Running head: THE HIRING PROCESS IN ORGANIZATIONS 1

The Hiring Process in Organizations

Rachel Groters

Olivet Nazarene University

The Hiring Process in Organizations

My father is the Senior Naval Science Instructor at Richards High School in Oak Lawn,

Illinois. Two years ago when he was first hired, he was charged with the task of finding someone

to be his right-hand man on the job. Three candidates were in the final running for the position,

so my dad had to act as a temporary hiring manager in assessing multiple aspects of each person

under consideration to see who would best fit the demands of the job. One of the applicants was

extremely unorganized on paper and did not have the necessary technological skills to assist my

father. As the position required participating with high school students on almost a daily basis in

physical training, my father was concerned that another of the applicants was too old to keep up.

He ended up choosing a newly retired Coast Guard Chief Petty Officer who had the necessary

skills, background, and physical fitness, and he has never regretted his decision. My dad’s

experience as a temporary hiring manager caused me to become interested in the hiring process.

For my dad, finding the right person to work with has been the difference between enduring his

work and tremendously enjoying his time there. How much more so could organizations both

large and small benefit from hiring the right people? As this paper attests, the consequences of

not doing so are dire. But Robinson (2002) says, “Managers can avoid most turnover and

productivity gaps by staying current in hiring practices, using technology to gather all of the

available data on a candidate and matching the right people to the right jobs” (p. 80). After

portraying the importance of the hiring process with an analysis of the costs and benefits of

ineffective and effective hiring, respectively, this paper takes an in-depth look into these three

topics—hiring practices, technology in the hiring process, and assessing organizational fit—in

order to help readers become aware of issues in and approaches to various aspects of this most

important process.
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The Importance of the Hiring Process

There are organizational consequences for ineffective hiring processes. Whether these

processes are too rushed, not thorough enough, or even just unorganized, it is widely agreed that

lack of attention to detail in the hiring process leads to low productivity and lost opportunities

(Froschheiser, 2008). Agard (2006) says high turnover is another consequence of ineffective

hiring. He writes, “The U.S. Department of Labor estimates it costs a company one-third of a

new hire’s annual salary to replace an employee” (p. 12). Robinson (2002) notes that this

percentage is even higher for replacing employees in management and sales positions at an

extraordinary 250 percent. Besides costing so much, Sanford (2005) says that high turnover leads

to conditions where managers “take what they can get” (p. 66) from the labor market.

In addition to these negative outcomes, Sanford (2005) says that poor hiring practices

result in hard, or known, costs such as basic sourcing costs and the cost of managerial time, and

soft costs that are more difficult to measure. These include lost operational time due to constantly

training new recruits, broad ranging quality-of-service issues, morale issues, and sometimes even

lost business with clients that fall through the cracks due to changes in staff. Agard (2006) adds

another soft cost to the list when he notes the potential for damaged reputations for human

resources departments that have to suffer the embarrassment of continually letting ill-fitting or

under qualified employees go.

One might think that with all of these repercussions, employers everywhere would be

paying more attention to hiring the right people the first time around. Sadly, this is not always

the case. Froschheiser (2008) says that in a 2008 national survey, “…over 30 percent of CEOs

said up to half of their employees are a poor fit for the job” (p. 7). This is no wonder, as research

shows that almost two-thirds of mid- and lower-level employees are hired based on the “gut
THE HIRING PROCESS IN ORGANIZATIONS 4

feelings” of their interviewers (Robinson, 2002). In order to capitalize on the benefits of effective

hiring processes, including higher attendance records, greater job satisfaction, less turnover, and

superior job performance (Robinson, 2002), employers must realize two things. Hanft (2003)

says that across the economy, hiring the right people is the most important thing. He also stresses

that the hiring process is just that: a process. There are no shortcuts to effective hiring. Managers

must recognize these two aspects of hiring if they are to realize the full potential of the hiring

process in their organizations.

Hiring Practices: Candidate Relationship Management

One concept coming to the fore in the areas of hiring and recruiting is that of candidate

relationship management (Roberts, 2008). CRM is like the well-known customer relationship

management except that it focuses on “keeping relationships warm” (p. 74) between employers

and potential employees. According to Roberts (2008), the basic premise of CRM is that

employers do not want to lose the business, talent, or promotion activity of potential candidates

and their friends because of bad experiences during the application process. In order to avoid

this, CRM systems acknowledge all actions on the part of the applicant using a variety of media

and technology. In essence, CRM involves changing business practices and adopting CRM

software with the goal of treating candidates like customers. Doing so allows organizations to

create employee loyalty and enlarge the talent pools from which they select new employees.

Roberts (2008) says that if an organization correctly filters and categorizes every resume they

receive, they can look through their database for potential hires when job openings occur instead

of starting from scratch.

CRM is becoming increasingly popular in the business world of today. In a 2008 survey

conducted by James Holincheck, an analyst at Gartner Inc. in Stamford, Connecticut, 45 percent

of 128 organizations that had adopted recruiting software were already using some kind of CRM,

and 30 percent planned to do so within two years (Roberts, 2008). Organizations that use CRM

as an overall strategy to govern their hiring practices certainly realize the importance of hiring

and retaining the right people.

Hiring Practices: Recruitment Strategies

Froschheiser (2008) identifies the difference between reactive and proactive recruiting.

According to him, reactive recruiting is waiting until there is a job opening to recruit and

suffering the consequences of the necessarily rushed process. In situations like this, companies

might hire applicants who are less qualified than the job warrants, or even just whoever shows up

first. Proactive recruiting, however, is establishing a structured and systemized hiring process

well before it is needed to fill positions. Froschheiser (2008) writes that a major part of this is

planning ahead by creating thorough, up-to-date job descriptions for all organizational positions.

These descriptions should include the job’s purpose, a breakdown of employee responsibilities,

authority structure within the organization and where the employee fits in that structure,

appraisal methods, how the employee will spend their time, and required competencies,

background, and experience for the position. For some hiring managers, this can be a difficult

and complicated task. According to a survey by the Creative Group, nine percent of executives

surveyed cited writing job descriptions as the most difficult aspect of the hiring process (The

right staff survey, 2005).

Nevertheless, writing job descriptions properly is of vital importance, not only because it

provides mutually shared expectations for both the organization and employee, but also for its

value as a foundation of the hiring process. Froschheiser (2008) writes that the job description

should drive the interview process and the employee’s training plan upon being hired. Robinson
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(2002) takes Froschheiser’s emphasis on the importance of well-written job descriptions even

further when he says that hiring systems need to be developed from “up-to-date, written job

descriptions, [and] job success patterns built from these job descriptions and benchmarks of the

top performers in similar positions” (p. 80). Good job descriptions help employees succeed and

allow employers to refine the hiring process. By documenting the characteristics of successful

workers, hiring managers can discover what to look for in job candidates.

Though in agreement with Froschheiser’s opinions on the necessity of the actions

associated with proactive recruiting, Sanford (2005) believes a better name for it is effective

recruiting. He notes the word “proactive” implies spending more time on future employees than

current ones. Sanford’s formula for effective recruiting starts not with creating a description of

the job, but with formulating a profile of the ideal candidate to fulfill the job. This ultimately

saves time, as candidates who do not match the description can be bypassed earlier in the hiring

process. Sanford’s remaining steps for effective recruiting echo Froschheiser’s emphasis on the

importance of having a game plan for hiring. Included in these steps are creating standard pre-

interview screening and interview questions, constructing a procedure for handling interested

candidates, and advertising job openings using targeted media.

Hiring Practices: Interview Programs

As Sanford (2005) notes, creating standard interview questions is an important step in

formulating an effective recruiting strategy. For many employers, this is more easily said than

done. Twenty-seven percent of executives surveyed by the Creative Group said that asking the

right interview questions is the most difficult aspect of the hiring process (The right staff survey,

2005). Questions must be written so that interviewers can ascertain a candidate’s skills and
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organizational fit while avoiding discriminatory wording at the same time. It is no wonder over a

quarter of executives surveyed find it a hard process.

A solution to the interview question-writing dilemma of employers presents itself in

behavior-based interviewing, a program often used in the business world that uses behavior

description interview questions (Clement, Kistner, & Moran, 2005). Clement et al. (2005) writes

that BBI operates on the idea that “past behavior is the best predictor of future performance” (p.

58). This is not to say that people cannot change, but it is certainly harder to train behavioral

characteristics like integrity, creativity, and initiative than more technical skills (How to screen,

2009). Indeed, according to William C. Byham, chairman and CEO of Development Dimensions

International, people fail in organizations for behavioral reasons, not technical reasons. He

believes that digging up the past is important to see whether or not a candidate has what it takes

(Hanft, 2003).

BBI involves setting up a structured interview in which candidates have less “squirm

room” in answering questions (Hanft, 2003). Based on the job description, particularly the skills

required to perform on the job, employers craft interview questions that allow candidates to

describe past actions in which they used those skills (Clement et al., 2005). Clement et al. (2005)

describe two approaches to BBI. The first involves asking PAR questions, or questions about a

particular problem, action, and result. In this approach, candidates are asked to describe a past

problem they have had to deal with, the action they took to do so, and the result of their action.

The STAR approach to BBI—or situation, task, action, result—is similar to the first approach

but centers on a situation rather than just a specific problem.

Clement et al. (2005) say that “[the BBI] approach has the best predictive value” (p. 62).

However, even with well-written interview questions focused on past behavior it can be hard for
THE HIRING PROCESS IN ORGANIZATIONS 8

one interviewer alone to judge whether or not a candidate is right for the job. To remedy this,

Wright (2009) suggests that hiring decisions be characterized by “crowd sourcing,” especially in

the interview process. In essence, crowd sourcing is letting multiple employees handle what is

usually the task of just one hiring manager or interviewer. Google uses this technique in their

hiring process because they believe in a quote from a book written by James Surowiecki's: “Any

given group of people is always smarter than any expert” (Wright, 2009, p. 56). This idea is

echoed in slightly less eloquent terms by William C. Byham of Development Dimensions

International when he says that in the interview process, employers must “realize that three heads

are better than one” (Hanft, 2003, p. 96).

In the interview process at Google, crowd sourcing takes the form of candidates talking

to at least four people, including potential superiors and colleagues (Wright, 2009). In addition,

Google has found a way to involve employees in the hiring process regardless of whether or not

they participate in the formal interview process. Google uses crowd sourcing in this way to

gather internal references about potential employees from current employees. Wright (2009)

describes the process: first a person interested in working for Google submits an application

online. Then Google’s applicant-tracking system matches the potential employee with current

workers with similarities. For example, if the applicant graduated from the same college as one

of Google’s employees, the applicant-tracking system would send an automatic e-mail requesting

an internal reference from the employee. In this way, Google uses crowd sourcing to refine its

hiring process.

Another interview program employers can use to help candidates know what to expect if

they get hired is the realistic job preview (Baylor, 2007). Baylor (2007) writes that expectations

about work must match with reality in order to avoid turnover. Hiring managers can carry out
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realistic job previews in a number of ways, including giving tours, showing orientation videos,

and setting up times for applicants to talk with current employees about their experiences. Above

all, Baylor (2007) encourages employers to be honest with their potential employees about

workplace tasks and environment.

Hiring Practices: Dealing with Diversity

As the business world of today increasingly globalizes, employers have had to shape their

hiring practices to acknowledge diversity in the labor market. One hindrance that works against

hiring managers and other staffers in carrying out these hiring practices is unconscious bias

(Savini, 2010). Beverly Daniel Tatum, president of Spelman College, says that unconscious bias

is a product of the “cultural smog” we all absorb through “media stereotypes, family influences,

life experience, and geographic isolation” (Savini, 2010, p. 64). Savini (2010) writes that

unconscious bias manifests itself in aversive racism, where a person says one thing and

unconsciously acts in an entirely different way, attributing the action to something other than

race. The same applies for discrimination based on gender, culture, and other personal

characteristics.

Unconscious bias is so dangerous because when it exists it affects any and all stages of

the hiring process. It keeps employers from reviewing resumes, clouds the perspectives of hiring

managers during interviews, and ultimately causes people to get hired or overlooked for the

wrong reasons. Savini (2010) suggests employers adopt certain practices to combat unconscious

bias. First, employers should institute bias awareness training for all who oversee the hiring

process in their organizations. Becoming aware of one’s own unconscious bias can be

uncomfortable, but it is necessary to make the hiring process as fair as possible. Employers

should also make sure that written procedures are in place that tell hiring staff what to do in
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various situations. Savini (2010) offers the example of contacting applicants representing

diversity within a specified period of time after receiving their resumes.

Unconscious bias is especially likely to be an issue in cross-cultural interviewing. Lim,

Winter, and Chan (2006) stress that speaking the same language does not denote sharing the

same culture. Interviewers must be sufficiently sophisticated to understand this when interacting

with culturally diverse interviewees. Lim et al. (2006) say that poor interview practices resulting

from interviewers’ bias coupled with the halo effect and use of unstructured interviews

“undermine an organization’s competitive advantage” (p. 267).

In order to avoid this, one of the most important actions cross-cultural interviewers must

take is to develop rapport between themselves and their interviewees before assessing

competencies for a given position (Lim et al., 2006). This rapport should be based on trust,

understanding, and acceptance. Another name for developing rapport is “putting your candidate

at ease.” This is one of William C. Byham’s top five Do’s for employers in the hiring process

(Hanft, 2003, p. 96). Byham believes that employers who do this make a better impression, and

relaxed candidates provide better answers to interview questions. Two more actions employers

can take to address the issue of cross-cultural interviewing are diversifying their interview panels

and instituting mandatory cultural training policies for their hiring managers. Lim et al. (2006)

write that interviewers must be able to distinguish between skills, personality, and culturally-

based behaviors.

Technology: Applicant-Tracking Systems

Helpful in all aspects of the hiring process and mentioned earlier as part of the discussion

on crowd sourcing, applicant-tracking systems are on-line tools that help organizations

“streamline and simplify their recruiting and hiring efforts” (Murphy, 2007, p. 22A).
THE HIRING PROCESS IN ORGANIZATIONS 11

Specifically, ATS’s can help employers in six key areas based on Denise Foy’s “Six A’s of

Recruitment Success” (How to make, 2003). The first area has to do with creating awareness of

job opportunity. An organization can use an ATS to “monitor and measure the effectiveness of

its recruitment campaigns and employer branding” (How to make, 2003, p. 3). If the ATS shows

ineffectiveness, an organization can use its job-advertising dollars in different ways. Another

area where ATS’s can be of service is in providing access. Murphy (2007) writes that both

applicants and managers can access applications online anytime, anyplace.

A third area in which an ATS can be useful is in assessing a candidate’s qualifications

(How to make, 2003). Employers look for speed, accuracy, and cost-effectiveness in this area,

and an ATS can provide all three. For example, Murphy (2007) tells about the ATS made by

Kronos Inc. and used by Caribou Coffee, among other companies. This system conducts an

assessment on completed applications that “evaluates the applicant’s customer-service skills and

dependability,” (p. 22A) ultimately saving members of the hiring staff valuable time. Another

way in which ATS’s can streamline the hiring process is by automatically scheduling interviews

with qualified candidates in order to keep them moving through the hiring process (How to

make, 2003).

The last two areas in which ATS’s can help employers are in administering the low-

impact, day-to-day recruitment activities and analyzing the entire recruitment process (How to

make, 2003). With Kronos’s ATS, Caribou Coffee has especially benefited in the latter area by

being able to keep better records and more efficiently track applicant flow and the time from

application to hire (Murphy, 2007). Having this knowledge at their fingertips almost certainly

helps the people at Caribou Coffee make better-informed decisions concerning their recruitment

program. Indeed, when Caribou first starting using an ATS, director of recruiting Craig Heide
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said, “We expect the software to reduce our turnover rate as we hire better-qualified

employees…Our expectation is to hit a positive return on investment within six months”

(Murphy, 2007, p. 23A).

Technology: Pre-Employment Testing Software

Employers use applicant-tracking systems to streamline their hiring processes, but these

systems do have their limitations. Certain stages of the hiring process—such as the pre-

employment screening stage—can still be tedious for employers, especially those who hire on a

large scale. Agard (2006) offers a solution in automated screening and testing software. He talks

about Windows-based job simulations that help employers avoid interviewing or having to

dismiss people who are insufficiently skilled or embellishing their skills. Automated screening

software also keeps hiring managers away from having to give skills tests to applicants they

know nothing about.

Agard (2006) describes how pre-employment testing software works. From the software,

hiring managers select skills tests that measure a “critical knowledge, skill, or ability related to

the at-issue position” (Agard, 2006, p. 14). Some examples offered by Agard (2006) include

keyboarding tests and proofreading tests. A selected set of tests for a particular position can then

be made into an “auto test code” that self-administers when an applicant comes in for skills

testing. The beauty in this is that junior staffers can handle scheduling testing times for

candidates and making sure they take the right sets of tests, freeing hiring managers to interview

only the most highly skilled people for job openings. This also means that interview time can

focus more on evaluating organizational fit than assessing skills. Another benefit of pre-

employment skills testing software is that employers can give candidates solid feedback on their

strengths and weaknesses (Agard, 2006).

Technology: Automated Reference-Checking Technology

Like pre-employment screening, reference checking is a critical stage in the hiring

process. It can be frustrating, though, because getting information from references is sometimes

like pulling teeth and usually always time-consuming (Fox, 2009). Employers can simplify the

process and gain much-needed insights into the characters of potential employees by using

automated reference-checking technology that is offered on-line. Fox (2009) describes how a

recruiter simply sends an e-mail link to a candidate who is then responsible for finding

references and sending them the link in turn. The link sends references to a questionnaire tailored

by the vendor of the reference-checking product in conjunction with the hiring company.

References fill out and submit the questionnaire and then the product vendor creates an analytical

report of all references’ answers. This completely anonymous report is then sent to employers

who can do with it what they will.

Automated reference-checking technology provides a number of benefits to employers,

all documented by Fox (2009). Since the final reports sent to employers are anonymous,

references are more candid in their responses. Lou Manzi, vice president of global talent

solutions at GlaxoSmithKline, says, “I’ve been doing this job a long time, and I was blown away

by the verbatim comments, which are more accurate, more honest than anything I've ever seen in

verbal reference checking” (Fox, 2009, p. 68). Automated reference-checking technology also

allows references to take less time in responding, contributing to the higher response rate of

references. Fox (2009) writes that 90 percent of references contacted through one vendor’s

product responded. This is so advantageous to employers because more references means more

accuracy in perception of the candidate.

Additional benefits of automated reference-checking technology include increased

efficiency for recruiters who can use the results from reference checks in actual interviews and

greater consistency in the reference-checking process (Fox, 2009). Recruiters take notes and

interpret what they hear about candidates during reference checks in different ways. On-line

reference checking render null these inconsistencies. Compared to the benefits, the drawbacks

are few. Recruiters cannot hear references’ tones of voice or follow up with them for

clarification, but Fox (2009) says that overall, automated reference-checking technology allows

employers to gain more comprehensive reports on candidates.

Technology: Social Networking Sites

In recent years, social networking sites such as Facebook, LinkedIn, and Twitter have

made it possible for employers to do their own investigating in order to find out more about

potential employees. According to a 2008 survey by CareerBuilder.com, 22 percent of more than

3,100 employers surveyed research potential employees on social networking sites (Social

networks, 2008). Of those, 34 percent drop candidates based on what they find. More obvious

things that employers look for include inappropriate photographs and alcohol or drug use, bad-

mouthing, and instances of discrimination. But employers also drop candidates for poor

communication skills on-line and unprofessional screen names (Social networks, 2008).

Social networking sites can also help applicants get hired. As reported by the survey

mentioned above, 24 percent of employers surveyed said that the information they find on these

sites solidified their decisions to hire (Social networks, 2008). Employers pay attention to

whether a candidate’s profile presents an image of a professional, creative individual with a wide

range of interests and good communication skills. They also look on social networking sites to
THE HIRING PROCESS IN ORGANIZATIONS 15

ascertain how well potential employees would fit in with their organizations’ cultures (Social

networks, 2008).

Murphy (2009) writes about how an on-line shoe store called Zappos.com utilizes social

networking sites to an even greater degree. To start, this company posts job openings on these

sites. Employees can also send Jobvites, or electronic job invitations, to their friends on the

social networking sites they frequent. Christa Foley, recruiting manager at Zappos.com, says,

“Current employees are a great resource for finding talent because they live and breathe Zappos,

and they know what we are looking for culturally…The Jobvite model makes referrals and

networking with employee connections very easy” (Murphy, 2009, p. 52). More and more, social

networking sites are becoming the way to reach young, talented people.

Assessing Organizational Fit: Cultural Fit

Employers generally look for the most highly qualified people to fill job openings.

However, though finding people who are sufficiently skilled to perform on the job is certainly an

important part of the hiring process, it is not the only element employers should consider. Each

organization has its own unique culture. For example, one organization might operate under an

informal atmosphere where front-line employees are empowered to make decisions, whereas

another company might have a very formal, centralized authority structure. Other cultural fit

issues include a candidate’s ability to get along with others, ability to handle the type and volume

of work that a particular position requires, capacity to take instruction and handle job stress, and

personal goals for employment and achievement (Agard, 2006). To retain quality workers,

employers must hire based on these issues, assessing how well candidates match up with their

organizations’ cultures.
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Sometimes an employer will take on an applicant who is highly qualified for a position

but does not fit the organizational culture. The employer hopes that the new hire will conform to

the organizational culture over time, but this usually does not happen. William C. Byham of

Development Dimensions International says, “The famous last words of the poor interviewer are,

‘We will train him in that’” (Hanft, 2003, p. 98). Hiring in this way is not a good idea because

employees who do not fit in culturally struggle when their “motivation, needs, and integrated

behaviors” (Hanft, 2003, p. 98) are not aligned with their surroundings.

The first step in formulating an integrated hiring process that includes an assessment of

cultural fit involves analyzing the organizational culture (How to screen, 2009). Mickey

Silberman, managing partner at Jackson Lewis LLP in Denver, says, “If we can tease out the

notion of culture, break it out and anchor it to job-related factors, we can support decisions that

lead to a good cultural fit” (How to screen, 2009, p. 48). One way to do this is by using the top

down and bottom up method. Cultural analyzers must ask both executives and front-line workers

what they perceive the culture to be, noting similarities and differences. Once the culture has

been identified, an employer must work to develop a strong organizational brand through career

portals, messages from top executives, testimonials, and other methods (How to screen, 2009).

This clues potential employees in to what the organization is all about and what kind of people

thrive there.

When evaluating a candidate for cultural fit, a hiring manager must be sure to use

properly validated assessments in order to avoid legal trouble (How to screen, 2009). Any

questions asked must be connected and relevant to research, such as that gathered through a

cultural analysis. Furthermore, organizational culture must be linked to job-related competencies

if employers want to use it as a basis for hire (How to screen, 2009). Applicants or employees
THE HIRING PROCESS IN ORGANIZATIONS 17

who perceive that organizational culture has more to do with demographic characteristics are

more likely to raise discrimination lawsuits against organizations if they are fired or not hired in

the first place.

Assessing Organizational Fit: Assessment Centers

One of the best ways to discover if potential employees will fit with an organization’s

culture is through the assessment center technique (Hanft, 2003). This method has been perfected

by one consulting firm, Development Dimensions International. Hanft (2003) writes that DDI’s

Acceleration Center process tests multiple dimensions of a candidate by thrusting him or her into

a hypothetical company, complete with “business challenges, financial issues, PR crises, the

works” (p. 95). The candidate’s experience is videotaped, which helps the people at DDI clarify

actions during the data-integration phase of the process. In this phase, assessors identify patterns

and trends, and from those the strengths and weaknesses of the candidate.

The assessment center technique accomplishes two objectives at once: it tests candidates

to see if they have the necessary skills to perform on the job, but it also allows employers to see

how candidates behave and handle different situations. From this, employers can ascertain

whether or not candidates will fit with their organizations’ cultures. In addition, Hanft (2003)

says that since the assessment center technique is person-neutral, it helps guard against charges

of discriminatory hiring.

Hiring new employees is a complex, multifaceted process that is vitally important to the

health of organizations. In order to avoid the hard and soft costs associated with ineffective

hiring, employers must address their hiring practices, specifically how they manage candidate

relationships, recruit, interview, and deal with diversity. Helpful in this is hiring technology such

as applicant-tracking systems, pre-employment testing software, automated reference-checking

technology, and even social networking sites. Employers must also make hiring decisions based

on organizational cultural fit, ascertained through various methods such as the assessment center

technique.
THE HIRING PROCESS IN ORGANIZATIONS 19

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