Chapter 8Recruitment, Selection and Retention

Understand the major steps and decisions involved in designing and implementing a recruitment effort

Discuss the factors considered by people in deciding to accept a job offer

Describe he relationship of requirements to other human resources management functions

Design a recruitment and selection effort for a particular job

Learning Objectives

Address the advantages and disadvantages of internal and external recruitment and other sources of job applicants

Explain the concepts of person – organization fit and its relevance to recruitment and selection

Offer alternative selection tools and how they can be used in the selection process

Articulate the concept of validity in the use of selection tools

Indentify the most important factors related to turnover and retention and strategies that can improve retention.

Learning Objectives

The Factors that Influence Job Choice Applicant

◦ Applicant own competiveness.◦ First impression (usually the recruiter).◦ Applicants consider if this is a place that can work

for many years. See article “Recruiting Tips from Cisco”

Employer◦ Employers go through a similar process in

selection as the applicant

Recruitment

Applicants want to work for organizations that share their own beliefs

Employers want applicant who chare their own beliefs

Recruitment

Individual Characteristics◦ These are personal issues that influence a

persons decision IE: life stage, family

Vacancy Characteristics◦ These are issues associated with the job

IE: salary, responsibility, advancement opportunity

Recruitment

Compensation◦ Studies show that compensation is a complex

topic when it comes to recruitment

Money may encourage someone to leave

Money may encourage someone to stay

Recruitment

Responsibility◦ The amount of responsibility is another factor to

consider

Studies show that professionals tend to seek out jobs that grant them greater responsibility.

Job Security◦ Applicants will consider stability when selecting a job◦ The healthcare market is undergoing many mergers

and acquisitions that may shake applicants confidence.

Recruitment

The Recruitment Process◦ The recruiter – needs to have a full understanding

as to the needs of the open positions.

◦ External Environment – An examination of the external environment should be conducted to ascertain available applicants and competition.

◦ Review Past Recruitment Efforts – look to similar position to determine the best course of action.

Recruitment

Expenses

◦ Recruitment can be very costly!!

Advertising Agency Fees Staff time Processing costs Travel / Lodging Training Orientation

Recruitment

Recruitment Sources◦ Early in the process you should identify where you will

look for applicants Internal

Pros – may improve morale, greater assessment of abilities, may be faster, motivator for current employees

Cons – conflict among internal candidates, may cause ripple effect in vacancies, possible morale problem

External Pros – Brings new ideas, may be less expensive, comes with not

ties to the organization Cons – may identify technical skills but does not fit into the

organization, moral problems by non-selected internal candidates

Recruitment

The Peter Principle

◦ This is a common phenomenon in which successful employees are promoted until they reach one position above their level of competency

◦ This is common in healthcare where staff who are good clinicians are promoted to supervisory positions.

Recruitment

Content of the Recruitment Message

◦ Applicant Qualification

◦ Job Basics

◦ Application process

◦ Organization and Department Basics

Recruitment

Evaluating the Recruitment◦ Quantity of Applicants

◦ Quality of Applicants

◦ Overall Recruitment Cost and Cost Per Applicant

◦ Diversity of Applicants

◦ Recruitment time or time to fill

Recruitment

The Question of Fit

◦ This is the process of ensuring the applicant values match those of the organization

◦ This may mean that the selection process should not always be based on concrete data

◦ Organizations should be careful that “fit” also produces quality job performance

Selection

Organization Culture Profile◦ This is used to test an applicant will fit in the

organization Very labor intensive to use

◦ It is important that an organization ensure that is selections criteria adapts to the change in organizational culture over time.

Selection

Job Requirements and Selection Tool◦ Selection tools – refers to any procedure or system

used◦ The use of a selection tool should be based on a full

range knowledge of the job requirements◦ Critical Incidents Analysis – This is a process for

discovering hidden or less formal aspects of job performance This should be done by individuals who are experts in the

job Job expert should identify good and poor performance of

the job Brake the job down into similar “dimensions”

Selection

Reliability and Validity of the Selection Tool◦ Criterion Related Validity – the extent a selection tool is

related to job performance

Concurrent Strategies – this is used to test the reliability of the selection tool by using the tool on current employees

Predictive Validity – This is used on a group of job applicants. Over time you are able to gather data regarding the tool.

Content Validity – the extent to which the tool represents sample content of the job. If sufficient enough of job content are present the tool is valid

Selection

Reference Checks◦ 87% of HR directors use reference checks.

Studies test the validity of reference checks.

Researchers used inter-rater reliability for different respondents for references.

The reliability factor of references is relatively poor!! Reliability improves if:

It is the most recent employer

The reference giver had adequate time to review the applicant

Job functions are similar

Selection

Job Interviews◦ Often this has the greatest weight in the hiring

process

◦ Typically, interview have low reliability

Why? – candidates are not given the questions in advance and are not able to prepare. This is not how the applicant would work in the organization

Selection

Unstructured Interviews◦ Tend to be very subjective and less reliable◦ However, it allows the interviewers free rein,

potentially making the interview more effective.

Structured Interviews◦ Usually based on job requirements◦ Allow interviewers to determine quality of

performance◦ Allow interviewers to score applicants.

Selection

Applications and Resumes

◦ Contain basic information about the applicant

◦ May misrepresent qualifications

To reduce this, ask applicants to complete an addendum that is specific to the job.

This allow the applicant to highlight specific knowledge or experience.

Selection

Ability and Aptitude Tests◦ These test several areas including:

Personality Honesty Integrity Cognitive Reasoning Fine Motor Coordination Tests

◦ For reliability, it is important to ensure the tests are actually representative of the job.

Selection

Assessment Centers◦ This is a center that administer a series of

assessment procedures and has them professionally scored

◦ There is a high correlation between the use of assessment centers and job performance

Selection

Growth in demand for nurses will outpace the supply!!

A nurse shortage will be experienced

The shortage is not cyclical but chronic

Turnover and Retention

Turnover v. Retention

◦ Turnover – a ration that tells the summary of gross movement in and out of the organization. (See Article “How to Reduce Turnover” and “Want to Keep Your Best -Keep ‘Em Interested”)

◦ Retention – looks a specific individuals and the length of time they have been there. (See Article “How to Reduce Turnover” and “Motivation Expert Bob Nelson on Keeping Workers Interested”)

Turnover and Retention

Studies on Nursing Turnover

◦ The average annual turnover rate for hospital workers is 20%.

◦ RN’s and LPN’s turnover rate in Nursing Home is about 50%

◦ Dissatisfaction is the leading cause of nurse turnover

Lack of decision making ability, problems with supervisors, poor work conditions, inadequate compensation, job security

Turnover and Retention

Retention Strategies◦ It is important to develop a culture of retention◦ Managers should emphasis sincere caring for their

staff◦ Retention is not only influences by just the

organizations efforts. The market still drive turnover

◦ Compensation and job structure are motivator for retention (See the article “Firms Let Sleeping Dogs Lie at Office”)

◦ Implement strong leaders. People quit their supervisors not their job

Turnover and Retention