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Jean Phillips & Stanley Gully

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After studying this chapter, you should be able to:

Describe different ways of combining candidates’ scores on different assessment methods to calculate an overall score.
Describe three different ways of making a final choice of whom to hire.
Discuss the factors that influence the content of a company’s job offer.
Describe the four different job offer strategies.
Describe different types of fairness and explain why candidates’ perceptions of fairness are important to staffing.

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When using more than one assessment method, as is usually the case because the validity of the candidate’s assessment is more valid when using multiple predictors, a candidate’s scores must be meaningfully combined to calculate an overall score that can be compared across candidates or to a minimum hiring standard.
There are two ways of combining assessment scores: multiple hurdles and compensatory approaches.

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Multiple hurdles: candidates must receive a passing score on an assessment before being allowed to continue in the selection process
Costly and take more time due to the need for candidates to make repeated visits for the different assessments
Used when the cost of poor performance on that characteristic is high

For example, when safety is at risk

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Compensatory approach: high scores on some assessments can compensate for low scores on other assessments.

This approach is less useful for jobs in which specific talents must exist at a minimum level.

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Often, some job requirements are essential to job performance but others can compensate for each other.

A data entry hire may need to type a certain number of words per minute with a minimum number of errors, which would be a minimum hurdle, but cognitive ability and personality may be compensatory factors.

A typing test can be used at the beginning of the assessment process as a hurdle to weed out candidates who do not meet the minimum typing requirements, then a compensatory approach balancing cognitive ability and personality used at the end. Scores on cognitive ability and personality would be weighted and combined in a compensatory manner and the highest scoring candidates offered jobs.

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Cut score: a minimum assessment score that must be met or exceeded to advance to the next assessment phase or to be eligible to receive a job offer.
Rank ordering: ranking candidates from highest to lowest scoring.
Banding: Everyone who scores within a certain range of scores is considered to have performed equivalently and assigned the same grade.

Hiring within the band is done randomly or based on other factors (EEO or affirmative action goals, etc.).

Banding allows for the consideration of other factors in making a final choice, including whether an internal candidate is at risk of leaving the company if passed up for a promotion.

Band widths are generally calculated on the basis of the standard error of measurement.

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When using cut scores or rank ordering, an additional decision needs to be made about whether to hire from the top of the list down, or to create a pool of finalists from which to make a final choice.
This pool of finalists can then be rank ordered based on global or specific assessments, selected from randomly, or banded. There is no one best method of choosing the candidates to whom to extend job offers.
Whenever possible, the ability of the assessment scores to predict job success should be carefully evaluated, and cutoff scores should be set high enough to ensure that new hires are likely to meet or exceed minimum standards of success.

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Particularly for firms with a talent philosophy of viewing employees as investors rather than assets, the job offer should maximize the employee value proposition offered to the finalist.
Before extending a job offer, or deciding on the content of the job offer, it is always a good idea to verify the truthfulness of any statements made by the applicant that were relied on in assessing the candidate or deciding on the offer’s contents

Grade point average, prior work experience, prior salary, etc.

It is also a good idea to identify a backup hire in case your first choice does not take the job.

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Low job offer: below-market rewards package
Competitive job offer: total rewards package is competitive with the market
High job offer: total rewards package is above the market
Maximum job offer: the company’s best and final offer

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Implicit employment contract: an understanding that is not part of a written or verbal contract.
Because binding contracts for employment or for future compensation can be created verbally, great care should be taken during discussions with prospective new hires.
To be legally binding and enforceable, any contract must consist of an offer outlining the terms and conditions of employment (and possibly a deadline for accepting the contract) that is accepted on the terms offered. Something of value (consideration), usually promises of pay in exchange for promises for labor, must also be exchanged.
An agent authorized by the receiver can negotiate on the finalist’s behalf, and agents authorized by the organization such as executive recruiters and search consultants can negotiate on behalf of the company.
Offer letter: written letter describing in clear and precise terms exactly what the compensation structure and terms of employment will be.

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Statements on a job application blank (e.g., a statement that providing false information is grounds for termination), statements in employee handbooks, and statements in other documents may become interpreted as enforceable contracts.
Often focus more on termination issues than on employment.

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First rights to their inventions and patents
Nondisclosure agreements
Noncompete clauses
Nonsolicitation agreements
It is a good idea to consult legal counsel before preparing any contract forms or statements on application forms
Because states’ laws differ, employment law counsel should also be consulted to determine whether your state’s law enforces non-compete covenants and, if so, under what circumstances

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In writing
Verbally
Showing your company as a unique or exciting place to work can help close the deal
Emphasizing the selling points of the job itself and the career development opportunities that exist, as well as selling the company’s image and brand, can increase the appeal of the opportunity to the candidate

The job rewards analysis should help identify some of a job’s most attractive features

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Should reinforce the company image and the positive impression formed by the candidate during the hiring process
While the candidate is considering the offer, it is a good idea to stay in contact with him or her to reinforce your enthusiasm

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Do not look at a negotiation as an either/or proposition
Identify what you can and cannot part with
Try to identify and use sources of leverage
Suppress your emotions
Take time to evaluate the offer
Be realistic
Practice your negotiation skills
Document and be prepared to discuss your skills and accomplishments
Be appreciative and respectful
Remember that employment is an ongoing relationship

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For job offer acceptances:

Ensure that the finalist followed the proper procedures, accepted the job offer as written, and responded before the deadline.

Congratulate the new hire and express your enthusiasm about having him or her onboard.

It can also be helpful to ask what persuaded the person to say yes, and what he or she thought of each company contact and the hiring process.

To begin the new hire’s transition into the company, stay in contact with the new hire and encourage his or her supervisor and coworkers to do the same.

Once a job offer has been accepted, the recruiter’s role is to begin building the new hire’s commitment to the company and enhancing his or her ability to succeed on the job.

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When the company rejects a candidate:

Do so respectfully.

Distributive fairness will be perceived as low, and to reduce negative spillover effects, efforts should be made to enhance the procedural and interactional fairness perceptions of rejected applicants.

Negative reactions of rejected internal candidates may be reduced by explaining why they were not chosen, and what they can do to be more competitive for the position in the future.

Development plans can be created to help the rejected employees enhance their experience and qualifications.

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When a finalist rejects a job offer:

Try to find out why and whether an enhanced offer might be acceptable if the firm is willing to negotiate.

Promptly and respectfully acknowledge the job offer rejection.

Be sure to keep appropriate records of all applicants for EEO/AA computations, such as applicant flow.

If a rejected applicant is qualified for a different position or if they might be hirable in the future for the job to which he or she applied, requesting permission to retain the applicant’s information for a period of time can help to build a talent pipeline and facilitate the future sourcing and recruiting of pre-qualified applicants.