Hiring

1
Hiring

• Major issues in Hiring / Selecting
• New Recruits Case
• Overview of Selection Mechanisms / Hiring Options
• Rights

2
Hiring Major Issues

• Reliability does the selection technique yield
  similar results over time (is it consistent)?
• Validity does the selection technique accurately
  measure those aspects of the applicant that are
  likely to be associated with job performance?

3
3 Types of Validity

• Criterion-related how well the selection
  procedure predicts on-the-job success. Measured
  via correlations and ranges from -1 to 1 (.5 to
  .6 is very high). Most often used by EEOC.
• Content how well a selection procedure directly
  samples the KSAs (knowledge, skills, and
  abilities) needed to do the job. Normally
  assessed via experts.
• Construct how well the selection procedure
  compares to other selection procedures (e.g.,
  company IQ test with scores on standardized
  tests). Measured via correlations.

4
SG Cowen The New Recruits
5
SG Cowen Case Overview
6
SG Cowen Discussion Questions
7
SG Cowen Debrief
8
Hiring Options
Strengths
Weaknesses
Option

• provides a wealth of verifiable information
  (bio data validity .35)
• can be inexpensive (depending on level of
  detail)

Resume / Applications

• often inflated
• reference checks validity is moderate
  (.26)

• can provide useful information especially
  if (a) see patterns across letters (b) ask
  for many letters and/or (c) organizations
  use their qualified privilege to give
  accurate information

Letters ofRec.
Interviews
To be covered 10/2 10/11
9
Hiring Options Selection Tests (Kulik, 2004)
Option
Cost / Applicant
Criterion-Related Validity
Other Issues
CognitiveAbility (e.g., SAT)

• predicts success on most jobs
• does not measure some core job attributes
  (e.g. EI)

5-100
.44
Work Sample
50-500

• may provide realistic job preview
• expensive (tailored to each job content,
  scoring, and assessing)

• somewhat immune to presentation effects
• may be tracked on the phone via response
  latency

Integrity /Honesty
.18
9-100
1-100 (and more)
Personality(Big 5)
.02-.15
To be covered on 9/27
10
3 Dimensions of Cognitive Tests(Noe, et al.,
2006)

• Verbal comprehension ability to understand and
  use written spoken language
• Quantitative ability speed and accuracy in
  solving arithmetic problems
• Reasoning ability capacity to invent solutions
  to many diverse problems

11
Cognitive Tests

• Often has adverse impact due to race.
• In the past, differences between the means for
  blacks and whites meant that an average black
  would score at the 16th percentile of the
  distribution of white scores. (Noe, et al., p.
  240).
• While racial norming has been banned, banding
  has become more popular. Banding involves
  treating people with similar scores the same
  (e.g., 90-100 gets a 4. When scores are tied,
  preference is given to the minority candidate).
  Practice is controversial.

12
Other Tests

• Physical ability tests can be used to predict
  performance or predict occupational injuries
  (strength tests often have adverse impact)
• Polygraph tests severely restricted by the
  Employee Polygraph Prediction Act (e.g., can use
  if manufacture controlled substances, do
  security, etc.)
• Graphology (used by 85 of French Companies) low
  validity (.02)
• Management Assessment Centers often used to
  assess management potential ( train managers)
  via a variety of tests and realistic managerial
  simulations (ATT)

13
Management Assessment CentersTypical Tasks
(Dessler, 2005)

• Leaderless group discussion put group of
  individuals together and ask them to make a
  decision. Evaluated on interpersonal skills,
  leadership, etc.
• Management games problem solving through
  simulations
• Individual presentation to assess
  persuasiveness and presentation skills
• Objective tests (e.g. personality, mental
  ability)
• Interviews

14
Rights

• Test takers have rights to privacy under APA
  standards for educational and psychological
  testing (but these guide psychologists and are
  not legally enforceable)
• Fair Credit Reporting Act (and others) increases
  likelihood that applicant can view negative
  reports and be given the right to dispute them

15
Looking Back Other BHC Lessons

• When assessing fit, need to look at job, but also
  culture and goals
• Remember what resumes are good for (and what they
  cannot tell you).
• We fill in information that is not there
• Helps form first impression
• Recruiting is a skill (and experts are often the
  least good at explaining what they do)
• Be cautious about similarity between recruits and
  applicants
• Gender (adverse impact)
• Educational background (may stifle innovation)

16
Looking Ahead

• Alternatives to selection (9/18)
• Hiring for culture fit (9/20)
• Off-roading managing culture (9/25)
• Biases / barriers to interviewing and hiring
  (9/27)
• Types of interviewing (10/2 10/4)
• Interviewing skills negotiation (10/9 10/11)

17
Any Questions?