "Reneging-The Hot Economy's Dirty Secret:· Vault.com. 2006. www.vault.com/nr/news main.jsp?nr_pagc= 3&ch_id=421 &anicle_id= 19572&cnt id=8 I.
70. "Mari ncMa.x Inc 10-K." 2010, - http://www.marinemax . co nl/invcstor-relations.aspx .
71. Hausen, "Negotiating Starting Salari es for Top Perfonners. " 72. Ibid. 73. Cappel\i. P .. "Buying Options on Lawyers," H11ma11 Resource
fat'c11tive Online, May 26. 2009, http://www.hreonlinc. co m/HRE/story.jsp?storyld=212747437&topic=Main.
74. Federal Bureau of Investigation. ,;FB I Special Agent Selection Process: General ln fonnation," Applicam lnfonnation Booklet, September l 997.
75 . federal Bureau of In vest igation, "Special Agent A . and Hiring Process." 2013, https:f/www.Jbij obs.gov/] ~~licahon
76. Ibid. · ·'-'p 77. Federal Bureau of In vestigation, ''FBI Special Age S .
Process: General Information," 2013. nt clcc11 011 78. Federal Bureau of In vestigation. "Phase f Te sti n .,
https:/fwww.fbijobs.gov/ l 121 .asp. g, 20! 3, 79. Federal Bureau of Investigation. "Phase n Testi n .,
hnps://www.fbijobs.gov/1122.asp. g, 2013, 80. Federal Bureau of Investigation, "FBI Special Agem Ph .
Requirements," 2013. https://www .lbij obs.gov/ 111 3.asp# YsicaJ 81. Federal Bureau of Investigation, "All FBI Job Candidates U I.
a Background In vestigation," 2013. httpsJ/www.tbijobsg ndcrg/S 0 ,OV ,asp,