How To Make Sure You Are Hiring The “Right” Employees

By

Gordon Walter, SPHR

Today’s Agenda

Introduction Creating Job Descriptions Writing Job Advertisements Designing and Evaluating Applications to Uncover Information That Could be Important How to Legally Conduct Reference and Credit Checks

Creating a Structured Interview Process to Avoid Discrimination Testing and Evaluating Applicants for Job-Related Qualifications Q & A

Introduction

Quantitative Reasons Each year 30-40% of applicants

submit incomplete or inaccurate resumes.

Each year nearly 1 million individuals are victims of violent crime while working.

Six out of 10 incidents of workplace violence occur in private companies. 

Embezzlement accounts for $4 billion in losses each year. 

30% of business losses are the result of acts by employees. 

Why spend time on selecting the right employee?

Qualitative Reasons High turnover Litigation Employees lack:

Job fit Qualifications

Poor performance Poor attendance

Other Reasons?

Negligent Hiring Dean v. Oppenheim Davidson Enterprises

Inc.,Alameda Superior Court No. 809231-1, 2000. America's Best Carpet Care hired private contractor Private contractor robbed and murdered home

owner America’s Best found negligent in hiring practices

and ordered to pay $11.5 million in damages. Parties later settled for undisclosed amount

Introduction, cont’dWorst Case Situations:

Describes major areas of a job or position

Begins with careful analysis of important facts about job Methods used Purpose and responsibilities Relationship of job to other jobs Qualifications needed

Keep it dynamic, functional, and current Be flexible

Job Description

A poor job description can keep people from: Trying new things Learning to perform jobs better

A well-written, practical job description will: Prevent refusals to carry out assignments

because "it isn't in my job description."

Job Descriptions, cont’d

When writing job description, remember: Jobs change

personal growth organizational development new technologies

Keep flexible; encourages employees to grow Serves as basis for job training or future job

evaluations.

Job Descriptions, cont’d

A Job Description should include:

Job Title, Objective or Overall Purpose Statement Orients reader to general objective Describes broad function and scope Three to four sentences at most

List Duties or Tasks Performed principal duties continuing responsibilities and accountability essential job duties critical to successful

performance

Job Descriptions, cont’d

Begins with most important functional responsibilities and continues in order of significance

Each duty that comprises at least five percent of total

Describe relationships, and include supervisory, subordinating and/or other working relationships.

Job Descriptions, cont’d

When used for recruiting, you may want to attach:

Job Specifications, Standards and Requirements Qualifications needed to perform the essential functions

EducationExperience Knowledge Critical skills and expertise

Job Location Equipment used in performance of jobCollective Bargaining Agreements Non-Essential FunctionsSalary Range

Job Descriptions, cont’d

Keep statements crisp and clear

Sentences in verb/object phrases occupant of job is implied subject, therefore can

be eliminated (e.g., description of receptionist position: "Greets visitors in a friendly manner.“)

Use present tense phrases telling why, how, where or how often

(e.g., "Collects all employee time-sheets on a bi-weekly basis for payroll purposes.“)

Job Descriptions, cont’d

Minimize unnecessary articles: "a", "an", "the" to point to the description

(e.g., "Greets all visitors in a friendly manner“) Un-biased terminology

Use the "he/she" approach or make gender pronouns not required.

Avoid words subject to differing interpretations. (e.g., "frequently," "some," "complex," "occasional," and "several."

Job Descriptions, cont’d

Job advertisements and recruitment processes should:

Use AIDA format: Attention, Interest, Desire, Action

• Attention (from appropriate job-seekers)• Interest (establishes relevance in minds

of ideal candidates) Desire (to pursue a great opportunity) Action (clear instruction for next step)

Job Advertising/Recruiting Processes

When writing job advertisements, be sure you:

Use one simple headline, relevant and clear Use job title and organization's name as

secondary headings Show organization or brand name prominently Make it easy to read, with simple language,

avoiding complicated words (unless necessary) Less is more. Use the same language reader uses

Job Advertisement Do’s

Write efficiently Use simple fonts:

Arial, Tahoma, Times, etc, or equivalents

Serif fonts are more traditional and more readable

Sans serif fonts are modern-looking, but less easy to read

12-20 point size for headings, 10-12 for text

Job Advertisement Do’s, cont’d

Involve the reader (“you, yours”) Seek best page position:

i.e., “top right” Size ad appropriately

Overly complex graphics, layouts and words

Font too small or too large All upper case font Overly intellectual or obscure

wording Words with double meanings Too much technical detail Too few/many words

Job Advertisement Don’ts

Boring or uninspiring text Over-emphasis on job vs.

the person Too much technical detail Overly large ad space

When writing a job advertisement, do not use:

Placing files on the Internet as downloadable pdf or similar files

job application form job description Candidate profile

Out-placement organizations. Armed forces resettlement organizations. Universities, colleges and schools. Trade associations and membership

organizations. Internet recruitment resources. Professional recruiters.

Other Options to Job Advertising

Other options to job advertising include:

Questions based on purpose Ask about candidate's work and educational background. Ensure reduces employment-related exposures

Keep inquires lawful Ask only job-related questions

Avoid questions leading to actual or perceived discrimination Make statements of policy (if necessary)

i.e., a general statement on the application about work hours and conditions is acceptable.

Job Application

If applicant is a citizen Better to ask if “legally authorized to work in US”

Age, date of birth, or date of graduation Better to ask if over 18 years of age

Disabilities, medical treatment, medications, addictions Sick leave taken in last position Candidates height and weight

Job Application: Things to avoid

Applicant must sign to acknowledge statements for:

Employment verification “At-will" employment Equal Employment Opportunity

statement

Applicant Signature Needed

Inform or ask permission from

candidate prior to checking Make conditional offers Must be on “Need to know”

based on “Job critical and relevant”, “business necessity”

Conducting Reference and Credit Checks

Basic Information• Employment reference check• Credit check• Background check

Other Information

Conducting Reference and Credit Checks

Civil litigation Motor-vehicle record “Mode of living" and character

Expect to receive dates of hire, termination, and job title.

Prohibited from confidential information If waiver or “hold harmless” agreement

signed employer may likely specify information covered by agreement.

Employment Reference Check

Credit check

To obtain credit report on employee or prospective employee, the employer must:

Provide “clear and conspicuous” written notice that a credit report may be requested

Obtain written consent from applicant or employee

Employers generally have right to access arrest and conviction records that are public information, BUT:

Whether employers can use for hiring decisions varies from state-to-state

Some states allow employers to discriminate based on criminal convictions, but not arrests.

Other states apply varying rules depending on type of position or industry

Background Check

Errors are common Theft of confidential information

may leave you vulnerable to lawsuits

Background checks do not always identify potential wrongdoers, while disclosing much information that is irrelevant to job conduct

May not reduce fraud

Problems With Reference Checking

Poor process can result in: Poor selections Higher turnover Undermines organization Wastes time and money

Why have structured interviews? Easier to do Consistency Criticality

Better the process, the better the result

Increases quality of organization’s people

Structured Interviews

Tests validated to job; must be Job related

Communicate to candidates Test everyone Make reasonable accommodation Fair and impartial; involve

third party Cheating means disqualification Failure means disqualification Be consistent

Pre-Employment Testing Guidelines

Recruitment Process Structure

Issues in Recruiting

Lack of recruitment goals

Lack of a recruiting philosophy

Recruit Internally v. Externally

Countercyclical Hiring

Advantages/Disadvantages of Internal Sources

Ability of candidate is known Internal promotion motivates

employees Less training and socialization time Internal sources may be insufficient

for growth Ripple effect, cumbersome

procedures “Inbreeding,” loss of flexibility

Advantages/Disadvantages of External Sources

Import new ideas and skills

Avoid ripple effect

May be necessary in

turnaround situation

Expensive

Time consuming

More difficult to evaluate

candidates

Internal Recruiting

Internal Recruiting for Non-

Exempt Positions Job posting and Bidding

Internal Recruiting for

Exempt Positions

Nominations

Succession Planning

External Recruiting

Planning for External Recruiting

Calculate yield ratios

Determine when to begin and how

extensively to recruit

Prepare Resume -Tracking

Software

Informal Methods Ask employees to refer potential

candidates (word-of-mouth) Consider referral bonuses

*Source: Based on a survey of 303 HR Professionals, from HR Magazine, December 1998, p. 53. Data on Internetrecruiting is from HR Focus, May 2004, p. 8

Recruiting Sources Used by HR Professionals*

External Recruiting Methods

Formal Methods

Recruitment Advertising

Internet Recruiting

Employment Agencies

Public Job Service Agencies

Private, For-Profit Agencies

External Recruiting Methods

Recruiting Targeted Groups

Executive Search Firms

Campus Recruiting

Recruiting Older Workers

Recruiting Disabled Workers

Recruiting Disadvantaged Workers

Affirmative Action Recruiting

Recruiting Passive Job Seekers

Recruiting Process Evaluation and Benchmarking

Measures Used to Evaluate Recruiters

Measures Used to Evaluate Recruiting Sources

Differences in Quality of Recruiting Sources

Evaluation of Recruiting Source Data

Benefits of Structured Selection

Improved performance

Effective strategy implementation

Sustainable competitive advantage

Sructured SelectionProcess

Questions NOT to Ask Job Candidates

Pre-Employment Tests

Testing and EEO

Paper-and-Pencil or Computerized

Tests Chosen Based Upon: Specific Job Required Ability Reliability Proper Test Development Procedures Administrative Ease Past Success

Work Sample and Ability to Learn Tests

Work Sample Tests

Situational Judgment Tests

Ability to Learn Tests

Advantages

Content, Face, and Predictive Validity

Reduced Adverse Impact

Realistic Job Preview

Personality Tests

May have some validity

Rate on basis of Personality Dimensions

1. Extravert vs. introvert

2. Friendly, agreeable vs. hostile, non-compliant

3. Neurotic vs.emotionally stable

4. Dependable, self-control vs. low

dependability, and self-control

5. Intellectual, open to new ideas vs. low intellect, low

openness to new ideas

Uses include:Integrity Tests

Predicting Violence in the Workplace

Interviews

Unstructured Interviews

Low reliability

Low validity

Structured or semi-structured Interviews

Plan with flexibility

May be comprised of “funnels”

Better reliability

Better validity

Interviews, cont’d

Validity of the Interview can be compromised by: Similarity Error (i.e., “just like me”) Contrast Error (i.e., “not like ____”) Overweighting of Negative Information Race, Sex, and Appearance Bias First Impression Error Halo Error Nonverbal Factors Faulty Listening and Memory Differences between Interviewers

Selection Structure “Funnel”

Interviews, (cont’d)

Structured Interviews

Patterned Interview

Ask everyone the same questions

May or may not be the right questions!

Situational Interview

What would you do if _______ happened?

Behavioral Description Interview

Tell me about a time when _______ happened.

What did you do? What was the result?

Interview Best Practices

Take good notes Base questions on a thorough

job analysis Use a more structured format Use situational and/or

behavioral questions Interview is conducted by

trained interviewers Interview attempts to assess

only qualities that are visible in interviews

Drug Testing

Drug use is NOT a handicap under ADA Drug tests can be done prior to a conditional offer, also

randomly during employment Tests are reliable but expensive and invasive Advisable in safety-sensitive jobs

Reference criteria must be valid to job.

References must be checked to counter:

“Negligent hiring”

Resume fraud

Be mindful of defamation suits when giving reference information

Reference and Background Checks

Reference and Background Checks, cont’d

Obtaining Reference Information

Written reference or phone interviews are

the most common methods

Ask nominated referees for additional

people to contact

Ask job-related questions

Communicate to applicant that you are

seeking reference/background information

Role Play and Assessment Centers

Assessment Center Characteristics of Assessment Center

May involve multiple: Candidates Assessors Exercises: In-basket test, leaderless group discussion, interview, tests

Validity and usefulness Other Selection Methods for Managers

Individual assessment Interviews

Criteria for Choosing Selection Devices

Validity

Utility

Cost, Base Rate of Success, Selection Ratio,

Incremental Validity, etc.

Legality

Acceptability to Managers

Applicant Reactions

Societal Impact

Comparison of Selection Devices

Internal Revenue Service www.irs.gov Department of Labor www.dol.gov Society for Human

Resource Management www.shrm.org State Government Agencies www.statelocalgov.net State Tax Agencies www.taxadmin.org U.S. Citizenship and

Immigration Services www.uscis.govU.S. Small Business Administration www.sba.gov

Sources