The Importance of Recruitment and Retention of Employees Questions

1) Explain the importance of recruitment and retention of employees.

2) Explain why proper recruitment and retention of employees impact the culture of the workplace and overall business, including the business’ finances.

3) Explain the difference between a candidate being a “good fit”, yet with meets the minimum requirement for the job versus having a candidate with a “great” resume, yet is not a “good fit” for the job.

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3: Recruitment and Selection
Christine Cross
LEARNING OUTCOMES
By the end of this chapter you will be able to:
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•
•
•
•
•
Distinguish between the recruitment and selection processes
Explain the advantages and disadvantages of different recruitment methods
Identify how the shortlisting process forms a fundamental part of the employee selection decision
Discuss the range of employee selection methods available and outline how they operate
Describe the limitations associated with using the interview as a selection tool
Outline how employment legislation affects the employee selection process
THIS CHAPTER DISCUSSES:
Introduction
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Strategic Recruitment and Selection
The Recruitment Process
Shortlisting Stage
Making the Selection Decision
Range of Employee Selection Methods
Employment Legislation and the Selection Process
Making the Final Selection Decision
INTRODUCTION
Employee resourcing is a fundamental component of effective HR practice, and refers to the process of
finding the ‘right’ person for a particular role, in a specific organization. The selection decision is arguably
one of the most important issues for any employer, regardless of organization size. Selecting the ‘right’
employee during the employee resourcing process is critical, as not doing so can be costly for employers. It
is therefore vital for an employer to ensure that the resourcing process operates effectively. The purpose of
this chapter is to explain how the recruitment and selection processes operate in order to achieve this aim.
We begin by outlining the importance of taking a strategic approach to the recruitment and selection
decision and then move on to examine the main features of both processes.
STRATEGIC RECRUITMENT AND SELECTION
It is important to understand that the recruitment and selection process should not operate in isolation.
Chapter 1 identified the broader context of managing people in organizations and highlighted the strategic
nature of HRM (see Figure 3.1). In order to achieve the competitive advantage that can accrue from having
a superior workforce, selection has been identified as one of the key elements of the ‘best practice’
approach Chapter 1 . This concept is rooted in the philosophy that people are an organization’s most
valued asset and a key source of strategic competitive advantage (Bartlett and Ghoshal, 2002). As a result,
hiring new employees is vital in ensuring the future success of the organization.
Selection – a process used to find the candidate who most closely matches the specific requirements of
a vacant position
Before we begin discussing how recruitment and selection works, it is necessary first to examine the area
of competencies that are used by many organizations in the recruitment and selection process.
Competencies can be defined as the behavioural characteristics of an individual that are causally related to
their effective performance in a role (Boyatzis, 1982) Chapter 2 . Competencies are often compared with
knowledge, skills and abilities; they are, however, different, in that while they both indicate an ability to
perform in a role, competencies are broader than knowledge, skills and abilities. Competencies are normally
worded in a way that identifies specific behavioural aspects of the role (see Consider This on the next page
for an example). They are often developed by organizations to represent a set of factors that can assist in
achieving success at an organizational level, but they can be implemented either at an organizational level
– where one set of competencies is standard for all roles – or at the job level – where specific competencies
are needed for a role. Using a competency-based approach to recruitment and selection allows the
development of more objective selection criteria, which are focused less on applicants’ qualifications and
more on their ability to perform in the role. Additionally, competencies can form the basis of the questions
asked at the interview stage, providing a consistent, objective approach to the selection decision. We
examine competency-based interviewing in more detail later in the chapter.
Competencies – the behavioural characteristics of an individual that are related to their effective
performance in a role
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Figure 3.1 The strategic recruitment and selection process
CONSIDER THIS
Within BankCo (a fictional company), staff members are expected to work cooperatively with others in
the achievement of goals while valuing the skills, opinions, roles and diversity of others; deliver on
commitments made to others both internally and externally; and develop and foster positive working
relationships with individuals both within BankCo and externally in the course of their work.
This is an example of a competency description for collaboration. Can you think of another way to
express this competency? No doubt you can. What does this tell us about competencies in the
recruitment and selection process?
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THE RECRUITMENT PROCESS
Following on from the human resource planning process Chapter 2 , the first stage in the recruitment
process is the job analysis. You could consider the job analysis to be like an audit of a job, detailing the
different tasks the job entails as well as the particular skills and competencies needed to do that job.
Detailed information about the role and responsibilities of the vacant position is gathered in this stage,
usually by someone in HR. This information can be gathered from the person doing the job, either through
observation, interview or questionnaire. The employee’s manager can also be asked to indicate the key
aspects of the role and how it fits into the overall department or section of the organization. An important
concept of the job analysis is that the analysis is conducted about the job, not the person. The key outputs
of the job analysis are a job description and a person specification.
Job analysis – the process used to gather detailed information about the various tasks and
responsibilities involved in a position. Through this process, the knowledge, skills, abilities, attitudes and
behaviours associated with successful performance in the role are also identified
Job description – the detailed breakdown of the purpose of the role and the various tasks and
responsibilities involved in a particular job
Person specification – specifies the type of person needed to do a particular job. It essentially
translates the job description into human terms
The job description is a detailed inventory of what a particular job entails, while the person specification is
essentially the translation of the job description into human terms. The person specification lays out the
qualifications, knowledge, skills, personal attributes and experience required of an individual in order to
match the particular job. When combined, both of these documents produce a set of criteria which are used
in making the selection decision.
A trap that organizations can fall into is to create a person specification for the ‘ideal’ candidate. However,
it is important to differentiate between qualities that are essential for the role and those that are desirable.
Focusing on too many ‘nice to have’ qualities is likely to limit the number of people who apply for a role. For
instance, a person specification criterion for a particular position may be that it is essential to have an
honours degree in Business. In other words, anyone without an honours Business degree would only be
considered if the number of applicants in total was disappointingly low, but the organization was unable to
wait for more qualified candidates to apply. The person specification should be developed from and
accurately match the job description. See the example of a hair stylist job description and person
specification in Tables 3.1 and 3.2. You can see that there is a distinction between those requirements that
are essential (E) and those that are desirable (D).
As well as, or instead of, the person specification criteria, many organizations formulate
competency-based criteria to filter candidates for particular jobs. Competencies can include soft skills such
as communication, presentation, leadership and collaborative skills (e.g. teamwork). Whether certain
competencies are desirable or essential will depend on the particular job; hence the importance of
conducting a job analysis. For instance, if we return to the hair stylist example, the essential competencies
for a junior stylist may differ from those for a senior hair stylist.
We now have all the information we need to begin recruiting for the position. Once a position has been
identified as being vacant, the organization must decide on the method(s) to use in recruiting for that
position. We can identify four broad methods of recruitment: internal, external, online/e-recruitment and
overseas/international. You should note that the organization can use one or more (even all) of these
methods in any one recruitment process. The choice depends on the amount of time and financial
resources the organization has at its disposal for the purpose of recruitment. We begin first by examining
the difference between the choice of formal and informal methods of recruitment.
Hair stylist job description
Purpose of role: A hair stylist serves customers by preparing, conditioning and styling hair.
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Hair stylist job duties:
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•
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•
•
•
•
Maintains supplies by checking stock; anticipating needs; placing orders; verifying receipt.
Prepares hair for styling by analysing hair condition; shampooing and treating hair.
Conditions hair and scalp by applying treatments.
Plans desired effect by studying facial features; examining potential styles; conferring with customer;
making recommendations.
Produces desired effect by arranging, shaping, curling, cutting, trimming, setting, bleaching, dyeing and
tinting hair.
Maintains quality service by following organization standards.
Maintains safe and healthy conditions by following organization standards and legal regulations.
Obtains revenue by recording or collecting charges.
Maintains technical knowledge by attending educational workshops; reviewing publications.
Contributes to team effort by accomplishing related results as needed.
Table 3.1 Hair stylist job description
Source: copyright © 2018 – Monster Worldwide. Reprinted and adapted with permission.
Person specification: hair stylist
Skills, knowledge and ability
Ability to analyse information
Ability to understand supply chain in hairdressing
Ability to handle difficult situations with tact, discretion and assertiveness
Ability to handle and accurately account for cash and resources
Strong interpersonal skills
D
D
E
E
E
Personal attributes and attitudes
Creativity
Attention to Detail
Confidentiality
Professionalism
E
E
E
E
Table 3.2 Person specification: hair stylist
Source: copyright © 2018 – Monster Worldwide. Reprinted and adapted with permission.
Formal and Informal Recruitment Methods
Formal methods are those where the vacancy is officially advertised, for example through different media
(print, radio, TV, corporate website, recruitment-specific websites, social media) and/or via
employment/recruitment agencies. It would be usual for an organization to use a variety of such methods in
its recruitment campaign in order to attract a wide pool of applicants. However, it is also important to keep in
mind the suitability of the medium. For instance, if you are looking for a legal expert, you would advertise in
legal magazines and websites.
Informal methods are those where candidates find out informally about a potential vacancy. For example,
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the candidate can be made aware of the vacancy through word of mouth, or via informal social media
channels such as Facebook or LinkedIn. Candidates may also send spontaneous (unsolicited) applications
to the organization. Interestingly, research suggests that informal recruits often perform better than formal
recruits (Barber, 1998). This could be because informal recruits take a more proactive approach since they
are interested in the position and/or the organization. Formal recruits, on the other hand, wait until there is a
position officially advertised before applying and are more reactive.
HRM IN THE GLOBAL BUSINESS ENVIRONMENT
The Nitaqat programme in the Kingdom of Saudi Arabia
If you are working for an organization that has a base in Saudi Arabia, you will see that the way in which
people are recruited and selected at work is very different to Australia, Europe or the USA. For example,
in Saudi Arabia, the employer will be given a quota for the number of Saudi nationals to be employed.
This is called the Nitaqat programme. The number is dependent on the overall number of employees and
the sector. The aim of the programme from the Saudi Ministry of Labour is to reduce unemployment
among Saudis. Employers with less than ten employees are required to have at least one Saudi national
(Proven, 2017). Aside from this government requirement, employers know that it is an advantage to have
people working for the company who understand the way business is done in Saudi Arabia.
Internal Recruitment
This is a recruitment method where an open job position is advertised internally within the organization and
current employees can apply. There are many advantages of internal recruitment. It is cost-effective since
the job vacancy advert can be posted on the intranet site (a form of e-recruitment), asking interested
candidates to apply directly, rather than taking out expensive print media space. It is also advantageous in
that the ‘new recruit’ is actually an existing employee, who is already familiar with the organizational culture,
products and processes. Internal recruitment is important for staff development and staff morale in the
organization too. With existing employees motivated by their potential to move to other positions, the
probability of staff retention increases.
Internal recruitment – a vacancy is advertised to potential candidates from within the existing employee
base in the organization
However, there are some disadvantages to internal recruitment. The primary disadvantage is that it limits
the pool of applicants to those already employed within the organization. These employees may not have
the skills and competencies required to perform the job to the highest standard. It also means that an
existing employee, deployed through internal recruitment to another position, leaves a skills gap in the
position they vacate, which may be more difficult to fill. Another key issue is that it can actually restrict
innovation and diversity of mindset in the organization. This is because you are hiring people who are
familiar with the organization and indoctrinated in its culture, and so are potentially unable to present novel
approaches to performing in the position. Additionally, while internal employees may feel motivated and
empowered to apply for a new position in the organization via internal recruitment, these same employees
may feel demotivated if their application is unsuccessful. Despite these issues, internal recruitment is
considered good practice, as it allows internal candidates the opportunity for lateral and vertical movement
through the organization Chapter 10 . In general, however, it is often the case that organizations use a
combination of internal and external methods, as this is likely to produce the best possible candidates. We
look at external recruitment in more detail next.
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CONSIDER THIS
Review LinkedIn and check for available jobs (Linkedin.com/jobs). Note how many adverts include
person specification details, competency frameworks or both. Are similar person specification criteria
used for similar positions? Or across positions? What about competencies? Why do you think this is the
case?
External Recruitment
External recruitment occurs when a vacancy is advertised to potential candidates outside the existing
employee base in the organization. External and internal recruitment mirror each other in terms of
advantages and disadvantages. The positive elements of one approach are the drawbacks of the other, and
vice versa. External recruitment reaches a wider target audience, directly attracting potential candidates
with the required person specification or competencies needed for the job. The external recruit should bring
fresh blood, new skills and new ideas to the organization, which should improve organizational
performance. This approach is also in keeping with promoting diversity in the organization Chapter 6 .
There are a number of disadvantages, however, which involve the costs associated with external
recruitment, for instance the use of recruitment consultancies to attract candidates, which is outlined below.
External recruitment – a vacancy is advertised to potential candidates outside the existing employee
base in the organization
Recruitment Consultancies
Recruitment consultants find candidates on behalf of their client companies for both temporary and
permanent jobs. They are responsible for attracting people to apply for open jobs, placing adverts,
interviewing potential candidates and matching candidates to the appropriate roles. They operate in virtually
all sectors of the employment market. For specialized positions, recruitment consultancies may have a
database of potential candidates on file, which narrows the recruitment search and can save time. This is
particularly true in the IT and pharmaceutical industries where the skills required are specific and possibly
difficult to find. For senior-level recruits or where skills are in short supply, some recruitment consultancies
offer an executive search or ‘headhunting’ facility, whereby they directly contact individuals with the skills a
client organization is looking for. Recruitment consultants are costly in that they normally charge a
percentage of the successful applicant’s base salary as their fee for finding the candidate.
Employee Referrals
Many organizations employ this less expensive form of external recruitment. Employee referral schemes
work by inviting existing employees to recommend someone from outside the organization for the vacant
position. The internal employee receives monetary compensation for their recommendation if the proposed
candidate proves successful and remains in the organization for at least a minimum period of time (often six
months). It could also be expected that the proposed candidate will fit in with the organization’s culture or
way of doing business, as people usually associate with others of the same beliefs and values, so are more
likely to recommend someone who will fit the organization.
Graduate Recruitment
Graduate recruitment programmes involve specifically targeting graduates to join their organizations. In this
way, the organizations go directly to the source for their recruitment purposes. It can involve organizations
attending third-level institutions to recruit prospective applicants. Alternatively, graduate recruitment fairs
take place in a neutral venue where several employing organizations exhibit and present to graduates.
Graduate recruitment is advantageous for an organization in that it allows that organization to
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cost-effectively target qualified graduates to apply for open positions in the organization. By going directly to
graduates in a certain discipline, such as business or IT, organizations seeking to fill positions in those
areas have saved time, money and effort in seeking quality candidates for specific roles where such
disciplines are essential.
BUILDING YOUR SKILLS
Think about a job that you or a family member has had in the past. As the line manager responsible for
that particular job, what recruitment method(s) would you use when hiring someone for that job? What
are the reasons for your choice?
E-recruitment
The third method of recruitment is known as e-recruitment. This method can be used as part of both
internal and external recruitment, to create the most comprehensive recruitment process. E-recruitment is
the use of the internet to help attract candidates to apply for vacancies in the organization. Job adverts can
be placed on the organization’s intranet page (internal recruitment) or webpage (external recruitment), with
details of the job description and person specification, and timelines for receipt of applications. The
organizational webpage is often the first place someone looks for a job with a specific organization. The
vacancy could also be posted on recruitment websites or through commercial e-recruitment bodies that act
as consultants and place the relevant job vacancy notice on different websites for their clients for a fee.
E-recruitment – a vacancy is advertised to potential candidates via the internet. It can target internal
and/or external recruits
Social networking sites are also used both by employers and candidates. LinkedIn, Facebook and Twitter
are the three most commonly used sites. The use of social media as a recruitment tool poses both
opportunities and challenges for employers. Social networking sites potentially offer speed, efficiency and
the ability to target and attract specific candidates in the recruitment process. For candidates, it potentially
offers multiple sources of information about the employer and the possibility of contact with existing
employees to gain a more realistic job preview. For example, not only can you apply to work at Accenture
and get customized job recommendations directly through its Facebook page, the company also fills the
page with information and updates for potential applicants. Its integrated careers calendar shows
recruitment events and also details webcast opportunities and other virtual gatherings.
The main advantage of e-recruitment is the size of the target market that can be reached at a relatively
low cost when compared to other external recruitment methods, such as print advertisements. The speed of
response also tends to be much faster through e-recruitment. The main disadvantage is the sheer number
of potential applicants that result from an online job advert, which can then be difficult to filter and shortlist.
However, curriculum vitae (CV)/résumé filtering software is available that can help in reducing the numbers
of initial applicants to a manageable list. Quite often, applicants need to complete an online application form
with standardized questions and information requests. This software can filter the applications using specific
keywords based on predetermined criteria. Nonetheless, the growth of e-recruitment has been phenomenal
and is not expected to abate in the near future.
International Recruitment
The fourth and final recruitment method to be considered in the search for potential candidates is
international recruitment. This method is used where the vacant position requires skills and/or
competencies which are not readily available in the national context. As a result, organizations engage with
international recruitment in order to widen the pool of potential applicants. The main advantage of overseas
recruitment is that it increases the probability of finding the specific candidates required for the position. For
instance, in the IT sector, organizations may look to India with its large number of IT graduates for skills that
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may be in scarce supply among graduates in their own country. Organizations could attend graduate
recruitment fairs in India in order to find candidates with the IT skills required. International recruitment is
often used for senior executive positions, where the best person for the job is sought, regardless of
nationality. You can also see this in the international rugby arena, where managers of the national team can
be recruited from different countries, provided their track record is positive. However, the costs associated
with overseas recruitment can be high. If the candidates are shortlisted, the organization will have to cover
transport costs for interviews and relocation. There may also be issues to be dealt with in relation to
immigration laws and work visas.
It is important to remember that organizations can use one or all of the recruitment methods discussed. The
choice depends on the amount of time and budget they have to fill the vacancy, and which method best
suits the particular job description and person specification for the vacant position. This will vary
considerably from recruiting someone for a role as a barista in a coffee shop, where employee referrals may
be used and prioritized, to recruiting a new chief financial officer for an MNC.
Recruitment method
Advantages
Disadvantages
Internal recruitment
Cost-effective Form of staff
development Motivational tool
Increases probability of retention
Limits pool of applicants Not
suitable where there are skill
shortages Can restrict innovation
and diversity Training costs may
be high Morale issues for
unsuccessful internal applicants
External recruitment
Widens the pool of applicants
Advocates diversity Improves
employer brand
Expensive to advertise externally
Candidates unknown to
organization Demotivating for
internal employees
Table 3.3 Recruitment methods
Role of Employer Brand in Recruitment
In order to attract the most suitable candidates for a vacant position, it is helpful for an organization to have
a positive employer brand, which refers to its reputation as an employer (Knox and Freeman, 2006;
Mosley, 2007). Being considered an ‘employer of choice’ is positive for organizations, as it increases labour
retention Chapter 4 and attracts strong, talented applicants who want to work in such a positive
environment. Recently, a variety of awards have gained prominence in this area, such as the Great Place to
Work Awards. Organizations such as Google or Microsoft would be considered as having positive employer
brands. They have a positive image as an employer, offering competitive financial and nonfinancial rewards,
as well as structured internal career paths. In tight labour markets, where there is a shortage of skilled
applicants, it is particularly useful for organizations to have a positive employer brand so that they can
better entice candidates to apply to join their organization. Having a positive employer brand can often be
seen in the amount of unsolicited applications an organization receives from people wanting to join that
organization. For example, Google receives 2 million applications each year. It should be noted that an
employer can also be associated with having a negative brand, which can then impact negatively on its
ability to hire. Being perceived as an unpleasant place to work is not conducive to attracting top talent.
Employer brand – an organization is recognized in its own right as a desirable place to work – positive
employer brand – by the internal and external labour market
The Job Advert
As discussed earlier, the job description and person specification are the raw materials used in drafting the
job adverts. Once the recruitment method is determined and the type of approach(es) to be used agreed
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upon, the job advert must be shared with the potential candidates. The job advert will include the relevant
information concerning the position, such as:
•
•
•
•
•
•
•
•
name of organization
job title
duties
essential skills/competencies required
desirable skills/competencies
the application details (if the candidate needs to send a CV/résumé, cover letter, or if they need to
complete an online application form)
the closing date for applications
the address/contact details where the application should be sent.
The job advert should be drafted using AIDA criteria – attention, interest, desire and action (Diehl and
Terlutter, 2003). In other words, the job advert should gain the attention of potential candidates. It should
then generate their interest in finding out more about the vacant role. The job advert should instil desire in
the potential candidate to want to fill that vacancy. This leads to the candidate applying for the position.
Application Forms and CVs/Résumés
The organization must decide how it is going to ask candidates to submit their applications for the open
position. One option is using an application form. These are designed by the organization and are normally
intended to gather specific information on prospective candidates, either electronically or on paper. The
information is required in a standard format, which allows for the same job-related information to be
gathered from all candidates, making the selection stage easier in terms of comparing like with like. This is
difficult when allowing applications by CV/résumé.
Information normally required in an application form includes educational qualifications and work history.
Recently, employers have also included sections where they ask candidates to answer competency-based
questions. For more senior roles, however, it is more common for CVs/résumés to be required. One factor
to be considered in the decision is the need to ensure that questions on an application form do not breach
any areas of the employment equality legislation (see page 54 for more detail).
SHORTLISTING STAGE
It is unlikely that all applicants will have the necessary skills, abilities, education, experience or
competencies required for the vacant position. Additionally, the time, effort and money required to engage
all those who have applied for the position in the full selection process is prohibitive. The aim of the
shortlisting stage is, therefore, to reduce the number of applicants and narrow the field by a process of
elimination. This process is known as shortlisting. Shortlisting takes place once the advertised closing date
has passed and is based on the submitted applications, which are measured against the requirements
specified in the selection criteria. A shortlisting matrix is used to evaluate each candidate against these
criteria.
Shortlisting – a sifting process where those candidates who most closely match the predetermined
job-specific requirements are separated out from all other applicants
Shortlisting matrix – a scoring mechanism for placing the candidates who have applied for the position
in a ranking order based on their suitability for the role
The selection criteria used in this matrix are drawn from the job requirements and person specification
and should have already been identified prior to the position being advertised.
These criteria define the particular skills, knowledge, attributes, qualifications and experience a person
needs to successfully carry out the role.
Table 3.4 presents an example of a shortlisting matrix for a business analyst position with the criteria
identified in both categories – essential and desirable.
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One method of scoring candidates involves the weighting of certain criteria, where particular criteria
(normally essential criteria) are viewed as more important than others. For example, if you were recruiting
for a sales role, experience may be twice as important as a sales qualification, so you would weight sales
experience by two. In terms of scoring, the scoring system includes a ‘0’ for no evidence of the criterion or
qualification.
The outcome of using this matrix is to create two groups of applicants – those who are suitable and those
who are unsuitable. The decision as to who is suitable or unsuitable will be based on a cut-off score, which
you will need to decide in advance of beginning the scoring process. Candidates who score above the
cut-off mark will be called to the next stage of the selection process, and those who do not will be rejected.
In Table 3.4, only applicants 1, 2 and 3 would be called to the next stage of the selection process. In
countries such as the UK, Australia and the USA, employment legislation highlights the need for a rigorous
approach to the shortlisting stage, as those who are not shortlisted can use the discrimination legislation
Chapter 6 as the basis of a claim for unfair non-selection. In general, using a shortlisting matrix affords
those involved in the selection phase some protection against such claims. The completed matrix should be
kept with the other selection documents, such as the interviewer’s notes, in order to meet the freedom of
information requirements in many countries.
Table 3.4 Example of a shortlisting matrix for a business analyst
Online Screening
As mentioned earlier, a software package, referred to as an applicant tracking system (ATS), which
identifies specific keywords on submitted CVs/ résumés and application forms, based on the selection
criteria, can be used to screen initial applications. If your CV/résumé contains the keywords the employer
wants, then the ATS will rank you higher in the search results. This is a useful way for organizations to
reduce the number of applicants; however, it may eliminate suitable candidates who actually meet the
criteria but have not used the specific words searched for by the ATS. As part of the online screening
process, organizations can also use online ability tests and personality questionnaires as an initial method
of screening applications. (These types of psychometric tests are dealt with in more detail later in the
chapter.) There are, however, difficulties with these tests being taken online. There is the possibility that the
person taking the online test is not the person who is actually applying for the position. Additionally, there
are ‘experienced’ applicants who learn how to ‘work’ the system in order to produce the ‘right’ answers.
HRM AND ORGANIZATIONAL PERFORMANCE
Hiring a diverse workforce
Hiring a diverse workforce Chapter 6 has become a key recruitment and selection strategy for many
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organizations. Employees from different backgrounds and cultures bring diverse viewpoints and ideas to
the organization. If the organization utilizes their different skills and abilities, it will result in higher levels of
productivity as each employee ‘plays off the strengths and weaknesses of others.’ When you have a
diverse group of employees, you are also able to offer more value to your customers. Employees with
language skills or knowledge of cultural sensitivities and customs can break down linguistic and cultural
barriers, making the organization more attractive to diverse customer groups. This results in a competitive
advantage over companies that place less value on diversity than you do. Examples of organizations that
successfully recruit a diverse workforce include Nike, who revealed in 2015 that the company had more
non-white employees than white employees. https://www.seetec.co.uk/insights/diversity-in-the-workplace
-what-are-the-benefits-for-employers
MAKING THE SELECTION DECISION
Once the number of applicants has been reduced to a manageable amount, there is a wide range of
selection methods an employer can use to decide on the most suitable candidate. The overall aim of the
selection process is to predict an applicant’s job performance capability, specifically related to the vacant
role. This prediction element is seen to be particularly problematic, and so more than one method is often
used to assist in the decision-making process. Additionally, person–organization fit and person–job fit are
viewed as critical elements in the selection decision for many organizations Chapter 4 . The realization
that ‘organizational fit’ is as important as individual employee ability has resulted in organizations now
considering hiring for attitude, as they believe that new employees can be trained in terms of skills.
Person–organization fit refers to the extent to which a person and an organization share similar
characteristics and/ or meet each other’s needs (Kristof, 1996). Person–job fit is the degree to which there
is a match between the abilities of the person and the demands of the job, or the desires of a person and
the attributes of the job (Boon and Biron, 2016). Research has shown that where this fit occurs, employees
are more satisfied with their jobs and this is related to higher levels of productivity (Dahling and Librizzi,
2015). Conversely, poor job fit is associated with job dissatisfaction, higher levels of job-related stress and
intentions to leave the organization (Lovelace and Rosen, 1996). ‘Fit’ is viewed by many as an important
criterion in the selection decision. Yet, it is difficult to objectively search for these types of ‘fit’ among
applicants. This is often where employers resort to using their ‘gut feeling’ when making a selection
decision, not something recommended in taking a strategic approach to selection.
Person–organization fit – the extent to which the values, interests and behaviours of the individual
match the organizational culture
Person–job fit – the extent to which the enthusiasm, knowledge, skills, abilities and motivations of the
individual match those required by the job
When choosing the selection methods most suitable for a vacant position, note that different
organizational positions require different types. The methods chosen will depend on the particular skills,
attributes, knowledge or competencies required for the position. The decision as to which selection method
to use is impacted by a number of factors:
•
•
•
•
The ability of the method to predict suitability for the position: this can depend on the predictive validity of
the method, that is, the extent to which the method used can predict successful performance in the
role.
The appropriateness of the method for the seniority and level of the position: for example, a retail sales
assistant role is likely to require different methods than those used for the chief executive officer (CEO)
of a multinational corporation.
The specific selection criteria: for example, if technical competence is required, certain methods are more
suitable, for example using a technology test to evaluate fundamental skills.
The time and effort required to use the technique: if a vacancy needs to be filled quickly, some methods
are more suitable than others, for example telephone interviewing is quicker than arranging
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•
•
•
face-to-face interviews. However, the risk factor in making a poor selection decision needs to be
considered here. In the example above, time factors should not affect the selection method choice for
the CEO position.
The skills and abilities of those involved in the selection decision: where psychometric tests are being
used, those administering the tests must be appropriately trained and qualified.
Costs of each method: budget restrictions may create a situation where costs dictate that certain methods
such as assessment centres are too expensive.
Equality issues: given the volume of employment protection, does the chosen technique directly or
indirectly discriminate against any of the groups identified?
CONSIDER THIS
Do you think being in a job you really enjoy and working with colleagues you get along with would affect
your job performance?
Have you ever been in a situation where you could not find anything in common with the people you
worked with on a daily basis? How did this affect your performance at work? This is person–job fit and
person–organization fit in action.
RANGE OF EMPLOYEE SELECTION METHODS
As mentioned earlier, there is a range of methods available to assist with making the selection decision.
Normally, more than one method is used in the selection process in order to improve the validity. These
include application forms, interviews, psychometric tests, assessment centres, work sample tests and
graphology, each of which are described on the following pages. A recent study in the UK highlighted that
CVs, references, structured interviews and application forms are the most common selection methods
(CIPD, 2015). Zibarras and Woods (2010) also found that public sector and voluntary organizations use
formalized techniques, such as application forms rather than CVs, and structured rather than unstructured
interviews.
There are two key issues in the choice of selection methods. Validity looks at how closely a selection
method measures what it is supposed to measure and how successful it is in doing this (Kline, 1998). Here,
we are interested in finding out whether the evidence supports the conclusions that are made based on the
scores of the selection measure and in what is termed ‘predictive validity’, which is the extent to which the
method used can predict successful performance in the role. If predictive validity scores are high, the
method is identified as a good predictor. The closer the score is to 1.0, the better the predictive validity.
Research by Smith and Smith (2005) has identified that certain methods have a higher predictive validity
than other methods. Reliability is also important when deciding which selection method to use. A method is
identified as reliable if it consistently measures what it sets out to measure (Arvey, 1979). The key issue
here is: do we get the same results when we measure the same thing twice?
Validity – the extent to which a selection method measures what it purports to measure and how well it
does this
Reliability – a method is identified as reliable if it consistently measures what it sets out to measure
The selection method chosen should have high validity and high reliability. According to Smith and
Smith’s research (2005), the highest predictive validity scores are for the combined use of intelligence tests
and structured interview at 0.63, with intelligence tests and work samples scoring 0.60. Work sample tests
scored 0.54, and structured interviews and intelligence tests each separately scored 0.51. The methods at
the lower end of the scoring are personality tests (0.40), assessment centres (0.37), references (0.26) and
finally, at the bottom, graphology at 0.02.
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HRM IN THE NEWS
Would you like an employer to check your Facebook page?
The controversial practice of searching social media when screening job applications has become more
popular in recent years. How would you feel if you did not get called for an interview because a
prospective employer had searched Facebook and found some pictures of you that were less than
flattering? If you think your information, photos, thoughts and posts are safe just because you are not
friends with an employer or anyone in that workplace, think again. Recent news reports actually point out
a current loophole in the Facebook privacy settings, linked to your mobile phone number. At some point
over the last few months, probably the first time you logged in from a new phone or mobile device,
Facebook prompted you to ‘claim’ or confirm your phone number. When you did that, you also agreed to
be searched on the site via that number.
You might not think it matters if a prospective employer looks at your Facebook page. However, aside
from the obvious violation of your personal space and privacy, the information that your future employer
sees about you on Facebook could adversely impact your chances of getting hired. Around 69% of
employers admit to rejecting an applicant after checking them out on Facebook or another social media
site; the reasons given for rejection range from inappropriate photographs and posts to misrepresentation
of background or abilities. What you post and how you behave on Facebook can create a first impression
of the sort of person you might be.
More than half of hiring managers (51%) say that they are looking to see if the candidate will be a good
fit with the corporate culture. Your Facebook profile gives a far more accurate portrait of what you are
really like than an employer could get from a screening questionnaire. In a questionnaire, you can always
give the answers that you think an employer wants to hear. On Facebook, your friends would call you out
for ‘posing’ as something you are not. A person with a lot of Facebook friends who takes a lot of zany
photos could be rated as extroverted and friendly, which can be attractive qualities in a candidate, while a
person who is overly emotional in their postings might be a less attractive candidate as it may indicate a
tendency to mood swings.
Questions
How aware were you of the fact that employers are searching Facebook when making a selection
decision about you?
Do you agree with employers using this method?
Is there any legal reason in your country why an employer could not undertake such a search?
Sources
Workopolis (2015) ‘The top three things that employers want to see in your social media profiles’, 5 April
Hill, K. (2012) ‘Facebook Can Tell You If A Person Is Worth Hiring’, Forbes, 5 March
Selection Interviews
Selection interviews normally involve an organizational representative meeting the candidates face to face.
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These remain the most popular method of selection despite their accepted shortcomings. Research over
the past 50 years into the effectiveness of the selection interview highlights that they are not particularly
successful in predicting future job performance. They have a relatively poor reputation as being overly
subjective, prone to interviewer bias and thus unreliable predictors of future performance (Compton et al.,
2009). Nevertheless, interviews have been the most popular form of selection for many years and are used
in almost every organization for selecting employees at all levels. There are a number of types of selection
interview:
•
•
•
•
Telephone interviews: the interview is conducted by phone. These are relatively popular, particularly for
screening purposes, and are useful in that they remove the ‘appearance’ bias, an accusation often
made of face-to-face interviews.
Video interviews: a form of interviewing where technology is used to conduct the interview. This can be in
‘real time’, where the interview takes place at a prearranged date and time much like a standard
interview, but the interviewer and interviewee can be in two different locations, even two different
countries. This is viewed as being a cost-effective method of conducting a selection interview. These
video interviews can also take the form of asynchronous interviews, where the candidate records the
interview at a day, time and place that suits them. Their video is then viewed at a date, time and
location that suits the interviewer(s). The candidate is normally asked to answer a series of
pre-prepared questions during the recording.
One-to-one interviews: the candidate is interviewed by just one person (usually from HR) in a face-to-face
setting. This has been the standard format for interviews for many years; however, the objectivity of
one person making the selection decision has been called into question and this has given rise to the
panel interview.
Panel interviews: the candidate is interviewed by more than one person. Panel interviews normally include
a representative from HR and the future manager. However, there can be as many as seven or eight
panel members depending on the sector and the position in question. More senior positions will usually
have more panel members. The roles and contributions of the various panel members need to be
managed and this is normally done by a panel chairperson. Once a favourite of public sector
organizations, there has been a move towards the use of panel interviewing in many sectors to improve
objectivity in the selection decision.
Structured and Unstructured Interviews
Reviews of the selection interview process (see, for example, Dipboye, 2005) have indicated that a
structured interview noticeably improves its validity. While it may seem strange for a selection interview to
be conducted in an unstructured fashion, this is the case more often than you might think. Unstructured
interviews are essentially an informal chat between the interviewer and the prospective candidate and have
as much predictive validity as tossing a coin in the air. They involve an interview where different questions
may be asked of different applicants. On the other hand, structured interviews can provide an important and
valid means of selecting an employee. The interview is structured to ensure that interview questions are
based strictly on job-related criteria, and these same questions are asked of all candidates and answers are
rated (Arnold et al., 2010). The most common forms of structured interview are the competency-based
interview and the situational-based interview. It is also important to ensure that no discriminatory questions
are asked during the interview process. (This is dealt with later in the chapter.)
According to the CIPD (2017), different countries take different approaches to which interview type they
use. In the UK, it is increasingly common to have a structured interview, and panel interviews are also used,
while in the USA, almost all interviews follow a structured process, where all applicants are asked exactly
the same questions. In France, they use a more informal, unstructured approach, while in northern Europe,
it is common for the HR manager to be one of the interviewers, but this is less likely in other countries in the
world. In China, the concept of face defines all business relations, making the in-person interview the most
important factor in the selection process. In Asian countries, the interviewer may expect the candidate to
avoid direct sustained eye contact as this is perceived as demonstrating respect for the interviewer.
Additionally, the interviewer would expect the candidate to take an extended period of time to formulate
answers to questions in order to answer in the most thorough and complete manner possible.
Next, we describe three forms of structured interview in more detail, which focus on using objective
factors to predict job performance, rather than subjective ‘gut feeling’ interview approaches:
competency-based interviews, situational-based interviews and strength-based interviews.
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Competency-based Interviews
Competency-based interviews are conducted by using a series of structured questions designed to gather
information on specific behaviours or competencies that have been identified in the job analysis phase. The
competency-based interview is sometimes referred to as a ‘behavioural event interview’ or a
‘behavioural-based interview’. This is because it uses questions that assess candidates on their behaviour
in the critical competencies identified for the position. The competency-based interview deals with the
analysis of past events and emphasizes facts and examples from real situations to establish the candidate’s
ability to perform the role. You want to find out how the person behaved in the past in relation to that key
competency area. For example, if the competency is a persuasion/influencing skill, your question might be:
‘Can you describe an occasion when you were able to persuade your fellow team members to do
something that at first they didn’t really want to do?’ If the competency is problem-solving ability, you might
say: ‘Tell me about a problem you have solved recently.’ In employee selection theory, it has been argued
that the best predictor of future behaviour or performance is present or past behaviour or performance of
the same type (Wernimont and Campbell, 1968; Janis, 1982).
Competency-based interviews – these interviews are structured around job-specific competencies that
require interviewees to describe specific tasks or situations. They work on the belief that the best
indication of future behaviour is past behaviour
One of the problems with competency-based interviews is that candidates who frequently encounter them
learn to ‘fake’ answers, as there are many books and websites devoted to learning how to ‘perform’ in this
interview setting. They will have worked on these questions in advance, often delivering answers they
believe the interviewer wants to hear.
Situational-based Interview
A situational-based interview (Latham and colleagues, 1980) takes a similar approach but works on the
premise that the interviewer wants to establish what the candidate would do if presented with a situation.
Questions here focus on the future. The candidate is provided with a typical situation and asked how they
would respond to it. For example: ‘What would you do if your manager presented you with two conflicting
deadlines?’ These interviews are particularly common in graduate interviewing where the individual is
unlikely to have past experience of particular situations. The answers to these questions reveal how the
candidate might handle the situation; however, this is only indicative and should be recognized as such.
Strength-based Interviews
Strength-based interviews are becoming more popular, especially in graduate recruitment. While
competency interviews focus on what you can do, strength-based interviews aim to uncover what you enjoy
working at. The principle is that if you enjoy doing something then it is more likely that you are also good at
it. Companies using this type of approach will look for those who have a natural strength in certain areas as
a result of their enjoyment of that task, rather than those who will simply do the task because it is part of the
role.
Examples of questions asked in this type of interview are:
•
•
•
•
•
What do you enjoy doing in your spare time?
What do you feel you are good at?
Tell me about an achievement you were particularly proud of.
What kinds of tasks boost your energy?
What would your closest friend say are your greatest strengths?
One of the main advantages of this type of interview is that recruiters believe they gain a more genuine
insight into candidates. And the advantage for the organization is that when an individual uses their
strengths, they perform at their best and learn new information quicker.
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Problems with the Selection Interview
There are a number of negative issues associated with selection interviewing and these relate mainly to
perceptual distortion, subjectivity and lack of interviewing skill on the part of the interviewer:
•
•
•
•
•
Confirmatory bias: interviewers are often accused of making their mind up about a candidate within the first
30 seconds of the person entering the room. They then focus on asking questions to confirm their initial
impression, either positive or negative. This is referred to as ‘confirmatory bias’ (Snyder and Swann,
1978) or the ‘first impression error’. A related issue is the effect the perceived attractiveness of the
candidate has on the interviewer. Research has highlighted that, in general, more attractive people are
identified by interviewers as having more favourable traits (Desrumaux et al., 2009).
Horns or halo effect: a perceptual error, where one single characteristic of the individual creates an overly
positive or negative impression of the interviewee and this then carries unbalanced weight in the
selection decision. For example, if the person was being interviewed for a customer-facing role and had
tattoos on their neck and hands, this might be viewed by the interviewer as a negative characteristic
and may have an unduly negative effect on the selection decision. This is the ‘horns’ or negative effect,
while the ‘halo’ effect is the opposite.
Stereotypes: stereotypes are prejudices or beliefs about the characteristics of people from a particular
group of individuals, who are seen as sharing the same attributes (Fiske and Macrae, 2012: 76). When
an interviewer stereotypes the interviewee, this can negatively affect the outcome of the decision for
the candidate. For example, people who are overweight may be thought of as lazy, or blondes may be
viewed as less intelligent than brunettes. The interviewer may alternatively hold a stereotyped image of
the ‘right’ candidate and judge all candidates against this image.
Contrast error: the interviewer compares and contrasts one interviewee with other candidates in a way that
artificially inflates or deflates the evaluation of the candidate. Contrast error has the effect of distorting
the decision-making process, as each candidate should be judged independently.
Projection error: the interviewer rates candidates with characteristics, experiences or preferences similar to
themselves more favourably than other candidates. The reverse is also true.
Despite these issues, it is unusual for an organization to hire a candidate without having conducted an
interview, and thus their popularity is unlikely to diminish as there is no other method that allows the
prospective employer such flexibility in meeting the candidates in advance of offering the position. This is
because the interview is useful for determining if the applicant has the requisite communication and
interpersonal skills necessary for the job; it is a flexible method of gathering important information, allowing
the interviewer to ask questions that may reveal additional information which can be used in making the
selection decision.
Recently, the two-way nature of the selection decision has become even more important, where
candidates’ impressions of the organizational context and culture become as important a determinant of
their decision to accept a job offer as their concern with the job itself. This is particularly true in a tight labour
market, and employer branding plays a crucial role in this situation Chapter 2 .
Psychometric Testing
Psychometric testing is the term most often used to encompass all forms of psychological assessment.
‘Psychometric’ literally means ‘mental measurement’. There has been a rise in the use of these tests
recently as the search for more sophisticated selection methods continues. Candidates complete ‘pen and
paper’ tests that are used to measure individual differences in areas such as aptitude, ability, attainment
and intelligence (Edenborough, 1999). These are a quantifiable measurement of candidates’ cognitive
ability and indicate if they have the skills, or the potential to learn new skills, required to perform
successfully in a particular role. The premise here is that those who do well in the tests will perform well on
the job. Most tests are designed and developed by occupational psychologists. These tests must also be
administered and scored by persons qualified in the tests being used. Types of tests include the following:
•
•
•
General intelligence tests: these measure the ability to think about ideas, analyse situations and solve
problems. Various types of intelligence test are used.
Attainment tests: these measure levels of knowledge and skills.
Cognitive ability tests: these include:
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–
–
–
verbal comprehension: the ability to understand and use both written and spoken language
numerical ability: the speed and accuracy with which a candidate can solve arithmetic problems
reasoning ability: the ability to invent solutions to diverse problems.
Personality Profiling
Personality profiling is based on the fact that personality is viewed by many organizations as an important
determinant of behaviour at work. Personality tests are often used as employers search for predictors of
success in a role. These personality tests are usually based on the trait-factor analytic model of personality
(Arnold et al., 2010). Commonly used profiles include the The Big Five and the Sixteen Personality Factor
Questionnaire. The Big Five is based on the five factor model of personality, which proposes that
differences in an individual’s personality can be measured in terms of openness, conscientiousness,
extraversion, agreeableness and neuroticism (to take the test see www.123test.com/big-five-personality
-theory). The SHL Occupational Personality Questionnaire (OPQ) is the most widely used measure of
behavioural style in the world. The OPQ32 is the most comprehensive version of the OPQ. It provides
detailed information on 32 specific personality characteristics which underpin performance on key job
competencies critical for graduates, managers and experienced hires. The CIPD (Pilbeam and Corbridge,
2010) and the Australian Institute of Management have cautioned against the use of personality profiles as
the sole basis of making the selection decision and suggest they are used in combination with other
selection methods. The debate around the use of personality tests centres on a few key issues, namely, the
extent to which personality is measurable and remains stable over time and across situations, and the
extent to which a questionnaire can provide enough suitable information on which to base a selection
decision.
Assessment Centres
Assessment centres were first used in the Second World War to select officers for the Army and the Royal
Navy. Today they are used particularly in graduate recruitment. An assessment centre is not actually a
place, but describes the process, which normally lasts for one or two full days. In an assessment centre, a
group of assessors identify the most suitable candidates by using a series of exercises and tests to assess
multiple competencies. The techniques used include:
•
work sample tests – these are used to test applicants by asking them to complete tasks similar to those
involved in the actual job
Table 3.5 Example of an assessment centre day
•
•
•
leaderless group discussions – a group of applicants discuss an actual job-related problem, and the
behaviour of the candidates is observed to establish the leadership and communications skills each
person displays
psychometric tests (see previous page)
in-tray simulations (in-basket exercises) or the digital ‘e-tray’ equivalent – these are a test of your ability to
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deal with a real work situation, for example email requests, projects and information overload •
one-to-one interviews.
Typically, the same competencies are assessed multiple times during the course of the centre. At the end
of the assessment centre, the assessors come to an agreed cumulative rating for each individual based on
the observations and test scores. Despite their high level of predictive validity, there is one key
disadvantage in using assessment centres, which is that they are expensive to operate. The University of
Melbourne has an open access video link to a recording of an assessment centre, available at http://vimeo
.com/9815762.
Work Sample Tests
Work sample tests are used to test applicants by asking them to complete tasks similar to those involved in
the actual job (Thornton and Kedharnath, 2013). This can involve working in the role for a short time, often
for one day. They are based on the premise that the best predictor of future behaviour is observed
behaviour, and they have a high predictive validity. These tests are common in the service sectors, where
an assessment of the candidate’s work ability is based around customer service provision and where the
outcome of their interaction can be measured immediately. One example of a work sample test is found in a
lecturing role. Many universities include a presentation as part of the selection process, as both presenting
and lecturing involve similar skills and abilities.
Graphology
Graphology is the study and analysis of a person’s handwriting, which is believed to reveal a behavioural
profile of the individual. It is regularly used by organizations in Europe, particularly France, where
three-quarters of small companies use it in the selection decision. Employers in Belgium and Germany also
use graphology (Taylor, 2005). However, popularity should not be confused with validity, as it has a
negligible predictive validity score.
Using more than one selection method is advisable as this increases the amount of job-related information
available on which to base the selection decision. As noted above, selection methods vary in their reliability,
as a predictor of performance in the job, and in their ease and costs to administer. It is becoming more
common for particular positions to involve psychometric testing and selection interviews, for example
graduate entry positions and public sector positions.
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Image Source/John Rowley
EMPLOYMENT LEGISLATION AND THE SELECTION PROCESS
The selection process is expected to operate within a legal framework of fairness and consistency, which
removes discrimination and ensures equality of opportunity in the employment process Chapter 6 .
Discrimination means treating one person less favourably than another under specific grounds, either
directly or indirectly. These are normally age, gender, sexual orientation, disability and race. Europe,
Australia and the USA take a similar approach to protecting individuals affected by the selection process. In
Australia, a number of Commonwealth Acts relate to equal opportunity law and these are slightly different
depending on the territory. In many countries, data protection and freedom of information have become
important areas in relation to the retention of material generated by the selection process. For example, in
the UK, the Data Protection Act 1998 applies to personal information used in the selection stage. In Ireland,
under the Data Protection Acts 1988 and 2003 and the Freedom of Information Acts 1997 and 2003,
persons are allowed access to their own data held respectively by government departments, agencies and
other designated bodies in receipt of government funding, and all legal entities in the state. Therefore,
candidates who have been unsuccessful in the selection process are entitled to know what information is
kept about them and to see that data. Thus, it is of the upmost importance that all interviewers are trained
and understand how to take accurate and objective notes during the selection phase to ensure no
discrimination takes place.
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MAKING THE FINAL SELECTION DECISION
Once all the information is gathered from each of the selection methods used, the selector(s) needs to
make a final decision on who is to be offered the position. This means that all the information from each
stage of the process must be utilized. There is often a tendency to use the most recent selection method
only, which is normally the interview; however, decisions need to be made in advance of the start of the
selection process on how to weight the selection methods and how to score candidates where a conflict
exists between data gathered from two methods. For example, if a candidate performs well in psychometric
testing but poorly in the interview, each element needs to have a weighting to allow for accurate scoring of
the candidate overall. The shortlisting matrix is a useful method of recording information from each selection
method, as it has identified the key job-related criteria. Once the selection decision is made, the next stage
involves taking references, checking qualifications and contacting the candidates.
Post-offer Stage
It is important to note that contacting all candidates is of paramount importance, particularly for positive
employer branding. This means ensuring that unsuccessful candidates are contacted in a swift manner. It
can be damaging for an employer brand if candidates who attended for tests or interviews are not contacted
again by the organization to advise them they were unsuccessful. Some organizations offer feedback to the
unsuccessful candidates. For the successful candidate, they should be offered the position, and the details
of the appointment should be agreed. They are normally given a period of time within which to accept the
offer and agree on a start date. Their acceptance of the offer in writing is normally completed by their
signing of the employment contract. They should be informed of how the induction process operates before
joining the organization Chapter 4 .
One area often forgotten about in the selection process is monitoring the success or otherwise of the
selection process. It needs to be monitored to ensure the validity of the selection decision. An analysis of
the candidates and their performance in the various stages of the process provides feedback about how
successful various methods are in making the overall selection decision. More importantly, data should
continue to be collected in order to assess the performance of the selected candidates once employed.
Information from performance reviews and internal documents can be compared to performance in
selection methods, such as psychometric tests. This allows an evaluation of the relationship between
selection methods used, selectors and successful role performance.
HRM IN PRACTICE
Understanding recruitment across cultures
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Getty Images/iStockphoto/salem
You are working in HR for a newish start-up company which has decided to open an office in the
Kingdom of Saudi Arabia (KSA) in Riyadh following completion of a successful contract deal with the
Saudi Ministry of Labour and Social Development. You are sending one of your existing employees to
Riyadh to begin the recruitment of three additional employees to work in the new office there. The aim is
to have expats (a person temporarily or permanently residing in a country other than that of their
citizenship) working in the office. However, no one in your company seems to know much about
recruitment in KSA apart from the fact that, because your company will have less than ten employees, it
is required to employ at least one KSA national. A long and detailed search on the internet has revealed
the following:
•
•
•
•
•
•
Employers must advertise roles locally to Saudi nationals though the Human Resource Development
Fund for a minimum of two weeks prior to obtaining a visa for an expat.
Non-nationals can only be employed on a fixed-term contract.
Probation periods are 180 days.
Employees are entitled to 21 days annual leave after one year’s service, increasing to 30 days on
completion of five years’ service.
Expats are entitled to one home flight per year following 12 months of service.
Women must work in a separate area of the office to men.
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•
•
•
•
•
•
•
•
•
It is the law for all women to wear an abaya when in public.
The working week is Sunday to Thursday.
Hajj leave will be granted to Muslim employees once and will not exceed 30 days.
Financial penalties of up to SAR 100,000 and closure of the business for a period of no more than 30
days can now be imposed for failure to comply with labour law.
Nitaquat is a Saudization progamme introduced by the Saudi Ministry of Labour aimed at reducing
unemployment among Saudis (see HRM in the Global Business Environment on page 41).
You must have two separate entrances into the workplace for women and men.
Bribes are a normal feature of doing business in Riyadh.
The Ministry of Labour and Social Development must approve your employee handbook before it can be
given to employees.
Employment contracts must be issued in both Arabic and English.
What would you do?
Identify at least five ways in which recruitment for your new office in Riyadh is different to that in your
own country.
What will be the most significant challenges facing you in this recruitment effort?
Will you hire women in your office? Explain your answer.
Grapheast/Emy Kat
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SUMMARY
This chapter has covered some of the key issues involved in sourcing candidates and making the
decision about who is the most suitable candidate for a vacant position. The critical role played by
the initial shortlisting process cannot be overemphasized. By ensuring that the initial shortlisting
criteria are specific to the role and then utilizing these same criteria in all stages of the selection
process, the prospect of selecting the most suitable candidate from the applicants is greatly
increased. The choice of selection method depends on many factors, and the predictive validity of
each method should be a factor in choosing the selection method(s). Using more than one method
has the effect of increasing the ability to predict successful performance in the role. Ensuring
compliance with employment legislation is important in safeguarding against the possibility of a
rejected candidate bringing a case for discrimination.
CHAPTER REVIEW QUESTIONS
1
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2
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3
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4
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5
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6
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7
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8
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Differentiate between job analysis, person specification and competency frameworks.
Search for a job description and person specification for a job you are interested in as a career. Can
you see how the job description and person specification form the basis of a job advert? Can you
differentiate between essential and desirable criteria in the job advert?
You are recruiting for a graduate to work in the grocery sector. Describe and differentiate between
three methods of recruitment that would be suitable for generating interest in this position.
When should an organization employ the services of a recruitment agency?
Differentiate between validity and reliability in choosing selection methods.
Explain the problems associated with using the face-to-face interview as a selection method.
Search the internet for three competencies that you believe would be suitable for a role in
management. What questions would you ask at an interview to establish if the candidate had
these three competencies?
Employment equality legislation varies from country to country. Compare the legislation applicable to
the recruitment and selection process in your country to that of a country in a different continent.
FURTHER READING
Armstrong, M. and Taylor, S. (2017) Armstrong’s Handbook of Human Resource Management
Practice, 14th edn, London: Kogan Page.
Jeske, D. and Shultz, K. S. (2015) ‘Using social media content for screening in recruitment and
selection: pros and cons’, Work, Employment and Society 30 (3), 535–546, https://doi.org/10.1177
/0950017015613746
USEFUL WEBSITES
www.hrinasia.com
HR in Asia is an online digital media publication and events platform covering the latest developments
in the domains of employer branding, recruitment, retention, employee relations, people development,
HR technology and outsourcing.
www.changeboard.ae
Changeboard’s website informs professionals across the Gulf Cooperation Council countries.
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www.personneltoday.com
Personnel Today is the UK’s leading free-access HR website. It provides HR professionals with
easy-to-read, timely and relevant content.
www.uniformguidelines.com
This is a US website providing information on all selection procedures used to make employment
decisions, including interviews, review of experience or education from application forms, work
samples, physical requirements and evaluations of performance.
For extra resources, including videos, multiple choice questions and useful weblinks, go to:
www.macmillanihe.com/carbery-cross-hrm-2e.
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Getty Images/BraunS
4: Employee Engagement, Induction, Turnover and
Retention
Colette Darcy, Ashley O’Donoghue and Yanqiao Liu
LEARNING OUTCOMES
By the end of this chapter you should be able to:
•
•
•
•
•
•
Explain the links between employee engagement, induction, turnover and retention and how a
strategic approach to their management can increase the overall competitiveness and success of
the organization
Define employee engagement and demonstrate its links to induction, turnover and retention
Explain what employee induction is, how it is linked to engagement and why organizations invest in
these programmes from a strategic perspective
Understand the term ‘onboarding’
Discuss the impact of employee turnover on an organization and identify specific practices to analyse
employee turnover
Identify what employee retention is, how it is linked to engagement and why it is important from a
strategic perspective
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125
Copyright 2019. Bloomsbury Academic.
All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law.
Getty Images/BraunS
4: Employee Engagement, Induction, Turnover and
Retention
Colette Darcy, Ashley O’Donoghue and Yanqiao Liu
LEARNING OUTCOMES
By the end of this chapter you should be able to:
•
•
•
•
•
•
Explain the links between employee engagement, induction, turnover and retention and how a
strategic approach to their management can increase the overall competitiveness and success of
the organization
Define employee engagement and demonstrate its links to induction, turnover and retention
Explain what employee induction is, how it is linked to engagement and why organizations invest in
these programmes from a strategic perspective
Understand the term ‘onboarding’
Discuss the impact of employee turnover on an organization and identify specific practices to analyse
employee turnover
Identify what employee retention is, how it is linked to engagement and why it is important from a
strategic perspective
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AN: 3054158 ; Ronan Carbery, Christine Cross.; Human Resource Management
Account: ecor.main.usg
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THIS CHAPTER DISCUSSES:
Introduction
The Role of HR in Engagement, Induction, Turnover and Retention
Work Engagement
Employee Engagement
Recruitment and Selection
Induction
Employee Turnover
INTRODUCTION
This chapter focuses on employee induction, turnover and retention and how employee engagement is
linked to these organizational issues. Within any organization you will find a flow of employees into and out
of the organization. People leave jobs; new employees start. Companies are forced to downsize and let
people go in bad times and can find themselves expanding rapidly and employing more staff in good times.
Managers are tasked with identifying high-performing employees who they want to keep and putting
strategies in place to retain them. At the same time, they must monitor the performance of underperformers,
with the view to potentially letting go those who, after support, still fail to improve. This flow of employees
into and out of organizations is complex and can often be viewed as something that ‘happens to’ an
organization rather than something it actively has control over. The HR function traditionally tracked the
movement of employees by monitoring turnover figures or through exit interview transcripts. However, it
was not considered a core strategic part of the HR function. The acknowledgement and understanding that
people are a source of competitive advantage, combined with the high costs associated with recruiting new
staff and inducting them into the organization, has caused the HR function to revisit these areas Chapter 1
. Employee induction, turnover and retention have become the focus of renewed interest as HR
professionals recognize the important contribution that all three areas make to the overall strategic success
of the business. Importantly, HR has also recognized the role it has to play in educating senior members of
the organization about the impact of employee engagement on these areas and the need for a strategic
approach to their management in order to increase the potential overall competitiveness and success of an
organization.
It is against this backdrop that we begin our analysis of employee induction, turnover and retention and
consider the role of employee engagement. This chapter adopts a different approach to many HR books.
Rather than adopting a simple ‘how to’ approach, the chapter delves a little deeper into the subject to help
you to make the link between initiatives aimed at employee induction, turnover and retention and to
understand the role of engagement in driving these initiatives so that they contribute to the strategic
success of the organization.
SPOTLIGHT ON SKILLS
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To manage retention effectively, HR professionals need to think about retention:
before employees are hired
while they are working for the organization
after they have committed to leave/have left the organization.
You are an HR manager in a large multinational publishing company. You have noticed that although
there is no shortage of good candidates for open positions, many employees leave the organization after
just one year. For each of the three stages, what initiatives would you seek to implement to address the
issue of retention? For each initiative identified, map out how it will work to increase retention rates.
To help you consider the issues above, visit www.macmillanihe.com/carbery-cross-hrm-2e and watch
the video of Sabahat Ahmed from PeopleFirst HR Consultancy talking about retention policies.
THE ROLE OF HR IN ENGAGEMENT, INDUCTION, TURNOVER AND
RETENTION
HR professionals are tasked with understanding the business context or rationale for the introduction of any
HR initiative. They must understand the real, tangible benefits that such an initiative will bring to the
organization. What does the proposed initiative hope to achieve? How will achieving it help the organization
increase its competitive advantage over its rivals? What is the link between this initiative and organizational
aims and objectives? Are the links clear to all stakeholders in the organization? HR must constantly think
about the organizational benefits of undertaking a new initiative or programme. As a strategic partner to the
business, HR must understand the business and be able to demonstrate how its work contributes to the
organization’s competitiveness and ultimate success.
Tangible benefits – benefits for the business that can be measured and reported on; HR must
understand the business and be able to demonstrate how its work contributes to the organization’s
competitiveness and ultimate success
In addition, HR must understand the associated costs when things are not going well within an
organization. For example, it is estimated that the cost of replacing an employee who quits can be as high
as 21% of their annual salary (Chamberlain, 2017). Increasingly, organizations are placing more emphasis
on adoption of a strategic approach to retention: a key tool for holding on to high performers and thus
reducing undesirable turnover. While the direct replacement cost of an employee who leaves the
organization is fairly evident, there are also many hidden costs within organizations when all is not well. The
cost of underperforming or disengaged employees is not as obvious, yet can impact an organization
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significantly in terms of performance outcomes, including profitability and customer satisfaction. A 2012
report on human capital from McKinsey added to the evidence, noting that organizations with top scores in
employee motivation are around 60% more likely to be in the top quartile for overall business profitability. It
is important therefore that HR has a good grasp of the activities that promote positive employee
engagement but also understands that sometimes it needs to look a little bit closer to fully understand
where a problem lies.
HRM AND ORGANIZATIONAL PERFORMANCE
Understanding Googlers
Google’s People Innovation Lab has developed what it calls ‘gDNA’ or ‘Google DNA’, which is Google’s
first major longitudinal study aimed at understanding Google employees and the way they work. The
gDNA study looks to analyse data collected twice a year from a representative sample of over 4,000
Googlers to better understand what makes them tick. The data collected will be used by management to
gain an awareness of people-related issues, such as the characteristics of employees who excel at
Google; what current staff value in terms of work–life balance; what mix of diverse characteristics a team
should ideally possess; how peak performance can be maintained and motivated over the longer term,
etc. In doing so, Google hopes to build up an understanding of the kind of people who are likely to be
drawn towards the company and those who will excel in this environment. What are the benefits of
looking at employee responses over a long period of time? How could an understanding of employee
motivation and success benefit the wider company? What other insights could Google obtain from
undertaking such a study (Bock, 2014)?
Longitudinal study is a research study that involves repeated observations of the same variables (e.g.
people) over long periods of time
WORK ENGAGEMENT
Work engagement is an issue that is directly related to an organization’s competitiveness and success.
Work engagement describes how an employee is physically, psychologically and emotionally connected to
their work or task (Kahn, 1990). Employees who are engaged work with vigour, dedication and absorption
and experience positive emotions, feeling happy, enthusiastic and pleased (Schaufeli et al., 2006).
Work engagement describes the level an individual is prepared to invest of themselves in their work
and/or task at hand
When employees are engaged, the following are evident:
•
•
•
Vigour describes how the employee is physically connected to their work, demonstrating high levels of
energy and mental resilience.
Dedication describes how the employee is emotionally connected to their work, demonstrating strong
involvement and experiencing a sense of significance, challenge, inspiration, enthusiasm and pride in
one’s work.
Absorption describes how the employee is psychologically connected to their work, demonstrating a state
of full concentration; they are so happy and engrossed that time seems to fly by (Breevaart et al.,
2012).
Employers strive to have engaged workers, and engagement has now surpassed the concept of
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employee satisfaction as the ‘must-have’ for organizations. It is recognized by employers as the ideal
employee state, involving high energy accompanied by positive emotions: feeling pleased, happy,
enthusiastic, energized and excited. Employee satisfaction, however, is seen as inferior. It is defined as a
pleasant but passive state of contentment that is accompanied by low energy and is indicated by emotions
such as contentment, relaxation, calmness and tranquillity (Bakker et al., 2012). To drive high performance,
employers want engaged employees, not simply ones who are satisfied.
EMPLOYEE ENGAGEMENT
In addition to the benefits brought about by engagement with work, there are also significant advantages to
having employees who are engaged with the organization as a whole. Employee engagement is a broader
concept than work engagement, which involves those initiatives that the organization puts in place to
connect the employee with the organization (Truss, 2014). For example, employees may have an emotional
attachment to the organization’s values, or they may feel connected to the organization because of their
manager’s support, training and development, the rewards they receive for performance, or the autonomy
and challenge they experience from how their work is designed. In simple terms, employee engagement is
how the employee is connected to the organization (Truss, 2014).
Employee engagement is a broader concept than work engagement insofar as it includes not just the
relationship of the employee to their work but also their relationship with the organization itself
Both work engagement and employee engagement have a range of positive individual and organizational
outcomes. Engagement is linked to higher task performance, higher personal initiative and more innovative
behaviour, which benefits the team and the organization. Engagement is also linked to higher organization
commitment and retention, and lower absenteeism and turnover rates, which can be quantified in financial
terms. HR is therefore committed to finding ways to support employee engagement, to connect employees
to their task/role for high performance and to the organization so it can retain engaged employees.
Nita Clarke and David MacLeod have identified four enablers of engagement that they believe can help
organizations when looking at ways in which to meaningfully engage with their employees. They specifically
talk about having a strong strategic narrative about the organization and its vision and values, which
employees can relate to and see those values being actively lived by the leaders in the organization.
Secondly, they focus on ensuring that all managers are engaging. By engaging in this context, they simply
mean that organizations should recognize and treat employees as individuals working with their strengths
and seeking to develop their stretch potential. They also emphasize employee voice as being a fundamental
requirement of employee engagement. The ability of employees to contribute to problem-solving, to have a
voice and to have that voice heard without being considered troublesome is important to a healthy
organization and one where employee engagement can thrive. Finally, the role of organizational integrity is
paramount. This encapsulates the idea that organizations, and specifically the leaders within those
organizations, should do as they say and that there should be no ‘say–do’ gap (see http://engageforsuccess
.org/ for more information on employee engagement).
RECRUITMENT AND SELECTION
An effective retention strategy begins at the earliest stage of the recruitment and selection process. A
company seeking to fill a position within its organization must look beyond the skills required to perform the
role effectively, and ensure that the individual demonstrates a good fit with the organizational culture. In
other words, in addition to having the necessary competencies to undertake the role, they must also have
the right blend of attitude, traits and behaviours to match the core values of the organization. The realization
that ‘organizational fit’ is as important as individual employee ability has resulted in organizations now
considering hiring for attitude and then looking to train new employees in terms of skills. It is often easier to
provide the necessary training to a new starter with regard to specific skills than it is to change a new
starter’s attitude or behaviour towards their work (see HRM and Organizational Performance on page 61).
Retention – a strategic approach adopted by organizations to keep productive employees from seeking
alternative employment
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In an effort to find individuals who provide a better fit with the organizational values, organizations are
increasingly looking towards behavioural-based selection interviewing Chapter 3 . This can provide
insights as to whether an applicant not only has the appropriate experience but also demonstrates values
consistent with those of the organization. Scenarios are presented to applicants who must then say how
they would react in that particular situation. This type of interview allows an employer to evaluate not only
the applicant’s use of appropriate judgement, but also to delve into their values and work ethic.
HRM IN THE GLOBAL BUSINESS ENVIRONMENT
Recruitment and retention of doctors in rural areas
The World Health Organization (WHO) estimates that about one-half of the world’s population lives in
rural and remote areas, but this half is served by only one-quarter of the world’s doctors. Any shortage of
health workers can prevent good access to health services, which in turn can have a dramatic impact on
a patient’s quality of life and health outcomes. When such shortages are accompanied by an unequal
distribution of healthcare workers, their impact can be even more dramatic. It is a challenge to retain
doctors in remote and rural locations irrespective of the perceived wealth of the country. Australia,
Scotland and Ireland struggle in the same way as China, Lao People’s Democratic Republic and Sri
Lanka. The ability to attract and retain doctors in these remote and rural locations has forced local
governments to rethink their approach to the attraction and retention of rural doctors. Let us take a look at
some examples of how governments are seeking to make rural work more attractive.
Australia
The majority of the population of Australia live in a small number of cities along its coastline. Only 11.3%
of the population live outside these urban centres and are spread across the vast continental landmass.
The hours tend to be long, the nature of the work is very diverse – often these doctors have to deal with
all emergencies and/or medical conditions – and the distances they can be required to travel are
immense. It is no wonder that the Australian government has been forced to rethink its approach to the
attraction and retention of these rural doctors.
The government has taken a strategic approach to tackling the problem, looking at it from a number of
perspectives. Firstly, it has developed and initiated policies aimed at medical education and training,
whereby students coming from a rural background are actively targeted and supported through their
medical studies. In addition, the government offers specialized grants to medical students willing to
commit to spending time as a doctor in a rural location post graduation.
China
China has a population of approximately 1.38 billion people, of which some 850 million live in urban
centres. Like Australia, the sheer size of the country means that the distribution of people outside the
urban centres is very scattered, and these rural communities tend to be relatively poor in comparison to
their urban neighbours.
Similar to the approach adopted by the Australian government, medical students from rural locations
are offered waivers on their tuition fees and receive subsidies on condition that students serve in rural
areas upon graduation. Interestingly, however, there is a requirement that anyone seeking promotion
must first complete a short-term compulsory rural service for health professionals. The duration of the
compulsory rural service is not set out but generally is considered to be at least six months in duration
(Buchan et al., 2013).
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Questions
What other policy initiatives could various governments consider to increase the number of rural
doctors?
If you were tasked with developing initiatives specifically targeting the work–life balance of doctors in
rural communities, what factors would you consider?
INDUCTION
Induction is an important organizational initiative which lays the groundwork for employee engagement. It is
unlikely that employees will feel connected to the organization or connected to their work, demonstrating
vigour, dedication and absorption, if they do not feel a part of the organization from the beginning of their
employment and begin the process of understanding and accepting the culture of the organization they
have joined.
What is Induction?
Induction as a term is often confused with ‘orientation’, which is a specific course or training event that new
starters attend. The terms are often used interchangeably; however, to do so is to misunderstand the
importance of the induction process. The importance of induction and settling new starters into an
organization, while gaining more attention these days in the literature, is not a new idea. As far back as
1955, Hill and Trist, in connection with the UK’s Tavistock Institute, conducted a number of studies on
labour turnover and found that employees are more likely to leave during the early stages of employment,
but the longer they remain in employment, the lower the likelihood of them quitting.
Induction – the whole process whereby new employees in an organization adjust to their new roles and
responsibilities within a new working environment
Hill and Trist (1955: 276) proposed the survival curve, which outlined three distinct phases that
employees go through on joining a new organization, each with varying degrees of risk in te…