Staffing Ch 5-8

Interpreting Reliability Coefficients

*.70 and up is what you're trying to accomplish .8 is good .9 is superior

Interpreting Validity Coefficients

*Above .3 is what you're looking for .21-.35 potential to be useful >.35 very beneficial

Types of Measurement

Nominal Ordinal Interval Ratio

Raw scores

the unadjusted scores on a measure

Recruiting Guide

-A formal document that details the process to be followed in recruiting for an open position. -Addresses both internal and external recruiting processes. -Clarifies company policies and procedures relating to appropriate budgets, activities, timelines, responsible staff, legal issues, and the specific steps to be taken in recruiting for the position.

Transition Analysis

-A quantitative technique used to analyze internal labor markets and forecast internal labor supply. -A simple but often effective technique for analyzing an organization's internal labor market, which can be useful in answering recruits' questions about promotion paths and the likelihood of promotions as well as in workforce planning.

Types of Job Seekers

-Active job seekers: people who need a job and are actively looking for information about job openings -Semi-passive job seekers: people who are interested in a new position but only occasionally look actively for one -Passive job seekers: currently employed and are not actively seeking another job, but could be tempted by the right opportunity

Applicant Reactions

-An important goal of recruitment is to give every applicant a positive feeling about the organization -Organizational and individual perspectives are both relevant -Effective recruitment requires considering the applicant's perspective and needs -Both parties are pursuing a business relationship

Forecasting Business Activity

-An organization's product demand directly affects its need for labor -Locate reliable, high-quality information sources within and outside of the organization to forecast business activity

Validity is not enough

-Applicants—a valid assessment system can result in adverse impact -Organization's time and cost—a valid assessment system can have an unacceptably long time to fill or cost per hire -Future recruits—a system can be valid but if the system is too long or onerous then applicants, particularly high-quality applicants, are more likely to drop out of consideration -Current employees—a valid assessment system may favor external applicants or not give all qualified employees an equal chance of applying for an internal position

Ratio Analysis

-Assumes that there is a relatively fixed ratio between the number of employees needed and certain business metrics. -Need consistent historical trends to calculate ratios.

Temporary Talent Shortage

-Because higher salaries cost the organization more money throughout the new hire's tenure with the company, hiring inducements that last only as long as the talent shortage does are often better. -Companies often turn to more expensive recruiting methods such as search firms, or lower their hiring standards so that more recruits are considered qualified.

Forecasting Labor Supply

-Combining current staffing levels with anticipated staffing gains and losses results in an estimate of the supply of labor for the target position at a certain point in the future. -Anticipated gains and losses can be based on historical data combined with managerial estimates of future changes.

How much time will it take to hire?

-Continuous recruiting can shorten the hiring timeline -Batch recruiting: recruiting a new applicant pool each time

Nature of the Recruiting Message

-Different types of recruiting materials are used to attract the attention of potential applicants and induce them to apply -Message content should appeal to the goals and values of the targeted recruits -Non-compensatory screening factors should be communicated to facilitate self-selection (the job's location, the type of job, pay, etc.)

Distributive Fairness

-Distributive: the perceived fairness of the hiring or promotion outcome -Did you get the job or promotion?

Permanent Employee Surplus

-Early retirement incentives, layoffs, and not filling vacated positions can all reduce an employer's headcount, but with a cost. -Action plans to address a persistent employee surplus may also involve reassignments, hiring freezes, and steering employees away from careers in that position to reduce the need for future layoffs.

Why is proper measurement important?

-Effective measurement and data analytics can result in a competitive edge -Improperly assessing and measuring candidate characteristics can lead to: --Systematically hiring the wrong people --Offending and losing good candidates --Exposing your company to legal action -There are many legal issues involved with candidate assessment and measurement

Forecasting the Internal Labor Market

-Estimate the competency levels and number of employees likely to be working for the company at the end of the forecasting period. -To forecast internal talent resources for a position, subtract anticipated losses from the number of employees in the target position at the beginning of the forecasting period.

Some Recruiting Sources Are:

-Faster or cheaper -Better at acquiring people who fit the corporate culture and work processes -Better at acquiring high-quality people -Better at acquiring people less likely to leave -Better at acquiring people with previous work experience -Better at generating large numbers of hires -Better at generating professional hires -Better for long-term needs -Better for hiring in noncore competency areas of the company -Better for finding diverse applicants -Better for finding people not actively looking for a job

Persistent Talent Shortage

-If it is likely that a worker shortage will last a number of years, an organization must: -Reduce its demand for the talents that will be in short supply- by increasing their use of automation and technology, and by redesigning jobs so that fewer people with the desired talent are needed. -This is not a fast or practical solution for most organizations.

Temporary Employee Surplus

-If slowdowns are cyclical or happen frequently, using temporary or contingent workers who are the first to be let go when business slows can help to provide a buffer around key permanent workers. -Temporary layoffs may need to last more than six months to be cost-effective due to severance costs, greater unemployment insurance premiums, temporary productivity declines, and the rehiring and retraining process.

Signaling

-In the absence of objective information people may rely on the recruiter's traits and behaviors as signals of aspects of both the company and the job opportunity. ex: diversity, culture of company

Global Sourcing

-Integration: the coordination of a single global staffing strategy with the organization retaining adequate controls over local operations -Differentiation: the need to acknowledge and respect the diversity of local country cultures and expectations and thus giving some latitude to local managers to tailor the strategy to meet the needs of their location -Local employment agencies can be a useful source of guidance in terms of information on the characteristics of the local labor force

Forecasting Labor Demand

-It is a good idea to identify minimal as well as optimal staffing levels when analyzing labor demand. -An organization's demand for labor depends on its forecasted business activity and its business needs, which depend on its business strategy.

Geographic Targeting

-sourcing recruits based on where they live (can focus on the local labor market, can focus on labor markets in locations similar to the organization's location in terms of city size, cost of living, climate, recreational opportunities, etc) -Can target individuals likely to find the firm's location attractive -Lower-level positions in an organization are typically filled from the local labor market, and the geographic boundaries tend to widen as the position moves up the organization's hierarchy

Internal Labor Market Forecasting Methods

-Judgment -Talent inventories: summarize each employee's skills, competencies, and qualifications -Replacement charts: visually shows each of the possible successors for a job and summarizes their present performance, promotion readiness, and development needs -Employee surveys to identify the potential for increased turnover in the future -Labor supply chain management: The basic foundation of any supply chain model is to have the right product, in the right volume, in the right place, at the right time, with the right quality

Tips for Candidate Assessment

-Measures should be used in a purposeful manner -Use a variety of tools -Use measures that are unbiased and fair to all groups -Use measures that are reliable and valid -Use measures that are appropriate for the target population -Ensure that administration staff are properly trained -Ensure suitable and uniform assessment conditions -Maintain assessment instrument security -Maintain confidentiality of results -Interpret scores properly

Possible Ratios

-Production to employees -Revenue per employee -Managers to employees -Inventory levels to employees -Number of customers or customer orders to employees -Labor costs to all production costs -The percent utilization of production capacity to employees

Judgemental Forecasting

-Relies on the experience and insights of people in the organization to predict future needs. (top down and bottom up)

How many people should we recruit?

-Staffing yields: the proportion of applicants moving from one stage of the hiring process to the next -Hiring yields: the percent of applicants ultimately hired (also called selection ratios)

The measures relevant to staffing are those that assess

-The characteristics of the job, which enables the creation of job requirements and job rewards matrices -Aspects of the staffing system such as the number of days a job posting is run, where it is run, and the recruiting message -The characteristics of job candidates such as ability or personality -Staffing outcomes, such as performance or turnover

Trend Analysis

-Uses past employment patterns to predict future needs. -Any employment trends that are likely to continue can be useful in forecasting labor demand. (Trend analysis is rarely used by itself in making labor demand forecasts)

What resources do we need?

-Workload-driven forecasting: based on historical data on the average number of hires typically made per recruiter -Staffing efficiency driven forecasting: the total cost associated with the compensation of the newly hired employee

Recruiting

-activities that convert the leads generated during sourcing into job applicants, generate interest in a company and its jobs, and persuade candidates to accept extended job offers -Can be done by recruiters, hiring managers, or employees.

Procedural Fairness

-beliefs that the policies and procedures that resulted in the hiring or promotion decision were fair -Respect applicants' privacy, avoid delays, use job-related assessments, give fair opportunity to perform

Interactional Fairness

-fairness of the interpersonal treatment and amount of information received during the hiring process -Honesty, respect, recruiter warmth, and informativeness

Top-down

-organizational leaders rely on their experience and knowledge of their industry and company to make predictions about what future staffing levels will need to be. -Top managers' estimates then become staffing goals for the lower levels in the organization.

Using Existing Assessment Methods

1. Examine available validation evidence supporting using the measure for specific purposes. 2. Identify the possible valid uses of the measure. 3. Establish the similarity of the sample group(s) on which the measure was developed with the group(s) with which you would like to use the measure. 4. Confirm job similarity. 5. Examine adverse impact evidence

Workforce Planning Process

1. Identify the business strategy. 2. Articulate the firm's talent philosophy and strategic staffing decisions. 3. Conduct a workforce analysis. 4. Develop and implement action plans. 5. Monitor, evaluate, and revise the forecasts and action plans.

Creating a Sourcing Plan

1. Profile desirable employees to identify promising sources 2. Perform ongoing recruiting source effectiveness analyses by tracking 3. Prioritize recruiting sources based on staffing goals and employee profiles

Organizational image

A general impression based on both feelings and facts. -The more favorable a company's image, the more people are likely to consider the organization attractive as an employer and state a willingness to respond to its recruitment advertisements. -Organizational images differ across subgroups of individuals.

Multiple Regression

A statistical technique that predicts an outcome using one or more predictor variables; -it identifies the ideal weights to assign each predictor to maximize the validity of a set of predictors; -the analysis is based on each predictor's correlation with the outcome and the degree to which the predictors are themselves intercorrelated

Recruiter Goals and Feedback

An organization usually has specific goals for recruiter activities including: -Employer branding -Candidate screening -Generating candidates' interest For a recruiter to pursue the organization's goals: -The organization's goals must be known by the recruiter and be consistent with the recruiter's personal goals -The recruiter must receive feedback in relation to these goals

Construct-related validation

Demonstrating that a measure assesses the construct, or characteristic, it claims to measure

Employer image

Attitudes toward and perceptions of the organization as an employer ex: j&j: "small company environment, big company impact"

Content-related validation

Demonstrating that the content of a measure assesses important job-related behaviors

Criterion-related validation

Demonstrating that there is a statistical relationship between scores from a measure and the criterion, usually some aspect of job success

Evaluating Assessment Methods

Determinants of effectiveness of an assessment method include: -Validity -Return on investment (ROI) -Applicant reactions -Usability -Adverse impact -Selection

Return on Investment Analysis

Estimate the return on investment from adding a new position based on the costs and outcomes resulting from that new hire.

Desirable Recruiter Characteristics

Familiarity with the job and organization Good listening skills Good communication skills Good social skills Intelligence Self-confidence Extroversion Enthusiasm about the job and company Trustworthiness Credibility

Sourcing

Identifying and locating high potential recruits -Done for internal as well as external job candidates -Involves the analysis of different possible sources of recruits to identify those best able to meet the firm's staffing goals

Internal Cost Per Hire

Internal cost per hire includes four elements: 1. Internal advertising costs 2. Travel and interview costs 3. Relocation costs 4. Internal recruiter costs

Who should recruit?

Internal recruiters, external recruiters, employees, hiring managers, recruiter profiles (The recruiter should be someone who can relate to a targeted recruit and persuade him or her to apply and/or accept a job offer)

Boolean searches

Internet search technique that allows a search to be narrowed by using special terms before the key words

Benchmarking

It is sometimes useful to compare an organization's staffing data with other similar organizations -Comparative dimensions can include: --Application rates --Average starting salaries --Average time to fill --Average cost per hire

Multiple Regression Equation

Job successpredicted = Constant + (b1*Test score1) + (b2*Test score2) + (b3*test score3)... the number is then compared to other candidates to determine who should be selected

Forecasting the External Labor Market

Organizations monitor the external labor market in two ways. 1. Through their own observations and experiences. For example, are the quality and quantity of applicants responding to job announcements improving or getting worse? 2. By monitoring labor market statistics generated by others. U.S. Bureau of Labor Statistics (BLS) and others

Recruiter Training

Recruiter knowledge Interpersonal skills Presentation skills Cultural skills Organizational goals and recruiting objectives Legal issues Multiple assessments Applicant attraction

Types of business activity forecasts

Seasonal Interest rate Currency exchange Competitors Industry and economic Others

Scatter Plots

Show graphically how two different variables (e.g., revenue and salesperson staffing levels) are related.

Factors Influencing Recruiter Effectiveness

The labor market, the organizations characteristics, the characteristics of the job, hiring managers, coworkers

What is data?

The numerical outcomes of measurement are data. There are 2 types of data: -Predictive data is information about measures used to make projections about outcomes. -Criterion data is information about important outcomes of the staffing process.

Whole-person approach

The practice of using a variety of measures and procedures to more fully assess people -help reduce the number of selection errors and boost the effectiveness of your overall decision making

Validity

Validity refers to how well a measure assesses a given construct and the degree to which you can make specific conclusions or predictions based on observed scores. -will tell you how useful a measure is for a particular situation; reliability will tell you how consistent score from that measure will be

Web crawlers

Websites that continually search or people with desirable talents and sell access to the sites recruiters

Normal curve

a symmetrical, bell-shaped curve representing the distribution of a characteristic

Correlation coefficient

also called "Pearson's r" or the "bivariate correlation," is a single number that ranges from -1 to +1 that reflects the direction (positive or negative) and magnitude (strength) of the relationship between two variables.

Subjective measures

contain items for which the score can be influenced by the attitudes, biases, and personal characteristics of the person doing the scoring (e.g., essay or interview questions).

Standard scores

converted raw scores that indicate where a person's score lies in comparison to a referent group -indicates how many units of stdev the individual's score is above or below the mean of the referent group (neg when below mean, pos when above)

Random error

error that is not due to any consistent cause

Systematic error

error that occurs because of consistent and predicable factors

Contamination error

error that occurs when other factors unrelated to whatever is being assessed affect the observed scores

Deficiency error

error that occurs when you fail to measure important aspects of the attribute you would like to measure

Objective measures

free of personal judgement or bias -best to use standardized, objective measures

Flipping or flip searching

identifying people who link to a web site

Alternate or parallel form reliability

indicates how consistent scores are likely to be if a person completes two or more forms of the same measure

Inter-rater reliabilty

indicates how consistent scores are likely to be if the responses are scored by two or more raters using the same item, scale, or instrument *encounter more in careers

Internal consistency reliability

indicates the extent to which items on a given measure assess the same construct

Spillover effects

indirect or unintended consequences of an action

Validity coefficient

is a number between 0 and +1 that indicates the magnitude of the relationship between a predictor (such as test scores) and the criterion (such as a measure of actual job success). -The validity coefficient is the absolute value of the correlation between the predictor and criterion. -Validity coefficients rarely exceed .40 in staffing contexts.

Face validity

is a subjective assessment of how well items seem to be related to the requirements of the job. -Face validity is often important to job applicants who tend to react negatively to assessment methods if they perceive them to be unrelated to the job or not face valid. -Even if a measure seems face valid, if it does not predict job performance, then it should not be used.

Validation

is the cumulative and ongoing process of establishing the job relatedness of a measure

Standard error of measurement (SEM)

is the margin of error that you should expect in an individual score because of the imperfect reliability of the measure. It represents the spread of scores you might have observed had you tested the same person repeatedly. (the lower the standard error, the more accurate the measurements)

Networking sites

leveraging your personal connections to generate applicants

Internal Recruiting Sourcers

locate people who currently work for the company who would be good recruits for other positions

Criterion-referenced measures

measures in which the scores have meaning in and of themselves

Norm-referenced measures

measures in which the scores have meaning only in comparison to the scores of other respondents

Selection Errors

occur when you fail to hire someone who would have been successful at the job (false negatives) or you hire someone who is not successful at the job (false positives). -Selection errors cannot be completely avoided in any assessment program or method, but they can be reduced.

Realistic Job Previews

provide both positive and potentially negative information to job candidates. -Rather than trying to sell the job and company by presenting the job opportunity in the most positive light, realistic job previews strive to present an honest and accurate picture. -The goal is not to deter candidates by focusing on factors that might be perceived negatively, but to provide objective information that job candidates can use to self-assess their fit with the job and organization.

Reliability

refers to how dependably or consistently a measure assesses a particular characteristic To evaluate a measure's reliability, you should consider: -The type of measure -The type of reliability estimate reported -The context in which the measure will be used

Objectivity

refers to the amount of judgment or bias involved in scoring an assessment measure.

Test-retest reliability

reliability reflects the repeatability of scores over time and the stability of the underlying construct being measured

Confidence interval

represents the degree of confidence that a person's "true" score lies within their earned score plus or minus the SEM, given some level of desired confidence.

X-raying

searching for pages that are all on the same host

External Cost Per hire

six basic elements account for 90% of the costs to hire to calculate the cost of external hiring: 1. Advertising expenses 2. Agency and search firm fees 3. Employee referral bonuses 4. Recruiter and applicant travel costs 5. Relocation costs 6. Company recruiter costs (prorated salary and benefits if the recruiter performs duties other than staffing)

External Recruiting Sourcers

target the people from outside the firm

Validity generalization

the degree to which evidence of validity obtained in one situation can be generalized to another situation without further study -Based on meta-analysis -No guarantee that the same validity will be found in any specific workplace -Legal acceptability not yet established

Statistical significance

the degree to which the observed relationship is not likely due to sampling error. -This is a minimum requirement for establishing a meaningful relationship

Practical significance

the observed relationship is large enough to be of value in a practical sense. -In a large enough sample, a very small correlation would be statistically significant but the relationship may not be strong enough to justify the expense and time of using the predictor

Measurement

the process of assigning numbers according to some rule or convention to aspects of people, jobs, job success, or aspects of the staffing system

Scoring

the process of assigning numerical values during measurement

Workforce planning

the process of predicting an organization's future employment needs and the availability of current employees and external hires to meet those employment needs and execute the organization's business strategy. "the foundation of strategic staffing"

Sampling error

the variability in sample correlations due to chance -You can address sampling error through statistical significance testing procedures.

Bottom-up

uses the input of lower-level managers in estimating staffing requirements. Based on supervisors' understanding of the business strategy, each level provides an estimate of their staffing needs to execute the strategy. The estimates are consolidated and modified as they move up the organization's hierarchy until top management formalizes the company's estimate of its future staffing needs into staffing goals.