Talent Attraction and Selection

199
6
Talent attraction and selection CHAPTER
Choose a job that you love and you will never have to work a day in your life.
Confucius, 551–479 BCE.
With an ageing population, businesses will be severely limiting their talent pool if they shy away from
employing older workers or fail to capitalise on the skills of their existing older workers.
Chartered Accountants Australia and New Zealand/Future Inc. (2017), The future of talent:
Opportunities unlimited, chartered, p. 43, https://www.charteredaccountantsanz.com/
news-and-analysis/insights/future-inc/the-future-of-talent.
OBJECTIVES
After reading this chapter, you will be able to:
1 recognise the strategic nature of the 4 identify and evaluate the appropriate
employee attraction and selection information sources on job candidates
processes, and their relationship 5 critically evaluate the interview as a
to the vision, mission and strategic selection process
planning processes of the organisation 6 identify and demonstrate an
2 identify the advantages and understanding of the different
disadvantages of internal and external employment tests that can be utilised
employee attraction strategies to select appropriate candidates
3 identify the principal recruitment 7 demonstrate an understanding of how
sources and techniques, and appreciate to reach a selection decision.
when these might best be utilised
Emerging issues
1 Talent management 5 Social networking sites
2 Expatriates 6 Managing diversity
3 Internal talent attraction 7 Interviewing
4 External talent attraction 8 Psychological testing
Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202
200 HRM STRATEGIES, SYSTEMS AND PROCESSES
INTRODUCTION
The most significant human resource (HR) challenge facing employers is the attraction and
retention of skilled talent, more recently defined as ‘talent management’. The emergence of
new markets and technologies as well as increasing demands in existing industries, particularly
in the resources, health care and educational sectors, has meant an increased need for highly
educated and skilled human resources. Recent declines in the resources sector in Western
Australia and Queensland have been predominantly in the unskilled and semi-skilled labour
pools.These declines have been exacerbated by the impact of technology, with full automation
of trucks and trains on mining sites being one example. The increasing demand for ‘soft’ or
employability skills is also challenging the ways in which recruiters and HR professionals alike
recruit and select staff against these complex skill sets.
Issues such as an ageing population, declining birth rates and higher educational qualification
requirements have meant that the availability of skilled employees has declined. Once
employed, these younger and often highly qualified and skilled employees are demanding
greater work flexibility, improved training and career development opportunities, and more
flexible remuneration packages to stay with their employers. Returns on investment are
becoming increasingly difficult for employers to achieve, with younger employees’ retention
rates averaging little more than 12 months in a job, with many leaving to seek improved
opportunities elsewhere.
recruitment Employee attraction, or as it is more traditionally called, recruitment, is the process of
The sum of
activities and
attempting to locate and attract a pool of suitably qualified and experienced people to apply
processes that for existing or anticipated positions within an organisation. In essence, the process is to attract
aim to provide a the right people, at the right time, in the right place and at the right cost. In many cases,
pool of qualified
persons from which the process will be straightforward, while in other cases it can become quite complex. The
the successful attraction process typically yields a number of applicants whose qualifications must be assessed
candidate may be
chosen against the requirements of the job; that is, the selection criteria. The selection of applicants
selection
from within or outside an organisation to fill existing or projected job openings is a major HR
A process that process that has far-reaching effects on company branding, performance, productivity and even
analyses and
compares the
the continued viability of the organisation.
applicants for a Greater attention is being given to the selection process than ever before, with
position against the technological advances impacting the way in which staff are selected. Typically, effective
selection criteria
for the position selection processes will begin with an examination of the organisation’s strategic direction
together with the accompanying HR plan (see Chapter 4). Where a change in corporate
direction or simply a refocusing of the organisation’s mission or purpose is indicated, it is
incumbent upon HR professionals to ensure that all attraction and selection processes link
directly to such plans.
A more fundamental question might be: ‘Do we know what the key competencies are for
the position to be performed successfully?’ It is also vital to ask: ‘What competencies will we
TALENT ATTRACTION AND SELECTION CHAPTER 6 201
build on in the future and which activities will we move away from, having decided previously
that the organisation has no core competence in the area?’ In essence, what we must ask
is: ‘Which activities will we retain as a business and which will we outsource?’ Until these
questions are posed and answered, strategic selection will at best be ad hoc, and success difficult
to achieve.
Skills shortages faced by organisations in a number of countries have impacted on the
attraction and selection processes, with organisations having to be more creative in order to
attract the necessary talent. For example, the growth of social networking sites (SNS) also has social networking
sites (SNS)
significant implications for the ways in which employers locate and attract potential labour. Websites that
While the selection process is typically the responsibility of the HR professional, the enable users
business unit managers and line managers in an organisation also have important roles in to build social
networks or social
the selection process. The final selection decision will usually rest with them. It is important, relationships with
therefore, that they understand not only the objectives and policies relating to selection but other users of
those websites
also the overall strategic direction of the organisation. They must be thoroughly trained in the
most effective and acceptable techniques for evaluating applicants and must be motivated to
use these techniques. The challenges and increased complexities in assessing the new skill sets
required for the future of work also impact the need for training both in assessing candidates
and in the development of appropriate and reliable selection tools.
THE STRATEGIC PERSPECTIVE

Before further meaningful discussion of relevant labour sources is undertaken, it is important
to adopt a strategic orientation to the employee attraction and selection processes.Whether or
not a particular job vacancy is filled by someone from within the organisation or from outside,
will depend upon the organisation’s business strategy, HR policies, the requirements of the job
to be filled (the job description – see Chapter 5), the talent to be found within the organisation,
the selection tools utilised and, often, the organisational politics surrounding the decision.
Organisations can draw up elaborate attraction and selection processes, but these can only
minimise – not diminish – the many influences that will surround this critical aspect of human
resource management (HRM).
This text has argued consistently that HR managers must take on a much more strategic
mindset than the operational one that may have served them well in the past. HR managers
must come to an awareness that the business environment calls for a situational approach to
attracting and selecting employees. Those organisations adopting an organic, dynamic form of
business strategy will seek out a different type of employee to those that adopt more mechanistic
or bureaucratic organisational strategies. The direction that a business takes, now and in the
future, the culture that is being created or shifted and the competencies required all lead to an
emphasis on the type of attraction process undertaken (internal or external) and the selection tools and
methods utilised at any particular time.
Professional tip 6.1

Key HR roles and competencies
The Australian Human Resources Institute’s (AHRI) Model of Excellence (MoE; see Figure 1.2)
suggests that the key roles of HR professionals with respect to attracting and selecting
employees are to be a strategic architect, expert practitioner and culture and change
leader. Associated competencies include future oriented, critical and enquiring thinker and
professional, although some of the other competencies are also relevant.
Organisational leaders also need to think about the generational mix of employees that the
organisation has or wishes to attract. Different attraction and selection strategies will be required
to target the desired audience. Leaders need to focus far more on their diverse workforce,
which will include not only generational differences, but also differences relating to gender,
culture and family responsibility. HRM in practice 6.1 highlights the innovative ways in which
not-for-profit organisations ensure workforce diversity with staff recruitment and selection.
HRM in practice 6.1

Outside the box
There are thousands of organisations in Australia’s not-for-profit sector, making them
significant players in the recruitment and selection game. They employ more than 900 000 paid
employees, constituting about 8 per cent of the Australian workforce.
In recent times, the pressures on their capabilities have been increased by factors such
as declining government funding, rising costs associated with regulatory and compliance
requirements, the global economic downturn impacting on fundraising activities, and a general
shortage in skilled staff (as highlighted earlier in this chapter).
Staffing is central to everything that not-for-profit agencies achieve as they strive to improve
the lives of an estimated 12 million people that they help: the aged, those with disabilities, the
homeless, and those living with special needs and/or significant disadvantages.
Comparatively low remuneration rates and a lack of clear career progression make the task
of attracting and retaining the best employees a difficult one. However, innovative and carefully
targeted programs to fill specific roles helps to ensure that not-for-profits are well staffed to
meet their business goals.
The Red Cross had 67 Aboriginal and Torres Strait Islander employees in 2009, which
comprised only 3 per cent of its total staff. It wanted to at least double this number, but
struggled to adequately engage with Aboriginal and Torres Strait Islander communities.
Feedback also suggested the organisation lacked cultural recognition and acknowledgement of
existing skills and qualifications among the Aboriginal and Torres Strait Islander population.
The solution was in the development of an Aboriginal and Torres Strait Islander Employment
Strategy. The Red Cross Victorian state office was used in a pilot program to help build the
capability for recruitment and retention of Aboriginal and Torres Strait Islander staff. The
program included building the leadership team’s capability for recruitment and retention
of Aboriginal and Torres Strait Islander staff and to develop appropriate support structures
to achieve this. Procedures were developed, networks with community organisations were
established and training was provided. In addition to this, about 30 leaders were also mentored
through the Australian Indigenous Leadership Centre.
These initiatives increased the office’s Aboriginal and Torres Strait Islander staff from 0.4 to
3.1 per cent in just 12 months. To date, the level is now at 4.8 per cent, which is well on the way
to achieving the desired target of 6 per cent.
Source: Adapted from Muldowney, S. (2014), Outside the box. HRMonthly, September, pp. 24–5.
The key point here is that strategies must be dynamic in nature and flow ultimately from
the organisation’s mission statement and strategic objectives. Employee attraction and selection
strategies and processes must be compatible with business strategies.
After a decade of attempting to achieve some form of ‘corporate anorexia’ (i.e. significant
downsizing and outsourcing) and then discovering that this approach did not work,
organisations have returned their focus to a recognition that people may well be their only
source of sustainable competitive advantage. People are no longer seen as expenses and
overheads, but as strategic assets. Along with globalisation and downsizing, the past decade
has seen a very tight labour market, along with the advent and subsequent dismantling of
the Australian WorkChoices legislation and its replacement with the Fair Work Act 2009 (see
Chapter 3). Employers across the world have felt the impact of the 2008–09 Global Financial
Crisis (GFC), when the sudden increase in available employees came at the same time as
pressure to downsize. More recently, the European Union (EU) economic crisis with the fiscal
collapse of Greece, and the economic decline of China, have also impacted on the resourcing
decisions of many Australian organisations operating and/or trading internationally. Hence,
the need for the attraction and selection of talent to be strategic and dynamic in nature, and
tied to business decision making.
Finally, it is also important for employers to realise that employee attraction and selection
are dual decision-making processes made by both organisations and applicants. Both will be employer of choice
seeking the best match between the organisation, its culture and values, and those of the A concept that
describes the
potential employees. This is the ‘organisational fit’. Employers seek people who appear to fit strategies and
their company image, while potential employees will seek out employers who appear to match processes put in
place to attract,
what they seek (i.e. their employer of choice). There is also evidence that shows the better the retain and motivate
organisational fit, the higher the level of employee satisfaction.1 key talent
Employers of choice
The renewed interest in the so-called war for talent has spawned a push by organisations
to be known as employers of choice and in this way attract the best talent possible. Those
recognised as employers of choice invariably possess, and indeed promote, workplace strategies
such as work flexibility, diversity management, and innovative leadership and development
Baby Boomers opportunities. Such views will vary between the attitudes and values held by Baby Boomers and
Those persons born
those of Gen X and Gen Y, as well as people of different cultural backgrounds – all of which have
between 1946 and
1964 to be managed by senior leaders.
Gen X
Those persons born Best employers
between 1965 and
1979 Over the past 10 years a number of national awards (e.g. AHRI awards) have been used to
Gen Y
identify and celebrate employers of choice. One theme that has emerged is that each successful
Those persons born organisation was aware that getting its credentials right would result in higher rates of attraction
between 1980 and
1994
and retention of valued people.
The emergence of such awards reflects both the need to recognise organisations’ outstanding
HR achievements and, in turn, their attractiveness as employers of choice for potential recruits.
These companies, among others, have become the preferred ‘brands’ for prospective applicants.
Company branding
The rush to become an employer of choice has seen a novel approach to employer branding,
which has long been the domain of the marketing profession. The best employers can
potentially attract almost twice as many job applications compared with those organisations
not recognised for their reputation and status, with many of those wanting to work for them
being the best in their field.2
If an organisation’s people are indeed its only sustainable source of competitive advantage,
then it follows that becoming an employer of choice will help to attract and retain the best
people available. This is the role of employer branding – to build a positive image that will
attract the best talent. As a result, more and more organisations are investing in creating their
‘brand image’ to appeal to prospective employees. In order to attract the best, these companies
are promoting a range of benefits, from the salary package offered to the promotion of their
positive psychological and family-friendly cultures. Wellness programs, child care resources,
work–life balance working arrangements and individualised salary packaging are all offered in
order to attract the ‘best’.
Matching people, jobs, organisations and environments

Emerging issue 1 Those who are responsible for making employee attraction and selection decisions should
Talent management have adequate and accurate information upon which to make those decisions. It is essential
best fit that decision makers have information about the jobs to be filled, knowledge of the ratio
A term used to of job openings to the number of applicants, and as much relevant information as possible
describe the best
candidate for the about the applicants themselves. In the past, much has been written about the concept of
position. Also used best fit – in particular the person–job fit. More recently, the focus has broadened to include
when describing
‘best fit’ HRM
not only person–organisation fit but also the fit between the person and the workplace
strategies culture: the person–environment fit. This is becoming increasingly difficult to achieve in a
multigenerational workforce, where the diversity in generational attitudes, values and beliefs expatriate
Someone from
make it harder to satisfy a diverse range of employees as well as potential job candidates. A the parent (home)
recent study of Polish undergraduates and graduates studying hospitality and tourism revealed country who is
working for a
that their potential employers needed to be perceived as attractive to work for in order for period of time
them to apply, emphasising the need for employers to provide sufficient information about (usually more
than a year) in an
their organisation so as to effectively recruit and select the right candidates.3 overseas (host)
The way in which a person fits into the culture of the existing team, department and country
organisation is often more important than the fit to the job. Often, problems with the new
employee are the result of a poor organisational fit rather than problems with undertaking the
job. Where international assignments will form part of the job, the total environment becomes
paramount, as a key competency will be the ability to work across different cultures.This aspect Emerging issue 2
is covered in International perspective 6.1. Expatriates
International perspective 6.1

A global workplace
One of the pervading threads throughout this book is that businesses operate in a global
environment, with technological innovation in the workplace enabling seamless linkage to
virtual teamwork and communication. It is also clear that Australia needs to work more closely
with its Asian counterparts in order to remain competitive globally.
A report by Diversity Council Australia, Leading in the Asian century, points out that Asia
accounts for two thirds of Australia’s export markets.4 It is now commonplace for Australian
businesses to extend into overseas markets, with divisions, joint ventures or strategic alliances.
The reduction of some traditional Australian export markets and the expansion of others (e.g.
Vietnam, the People’s Republic of China), new regional trading groups (e.g. the EU, ASEAN), new home country
tariff agreements (e.g. Asia-Pacific Economic Cooperation – APEC), and an overall focus on East nationals
and South-East Asian countries, have encouraged organisations to develop international business Managers from
the organisation’s
strategies that necessarily require accompanying international recruitment and retention strategies.
headquarters
Multicultural workforces, both at home and abroad, require innovative HRM practices, and sent overseas as
the management of Australian expatriates can demand quite diverse strategies. expatriates
The three possible sources of multinational enterprise (MNE) managers are home country
host country
nationals (or expatriates), host country (or local) nationals or third country nationals. nationals
Home country nationals are managers from the organisation’s headquarters, host country Employees
nationals are employees from the particular overseas country involved, and third country employed from
nationals may be natives of any country other than the home or host country. For example, a within the overseas
country where the
German national who is assigned as the manager of an Australian subsidiary or hotel chain in
company is being
Malaysia is a third country national. established
Using each of the three sources of overseas managers presents advantages and
third country
disadvantages. The following are some of the more important advantages.
nationals
• Home country nationals: talent available within company; greater control; company Employees from
experience; mobility; experience provided to corporate executives. any country other
• Host country nationals: less cost; preference of host country governments; intimate than the home or
host country where
knowledge of environment; language facility.
the company is
• Third country nationals: broad experience; international outlook; multilingualism. being established
Most MNEs use all three sources for staffing their international operations, although
some companies and countries exhibit a distinct bias for one or other of the three sources.
Policy decisions regarding the way in which labour is used and located can be ethnocentric,
polycentric, regiocentric or geocentric.
Ethnocentric approaches are ‘headquarters centred’, with all key jobs being held by home
country personnel. Thus many US and Japanese MNEs may recruit local employees at lower
levels, but key managers come from the United States or Japan. This is also usually the case for
Australian organisations in their first overseas ventures.
Polycentric strategies treat subsidiaries as distinct national entities, employing host country
nationals at senior management level.
Regiocentric policies are also locally based, but within broad regions or geographic areas.
Some American hotel chains, for example, have regional offices for the Asia Pacific region, with
Australian managers based in Australia.
Geocentric approaches generally focus on competencies and ability rather than nationality.
German organisations may employ Hong Kong managers (third country nationals) in
Africa, Europe and Australasia. This option is likely to be the strategic choice of committed
multinational organisations in mature stages of development. Operational decisions regarding
the appropriate source of manager will consider their technical competence, functional area of
expertise, career plans, personal preferences, health status and personality attributes.
The international selection process

The first step in the selection process is to identify the job. If the job involves extensive contacts
with the local community, as with a general manager, this factor should be given appropriate
weight. A second set of factors relates to environmental variables. The differences between the
political, legal, socioeconomic and cultural systems of the host country and those of the home
country should be assessed and rank-ordered.
If a candidate is willing to live and work in a foreign environment, an indication of their
tolerance of cultural differences should be obtained. If local nationals have the technical
competence to carry out the job successfully, they should be carefully considered for the job
before the organisation launches a search (at home) for a candidate.
However, it should not be assumed from the above that most organisations take such a
logical, rational approach to the selection of expatriate managers.
Emphasis must be given to different factors, depending on the extent of contact that the
employee will have with the culture, and the degree to which the foreign environment differs
from the home environment. In essence, the competencies required for a successful overseas
assignment will vary from one cultural setting to another. Several authors have attempted to
develop such a set of competencies, with the following commonly found to be valid:
• cultural sensitivity
• ability to manage ethical and cultural differences
• linguistic ability
• building and maintaining international teams
• adaptability
• resilience
• self-motivation
• managing work and family.5
One writer claims that there is ‘very often no apparent correlation between traditional
methods of selection and actual performance . . . more emphasis must be placed on selection
methods that attempt to assess ability to live harmoniously in a multinational, multicultural
environment’.6 Once an individual is selected, the amount of orientation required will vary. The
nature of the orientation usually provided will be discussed in Chapter 7.
Selection methods
The most common methods of selection used by MNEs are interviews, assessment centres
and tests.
While some MNEs interview only the candidate, some will interview both the candidate and
their partner, suggesting that MNEs are becoming increasingly aware of the significance of the
partner’s adjustment to a foreign environment and its contribution to managerial performance
abroad. Interviews are best conducted by senior executives who have had managerial experience
in foreign countries. Emphasis is placed on the culture and the adaptability demands made on
the candidate and their partner.
Assessment centres typically use individual and group exercises, individual interviews with
managers or psychologists, and some personality and mental ability tests to evaluate candidates.
Exercises that reflect situations characteristic of the potential host culture are usually included.
The use of assessment centres has been shown to have high face validity and to be an effective
tool for selecting from a large pool of international managerial candidates. A variety of
psychometric devices, including personality inventories, are available to determine an individual’s
ability to adapt to a different cultural environment. Such inventories as the Minnesota Multiphasic
Personality Inventory, the Guilford–Zimmerman Temperament Survey and the California Test
(the Indirect Scale for Ethnocentrism) are among those frequently used. As with all such
psychological tests, they should be assessed for their reliability, validity and appropriateness to
the designated overseas assignment, as many will be of limited value for screening purposes due
to low coefficients of reliability and validity. Many such tests also will predominantly be designed
for the North American or Western European market and therefore may be culturally biased.
Managing HR programs for international assignments

Effective management of overseas staff, especially those at management levels, requires a
strategic, integrated and cost-effective series of HR programs before and after selection.
This initial HR strategy must be supplemented by an ongoing support program appropriate
to the various phases of adaptation by new managers to their overseas cultural and geographic
environment. It has been suggested that all overseas managers progress through a series
of developmental phases, including an initial contact phase, disintegration, reintegration,
autonomy and re-entry. HR activities should aim to both prepare the overseas manager for
their likely occurrence, and provide ongoing support systems to reduce negative effects on
performance and motivation.
The family should be helped to make a ‘game plan’ for their new lifestyle. Portable skills
and interests should be assessed and new directions planned. At the same time, training in
cultural adaptation should be made available. It is the rebuilding of the family lifestyle and the
integration into a new community that completes the relocation process.
A significant issue for HR specialists, at both selection and subsequent stages of
expatriation, is the consideration of family attitudes to the overseas assignment. Partners of
the prospective expatriates may be unwilling to relocate overseas due to the potential harm
to their own careers and lifestyles. In an era of ‘dual careers’, a two- or three-year break in
a partner’s career can be disastrous, especially where it is not possible to pursue a similar
occupation in the overseas location. In this situation, the ‘trailing spouse’ syndrome needs to be
comprehensively discussed with the potential expatriates, their partners and children. Support
is difficult to provide in some overseas environments, but should be actively sought
(e.g. assistance with obtaining a similar position for the partner, discussions with the partner
about the implications of the assignment, help to join social clubs in the host country, etc.).
Similarly, children should be included in such pre-departure negotiations.
If Australian industry is to be successful in an increasingly global marketplace, HR managers
in joint ventures or multinational organisations will require highly sophisticated strategies to
ensure the success of their overseas operations. Selection of appropriate managers is only the
first step. Adequate training and development, ongoing career plans, specialised performance
management and remuneration programs are also essential for international effectiveness.
HR processes tend not to vary greatly between domestic and overseas appointments. The
process itself can be said to be universal. The vital distinction is the cultural context. Overseas
managers must be selected not only on technical ability but on a whole range of competencies
around their ability to cope with a new job in a new country surrounded by a new culture.
In considering the issues surrounding the degree of fit between the individual, the
organisation and the total environment, it becomes clear that attention must also be given
to the psychological contract that will exist between the individual and the employing
organisation. As discussed in Chapter 1, the psychological contract is the sum of beliefs,
perceptions and expectations held by both parties. This system of beliefs may vary greatly from
the legal contract signed by both the individual and the organisation. A heightened focus on
both domestic and international competencies required of employees must be translated into
essential requirements or person specifications (see Chapter 5). Perceptions and expectations
that form the psychological contract will be far more difficult to document, if at all. However,
an understanding of the concept of fit will allow HR professionals to create more effective
attraction and selection strategies.
ATTRACTING TALENT FROM WITHIN

While organisations may focus great attention on branding in order to attract external candidates,
this same branding process will also assist in the retention of existing employees. Organisations
and the work they do are fluid and ever-changing, and thus ‘growing your own’ is an essential
Emerging issue 3 strategy in cost-effectively ensuring that employees are available at the right time in the right
Internal talent role. As such, an organisation will often try to follow a policy of filling job vacancies above
attraction
the entry-level position through internal promotions and transfers, allowing it to capitalise
on the costs it has invested in recruiting, selecting and training its current employees. Where
much time and effort have been put into succession and career planning strategies, it will not
make sense to continually recruit from external sources. Rather, promotions and transfers will
be common outcomes of succession and career planning strategies. This is also an essential
component of workforce planning, whereby existing staff can be trained and developed for
emergent or changing roles in the organisation. This reduces the need for making employees
redundant from the roles that are no longer required and also allows for the reshaping of
the organisation utilising the people it already has on board. Promotion serves to reward the
employee receiving the promotion for their past performance and, it is hoped, will result
in continuing efforts by that individual. It also sends a positive signal to others that similar
efforts by them will lead to promotion, thereby possibly helping to improve morale within
the organisation. This is particularly true for members of targeted minority groups who have
encountered difficulties in gaining employment and will often have faced even greater difficulty
in achieving advancement within an organisation. A non-discriminatory promotion policy is
an essential part of the equal employment opportunity (EEO) programs that most Australian
organisations have now adopted.
To have maximum motivation value, however, employees must be made aware of the
organisation’s promotion policy and reward systems. Recruitment from within must be seen
to be an inclusive approach, whereby all employees in the organisation are seen as possessing
strengths that can potentially add value.7 Such awareness can be facilitated through the
preparation and dissemination of written statements covering these policies together with
specific mention in any career workshops or induction and orientation sessions that might be
conducted.
Furthermore, the transferred employee’s familiarity with the organisation and its operations
can eliminate certain orientation and training costs that recruitment from the outside would
entail. Most importantly, management has knowledge of the employee’s performance record.
This knowledge is likely to be a more accurate predictor of the candidate’s success than the
data gained about outside applicants during the selection process. Moreover, transfer between
jobs facilitates current restructuring strategies such as multi-skilling and ‘career pathing’.
In larger organisations, a common problem faced is that of ‘silo mentality’. The separate
business units or divisions can create artificial physical and psychological barriers to people
mobility, thus working against what should be a seamless organisation. Transfers and cross-
business promotions can help to break down these barriers and at the same time send out
a powerful signal that this is one organisation. Such strategies will be even more relevant as
organisations set up operations in other countries.
Limitations of attracting talent from within

Sometimes, specific positions will require specialised competencies and experience that cannot
be obtained within the organisation and must be filled from outside.This situation is especially
common in small organisations. For certain openings, it may be necessary to hire individuals
from the external environment who have gained from another employer the knowledge
and expertise required. It should also be acknowledged that while individuals may perform
extremely well in their roles within the organisation, and have been assessed as high performers,
performance management literature (see Chapter 8) suggests that past performance is unlikely
to predict future success in a different role.
Even though HR policy may encourage vacancies to be filled from within the organisation,
potential external candidates should also be considered to prevent the stagnation of ideas and
attitudes. Applicants hired from the outside, particularly for ‘rare category’ positions, can be a
source of new ideas and may bring with them the latest knowledge. Indeed, excessive reliance
upon internal sources can create the risks of ‘employee cloning’ or ‘inbreeding’. Furthermore,
in the competitive field of high technology, for example, it is not uncommon for firms to
attempt to gain secrets from competitors by poaching their employees.
Where an organisation has engaged in competency profiling (see Chapter 5), it may well
find that those competencies required to meet the organisation’s strategic objectives are not
evident within the organisation. In such cases, external recruitment will be essential. At the
same time, developmental strategies must be put in place to allow internal people to be more
competitive on future occasions where such competencies are sought.
In line with a change in strategic direction, an organisation may attempt to shift its
workforce culture through an emphasis on external talent attraction. In times of dynamic
change, management may well decide that this strategy will bring the fastest results. There may
not be sufficient time to shift existing paradigms in any other way. Above all, the aim should be
to create a diverse workforce but, more importantly, to use the talents of that diversity.
Methods of locating qualified job candidates

The effective use of internal sources requires a system for locating qualified job candidates and
for enabling those who consider themselves qualified to apply for the opening.This is essential
in ensuring equity in access to these vacancies across the organisation. Qualified job candidates
within an organisation can be located by electronic record systems, by vacancy bulletins or by
recall of those who have been laid off. They can also be identified through the use of effective
performance management and development plans (see Chapter 8).
Electronic record systems

With the global reach and structure of many organisations, the establishment of comprehensive
databanks of employees’ employment and training history, skills and competencies is an essential
tool in knowing who the organisation has and how to utilise them effectively. Computerised
human resource information management systems (HRIMS; see Chapter 4) are becoming an
important tool in facilitating this knowledge. Specific HRIMS packages allow an organisation
to screen its entire workforce in a matter of minutes to locate suitable candidates to fill an
internal opening. It is merely a process of entering the selection criteria for the role to be
filled and allowing the system to match those within the organisation who possess these skills
and attributes. Artificial intelligence technologies are already being used by some organisations
for more complex attraction and selection decision-making processes; for example, chatbots
(SAP Resume Matching, Entelo and Jobaline); virtual competitions and game-based selection
techniques (hackathons); and networking events.
These data can also be used to predict the career paths of employees and anticipate when and
where promotion opportunities for them may occur. Since the value of the data is contingent
upon details being current, the HRIMS must include provisions for recording changes in
employee qualifications, career movements and development programs completed as they
occur. The HRIMS should also have the capacity to allow employees themselves to update
these changes and have them subsequently endorsed by their business manager.
The intranet
Information concerning job openings may be communicated through the intranet in the
organisation’s e-newsletter, blog or regular communications pages. The company intranet
system will often include a link to specific internal job posts. Other and more traditional forms
of internal communication include designated posting centres, employee publications, special
announcement handouts and direct mail.
Furthermore, job-posting functions more effectively when it is part of a career development
program in which employees are made aware of the opportunities within the organisation.
Overall satisfaction with the intranet is also dependent upon the adequacy of the education
provided to system users and the visibility of the vacancies.
Performance and development management

As will be discussed in Chapter 8, a well-designed and implemented performance and/or
development management system will identify not only high performers, but also the competencies,
skills and career goals of individuals.These employees can be ‘matched’ to future positions within
the organisation, with a career development plan to assist them. Again, the inclusion of such
information within an HRIMS proves invaluable and time-effective in the succession planning
for these valuable human resources.
ATTRACTING TALENT FROM OUTSIDE

THE ORGANISATION
Unless there is to be a reduction in the workforce, any vacancy occurring within an
Emerging issue 4
organisation must eventually be filled with a replacement from the outside. Therefore, when External talent
the organisation’s chief executive officer (CEO) retires – or is retired – a chain reaction of attraction
promotions may subsequently occur. This creates other managerial, supervisory and staff
openings. The question to be resolved, therefore, is not one of determining whether or not to
bring people into the organisation, but rather one of determining the level at which they are
brought in.
The labour market

labour market The labour market includes the internal and external sources from which applicants are
The interactions
recruited. The labour market will vary with the type of job to be filled, the remuneration
of people making
themselves for the job and, more recently, the state of the global economy. Talent attraction strategies for
available for work executive, specialist or technical jobs requiring a high level of competence may be national and,
and employers’
willingness to hire increasingly, global in scope.
The ease with which employees are able to commute to work will also influence the
boundaries of the labour market.The lack of suitable public transport or extreme congestion on
streets and freeways can limit the distance employees are willing to travel to work, particularly
to jobs of low pay. Climate change issues may also impact on commuting habits as people
decide to leave their cars at home and take public transport. This, in turn, will impact on the
flexibility of the labour market. Population migration from the inner city to the suburbs has
had its effect on labour markets. If suitable employment can be obtained near where they live,
many people are less likely to accept or remain in jobs located in a central business district.
The opposite is often the case in many Asian countries, with mass migration from villages to
large cities where work is more readily available. Management will need to keep these factors
in mind when deciding on the appropriate attraction strategy.
External sources of talent

At any given time, an employer will find it necessary to use several talent attraction sources.
The external sources from which employees are to be recruited will vary with the type of job
to be filled. A web designer, for example, is not likely to be sourced from the same avenues as a
shop assistant. The condition of the labour market may also help to determine how productive
a particular source will be. A tight labour market may force the employer to advertise heavily
or to seek assistance from local recruitment consultancies. The Australian Bureau of Statistics
(ABS) reported an increase in total job vacancies of 4 per cent from November 2017 to
February 2018. Of these, 201 600 were in the private sector (an increase of 4.4%) and 19 100
were in the public sector (a decrease of 0.1%).8 While this is good news for the Australian
economy, it also indicates that the external job vacancy market is buoyant and busy.
HR practitioners also need to be aware of ‘hot’ areas within the labour market where there
is a shortage in the supply of skilled people in a specific occupation. Industries experiencing
shortages of supply are the medical, health care, education and a range of resource sector
occupations, particularly highly qualified and skilled positions such as engineers and geologists,
and a range of trade occupations. However, once the global demand for oil and gas subsides, or
significant resources are found elsewhere in the world, the demand for these types of positions
is likely to diminish. This is highlighted by the recent slump in iron ore prices in China,
resulting in significant job losses in the iron ore mining sector in Western Australia, with the
jobless rate jumping from 5.1 to 5.8 per cent in May 2015.9
Advertisements
One of the most traditional methods for contacting applicants is through advertisements. In the
past, these advertisements were placed in the print media, but now they are more commonly
listed online with a range of e-cruitment (e.g. Seek, Indeed) providers. Advertising has the e-cruitment
Online recruitment
advantage of reaching a large audience of possible applicants. Some degree of selectivity can processes via
be achieved by using newspapers and journals that are directed towards a particular group of the internet
readers. as contrasted
to newspaper
The preparation of advertising copy for advertisements is not only time-consuming, but also advertising
requires creativity when developing design and message content. Well-written advertisements
highlight the major assets of the position, while being responsive to the job and career needs, and
concerns of the desired applicants. The aim of this form of advertising is to make people aware
that a vacancy exists and to persuade them to apply for the position. It is also an opportunity
for the organisation to promote a specific corporate image or brand.
Advertising can place a severe burden on the HR staff within an organisation, especially
in large organisations, as highlighted in HRM in practice 6.2. Even if the specifications for the
openings are described thoroughly in the advertisement, many applicants who know they do
not meet the job requirements may still be attracted. They may apply in the hope that the
employer will not be able to obtain applicants who meet the specifications.
HRM in practice 6.2

Indian Railways gears up for the world’s largest recruitment drive
For the next couple of months, Satyam Gupta, a 21-year-old science graduate, will spend his
evenings in front of his mobile devices researching questions and answers for an entry exam
he hopes to be selected to take. This exam is the first stage in a recruitment drive for the Indian
Railways. Gupta is one of 25 million people who have applied for in excess of 90 000 jobs on offer
with the public sector giant. Public sector work is coveted in India, with entry-level jobs offering
higher wages, benefits and job security than their private sector counterparts.
This is a challenging recruitment process. The first sort of the 25 million applications is
conducted by a computer program to filter out actual candidates from fake ones. The rest are
then sorted manually. Many of those applying to take the entry exam are apparently not serious
contenders, but are merely attracted to the offer of a free train ticket to get to one of the many
exam venues. It’s seen as a free way to travel and see new places, according to Amitabh Khare,
executive director of the Railway Recruitment Board. In fact, it is such a prevalent problem that
the recruitment department invests most of its energy in staying ahead of the cheaters. This
includes posting advertisements advising potential applicants not to fall for advertisements
offering exam entry for a fee or those purporting to have copies of the examination papers.
Satyam Gupta isn’t leaving any aspect of his application to sit the exam to chance. He’s
bought the right books, joined the right Facebook groups and subscribed to the right YouTube
videos to practise exam questions. This isn’t even his dream job. Given his bachelor degree in
science, he would ideally liked to become an income tax inspector, but for now he just wants to
be one of the final 90 000.
Source: Adapted from Poonam, S. and Haider, F. (2018), Indian Railways readies for world’s largest recruitment drive;
25 million applications for 90,000 jobs. Hindustan Times, 22 April, http://www.hindustantimes.com.
While there is increasing use of e-cruitment advertising, the daily print media is still a
well-utilised method of recruitment advertising in Australia, albeit now second to online
mediums. Nationwide and local metropolitan dailies are also used for a more geocentric approach
to recruitment. Whereas newspapers reach a mass market with a ‘shotgun’ approach, trade and
professional journals reach a specific target group. Those reading The Australian Accountant, for
example, will generally be accountants or those employed in related jobs.The major problem with
journals may be the time involved between the placement of the advertisement and its publication.
Recruitment agencies
recruitment Recruitment agencies provide assistance in employing qualified staff. Such agencies may include
agencies
Include government
government-sponsored networks, private consultants and executive search firms.
sponsored
networks, private Private consultants
consultants and
executive search As they charge quite substantial fees, private employment consultants are able to tailor their
firms, each of services to the specific needs of their corporate clients. It is common for some agencies to
which will provide
assistance in specialise in serving a specific occupational area or professional field. Other agencies will cater
employing qualified only for temporary, short-term staff.
staff
Private employment consultancies differ in terms of services offered, professionalism and the
executive search
A process used
calibre of their consultants. Consultants are particularly valuable where organisations do not have
by a private specialist recruitment staff or where the labour market is particularly tight for a given position.
consultancy that
aims at sourcing
Senior managerial and professional roles will often be referred to a consultant as a matter of policy.
talent at the senior Where private agency consultants are paid on commission, a real or apparent conflict
management layer of interest may sometimes arise. It some cases, the consultant’s need to provide professional
of an organisation,
usually by direct services and earn a fee may encourage them to put forward applicants unsuited to the role or
approach rather the client’s needs. Any conflicts in the service relationship must be managed appropriately by
than advertising
both parties.
HRM in practice 6.3 shows some of the potential problems associated with using consultants
in recruitment processes.
HRM in practice 6.3

Outsourced recruitment: bad apples?
Recruitment of employees is one of the most critical HR functions in any organisation. However,
competition for talent means that there are times when external expertise may be considered to
provide that ‘edge’ on a competitor organisation in attracting the best person for the job.
However, are there risks with divesting such an important function to others, and how do we
know if we are getting value for money?
A [2013] Business Review Weekly article suggests that ‘the recruitment industry is
particularly prone to “bad apples” because of the fly-by-night nature of so many of the people
who work there and the short-term focus of monthly targets’.
However, the article cites in-house recruiter, Dan Nuroo, who suggests that while he
would not use agencies for his day-to-day hiring, because that is his job, he sees their value
in recruiting for specialist and ‘different’ roles where talent is hard to come by or where the
company doesn’t possess the expertise of the network to source them.
Employers should also listen to feedback from the candidates to get a better idea of the
quality of service from the recruitment agency or consultant.
Nuroo cited a particular example of being lied to by an agent who promised him he had
candidates for him to see – then found the same agent advertising the job on LinkedIn. He
warned that ‘good recruiters are worth their weight in gold, but bad ones are a nightmare’.
Source: Anon. (2013), How to avoid the recruitment agency horror stories. Business Review Weekly, 4 April.
The use of this work has been licensed by Copyright Agency except as permitted by the Copyright Act,
you must not re-use this work without the permission of the copyright owner or Copyright Agency.
Executive search firms

In contrast to public and private employment agencies, the function of executive search firms
(often called ‘head-hunters’) is not to find positions for job-seekers. Their role is to seek out
candidates with the qualifications that match the requirements of the positions that their
client firm is seeking to fill, and possibly ‘cherry-pick’ the candidate from another employer.
Executive search firms generally do not advertise in the public media for job candidates, nor
do they accept a fee from the individual being placed.
The fees charged by search firms may be about one-third of the annual remuneration
package for the position to be filled. In the United States this fee, or a major percentage
of it, is paid by the client firm whether or not the recruiting efforts result in an individual
being hired. In Australia and the Asia Pacific region, however, few, if any, costs are paid unless
an effective placement is made. In addition, most reputable search firms will guarantee their
selection, although the extent of this guarantee varies among companies. It is claimed that the
majority of positions with packages in excess of $100 000 are filled by search strategies, but this
is supported more by anecdotal evidence than academic research. Since high-calibre executives
are in short supply, a significant number of Australia’s largest corporations use search firms to
obtain such executives.
Educational institutions
Educational institutions are typically a source of young applicants with formal training, but
with relatively little full-time work experience. Secondary schools are usually a source of
employees for trainee professional and managerial jobs. Grocery giant Woolworths and fast-
food company McDonald’s are examples of companies that use school-based recruitment.
TAFE colleges, with their various types of specialised training, can provide candidates for
technical jobs. These institutions can also be a source of applicants for a variety of white-collar
jobs, including those in the sales and retail fields. Management trainee jobs are also staffed from
this source. Some organisations target the part-time evening student, who may be older and
have up to 20 years’ experience.
University graduates are a further source of talent; however, the supply of applicants with
undergraduate and even higher degrees is increasingly exceeding the available job openings.
Particular difficulty is experienced by graduates with degrees in the liberal arts, although some
executives claim to prefer graduates with a broad background. The recruiters who represent
these employers, however, tend to seek out people with specialised training who can make an
immediate contribution in the jobs where they are placed. Some liberal arts majors have also
made themselves more attractive to employers by including business courses in their study
programs or by gaining work experience through part-time or temporary work.
The campus interview (or career days/nights/fairs) is one of the main strategies used to
recruit college and university students. Major employer representatives (e.g. KPMG, PwC,
HSBC, Westpac, ANZ) attend each participating campus over several days, with final-semester
students making appointments with them for interviews. Often, graduate recruitment programs
are also advertised through college and university advertising mediums, with subsequent
interviews being conducted at company headquarters, and short-listed candidates frequently
travelling interstate to attend them.
Employee referrals
Traditional talent attraction sources such as newspapers and the internet have the potential
to attract numerous applications, many of which may be unsuitable yet take great amounts of
time to assess.
employee referrals A more effective method may be to use a process of employee referrals. HR managers have
Applicants are
referred to the
found that the quality of employee-referred applicants is usually quite high, as employees
organisation by are generally hesitant to refer people who will not perform well once employed. Negative
internal employees; factors associated with the use of employee referrals include the possibility of ‘inbreeding’
often a reward
system applies and violation of EEO policies. Since employees and their referrals tend to have similar
when the referral is backgrounds, employers who rely heavily on employee referrals to fill job openings may
successful
intentionally or unintentionally screen out, and thereby discriminate against, target group
members. Stated simply, the status quo is maintained. Furthermore, organisations may choose
not to employ relatives of current employees. The hiring of relatives, referred to as nepotism,
can create charges of favouritism, especially in appointments to desirable positions. One
creative approach encourages all employees to act as de facto recruitment consultants with
effective (i.e. successful) referrals rewarded by monetary payments. State Street and JP Morgan
pay their employees $500 per successful referral on the basis that the new employee satisfies
probationary criteria. Coca-Cola Amatil has a formal program that pays $1000 after the new
employee completes a three-month probation period. HRM in practice 6.4 highlights some
issues with this approach.
HRM in practice 6.4

Employee referral programs need to be supported by employers
Employee referral programs are a great way to fill jobs, but to be successful they must be
managed properly.
John Sullivan, a professor of management at San Francisco State University, suggested that
employee referral programs are actually becoming more effective – not less – due to the growth
in the use of technology, particularly social networking, by employees to promote jobs. To make
them even more effective, employee referral should be made part of everyone’s responsibility.
Sullivan suggests, ‘Routinely, employee referrals produce the highest quality hires’ and the
highest retention rates, ‘so making every employee a 24/7 talent scout is a common approach’.
Offering incentives is common practice in many firms, as is making it part of the company
culture to boost participation. However, employers should not pay the referral reward until after
the new hires make it through the probationary period.
Source: Reproduced with permission. Published Mar. 1, 2014. Copyright 2014 by The Bureau of
National Affairs, Inc. (800-372-1033) http://www.bna.com.
Executive leasing and contracting

In the past, temporary help has been restricted to office duties such as secretarial services.
Over the past decade or so, however, this field has expanded to executive-level employees who
come into an organisation on a short-term basis, often with a specific project in mind. This is
known as executive leasing. Several large consulting firms, including Manpower, Drake, Mercer executive leasing
A senior employee
Cullen Egan Dell and Lee Hecht Harrison, have moved into this field in recent years. While is contracted for a
the concept has advantages insofar as the arrangement can save money and recruiting time, and set period of time
is extremely flexible in terms of what the leased executive is able to do, there may be problems or to undertake
a specific project.
concerning loyalty and commitment to the organisation. Usually contracted
With the dramatic increase in the number of organisations using outsourcing strategies, from a private
consultancy
the use of contractors will add a new dimension to the flexible and mobile workforces that so
many companies are attempting to build. As a case in point, in more recent times a number
of public and private organisations have outsourced their entire HR function to contracting
organisations such as those mentioned above.
Online talent attraction

After a slow start in Australia and other regional countries, online talent attraction (e-cruitment)
has become a significant option. Only a few years ago the ANZ Series was the benchmark
in terms of the number of jobs advertised in daily newspapers, but today measures such as
the Olivier Job Index are given greater attention. This index measures the volume of jobs
advertised on the internet, on sites such as seek.com, CareerOne and MyCareer.
The future of e-cruitment seems assured, with players such as seek.com offering a range
of new tools and services to both recruiters and job-seekers. For HR practitioners, seek.com
offers discrete zones in much the same way that newspapers segment the labour market, with
sections devoted to specific job and occupation groups. A profile section is also available,
where an organisation’s detailed profile can be accessed, which also links to current vacancies
résumé and role statements. For the job-seeker, there is the benefit of having their résumé available
A personal
document prepared
online to corporate recruiters and consultants, as well as the speed of job listing by email on
by a job applicant a daily basis.
that outlines In the past, organisations would usually advise the potential applicant to fill out an
information such
as personal details, application and these would often be held on file for a period of up to 12 months. However,
work history, the internet has enabled this process to be handled electronically, with applications being
educational
qualifications, completed and submitted online. Applicants should note that company websites will often
competencies, state that these applications will only be maintained within the system for a particular period
professional
memberships, of time. The majority of larger potential employers now use this medium as it is quicker,
interests and reduces the need for paper applications to be physically filed and makes access to potential
details of referees
employees easier, particularly when a range of filters are in place on the database. Organisations
using this electronic database process range from government departments to retail giants like
Woolworths, Target and Coles.
Social networking sites

Social networking sites (SNS) cannot be ignored as a potential source of employees, and they
are now one of the most widely used platforms through which jobs are advertised. While
much has been written on the legitimacy of these sites as a source of potential job candidates
Emerging issue 5 (such as LinkedIn), they are worth further discussion. Social media usage growth is staggering;
Social networking with close to 1 billion users in 2010, this figure had grown to 2.62 million in 2018, and is
sites
predicted to top the 3 million mark in 2021.10 Individuals use SNS primarily to broadcast
information about themselves on the internet.This information may also be visible (particularly
on LinkedIn, which allows users to connect to professionals, market their skills and plan career
progression) to organisations. HRM practices and policies have not kept pace with the rapid
growth and use of such SNS for job searches, background checks and employee surveillance,
and care needs to be taken, on behalf of both the employers and potential employee, to ensure
that the legal and ethical implications of the use of such sites is considered.11 A study from the
Aberdeen Group reported that 73 per cent of people aged 18 to 34 found their last job through Gen Z
Those persons born
a social media platform, and that 93 per cent of companies use LinkedIn to connect with and between 1996 and
hire new talent.12 It is not just Gen Y and Gen Z who are using social media and the internet; 2010. Described as
the ‘net generation’
businesses today rely heavily on it for a range of business practices, and it is the best way or ‘digital natives’,
to connect with all staff, across all branches, across all states and all countries, with the click this generation
of a button. were exposed to
the internet and
HRM in practice 6.5 highlights the growing use of SNS for recruitment, and the need for mobile technologies
businesses to be cautious with its use. as young children
HRM in practice 6.5

Recruiters again urged to use social media cautiously
Recruiters have been warned to tread carefully when vetting candidates using social media
because of potential discrimination claims.
Employment lawyers warn that while using social media to vet potential candidates in the
recruitment process is not illegal, it could create unconscious bias. Social media sites contain
significant demographic information about candidates not usually available in traditional
résumés: candidates’ age, gender, family status, political views and even sexual orientation.
If the recruitment process does not include clear selection criteria, then there is the
potential for discrimination claims by unsuccessful candidates.
Material used by permission of Recruiter Magazine, recruiter.co.uk.
An overview of what has been covered so far in this chapter on the potential advantages and
disadvantages of internal and external talent attraction is shown in Table 6.1.
TABLE 6.1 Internal versus external talent attraction strategies
INTERNAL TALENT ATTRACTION STRATEGIES
POTENTIAL ADVANTAGES POTENTIAL DISADVANTAGES
• May aid morale of employees • Danger of inbreeding
• Easier to assess applicant’s ability • Discontent among those not promoted
• Good performance is rewarded • Political infighting for promotion
• A succession for promotion developed • Effective appraisal program required
• Necessary only to hire at base level • Criticism from those outside the organisation
who cannot get in
• Avoids ‘leak plugging’ strategy • Old culture maintained
• Less costs involved in attracting a pool of • Cloning by those doing the selecting
applicants
EXTERNAL TALENT ATTRACTION STRATEGIES
POTENTIAL ADVANTAGES POTENTIAL DISADVANTAGES
• New ideas brought into the organisation • Outsider may not fit in to organisation’s
culture
• No claims of favouritism from inside leading to • Morale of those passed over declines
resentment
• Forces insiders to compete – keep skills and • More training and development required of
education up to date new recruits
• More compatible with concepts of EEO/ • A longer orientation period necessary

affirmative action strategies
• Can be very effective in changing corporate • Can be a very expensive exercise, particularly
culture quickly where interstate or overseas recruits are
involved
• Can provide for a more diverse workforce • Evaluation of past work history more difficult
Outsourcing talent attraction

Over the past few years, there has been a move towards outsourcing the attraction of potential
organisational talent altogether. This allows for the freeing up of internal HR people to get on
with developing corporate strategy and policy, and letting the experts do what they do best.
This trend has continued within both the public and private sectors and shows no signs
of reversal as organisations come to realise that recruitment is not their core business, nor
do they necessarily have the expertise to cope with the demands of a volatile labour market.
The success or otherwise of such ventures will depend most often on the effectiveness of the
strategic partnerships that are put in place.
THE SELECTION PROCESS

In most organisations, selection is a continuous process. Turnover inevitably occurs, leaving
vacancies to be filled by applicants from inside or outside the organisation or by individuals
whose qualifications have been previously assessed. It is common to have a waiting list of
applicants who can be called on when there are permanent or temporary positions vacant.
The number of steps in the selection process and their sequence will vary, not only with the
organisation, but also with the type and level of jobs to be filled. Each step should be evaluated
in terms of its contribution.The steps that typically make up the selection process are shown in
Figure 6.1. Not all applicants go through all of these steps; for example, some may be rejected
after the preliminary interview, others after taking tests. In many cases, organisations will not
use tests, either because of lack of knowledge or because of suspicion about such tests. When a
panel interview is used, several interviews may be reduced to one interview.
FIGURE 6.1 SHRM and strategic selection
Dynamic Applications/
environment Résumés
Preliminary
Vision interviews
HR
Strategic HR Recruitment Selection
plans and Testing
business plan strategy process process
policies
Key Background
stakeholders investigation
Selection
Dynamic interview
environment
Medical
Decisions
medical
Appointment examination
Often given in
the latter stages
As shown in Figure 6.1, several different processes are used to obtain information about of the selection
process to ensure
applicants. However, the main tool used by most organisations includes conducting an
that the applicant
interview, whether it be an informal or formal approach. Also included will be the use of is medically fit
application forms and résumés, medical examinations and specific background investigations. to carry out the
range of duties
Regardless of the procedures used, it is essential that their use conforms to accepted ethical and responsibilities
standards, including privacy and confidentiality, as well as legal requirements. Above all, set out in the job
description
it is essential to obtain information that has proved to be sufficiently reliable, valid and
background
verifiable. In essence, selection is a negative process as its aim is to eliminate all but the investigation
successful applicants. A check by the
employer into the
background of an
Use of person specifications applicant for a
position. Usually
In Chapter 5, the process of analysing and developing specifications for jobs was discussed, in the form of a
check of written or
as was the newer process of competency profiling. Such requirements as skills, knowledge, telephone referees’
attitudes, responsibilities and job conditions provide the basis for determining what types of reports. A method
of verifying the
information should be obtained from the applicant, from previous employers or from other
details provided by
sources.These requirements are usually referred to as selection criteria, but can also include core the applicant
competency requirements of the incumbent to perform the job. These person specifications
also form the basis for the administration of any applicable tests. Complete and unambiguous
job information will help to reduce the influence of racial and gender stereotypes and helps
the interviewer to differentiate between qualified and unqualified applicants.
Ordinarily, the managers and supervisors in an organisation are well acquainted with the
requirements pertaining to skills, physical demands and other factors for jobs in their respective
departments. Interviewers and other members of the HR department who participate in
selection should maintain a close liaison with the various business units in order to become
thoroughly familiar with the jobs and to be very aware of the strategic direction and needs of
that business unit.
Pre-employment screening
It is usually assumed that individuals who are thoroughly screened against carefully developed
position specifications (see Chapter 5) learn their job tasks readily, are productive and generally
adjust to their jobs with a minimum of difficulty. As a result, the individual, the organisation
and society as a whole benefit from a careful selection process. In addition, new recruit turnover
will often be minimised. Currently, there is great concern within the HR profession that the
massive increase in internet talent attraction is placing even more pressure on recruiters to
ensure that claims made in a potential employee’s résumé are accurate.
Obtaining reliable and valid information

reliability
Refers to the
The degree to which interviews, tests and other selection procedures yield comparable data
degree to which over a period of time is known as reliability. For example, unless interviewers are able to use
two or more a test or process multiple times over any given period and guarantee exactly the same results
selection processes
yield a consistent regarding a candidate’s ability, the level of reliability is deemed to be questionable. Likewise, a
result; for example, test that gives widely different scores when administered to an individual a few days apart is
consistency of
results across unreliable. Consistency is the aim.
a battery of When several interviewers are involved separately in the selection process, it is likely that
psychological tests
different results may be obtained. Unless the data upon which selection decisions are made are
validity
Refers to what a
reliable, in terms of both stability and consistency, they cannot be used as predictors of future
selection process job success, which is what the strategic selection process is all about.
claims to measure In addition to having reliable information pertaining to a person’s suitability for a job, it
and how well it
is measured; for is essential that the information be as valid as possible. Validity refers to what a test or other
example, does a selection procedure measures and how well it measures this. In the context of personnel
psychological test
measure what it selection, validity is essentially an indicator of the extent to which data from a procedure
claims to measure (e.g. interview, test) are related to or predictive of job performance or some other relevant
and to what
extent is this trait criterion. Like a new medicine, a selection procedure must be validated before it is used
measured? operationally.
There are two reasons for validating a procedure. First, validity is directly related to
increases in employee productivity, as we will demonstrate later in this chapter. The other
reason is that EEO regulations emphasise the importance of validity in selection procedures.
While we commonly refer to validating a test or interview procedure, validity in the
technical sense refers to the inferences made from the use of a procedure and not the
procedure itself.
Many organisations will use psychological tests on the basis that this seems to be good
practice. Others may have been convinced by consultants that testing is essential for effective
selection. Astute HR professionals will be well aware that any test is only as good as it is reliable
and valid.
SOURCES OF INFORMATION
ABOUT JOB CANDIDATES
Many sources of information are used to provide information about an applicant’s potential
success on the job. In this section, the potential contributions of application forms, résumés,
background investigations and medical examinations are studied. Because interviewing plays
such a major role in selection and testing presents unique challenges, there is expanded
discussion of these sources of information later in the chapter.
Of importance is the view that there is no perfect selection tool. From a strategic perspective,
employers must ascertain the ideal applicant in terms of the organisation’s strategic direction
and then choose a range of devices that will hopefully reduce the number of candidates so a
final decision can be made.
More recently, the realisation that major cultural and attitudinal differences exist between
generations has made the selection process even more interesting and complex. Gen Y has
been presented in the popular press as disloyal and job-hoppers; and Gen Z described as ‘digital
natives’ who use texting as their main form of communication and have built a whole new
digital language, including emojis, around this. Unlike those before them, they are considered
as conservative, craving job security as a result of growing up in tougher times, and looking for
fun, fulfilment and professional development.13
At the other end of the organisation’s food chain are those Baby Boomers who are currently
reaching retirement age, and the first generation to retire having had access to superannuation downshifting
A voluntary scaling
for a large part of their working lives. This has brought forward a different phenomenon: back of one’s
downshifting – a voluntary scaling down of one’s career so as to enjoy a fuller life outside work. career so as to
enjoy a better mix
The need to consider a new range of talent attraction and retention tools, especially when of family/work
seeking candidates from Gen Z, is well expressed in HRM in practice 6.6. priorities
HRM in practice 6.6

So, you want to hire a digital native?
They’re called digital natives; the first generation that will not know a world without the Internet.
Most of them grew up with smartphones attached to their hands and they came of age in a time
of the greatest economic stability since the Great Depression.
So what do they expect in the workplace?
They expect rapid upward mobility, with a large proportion of them wanting to be managing
or supervising employees in a corporation within five years of starting work. They have a clear
vision of where they want to be and when.
They expect to work hard and want exposure to training and development opportunities.
Whilst Gen Z have strong listening skills, their writing ability is lacking due to growing up in
a world of texting shorthand and emojis. They also lack the capacity for rigorous self-evaluation,
maintaining a positive attitude, time management and initiative. In order to overcome these skill
shortfalls, employers will need to establish mentoring relationships for these young workers,
offering them career advice and honing their soft skills.
They expect honesty and integrity from their managers and they thrive on establishing
genuine relationships. They prefer collaborating with small groups to working independently.
Successfully managed, they will be an ambitious and eager group of workers.
Source: McDonald, P. (2016), Tips for hiring, managing and retaining Gen Z workers.
CPA Practice Advisor, 26(2), p. 5, http://www.CPAPracticeAdvisor.com.
It is also important that those involved in the short-listing process focus on the job
requirements and not introduce bias in their decision making. In reality, the workplace is a
global one, representing vast diversity in language, culture and talent. It is important that such
Emerging issue 6 diversity is accepted and that cross-cultural awareness exists. Such issues in managing diversity
Managing diversity
at this stage in the attraction and selection process are highlighted in HRM in practice 6.7.
HRM in practice 6.7

Playing for keeps
Whatever the code and whoever the coach, there are critical HR lessons to be learnt from
Australian sport’s road to heightened inclusion and diversity.
Sport is etched deep into the Australian psyche. We play it, we watch it, argue about it, spend
money on it and socialise because of it. It is also big business, with high emotional stakes, giving
it the power to polarise, as well as unite and influence people. Sport is important ‘social capital’
because it develops connections and respect between different groups.
Sporting codes have made great strides in the past 20 years with anti-vilification policies
and diversity programs, but there can be no denying that an ugly underbelly of racism and
homophobia exists. From a HR point of view, the best athletes are the ones who should be
recruited to play football. However, history tells us that this hasn’t always been the case.
Jason Mifsud, the AFL’s head of diversity, says the glare of the media spotlight on sports
give rise to many ‘teachable moments’. ‘There is more talent in Aboriginal Australians than
opportunity, in business and in sport. Sometimes Indigenous skill sets don’t fit the generic
organisational cultures and structures, but in some respects they bring a different dimension.
The better HR practices are more adaptive of the skill sets and characteristics of their
employees.’
While progress is being made in the acceptance of Aboriginal and Torres Strait Islander
people in sport, the issue for those identifying as lesbian, gay, bisexual, transgender and
intersex is still in its infancy.
Our most celebrated sports perpetuate hyper-masculine stereotypes where brutality
and toughness are revered, injuries are worn as a badge of honour, and award nights glorify
handsome sports stars and their sexy female partners.
This is changing: there is a national framework for anti-homophobia and inclusion policies in
four major football codes as well as Cricket Australia; ‘Play By the Rules’ is a national campaign
promoting safe, fair and inclusive sport; and Netball Australia has made inclusivity a strategic
priority.
Source: Adapted from Parkes, B. (2014), Playing for keeps. HRMonthly, October, pp. 18–22.
Application forms
Most organisations require application forms to be completed because they provide a fairly
quick and systematic means of obtaining a variety of information about the applicant. As with
interviews, the various EEO tribunals and privacy committees have found that many questions
asked on application forms disproportionately reject females and minorities and are often not job-
related. Application forms should, therefore, be developed with great care and revised as necessary.
Because of differences between state and international laws, organisations operating in more than
one state or globally may find it necessary to develop one form that can be used overall.
As mentioned earlier, online application forms are becoming the most common form utilised
by organisations. These forms provide employers with sources of job-relevant data as well as a
useful means of eliminating unsuitable applicants. Most of the computer programs managing
these forms will also automatically discard applications after a particular period of time.
The information on the application form is generally used as a basis for further exploration
of the applicant’s background. It should also be used to provide as much information as possible
that is predictive of job success. While application form data are usually evaluated subjectively,
they can be scored in much the same manner as tests, with certain items weighted in terms of
the most sought-after selection criteria. selection criteria
Those essential and
Even though applicants come armed with elaborate résumés, it is important to recognise that an
desirable criteria
applicant’s résumé will tell the interviewer what the applicant wants them to know, not necessarily that will be sought
what they need to know. Many applicants engage the services of employment consultants to and measured in
applications for
help them design elaborate, attractive résumés that extol their alleged virtues and abilities. These positions
résumés are often little more than tributes to the writing skills of the people preparing them.
There has also been an increase in the number of consulting firms providing services such
as writing and/or editing résumés for applicants. In reality, the consultant is merely rewriting,
usually in glowing terms, what the applicant has already provided. The future of work 6.1 presents
an alternative, and possibly more objective, approach to the analysis of applicants’ résumés.
The future of work 6.1

A résumé tracking bot
Applicant tracking systems (APS) or ‘chatbots’ are set to automate about 75 per cent of the
recruitment process. They can assess over a hundred résumés in a matter of an hour or two
by using artificial intelligence and language processing, answer potential candidate questions
online and keep them up-to-date with their application process.
The benefits of using such a system is that they are relatively cheap, or free, in comparison
with the cost of an HR person spending days reading through applications and résumés. They
can also match applicants to roles without bias, assess all information presented and allow HR
professionals the time to deal with the important work. However, privacy and confidentiality
does become an issue as these bots can also scan a candidate’s social media pages to obtain
additional information. Also, HR professionals and managers need to ensure a human makes
the final decision.
Checking references
Former employers, school principals, university officials and personal referees – and in specific
cases, police records – may be checked for verification of pertinent information, such as length
of time on job, type of job, highest wages earned, academic degrees earned or credit rating.
It is not safe to assume that the information provided by the applicant is all true. The
most common ruse, according to employers, involves an exaggeration of one’s educational
background. HRM in practice 6.8 highlights how important it is to verify information provided
by applicants.
HRM in practice 6.8

Public servant convicted of fraud for lying on résumé
The Australian Taxation Office (ATO) has apparently advised its staff that false claims on their
résumés could lead to prosecution after a tax official was convicted of fraud.
According to The Canberra Times, the ATO has recently advised all employees that one of
their own was found to have lied on their résumé to obtain a job with the office.
It was discovered that the employee’s qualifications and work history were false. When
confronted with the finding, the employee resigned and evidence was forwarded to the
Commonwealth Director of Public Prosecutions.
Even though the employee resigned, this did not protect them from the legal consequences
of such false representations. The employee was convicted of knowingly using a false document
and dishonestly deceiving a public official. Each count incurred a fine of $1000.
The Commissioner for Taxation made it clear that exaggerating the information contained in
a résumé would not simply be tolerated as white lies, but is actually a fraudulent act.
Source: Adapted from Australian Payroll Association (2015), Public servant convicted of fraud for lying on CV. 19 April, http://
www.austpayroll.com.au/announcements/pubilc-servant-convicted-of-fraud-for-lying-on-cv.
Most organisations use both mail and telephone to check references. Generally, telephone
checks are preferable because they save time and provide for greater candour.The most reliable
information usually comes from supervisors, who are ordinarily in the best position to report
on an applicant’s work habits and performance.
The notion of reference checking is based on the assumption that a person’s future
performance is linked closely to past performance. Reference audits therefore are processes that
attempt to gather relevant applicant data (education and employment histories, skills, character
and interpersonal abilities) from people with whom the applicant has previously been closely
associated. Often, sources can include school or university referees along with character
references from local identities. Some employers will also go to the extent of a full security
and credit check. Although this may seem warranted in some cases, care should be taken not
to infringe human rights or privacy legislation. Requirements will vary from state to state, so
those persons performing such checks should be conversant not only with federal legislation,
but also the legislation of each state or territory within which the organisation operates.
Of increasing concern to employers is the issue of potential security issues with new
employees. A number of jobs have access to sensitive and confidential information. They may
also require the employee to work with children, young people or other groups considered
vulnerable or ‘at risk’. It is important that such issues and risks are assessed prior to advertising
and that the requirements for security screening or the provision of criminal checks are
determined.
Applicants will quite naturally provide the names of referees who will be favourable to
themselves. While it has been suggested that supervisors are a reliable source of information
regarding potential employee performance, it is generally useful to approach ‘second generation’
referees with the agreement of the applicant. Such referees are persons who have worked with
the applicant, but are not those who have been nominated by the applicant.
Importantly, referees’ reports should be requested in such a way that they address the
specified selection criteria. Rather than have applicants produce reports, referees can be
approached directly by employers, who will provide as much information as possible about
the position and the person sought, thus making possible a far more specific response from the
referee. Once a reference is given, the law recognises a general duty, owed by the referee, to take
reasonable care to ensure the report is accurate, true and fair.
The timing of reference checking in the selection process is often dependent upon
organisational policy. Reference checking can take place prior to the selection interview or
after, and the purpose of the reference-checking process will determine the stage at which it
takes place. If conducted prior to the interview, it will often be used to verify employment
details and duration of employment. If conducted after, it can be used to question referees
about candidate strengths and weaknesses demonstrated in the interview. In either case, the
purpose is still to verify candidate potential against the specified selection criteria (see HRM in
practice 6.9).
HRM in practice 6.9

Beware the humble reference check
While the vast majority of employers take the provision of references seriously and provide fair
and beneficial documents, a misleading or erroneous reference can be costly. A candidate may
require more training than their reference suggests, or may be entirely unsuited to the position.
On the other hand, a derogatory reference can considerably harm an individual’s job prospects.
If an employer is reluctant to provide a positive reference, they may be tempted to not give
one at all. Sometimes this will be the best option as the employer does not openly criticise the
former employee and the candidate is not exposed to a poor report. Prospective employers,
however, can draw their own conclusions.
Once a reference is given, employers may be liable under defamation law if it is inaccurate
and damaging. An aggrieved worker might seek damages, or seek an injunction preventing the
employer from making further defamatory statements. While a prospective employer has no
protection under defamation law for damage caused to them by a false reference, they may be
able to sue for negligence. Employers might owe a duty of care to anyone who is likely to suffer
damage as a consequence of misstatements in an employment reference. In Britain, an ex-
employee successfully sued a company for negligence following the provision of a damagingly
inaccurate reference.
Employers would be well advised to ensure they are fair, honest and take reasonable care
when providing employment references.
Source: Adapted from Wilson, J. (2017), A false positive. HRM, 35, August, p. 46.
Medical examination
The medical examination is one of the later steps in the selection process because it can
be costly. A medical examination is generally used to ensure that the health of applicants is
adequate for the job requirements. It also provides a baseline against which subsequent medical
examinations may be compared and interpreted. The last objective is particularly important
in determination of work-caused disabilities under workers’ compensation law or in the
placement of disabled persons (see Chapters 3 and 10).
In the past, requirements for such physical characteristics as strength, agility, height and
weight were often determined by someone’s invalidated notion of what should be required.
Many such requirements tend to discriminate against women and some races, and have been
questioned and modified so as to be more realistic in terms of typical job demands.
A growing number of companies in the United States, including 125 of the Fortune
500 companies, are trying to curb the cost of drug abuse in the workplace by requiring urine
tests of job applicants. There are reports that sophisticated tests can detect marijuana up to
30 days after it has been used, and cocaine up to three or four days after use. Drug testing is
not widespread in Australia, but this is changing with growing concern about drug and alcohol
issues, especially in the resources sector, and police, paramedical and defence forces. Heavy
transport, including bus and rail, is also employing random drug testing.
THE EMPLOYMENT INTERVIEW

Traditionally, the employment interview has had a very important role in the selection process employment
interview
and it remains one of the most popular methods used to assess job candidates. At the same Usually, a face-
time, the interview, despite more than 100 years of research and education, is also considered to-face meeting
to be not only an essential process but one that is fraught with potential traps and legal pitfalls. between the
candidate and a
A number of researchers claim that the interview has been more widely researched than any representative
other HR process – the structure, reliability, validity and predictive power of the interview have or a number of
representatives
been analysed and reanalysed by myriad researchers and scholars and the same themes appear of the employing
to be repeated in the outcomes of such studies.14 organisation. Can
also be conducted
Writers have argued that, despite the obvious problems with the interview process, the by tele/video
interview remains popular because of the social skills that may be displayed at the interview, conference or
via the internet.
and acceptability of the interview to managers and to applicants alike. Depending on the type Methods range
of job and the attitude of the organisation, applicants may be interviewed by one person, from structured to
unstructured
by several members of the organisation or by an external consultant. There is also a growth
in the use of group interviews, when a number of job vacancies (of similar work value and
competency requirement) exist, teleconference interviews or computer-based interviews. The
use of technology is particularly useful when interviewing candidates internationally or for
those located in remote or isolated areas.
Interviewing methods
Employment or selection interviews differ according to the methods that are used to obtain
information and to elicit attitudes and feelings from an applicant. The most significant
difference lies in the amount of structure, or control, that is exercised by the interviewer.
In the highly structured (or directive) interview, the interviewer determines the course that Emerging issue 7
the interview will follow as each question is asked. In the less structured (or non-directive) Interviewing
interview, the applicant plays a larger role in determining the way in which the discussion will
go. An examination of the different types of interviews will reveal the differences. An overview
of these is shown in Table 6.2. They are by no means mutually exclusive, and a number of
interview styles can be used in the one interview.
TABLE 6.2 Types of interviews
TYPE OF FOR AGAINST

INTERVIEW
Directive or • Consistent – all applicants treated • Can lack flexibility

structured equally • Some areas ignored which should
• Usually reliable be followed up
• Time-efficient • Interviewer may dominate
• All areas covered • Applicant may be overwhelmed by
• Easy to compare applicants questions
Non-directive or • Easy to explore leads and different • Hard to control interview

non-structured areas • May miss important areas
• Applicant may be more relaxed than • Hard to compare different
when using other methods applicants
• Can be tailored to individual situation
Panel • Impartial – it is a group decision • Cost

• Applicant closely observed • Applicant may feel outnumbered or
• One panel member may notice or intimidated
think of something missed by others • Panel members may talk or argue
• Suited to higher-level appointments among themselves
• Less chance of establishing rapport
Stress • Shows applicant’s behaviour under • Requires very skilled interviewer

conditions causing emotional strain • May alienate and lose a suitable
• Can be suited to some high-pressure applicant
or unpleasant jobs • May affect company’s public
relations image
• Relevant to only a few positions
Group • Easy to compare applicants • Expensive

• Provides representative work • Hard to assess
situation • May not always relate to the job in
• Suited to positions requiring question
managerial, verbal or interpersonal • Not much personal contact
skills
Technology- • Reduced travel/airfare costs • Can only be used if technology

based (Skype/ associated with bringing applicant to available
teleconference) a physical interview • Verbal lag times due to distance
• Improved timeliness as not waiting for • Unsociable interview times to
applicant to arrange times to travel coincide with international time zones
• Allows for interviewers to assess • Stressful for applicant sitting in a
applicant behaviour and interpersonal room by themselves (in the case of
skills a teleconference interview)
Source: Adapted from Compton, R. L., Morrissey, W. and Nankervis, A. R. (2014),
Effective recruitment and selection practices, 6th edn. Sydney: CCH Australia, p. 136.
Non-directive interview
In the non-directive interview, the interviewer carefully refrains from influencing the
applicant’s remarks.The applicant is allowed the maximum amount of freedom in determining
the course of the discussion. This is achieved by the interviewer asking broad, open questions, open questions
Often used to
such as ‘Can you tell me more about your experience on your last job?’, and permitting the commence an
applicant to talk freely with minimum interruption. In general, the non-directive approach is interview. Questions
characterised by such interviewer behaviour as listening carefully and not arguing, interrupting ask ‘what’, ‘why’,
‘how’, ‘when’
or changing the subject abruptly. It also involves using questions sparingly, phrasing responses
briefly and allowing pauses in the conversation. This latter technique is the most difficult
for the beginning interviewer to master. The greater freedom afforded the applicant in the
non-directive interview is particularly valuable in bringing to the interviewer’s attention any
information, attitudes or feelings that may often be concealed by more rapid questioning. This
method is more likely to be used in interviewing candidates for high-level positions, as well as
in counselling and grievance situations.
Directive interview
The most highly structured type of interview is the directive interview, which adheres closely
to a detailed set of questions on specially prepared forms.The training required for the directive
interview, as well as the fact that the procedure is standardised, has probably contributed to its
moderate to highly valid results.
Note that the interview form is based on competencies decided on through an earlier
competency profiling exercise (see Chapter 5). By developing such competencies initially,
other HR functions such as training, appraisal and compensation are facilitated.
Increasing use of highly structured interviews

More attention is being given to the highly structured type of interview due to its high level
of reliability and validity. For example, a structured interviewing process:
1 is based exclusively on job duties and competencies that are critical to job performance;
that is, valid selection criteria
2 makes use of a range of question types
3 has sample answers to each question determined in advance. Interviewee responses are
rated on a scale defined explicitly in advance
4 will often use an interview committee or panel so that interviewee responses are evaluated
by multiple raters
5 is consistently applied to each applicant. All processes are consistently followed to ensure
that each applicant has exactly the same chance as every other applicant
6 is documented fully for future reference and also where there is a need to defend the
selection decision.
The use of a highly structured interview is more likely to provide the type of information
that is needed for making sound decisions. It also helps to reduce the possibility of legal charges
of unfair discrimination. One must be aware that the interview is highly vulnerable to legal
attack and that more litigation in this area can be expected. There is research evidence to
support the argument that structured interviews are far more predictive of future job success
than are unstructured approaches.15
Behavioural interviewing
The behaviourally based interview (sometimes referred to as the situational interview or
competency-based interview) is based on a thorough position analysis or competency profile.
With a set of core competencies or selection criteria determined beforehand, the interviewer
uses a critical incident approach to ask each candidate to relate, from their total lifetime
experiences, situations that they have managed in the past that indicate the extent to which a
behavioural specific competency has been attained.16 These scenarios or questions are known as behavioural
questions
questions. Consider for the moment that ‘managing change’ is a key competency for the
Sometimes referred
to as situation position. The interview questions will be something like the following: ‘A key competency for
questions, as they this position is the effective management of change. Can you relate to me from your personal
seek information
from the candidate experience a time when you have had to demonstrate this specific competency? What were
about what they the circumstances? What was the result?’
would do in a
specific situation. In this way, interviewers begin to obtain a picture of past success, or otherwise, rather than
Each question is a series of claims as to what the candidate might do at some time in the future. The results
normally based
on at least one can be verified through specific background checks. The behavioural approach seems to rest
competency for the very much on the assumption that future performance can be predicted by analysing past
position
performance.
interview
However, as highlighted in Table 6.3, this type of interview can be complex to structure and
questions
A range of there are a number of considerations involved.
questions put to
the candidates for
a position. May TABLE 6.3 Protocol and directions and considerations for the interviewer
range from open to
closed depending BEHAVIOURAL INTERVIEWING PROTOCOL DIRECTIONS AND CONSIDERATIONS
on the rationale
for a particular Step 1 – Eliciting a success story Sit face to face, preferably without a barrier between you,
question and/ and without any papers, pens or pencils in your hands,
or the skill of the Address your interviewee with the so that you will be able to concentrate entirely on the
interviewer/s following statement: interview process.
‘I am sure that you have had both negative

and positive experiences at work. Today,
I would like to focus only on the positive
aspects of your experiences.’
BEHAVIOURAL INTERVIEWING PROTOCOL DIRECTIONS AND CONSIDERATIONS
Ask your interviewee the following The story elicited at this point is the basis of the
questions. intervention. Therefore, it is important to make sure you
hear a specific story (i.e. specific details such as time,
1 ‘Could you please tell me a story about space and action), rather than a summary of an event or a
an experience at work during which generalisation (i.e. ‘I usually enjoy…’).
you felt at your best, full of life and
in flow, and you were content even Active listening: Reflect the story back to the interviewee
before the results of your actions by summarising the story in your own words. Then ask:
became known?’ ‘Did I miss anything in the story?’ and ‘Do you want to
add anything else?’ (If there are corrections or additions
reflect them as well.)
2 ‘Would you be happy to experience a If the interviewee answers YES, continue to the next
similar process again?’ question, as the story most likely holds information that
is worthwhile inquiring into and learning from. However,
if the interviewee answers NO, ask for another story that
the interviewee would be happy to experience once again.
3 ‘What was the peak moment of this Make sure you hear the details of a single peak or two at
story? What did you think at that most. The question about thoughts is designed to help
moment?’ some interviewees relate to the next questions.
4 ‘How did you feel at that moment If the interviewee describes positive emotions, reflect the
(including your emotional and emotions back and proceed.
physiological reaction)?’
However, if the interviewee describes negative emotions,
or mixed feelings, ask for another story, and start over
with Question 1.
When people are asked to describe how they felt in a
certain situation, they sometimes report a thought they
had rather than an emotion. If this is the case with your
interviewee, simply acknowledge their thought and
ask again about the emotions they experienced. Some
interviewees describe the emotions in general terms
(e.g. ‘I felt good’); if so, ask for the details of the feeling
including how the interviewee felt these emotions
in the body.
Active listening: Reflect the emotions back to the
interviewee.
Step 2 – Discovering your personal To elicit the underlying conditions that facilitated the
success code interviewee’s best performance – his or her personal
code of success – it is important to reveal as many
Ask your interviewee the following diverse conditions as possible.
questions.
1 ‘What were the conditions in you, such

as things you did, your capabilities and
your strengths that made this story
possible?’
BEHAVIOURAL INTERVIEWING PROTOCOL DIRECTIONS AND CONSIDERATIONS
2 ‘What did others do that enabled this Therefore, make sure the interviewee recognises and
story?’ describes facilitating conditions in themselves, in others
and in the organisation.
3 ‘What were the conditions facilitated Active listening: Reflect the conditions back to the
by the organisation (even physical or interviewee. For a full and rich description of facilitating
temporal) that enabled this story?’ conditions, encourage your interviewee to reveal more
conditions by asking ‘… and what else?’ until you have
confirmed that all the conditions in the mind of the
interviewee are accounted for.
Step 3 – Follow-up questions on Depending on the situation, the answer to this question
responses to determine organisational/ may either be elaborated on and discussed in detail or left
position fit as a question for the interviewee to ponder privately.
State the following to your interviewee:
‘The conditions you have just described
seem to be your personal code for
reaching [insert the key achievement in
the story, e.g. happiness at work, optimal
performance or outstanding leadership].’
Add the question:
‘If this is so, think of your current actions,
priorities and plans for the near future (e.g.
next quarter), and consider to what extent
they incorporate all of these conditions.’
Speed interviews
Speed interviewing techniques are becoming commonplace at university career fairs but are
also being increasingly used by some of the more cutting-edge workplaces globally. Speed
interviews are, as indicated by their title, a quick way to gauge a workplace fit with a large
number of candidates.
The process usually lasts between five and 15 minutes, making it achievable to interview
as many as 100 individual job candidates in a day. It can be conducted by one interviewer, but
more commonly a number of interviewers are involved enabling the exploration of a range of
criteria for the job. The candidates move from one desk to another, with questions being fired
at them within the short timeframe.
The types of questions asked are open and exploratory, with examples including:
1 How has your job hunting being going up until now?
2 How would you describe your behaviour in the workplace?
3 What type of organisational culture are you looking for?
4 What are the main aspects of a job that would give you the greatest satisfaction?
5 What do you least like in a job?
6 Describe your working relationship with your current boss?

7 Have you met the other candidates here today? Who do you think is the strongest one
here, and why?
These questions will often be split between the team of interviewers. The interviewing
team will then meet up several times throughout the day to compare notes on the strongest
candidates.These will be shortlisted and invited for a further, more traditional, structured, face-
to-face interview.
This type of interviewing technique tends to favour extroverted candidates who take little
time to settle and are able to answer questions quickly. The key to preparing for this type of
interview is to practice.
Technology-based interviews
The use of Skype, Zoom or video conferencing to interview candidates living and/or working
remotely or overseas is becoming commonplace. It is cost- and time-effective, with candidates
not having to take time away from their current work and home commitments to travel to
an interview, and organisations not having to bear the cost of travel and accommodation to
interview the candidate.
However, ensuring there are no interruptions and the interview is conducted in an
appropriate setting are important considerations for the candidate, along with allowing for the
inevitable time lag that may occur between when the questions are asked and the interviewee
answers. Recruiters also need to ensure the technology used, the bandwidth and connections
are all operational prior to the interview time.
Another development in the use of technology to conduct interviews is the video recording
of interviews. This format allows the candidates to record their answers to predetermined
questions for viewing by the recruiter at another date.This provides a less stressful platform for
the candidate, enabling them to display their attributes and traits more effectively. It also allows
the recruiters to review both the verbal and non-verbal language displayed by the candidate
more comprehensively. HRM in practice 6.10 demonstrates the way in which the global firm
PwC utilises this type of interview technique.
HRM in practice 6.10

Preparing for the virtual interview
In February 2017, PricewaterhouseCoopers (PwC) started using video interviewing for their
recruiting strategy in Latvia in a unique way: they used the platform to allow job candidates to
record questions and answers.
Powered by HireVue, PwC decided to use recorded videos as an interviewing technique, not only
to cast a wider net for applicants and to speed up their decision making process, but also to form a
better idea of each applicant’s personality, potential and compatibility with the corporate culture.
Applicants invited for virtual interview were sent a link to the platform where they were
asked to record their answers to PwC’s questions using a smartphone, tablet or laptop.
The device needed to have camera and recording capabilities – built into any mobile device
these days. PwC’s recruitment team then viewed the recording and logged it into their
system. This way, applicants were not restricted to a particular time or place to conduct the
interview.
Source: PwC (2017), PwC job interviews at a place and time suitable for the applicant. 27 February, http://www.pwc.com/lv/
en/news/PwC-job-interviews-at-a-place-and-time-suitable-for-the-applicant.html.
What is wrong with the interview?

Considerable caution should be exercised in the selection of employment interviewers.
Qualities that are desirable are: humility; an ability to think objectively; freedom from over-
talkativeness, extreme opinions and biases; maturity and poise. Most important is the ability and
Emerging issue 7 willingness to listen to what is being said and how it is being said. Experience in associating
Interviewing with people from a variety of backgrounds is also desirable.
A training program should be provided on a continuing basis for employment interviewers
and, at least periodically, for managers and supervisors in other departments. This is essential
when assessing candidates against ‘soft’ or employability skills, which are more complex
to assess and there is a need for appropriate and comprehensive interview questions to be
developed.
Essentially, the interview is an artificial situation with the players acting out the role
expected of them. Applicants for engineering jobs are rarely asked to engineer, counsellors are
not asked to provide therapy and accountants are not asked to account. They just talk about
it. Furthermore, those who do best at interviews may just be those who have had the most
practice at interviews!
The other problem with the employment interview is that it involves human beings, who
are subject to bias and subjectivity. There has been some research into the use of ‘intuition’ in
the interview scenario, which while it may be justified by being based on years of experience
and knowledge, is merely a ‘gut’ feeling lacking in objectivity and validity. Managers who used
intuition in an interview situation further justified its use when assessing applicant potential in
unique areas, particularly when ‘hard’ data was lacking.17
One has to ask why the interview remains popular, despite such findings. The most likely
reason is that it is due to a belief among employers that the interview is the best way to assess
the fit between the individual and the organisation.
Further and more recent research can be found at the end of this chapter.
Professional tip 6.2

Is there any hope for the interview?
A few ground rules for employment interviews that are commonly accepted and supported by
research findings follow. Their apparent simplicity should not lead us to underestimate their
importance.
• Establish the objectives and scope of each interview.
• Examine the purposes of the interview, and determine the areas and specific questions to be
covered.
• Review job requirements, application form data, test scores and other available information
before seeing the applicant.
• Establish and maintain rapport. This is accomplished by greeting the applicant pleasantly, by
displaying sincere interest in the applicant and by listening carefully.
• Be an active listener. Strive to understand, comprehend and gain insight into what is only
suggested or implied. A good listener’s mind is alert, and one’s face and posture usually
reflect this fact.
• Pay attention to body language. An applicant’s facial expressions, gestures, body position
and movements often provide clues to that person’s attitudes and feelings. Interviewers
should be aware of what they are communicating non-verbally. Research has shown that up
to 90 per cent of meaning is reflected through one’s body language.
• Provide information as freely and honestly as possible. Answer fully, frankly and honestly the
applicant’s questions.
• Use questions effectively. In order to elicit a truthful answer, questions should be phrased as
objectively as possible with no indication of a desired response.
• Separate facts from inferences. During the interview, record factual information. Later,
record your inferences or interpretations of the facts. Compare your inferences with those of
other interviewers.
• Recognise biases and stereotypes. One typical bias is for interviewers to consider strangers
who have interests, experiences and backgrounds similar to their own to be more
acceptable. Stereotyping involves forming generalised opinions of how people of a given
gender or race appear, think, feel and act. The influence of sex role stereotyping is central to
sex discrimination in employment.
• Avoid the influence of ‘beautyism’. Discrimination against unattractive persons is a
persistent and pervasive form of employment discrimination.
• Avoid the halo error; that is, judging an individual favourably or unfavourably on the basis of
one strong point (or weak point) on which you place high value.
• Control the course of the interview. Provide the applicant with ample opportunity to talk, but
maintain control of the situation so that the interview objectives may be reached.
• Standardise the types of questions asked. Avoid discrimination by asking the same questions
of applicants for a particular job. Additional probing questions may be used to draw out more
information or to deal with an evasive interviewee.
• Keep careful notes. Record facts, impressions and any relevant information, including what
was told to the applicant.
Questioning
Choosing the types of questions to ask during an interview can be difficult. Some examples of
types of interview questions are provided in Table 6.4.
TABLE 6.4 Types of interview questions
TYPE OF PURPOSE
QUESTION
Open Useful in commencing the interview. These allow the applicant to do most of
the talking. Aim at an 80:20 time ratio. Begin question with why, how, where,
when, etc.
Closed These are direct questions that usually result in a yes/no response. They are not
a suitable choice when you want the applicant to talk. Can be used as part of a
‘funnel’ approach. Begin with open questions, then narrow down the applicant’s
closed questions response with closed questions. Can assist in keeping the interview under control.
Require only a Also useful if you feel the interviewee is being deceptive.
‘yes’ or ‘no’ answer.
Should be used Probing A question or series of follow-up questions that aim to elicit further response.
sparingly to bring Can be most valuable where the applicant does not answer fully.
an issue to closure
Hypothetical A hypothetical situation might be presented to the applicant, followed by
questions as to how he or she would respond to such a situation.
Fantasy Of limited use, due to the impossibility of verifying answers: ‘What would you do
if you won Lotto next week?’
Behavioural Based on the assumption that future performance will reflect past performance,
questions can be asked that require the applicant to demonstrate, with actual
examples, his or her knowledge or skills in a specific situation: ‘Tell me of an
incident in your present or past job where . . .’
Leading These lead the applicant to the desired answer and as such are not
recommended: ‘You do not discriminate against women, do you?’
Loaded These are generally not allowed in the courtroom and have no place in the
interview room. These questions trap the applicant: ‘Have you stopped
malingering yet?’
Appropriate questioning
The entire subject of employment questioning is complex. There are differing and sometimes
contradictory interpretations by EEO tribunals and state privacy committees about what is
lawful and unlawful.There are no questions that are expressly prohibited. However, the tribunals
look with disfavour on direct or indirect questions related to race, colour, religion, sex, national
origin or sexual preference (see Chapter 2). Some of the questions that interviewers once felt
free to ask can be potentially hazardous in modern times. As a general rule, it is not unlawful
to ask certain questions, but the action that follows may well be unlawful.
Several Australian states have fair or EEO practice laws that are more restrictive than federal
legislation. In general, if a question is job-relevant, is asked of everyone and does not discriminate
against a certain class of applicants, it is likely to be acceptable. Particular care has to be given to
questions asked of applicants about their family responsibilities. It is inappropriate, for example,
to ask ‘Who will take care of your children while you are at work?’,‘Are you single or married?’
or ‘Are you considering children at this stage?’ It is inappropriate to ask applicants, of either
gender, questions about personal matters that have no relevance to job performance. Such
questions are no longer gender-specific, as many men as well as women now take on home
and child care responsibilities. Not only may employers be breaking the law by asking these
questions, but their attitudes towards the answers may mean they miss out on hiring the best
applicant. If these situations arise, it is important to review interviewing techniques.
Employers have found it advisable to provide those people conducting interviews with
instructions on how to avoid potentially discriminating questions in their interviews. Complete
guidelines may be developed from current information available from state anti-discrimination
boards or the Australian Human Rights Commission. Once the individual has been hired, the
information needed but not asked for in the interview may be obtained if there is a valid need
for it and if it does not lead to discrimination. As an example, asking a person if they have a
partner will be acceptable after appointment so that superannuation details can be recorded.
One could speculate that this result is in response to widespread criticism of the unstructured
interview method as a valid selection process, together with pressure from the EEO movement
to remove discriminatory practices from employee selection. Even now, after some 30 years
of anti-discrimination legislation and education, stories such as that in HRM in practice 6.11
continue to be reported.
HRM in practice 6.11

Lorna Jane receptionist job requires physical measurements
In July 2015, Lorna Jane, a popular women’s active wear brand in Australia, advertised for a
receptionist position with duties split between reception work and assisting the design team
with fitting of new garments.
Applicants were encouraged to join the ‘Lorna Jane Sisterhood’ and were required to possess
previous reception experience, strong communication and administrative skills. So far so good.
However, the advertisement went on to state that, ‘Applicants must fit the measurements
listed in order to accurately provide feedback on Lorna Jane products in a size small.’ Applicants
were also required to be 165 cm or more in height.
After the advertisement went live on seek.com.au, it received unfavourable media coverage,
including national news headlines. The advertisement was then removed from the site.
In many states of Australia, it is unlawful to discriminate against someone on the basis of
their physical appearance. It could also be argued that the body measurements required could
only be met by a woman.
Source: Sullivan, R. (2015), Lorna Jane receptionist and model job ad includes physical measurements.
news.com.au, 8 July.
EMPLOYMENT TESTS
employment Employment testing can be traced to the late nineteenth century, when early management
testing
A test that
pioneer Frederick Taylor advocated the scientific selection of workers using observation and
attempts to time and motion studies to test workers and work methods.
measure a person’s However, the key issue in testing is determining the test’s validity and reliability. Tests must
ability against
predetermined be able to predict to a reasonably high level of future job success. If this is not the case, the test
selection criteria. is worthless.
Examples are:
personality tests, Another of the HR practitioner’s great challenges is successfully navigating the myriad tests
intelligence tests, now available on the market while at the same time lacking the expertise and background in
achievement tests
and aptitude tests. psychology to make a valid evaluation of the various tests employed by consultants and test
Reliability and vendors. The availability of a range of psychological, psychometric and job simulation tests
validity of such
tests are a concern
online further complicates decision making regarding the selection of a valid tool. Irrespective
of the source of the tool being used in a selection decision, the HR staff themselves should
have a basic understanding of the technical aspects of testing and the contributions that tests
can make to the HR program.
artificial With the growth in the development of artificial intelligence, the gamification of employment
intelligence
The intelligence
testing, via the use of virtual job testing and simulations, is on the rise. While many of these
displayed by tools are quite expensive for smaller companies to justify using, larger firms like Unilever are
machines, robots embracing such technological advances in the field of recruitment and selection (see The
or technology. They
mimic functions future of work 6.2 on page 242).
ordinarily displayed HR professionals must be able to define exactly what selection criteria the tests they are
by humans, such as
asking questions, utilising are assessing. Using tests because they are popular is fraught with problems and makes
analysing or the selection decision more difficult, rather than easier. It may also impact the job candidate’s
problem solving
impression of the organisation, thus negatively impacting the company brand.
The nature of employment tests

An employment test is an objective and standardised measure of a sample of behaviour that
is used to measure a person’s abilities, aptitudes, interests or personality in relation to other
individuals. The basic assumption behind such testing is that differences between individuals
can be measured and related to future job success. The proper sampling of behaviour, whether
it be verbal, manipulative or some other type of behaviour, is the responsibility of the test author.
It is also the responsibility of the test author to develop tests that meet accepted standards of
reliability.
Other considerations are cost, time, ease of administration and scoring, and the apparent
relevance of the test to the individuals being tested, commonly referred to as face validity.
Adopting a test just because it appears reasonable is likely to prove invalid, with poor correlation
between test results and future performance.
Types of employment tests

Employment tests may be classified in different ways. Most of them are group tests, in contrast to
individual tests, which usually require one examiner for each person being tested. Another type
of test relates to the manner in which the individual responds to the test items. For example,
paper and pencil tests require the examinee to respond by writing or marking answers on a
booklet or answer sheets. On the other hand, performance tests or instrumental tests require the
examinee to manipulate objects or equipment. Paper and pencil tests are the most commonly
used, as they can be administered easily to groups as well as to individuals, with minimal cost.
Commercially available tests

psychological tests
In addition to the classifications mentioned above, there is a more fundamental breakdown Attempt to
of tests according to the characteristics that are measured. The types of tests accessible from objectively assess
human behaviour
commercial sources are openly available, showing what they are designed to measure and the and emotions.
types of jobs for which they may be used. The publishers of tests in these various categories While historically
these were in the
provide descriptions in their catalogues that are useful when selecting tests. form of paper
HR managers may obtain sample sets of many paper and pencil tests for examination before questionnaires,
such tests are now
adopting the test. These sets include a test manual, a copy of the test, an answer sheet and a predominantly
scoring key. A test manual provides the essential information about the construction of the conducted
via computer
test, its recommended use, and instructions for administering, scoring and interpreting the test. technology
Other tests are available only to registered psychologists; these tests are primarily those that
psychometric tests
purport to measure personality and intelligence. Types of
psychological
Psychological tests tests, but focus
on measuring
Psychological testing grew in popularity when it was used as a selection tool in recruiting particular human
soldiers during World War II. Since that time, it has continued to be refined and used as a tool attributes; for
example, skills
in the selection and placement of staff. While psychological tests broadly measure personality and/or knowledge,
traits and behaviours of individuals, psychometric tests identify both personality traits and traits or abilities
cognitive abilities to measure organisational and job suitability.18

Initially, due to the cost of such test processes, they were used primarily in recruiting for
professional and executive positions. However, the growth in online testing platforms has made
them a more time- and cost-effective option, with many organisations now utilising some form
of psychological testing in their recruitment and selection process. This is because the research Emerging issue 8
indicates that specific personality traits can predict job success. For example, conscientiousness Psychological
testing
is an indicator that the job candidate will be hard working and achievement oriented, while
the level of neuroticism displayed will determine the candidate’s ability to cope with stress.19
Job knowledge tests

Some organisations develop job knowledge tests, which are a type of achievement test designed
to measure a person’s level of understanding about a particular job.They are used to determine
whether an applicant possesses the knowledge and understanding that permits placement on
the job without further training. Some hospitals have developed such tests for nursing staff. A
number of paramedical agencies have done likewise. People appointed to such positions must
be able to respond accurately to test questions as they will find themselves in sudden, life-and-
death work situations.
Job sample tests

Job sample tests, or work sample tests, require the examinee to perform tasks that are actually
a part of the work to be performed on the job. They also have been devised for many diverse
jobs: a map-reading test for traffic control officers; a coffee making test for baristas; a complex
coordination test for pilots; an in-basket test for managers; a group discussion test for supervisors;
or a judgement and decision-making test for administrators.
Individual managers will have to make up their own minds about the potential advantages
or disadvantages of using tests. Managers must realise that the psychological test is but one of
the tools available in the selection process and should be treated as such. The objective is to
obtain the right fit between the organisation and the individual. If psychological testing can
be shown to assist in this process then it has a valid place alongside tools such as interviewing
and background checking.
The growth in the use of technology in the development of job sample tests is evidenced
by the number of journal and newspaper articles discussing such use, as shown in The future
of work 6.2.
The future of work 6.2

Unilever
Unilever, the global consumer goods giant, uses artificial intelligence to hire entry-level
employees and uses neuroscience-based games to measure candidate traits.
Instead of running career fairs at universities, collecting résumés and conducting phone
interviews, Unilever uses artificial intelligence to screen all candidates. Jobs are advertised
using social media (Facebook or LinkedIn) and potential candidates submit their profile – not a
résumé. They are then required to spend about 20 minutes playing a number of neuroscience-
based games and answering preset questions, where responses are recorded. The technology
analyses key words, speech and body language and makes notes on them for the hiring
manager. Only then will preferred candidates be invited to participate in a ‘day-in-the-life’
scenario at Unilever.
This revolution in its recruitment and selection practices took effect in 68 countries, was
conducted in 15 languages and involved a total of 250 000 applicants.
The benefits were clear:
• Applicants for jobs doubled.
• Unilever employed the most diverse group of candidates to date.
• Average time for hire went from four months to four weeks.
• Recruiter time spent on applications decreased by 75 per cent.

• Rate of final offers increased from 63 to 80 per cent.
• Acceptance rate increased from 64 to 82 per cent.
Source: Adapted from Feloni, R. (2017), Consumer goods giant Unilever has been hiring employees using brain games and
artificial intelligence – and it’s a huge success. Business Insider Australia, 29 June, http://www.businessinsider.com.au.
A word of caution: An employment test should never be used as a selection decision-making

tool in isolation from other selection tools discussed in this chapter; that is the application and
résumé, background checks and interviews. It is important that the important information
from all the tools utilised is assessed as a whole, matching against the selection criteria, prior to
making the decision on the successful applicant.
REACHING A SELECTION DECISION

While each step in the selection process is important, the most critical one is the decision to
accept or reject applicants. Because of the cost of placing new employees on the payroll, the short
probationary period in many organisations, and EEO and affirmative action considerations,
the final decision must be as valid as possible. This requires systematic consideration of all the
relevant information about applicants. It is common to use summary forms and checklists to
ensure that all the pertinent information has been included in the evaluation of applicants. A
rating form based on valid selection criteria will assist the decision-making process.
Many employers have introduced a step in the selection process for determining more
carefully how well the applicant understands what the job entails. A realistic job preview,
covering in detail the nature of the work, working conditions, and the desirable and undesirable
aspects of the job, may be included prior to final selection by the supervisor. However, such
previews of the role, including current and future challenges, should also be addressed in the
position advertisement and during the interview process. In selecting candidates for an overseas
assignment, a realistic job preview may actually involve the prospective employee, and where
appropriate their partner, being taken on a trip to the country concerned. The ability of an
employee and their family to adapt to a new culture is critical to an expatriate’s success.
Summary of information about applicants

Fundamentally, an employer is interested in what an applicant can and will do. An evaluation
of candidates on the basis of assembled information should focus on the two factors shown
in Figure 6.2. The ‘can do’ factors include knowledge and skills, as well as the aptitude (the
potential) for acquiring new knowledge and skills. The ‘will do’ factors include motivation,
interests and other personality characteristics. Both factors are essential to successful performance
on the job. The individual who has the ability (‘can do’), but is not motivated to use it (‘will
not do’), is little better than the employee who lacks the necessary ability.
FIGURE 6.2 Employers should consider ‘can do’ and ‘will do’ factors in selecting personnel
'CAN DO' FACTORS 'WILL DO' FACTORS
× =
Knowledge Motivation
JOB PERFORMANCE
Skills Interests
Aptitudes Personality characteristics
Decision strategy
The strategy used for making personnel decisions for one category of job may differ from that
used for another category. For example, the strategy for selecting managerial and executive
personnel will differ from that used in selecting clerical and technical personnel.
While many factors have to be considered in selection decisions, the following are some of
the questions that HR and business unit staff must consider.
1 How close is the job fit; the organisation fit; the environmental fit?
2 Should the individuals be hired according to their highest potential or according to the
needs of the organisation?
3 At what grade or wage level should the individual be started?
4 Should initial selection be concerned primarily with an ideal match of the employee to
the job, or should potential for advancement in the organisation be considered?
5 To what extent should those who are not qualified but are ‘qualifiable’ be considered?
6 Should overqualified individuals be considered?
The answer to these and other questions will depend largely on the organisation’s current
strategies.
Those making the selection decision will then review all the data on applicants. Then, on
the basis of their understanding of the job and the individuals who have been successful in
that job, they make a decision. Different individuals often arrive at different decisions about
an applicant as each interviewer assigns different weighting to the applicant’s strengths and
weaknesses. Furthermore, personal biases and stereotypes are frequently covered up by what
appear to be rational bases for acceptance or rejection – hence, the need for clear, job-related
selection criteria that can be assessed using one or more of the processes discussed earlier.
The final decision

In many organisations, after a preliminary interview has been performed by the HR
administrators or recruitment coordinators, those applicants who appear most promising are
then referred to the business units where they are interviewed by the business unit managers,
often alongside the HR manager or recruitment coordinator. Because of the weight that is
usually given to their choices, business managers should be trained so that their role in the
selection process does not negate what should be the more informed efforts of the HR people.
Figure 6.3 shows how correct or erroneous selections can be made.
FIGURE 6.3 Correct and erroneous selection decisions
High
4 B 1
False-
Correct
negative
Performance scores
error
A
False-
positive
Correct error
3 2
Low
Low Rejected Cut-off Hired High
Test scores
Notifying applicants of the decision and making job offers is generally the responsibility
of the HR department. This department should confirm the details of the job, working
arrangements, wages and so on, and specify a time limit by which the applicant must reach a
decision. If, at this point, findings from the medical examination are not yet available, an offer
is often made contingent upon the applicant passing the medical examination.
The costs of getting it wrong

The important consideration in costing out selection errors is to calculate not only the direct
costs, but also the indirect costs. Poor decisions can incur:
1 further recruitment and selection costs
2 additional development and orientation costs
3 opportunity costs
4 loss of competitive advantage
5 damage to company brand
6 loss of employer of choice status
7 reduced internal status
8 impaired recruitment opportunity
9 threatened company viability
10 loss of other key staff.
Some of these costs may seem intangible, but when the decision relates to a senior executive,
the claims seem much more realistic.
SUMMARY
Effective employment strategies require effective planning to determine the specific HR needs of
the organisation when filling vacant positions. The specific outside sources and methods utilised in
recruiting depend on the recruitment goals of the organisation, the conditions of the labour market
and the specifications of the position to be filled. The selection process should provide as much reliable
and valid information as possible about applicants so that their qualifications may be carefully matched
with person specifications. The information that is obtained should be clearly job-related or predictive
of success on the job and free from potential discrimination.
The legal requirements governing EEO make it mandatory that employers make a positive effort
to attract and promote members of target groups so that their representation at all levels within the
organisation approximates their proportionate numbers in the labour market. These efforts include
recruiting not only those people who are qualified, but also those who can become qualified with
reasonable training and assistance. Interviews and tests are customarily used in conjunction with
application forms, background investigations, medical examinations and other sources of information.
The interview is an important source of information about job applicants. Those who conduct interviews
should receive special training that acquaints them with interviewing methods and EEO considerations.
The training should also provide for them to become more aware of the major findings from research
studies on the interview and to apply these findings. While the popularity of tests has declined since the
passage of EEO laws, their value should not be overlooked. Tests are more objective than interviews,
and can provide a broader sampling of behaviour. The increased use of technology, including artificial
intelligence platforms and applications, in the recruitment and selection process also ensures the
decision-making process is free from bias. The use of such technology has also been shown to increase
efficiency as well as freeing up the time of HR practitioners to concentrate on the more important
strategic organisational activities.
In the process of making decisions, all ‘can do’ and ‘will do’ factors should be assembled and
weighted systematically so that the final decision can be based on a composite of the most reliable
and valid information. While the clinical approach in decision making is used more than the statistical
approach, it lacks the accuracy of the latter approach. Whichever approach is used, the goal is to select
a greater proportion of individuals who will be successful on the job.
HR managers will need to develop new and more appropriate programs to ensure that overseas
divisions of organisations are effectively staffed at both senior management and professional or technical
levels. Relevant expatriate programs should include specialised recruitment, promotion, retention
and repatriation schemes that are strategic, integrated, cost-effective and culturally appropriate. HR
and senior managers are well advised to study the employment relations conditions and practices of
countries in their trading region, and to adapt their programs accordingly.
KEY TERMS
• artificial intelligence 240 • employee referrals 216
• Baby Boomers 204 • employer of choice 203
• background investigation 221 • employment interview 229
• behavioural questions 232 • employment testing 240
• best fit 204 • executive leasing 217
• closed questions 238 • executive search 214
• downshifting 223 • expatriate 205
• e-cruitment 213 • Gen X 204
• Gen Y 204 • recruitment 200

• Gen Z 219 • recruitment agencies 214
• home country nationals 205 • reliability 222
• host country nationals 205 • résumé 218
• interview questions 232 • selection 200
• labour market 212 • selection criteria 225
• medical examination 221 • social networking sites (SNS) 201
• open questions 231 • third country nationals 205
• psychological tests 241 • validity 222
• psychometric tests 241
EMERGING ISSUES
1 Talent management
The term ‘talent management’ is more recently being used to describe the challenge of getting the right
person in the right job at the right time.
a What factors impact the organisation’s ability to manage its talent effectively?
2 Expatriates
The selection of expatriates will involve a greater emphasis on competencies that will be required for
success in an offshore location. Specific contextual competencies will be essential.
a What specific competencies might be required in an expatriate manager over and above those
required of a domestic manager?
3 Internal talent attraction

Attracting talent from within can be very simple and cost-effective, as well as creating a positive
learning and development culture.
a Describe the key problems that recruiting internally can create for an organisation.
4 External talent attraction

Attracting talent from external sources can be the fastest and quickest way of changing an organisation’s
culture. It is a matter of benchmarking against the best and then attracting the right talent to be
competitive.
a What factors lead to making a decision to recruit externally?
b Consider recommending one of your best friends for a job where you work. Think of a job currently
vacant and/or being advertised. Would your friend have the required competencies? Explain your
answer.
5 Social networking sites

Social networking sites (SNS) are emerging as one of the most used forms of communication among
younger generations, and are also increasingly used for employee recruitment and selection.
a What are the legal and ethical implications of recruiting externally using SNS?
6 Managing diversity
Today’s workplace is far more diverse than ever before. Leaders must manage the pressures and
opportunities associated with gender, generational, ethical and cultural issues – each group will have a
different perspective and values on the role of work and life generally.
a Describe the recruitment and selection tools that will lead to a more diverse workforce. How will
these tools accomplish this?
7 Interviewing
Over 100 years of research has shown the selection interview to be flawed, yet employers persist in
their efforts to make it work. Newer approaches such as behavioural and situational interviews may
hold the answer.
a Explain how behavioural and situational questioning work. In what ways might these techniques
increase both the reliability and validity of the interview?
8 Psychological testing
Popular psychological tests such as MBTI, DISC and 16PF may encourage applicants to respond with
what they feel is the right answer rather than the answer they actually believe to be correct. This will
affect both the validity and reliability of such tests and limit their usefulness in the selection process.
a Why are psychological tests still used in the recruitment and selection process?
ETHICAL CHALLENGE
The Facebook dilemma
Adam works in the HR department of a credit union and was preparing an interview file for each of the
candidates who had progressed to the last round of selections for an intake of trainee financial advisers.
He had recently heard on talkback radio that some recruiters were now searching for candidate’s
names online to see if there had been any mention of them in the media that might embarrass future
employers.
Adam decides this is a great idea and would assist in ensuring the right fit with the company. Besides,
this is an important professional role he is recruiting for and he needs to make sure the company brand
remains intact. Adam opens up his own Facebook page, types in the first candidate’s name and selects
the one he believes to be a match based on location and occupation information listed in the profile.
There are a number of links to YouTube pages and quotations. Nothing particularly offensive is listed.
Adam then goes to the photos link on the page. Scrolling through the pages he finds a photograph of
the candidate at what appears to be a party with what appears to be a lit smoking implement at his lips,
smiling at the camera. Adam was horrified and considered what to do. After a few minutes, he placed
the candidate’s application in the ‘reject’ pile. Pleased with his decision, Adam then starting typing the
name of the next candidate into his Facebook page.
1 Did Adam break the law by searching for the candidates on Facebook? Explain your answer.
2 Are there any ethical implications for the way in which Adam sought out additional information on
the candidates?
CASE STUDY 6.1

Coal India’s recruitment binge
The global economy has created a complex and dynamic environment in which organisations must
learn to compete effectively in order to achieve sustainable growth. The global environment has
not only changed the way business is conducted, but has also created the need for organisations to
manage their talent within the global context.
India has its challenges: it will increase its working age population by an additional 200 million,
and it is estimated that 70 per cent of Indians will be of working age by 2025. However, this could easily
become a disaster if the substantial government initiatives aimed at enhancing the employability of
these workers do not succeed. One major challenge for India is the currently limited employment
options for its massive cohort of unskilled contract workers. India also has a problem with only a
quarter of university graduates being considered, by industry, to be suitable for employment.
Coal India may be set to change these trends. The state-run mining company has decided to
hire 4500 fresh graduates and 40 000 labourers over the next three years. At the same time, the
company estimates that around 45 000 employees are set to retire over the next three years. About
15 000 have been retiring each year for the past few years and the trend is expected to continue.
By the end of 2018, each of these employees who is retiring would have accumulated
approximately 42 years of service.
The single largest cost to Coal India is wages and salaries. A few years ago, they represented
44 per cent of all costs, but with recent wage increases, this has now increased to 50 per cent.
The vast majority of staff within the company have been coal filers and coal cutters with no
formal education. In fact, anyone who had their name registered with a private mining firm before
nationalisation automatically became an employee of Coal India without any qualification or
age certificate.
Source: Adapted from Sengupta, D. (2016), Coal India to hire 4,500 fresh graduates
from IITs and NITs in the next three years. The Economic Times, New Delhi, 8 August.
Questions
1 What are the recruitment and selection challenges for Coal India presented in this case study?
2 What recruitment and selection strategies should be implemented by Coal India to
successfully employ the large number of employees needed?
CASE STUDY 6.2

The creative spark
Imagine a future where it’s possible to objectively measure whether an individual possesses some
of the key traits associated with innovation – creativity, intuition, imagination and adaptability.
Joel Pearson, professor of cognitive neuroscience at the University of NSW and founder of the
Science of Innovation Lab, says this future is not so far away. ‘It’s not here yet, but we’re seeing
developments in cognitive psychology and applied neuroscience which will completely revolutionise
the way people are matched to jobs,’ says Pearson.
Historically, things like imagination and creativity have been too difficult to measure objectively,
and questionnaires based on candidates’ subjective opinions of themselves have had to do. The
problem, as Pearson notes, is that most smart people can figure out what is being asked of them
and will then tailor their answers accordingly.
Instead, Pearson uses technology such as encephalogram (EEG) tests to track brain wave
patterns to measure innovation potential. For example, a candidate may be asked to imagine the
colour green and have their brain response measured. Apparently, someone who has a stronger
imagination will see a stronger green.
This type of research may also assist in isolating behavioural markers that are highly predictive
of innovation potential. The five identifiers are: results seeker, customer empathiser, idea
integrator, influencer and risk taker. From a recruitment and selection point of view, this means
HR professionals will be able to use tools that will assess the markers they want, rather than
the current focus on technical expertise. This will also have a positive impact on organisational
culture and performance.
Source: Adapted from Schmidt, L. (2018), The creative spark. Human Resource Monthly, 39, Dec/Jan, pp. 16–20.
Questions
1 What are the key talent attraction and selection benefits presented by this case study?
2 What are the limitations and disadvantages?
3 Would there be training requirements for those delivering the test?
ENDNOTES
1 Chen, P., Sparrow, P. and Cooper, C. (2016), The relationship 10 eMarketer (2017), Number of social network users worldwide
between person-organisation fit and job satisfaction. Journal of from 2010 to 2021 (in billions). Available at https://www.
Managerial Psychology, 31(5), pp. 946–59. statistica.com.
2 Drury, P. (2016), Employer branding:Your not-so-secret 11 Waring, R. L. and Buchanan, F. R. (2010), Social networking
weapon in the competition for young workers. Human Resource websites: The legal and ethical aspects of pre-employment
International Digest, 24(3), pp. 29–31. screening and employee surveillance. Journal of Human Resources
3 Bednarska, M. A. (2016), Complementary person–environment Education, 4(2), pp. 14–23.
fit as a predictor of job pursuit intentions in the service industry. 12 Admin. (2018), Top creative talent acquisition strategies to watch
Contemporary Economics, 10(1), pp. 27–38. in 2016. 22 March, http://www.careerprofiles.com/blog/hiring-
4 O’Leary, J. (2015), Leading in the Asian century: A national scorecard of innovation-talent.
Australia’s workforce Asia capability. Synopsis report. Sydney: Diversity 13 Liontis, M. (2016), How to hire generation Z? This generation
Council Australia. Available at https://www.dca.org.au/sites/ will be the smartest of all. Talent Acquisition Excellence Essentials,
default/files/dca_a-cap_synopsis_online.pdf. November.
5 Armstrong, M. (2006), Handbook of HR management practice. 14 Buckley, R., Norris, A. and Wiese, D. (2000), A brief history of
London: Kogan Page; Dowling, P., Festing, M. and Engle, A. the selection interview: May the next 100 years be more fruitful.
(2008), International human resource management. Melbourne: Journal of Management History, 6(3), p. 113.
Thomson. 15 Macan, T. (2009), The employment interview: A review of
6 Hurn, B. (2006), The selection of international business managers. current studies and directions for future research. Human Resource
Industrial and Commercial Training, 38(6), pp. 279–86. Management Review, 19, pp. 203–18.
7 Cappelli, P. & Keller, J. R. (2014), Talent management: Conceptual 16 Rooney, N. (2009), Competency based interviews. Accountancy
approaches and practical solutions. Annual Review of Organizational Ireland, 41(2), pp. 56–9.
Psychology and Organizational Behaviour, (1), pp. 305–31. 17 Miles, A. and Sadler-Smith, E. (2014), With recruitment I always
8 Australian Bureau of Statistics (2018), Job vacancies, Australia, feel I need to listen to my gut: The role of intuition in employee
Nov 2018. Cat. no. 6354.0. Available at http://www.abs.gov.au/ selection. Personnel Review, 43(4), pp. 606–27.
ausstats/[email protected]/cat/6354.0. 18 Demasi, A. (2013), Psychometric testing in the selection process.
9 Kakulas,V. and AAP (2015), Job figures show mining sector slump Keeping Good Companies, 65(1), pp. 50–3.
hit WA hard as iron ore price hits fresh 10-year low. news.com.au, 19 Ibid.
9 July. Available at http://www.news.com.au.

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199

THE STRATEGIC PERSPECTIVE

Professional tip 6.1

HRM in practice 6.1

Matching people, jobs, organisations and environments

International perspective 6.1

The international selection process

Managing HR programs for international assignments

ATTRACTING TALENT FROM WITHIN

Limitations of attracting talent from within

Methods of locating qualified job candidates

Electronic record systems

Performance and development management

ATTRACTING TALENT FROM OUTSIDE

The labour market

External sources of talent

HRM in practice 6.2

HRM in practice 6.3

Executive search firms

HRM in practice 6.4

Executive leasing and contracting

Online talent attraction

Social networking sites

HRM in practice 6.5

TABLE 6.1 Internal versus external talent attraction strategies

INTERNAL TALENT ATTRACTION STRATEGIES

POTENTIAL ADVANTAGES POTENTIAL DISADVANTAGES

• May aid morale of employees • Danger of inbreeding

• Easier to assess applicant’s ability • Discontent among those not promoted

• Good performance is rewarded • Political infighting for promotion

• A succession for promotion developed • Effective appraisal program required

• Avoids ‘leak plugging’ strategy • Old culture maintained

EXTERNAL TALENT ATTRACTION STRATEGIES

POTENTIAL ADVANTAGES POTENTIAL DISADVANTAGES

• More compatible with concepts of EEO/ • A longer orientation period necessary

Outsourcing talent attraction

THE SELECTION PROCESS

FIGURE 6.1 SHRM and strategic selection

Obtaining reliable and valid information

HRM in practice 6.6

HRM in practice 6.7

The future of work 6.1

HRM in practice 6.8

HRM in practice 6.9

THE EMPLOYMENT INTERVIEW

TABLE 6.2 Types of interviews

TYPE OF FOR AGAINST

Directive or • Consistent – all applicants treated • Can lack flexibility

Non-directive or • Easy to explore leads and different • Hard to control interview

Panel • Impartial – it is a group decision • Cost

Stress • Shows applicant’s behaviour under • Requires very skilled interviewer

Group • Easy to compare applicants • Expensive

Technology- • Reduced travel/airfare costs • Can only be used if technology

Increasing use of highly structured interviews

‘I am sure that you have had both negative

BEHAVIOURAL INTERVIEWING PROTOCOL DIRECTIONS AND CONSIDERATIONS

1 ‘What were the conditions in you, such

BEHAVIOURAL INTERVIEWING PROTOCOL DIRECTIONS AND CONSIDERATIONS

6 Describe your working relationship with your current boss?

HRM in practice 6.10