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Human Resource Management Session SELECTION HRM in Action – Credential Fraud Applicants may exaggerate their skills, education / qualifications, and experience A recent study found that 44% of employment records showed a difference of information between what the applicant provided and the previous employer reported Others may neglect to provide details of their criminal history – 12.6% One HR Manager said, “10% to 20% of applicants flat out lie” -2 Selection • Process of choosing from group of applicants the individual best suited for a particular position and the organization • Top performers contribute from 5-22 times more value to companies than mid-level or low performers • Goal of selection process is to properly match people with jobs and the organisation A bad fit means the person will be ineffective and probably leave the firm, voluntarily or otherwise Environmental Factors Affecting the Selection Process Other HR functions Legal considerations Decision making speed Organizational hierarchy Applicant pool Type of organization Probationary period Other HR Functions Selection process affects, and is affected by, virtually every other HR function Legal Considerations • Human resource management is greatly influenced by legislation, executive orders, and court decisions • Guiding principle – “Why am I asking this question?” • If information is job related, usually asking for the information is appropriate Speed of Decision Making Time available to make selection decision can have major effect on selection process Organizational Hierarchy Different approaches to selection are generally taken for filling positions at different levels in organization 6-8 Organizational Hierarchy (Cont.) • Extensive background checks and multiple interviews would most likely apply for the executive position • An applicant for a clerical position would probably take a word processing test and perhaps have a short employment interview • What about a Driver for your company car? Applicant Pool • Number of qualified applicants recruited for a particular job • Selection ratio is the number of people hired for a particular job compared to number of individuals in the applicant pool • Selection ratio of 0.10 indicates that there were 10 qualified applicants for an open position 10 Pre-Employment Screening: Background Investigations • Determine accuracy of information submitted or to determine if vital information was not submitted • Principal reason for conducting background investigations is to hire better workers 64 Elements to Verify • Previous employment • Education verification • Personal reference check • Criminal history • Driving record • Civil litigation • Workers’ compensation history • Credit history • Social security number 65 Fair Credit Reporting Act • Act amended in 1997 • Places new obligations on employers who use certain information brought to light through background investigations 66 Trends and Innovations: Liars Index • Quite a few executive job seekers claim advanced degrees from educational institutions they never attended • Liars Index was 10.73% • Expecting employers will not check facts 67 Pre-Employment Screening: Reference Checks • Information from individuals who know the applicant that provide additional insight into the information furnished by the applicant and verification of its accuracy • Possible flaw - Virtually everyone can name three or four individuals willing to make favorable statements 68 Pre-Employment Screening: Reference Checks (Cont.) • Laws in 37 states and jurisdictions shield employers from liability for harm to an ex-employee based on contents of job reference • There is a wait-and-see attitude among some employers 69 Pre-Employment Screening: Reference Checks (Cont.) • Two schools of thought with regard to supplying information about former employees Don’t tell them anything Honesty is the best policy 70 Negligent Hiring • Negligent Hiring - Liability a company incurs when it fails to conduct a reasonable investigation of an applicant’s background, and then assigns a potentially dangerous person to a position where he or she can inflict harm • At Risk Employers - Risk of harm to third parties Example: Taxi driver 71 Negligent Referral Liability former employers may incur when they fail to offer a warning about a particularly severe problem with a past employee 72 Selection Decision • Most critical step of all • Person whose qualifications most closely conform to requirements of open position and organization should be selected 73 Medical Examination • Americans with Disabilities Act (ADA) does not prohibit pre-employment medical examinations Determines point they may be administered during selection process • Directly relevant to job requirements • Determines whether applicant physically capable of performing the work 74 Notification to Candidates • Results should be made know to candidates as soon as possible • Delay may result in firm losing prime candidate • Unsuccessful candidates should also be promptly notified 75 Metrics for Evaluating Recruitment/Selection Effectiveness • Recruiting Costs - Cost per hire may be determined by dividing recruiting expenses by number of recruits hired • Selection Rate - Number of applicants hired from group of candidates expressed as percentage • Acceptance Rate - Percent of those who accepted job from number who were offered the job 76 Metrics for Evaluating Recruitment/Selection Effectiveness (Cont.) • Yield Rate - Percentage of applicants from particular source and method that make it to next stage of selection process • Cost/Benefit of Recruitment Sources and Methods - For each method, there is a cost For each method, there should be a benefit • Time Required to Hire - Time required to fill an opening is critical 77 A Global Perspective: Selecting a Buddy • Many companies are using formal buddy system when sending expatriates on assignments • Often inform expatriates of host-office norms and politics, invite them into their homes, introduce them to friends and networks, and help bolster credibility in office 78 ... may exaggerate their skills, education / qualifications, and experience A recent study found that 44 % of employment records showed a difference of information between what the applicant provided... Applicant Pool • Number of qualified applicants recruited for a particular job • Selection ratio is the number of people hired for a particular job compared to number of individuals in the applicant... lie” -2 Selection • Process of choosing from group of applicants the individual best suited for a particular position and the organization • Top performers contribute from 5-22 times more value