Chapter 12 – Recruiting, Selecting, and Retaining Talent
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Chapter 12
Recruiting, Selecting, and Retaining Talent
CHAPTER OVERVIEW
Attracting, selecting, and retaining good employees is one of the most important aspects of a
manager’s job and can, in fact, make the rest of the manager’s job a lot easier if done well!
However, all too often managers fall prey to biases and blind luck when it comes to
selecting the right person for a job. Fortunately, planned and rigorous processes to
recruitment and selection can greatly increase predictive power to help increase the odds
that the applicants chosen will perform well and be a good fit for the organization. The
chapter discusses evidence–based methods for recruitment, selection, and retention.
LEARNING OBJECTIVES
KNOWING OBJECTIVES
1. Articulate the essential steps in recruiting and selecting employees.
2. Describe effective recruitment and selection methods.
3. Articulate the most important aspects of employment law.
4. Explain the key elements in retaining talent.
DOING OBJECTIVES
1. Create a retention strategy for a star employee.
2. Write a behavioral interview question.
3. Create a strategy to increase diversity in an applicant pool.
4. Create a realistic job preview for a new position.
5. Use evidence-based methods to retain talented employees.
STUDENT QUESTIONS
The most common questions students ask with regard to material from this chapter have to do
with selection tools. Students are often skeptical of the evidence that cognitive ability tests are
highly valid predictors of performance across jobs and exceed the validity of personality. Some
specific questions might include:
1. “I know people who score well on standardized tests but they have no common sense.
How can cognitive ability tests really predict job performance?”
2. “I am a really good judge of people. How can a test be more accurate than I am in
predicting how good an employee someone will be?
In answering the first question, it is important to reiterate that there are hundreds of studies
across jobs of varying complexity that have supported the validity of cognitive ability tests in
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predicting job performance. The evidence is not based on any one flawed or rigged study. On
the other hand, cognitive ability tests are not perfect indicators – no test is. It is true that some
highly intelligent people will not be good performers. But the odds of selecting good
employees are greatly increased by selecting based on cognitive ability.
We do not have a magic crystal ball when it comes to selection; however, cognitive ability
tests are about as close to a crystal ball as we can get, and are certainly much more reliable
and valid than leaving selection decisions to hunches and feelings. Although cognitive ability
tests are sometimes criticized as being unfair towards certain groups, their objective nature is
arguably more fair than subjective processes like unstructured interviews which can be
influenced by human bias and error.
The answer to the second question is related to the first in that personality tests, while not
perfect, are at least more objective and reliable than our hunches about someone. Personality
CHAPTER OUTLINE
I. Introduction
A. There is perhaps no more important task for a manager than selecting employees
B. Without people, none of the other issues in management really matter
II. Selecting People for Roles
A. Choosing the right people for the right jobs
1. There are no magic mind-reading exams or tricks
2. Judgments about who will be successful can be subject to bias and error
3. Research shows that mechanical methods (statistics, objective indicators) are more
valid than subjective methods (judgments based on one’s experience)
B. Myths of recruitment, selection, and retention
1. Recruiting is a short-term activity
a. One of the most effective practices for firm performance is succession planning
2. Personality is the best predictor of job performance
a. Cognitive ability, job knowledge, and skills are better predictors
3. Good recruiters “sell” their organization to good candidates
a. Providing a realistic job preview is a best practice
4. People are naturally good at judging talent
a. Most people are very inaccurate when predicting others’ future behavior
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5. Money is the only way to retain talent
opportunities
C. Selection is prediction
1. Selection efforts target two important aspects of employee success
a. Future job performance
b. Future person-organization fit
D. Four step selection process to increase predictive accuracy
1. Clarify the job context
2. Establish a process
3. Recruit talented applicants
4. Decide on methods and assess
E. Clarify the job context
1. Know yourself and what kind of boss you’ll be
2. Know the job well
a. Job analysis = the process of collecting information about what tasks and
knowledge, skills, and abilities (KSAs) are required for the job
b. O*Net = Department of Labor’s online resource that aids in job analysis
c. Job descriptions should include:
vi. Legal of company policies or requirements
F. Know the law
1. Understanding the law helps reduce exposure to lawsuits and helps managers focus
on job-related information for selection
more than others
G. Establish a process
1. Reasons to establish a process beforehand:
a. Reduce sense of urgency
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b. Avoid discrimination and lawsuits
c. Job candidates prefer transparent and organized process
2. Standardize the process
3. Involve others in the process
H. Recruit talented applicants
1. Strong recruitment is built upon the effort undertaken when there are no vacancies
2. Succession planning has a strong impact on a firm’s bottom-line
3. Overall purpose of recruitment
a. Increase pool of qualified applicants
b. Decrease pool of unqualified applicants
4. Concerns
a. Control recruiting costs
b. Reduce turnover by attracting the right people
5. Effective recruitment practices
a. Two broad categories of practices
i. Formal (e.g., posting job ads on internal systems or recruitment websites)
ii. Informal (e.g., referrals)
b. Research shows informal tactics tend to be more effective
c. Two main themes in effective tactics
i. Treatment of applicants
ii. Quality of the information about the job
d. Social media tools are an important advance in recruitment
6. Recruiting recent graduates
a. Build relationships with universities through projects and internships
b. GPA is a good predictor of job performance
7. Managing the organization’s image
a. Image projected by the firm influences applicants’ initial reactions
b. Poor treatment on a site visit is a red-flag
c. Timeliness is critical
d. Confusing, complicated, or out-of-date information sends a bad signal
8. The manager as recruiter
a. Applicants view recruiters as a “signal of unknown aspects of the firm
b. Managers can often provide more specific job-relevant information to applicants
than corporate recruiters or HR can
c. Recruiters should not make inferences solely on the resume
9. Create a realistic job preview (RJP)
a. Realistic job preview = providing an accurate and realistic description of the job
to the candidate
b. Can reduce applicant dropout rate during the selection process
c. Can reduce turnover
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I. Decide on Methods and Assess
1. Define performance
2. Use different methods for different jobs
3. Use reliable and valid methods
4. Collect multiple pieces of data
5. Defy conventional wisdom
7. Fairness
a. Degree to which the method avoids adverse impact
8. Feasibility
a. Degree to which the method can reasonably be employed in different situation
and its overall cost
9. Face validity
a. Degree to which applicants believe the method fairly measures requirements for
the job
J. Getting the most from interviews
1. Interviews can be effective but should not be used to measure all types of job
requirements
a. Effective for measuring job knowledge and interpersonal skills
2. Two general types of interviews
a. Unstructured interviews = unscripted conversation
b. Structured interviews = planned interview questions targeting job-relevant KSAs
are asked of all job applicants
3. Structured interviews are much more valid than unstructured interviews, however
many managers use unstructured interviews
4. Behavior, behavior, behavior
a. Effective interviews are all about behavior
a.) Behavioral intentions = motivation and thoughts that are immediate
precursors to action
5. Important interview reminders
a. Avoid non-job-related questions
b. Use pane (group) interviews wisely
c. Do not over-weight negative information
d. Be aware of subtle biases
K. Beyond the interview: Other effective assessment options
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1. Performance tests = highly valid tests designed to measure “hands–on” skills for a job
a. Work sample = literally samples of the work involved for a job
b. Assessment center = a collection of work samples that mimic “a day in the life” of
a manager
2. Cognitive ability tests
a. Measure a person’s ability to learn and acquire cognitive skills (e.g., verbal, math,
spatial, logical reasoning)
b. Wonderlic
c. Highly valid for almost every job
d. Are not used by some organizations because:
i. Misperceptions about the tests
ii. May cause adverse impact against certain minority groups
e. Recommendations for using cognitive ability tests
i. Job complexity: cognitive ability is particularly important in complex jobs
ii. If increasing minority representation is important, use predictors like job
knowledge tests that correlate with cognitive ability but have less adverse
impact
iii. Experience: some research shows significant experience can compensate for
lower levels of cognitive ability
3. Integrity tests
a. Designed to predict deviant behaviors
i. Overt tests: Ask directly about integrity-related attitudes and behaviors
ii. Personality-based tests: Seek to identify traits linked to deviant behaviors
b. Evidence:
i. Valid predictors of deviant behavior
ii. Moderate predictor of job performance
4. Personality assessments
a. Can add predictive value to the selection process
b. Big Five
i. Not all traits are relevant for all jobs
III. Retaining Your Best Talent
A. Voluntary turnover = the employee chooses to leave
1. Usually undesirable
B. Involuntary turnover = the organization initiates the separation
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CASES
Google, Microsoft, Southwest Airlines, and Doubletree Hotels
1. First, Google and Microsoft avoid or minimize the use of techniques that have low
2. One common trap that many managers fall into is assuming that they can intuitively
“know” someone and how well they will perform and fit in just by having a conversation
3. Google and Microsoft know that research and experience have shown that these
4. In many circumstances, the interviewers asking these types of questions do not expect
you to get the correct answer. Instead, they are looking for a reasonable answer that uses
people. Then work from there to give your best educated estimate.
Case Concluded
1. These organizations start with the job tasks and the KSAs necessary for performing those
2. Answers will vary.
3. Although skills are important, people are much more than just the skills they possess.
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4. This highly unusual selection technique assesses not only the computer and technical
Staffing UnitedHealth Group
1. Obviously, the decision was beneficial in terms of cost-savings. When managers fill the
role of recruitment and selection they know more about the job and therefore might have
2. Answers will vary. One “pro” of outsourcing the lower-level positions was that the hiring
needed to be done quickly to meet the staffing needs. Moreover, the lower-level positions
3. Unless the company works extensively with the outsourcing agency to provide detailed
“MANAGE WHAT” SCENARIOS
12.1 Expanding Your Pool of Candidates: Using Effective Recruiting Tactics
Debrief is located at the end of the chapter.
12.2 Choosing the Best Person for a Role
You should start by gathering the job description for the sales representative position so that you
have a good idea of the tasks involved. Next, you need to list and prioritize the KSAs required to
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12.3 Conducting a More Effective Selection Interview
Debrief is located at the end of the chapter.
12.4 Retaining a Talented Employee
As a manager you need to take Jessica’s concerns seriously. Loss of your top employees is very
costly; it will be difficult to replace Jessica. Moreover, if Jessica feels this way, it is likely other
top performers do as well.
MANAGEMENT LIVE
12.1 O*NET
Instructions:
12.2 Animals, Superheroes, and Other Themes
Class Discussion Questions:
1. How would you answer the “popular but questionable interview questions” if you were
asked them during an interview?
2. How would you feel about being asked these questions? Would you want your job
outcome to be contingent upon how you answered the questions?
3. Why do you think managers continue to use these types of questions even though they
are not directly job-related?
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4. If there is no right answer to a question, should it be asked by an interviewer? Explain
why or why not.
5. How do questions like these increase a company’s exposure to lawsuits?
12.3 Assessment Centers: Uncovering Managerial Talent
Class Discussion Questions:
1. What types of activities are included in an assessment center?
2. If you were developing an assessment center for spies, what activities would you include?
3. What are the pros and cons of using assessment centers?
4. If you went through an assessment center, what do you think would be your strengths and
weaknesses?
12.4 How Smart is Your First-Round Draft Pick?
Class Discussion Questions:
1. Why is cognitive ability so relevant to most jobs?
2. Why do you think cognitive ability is not as relevant for football as for other jobs?
3. Do you think cognitive ability would be a good predictor of performance in any other
sports? If yes, which ones? If no, explain why not.
4. Do you think cognitive ability would predictor the performance of NFL coaches? Explain
your answer.
5. Assuming that cognitive ability is normally distributed in the population, what
approximate percentile rank would Eli Manning’s score of 39 be compared to college
graduates?
TOOL KIT
12.1 Creating an Employee Referral Program
Class Discussion Questions:
1. Why are referrals such a valuable recruiting tool?
2. If you offer rewards for referrals, won’t employees be tempted to refer everyone they
know regardless of whether those people would be good employees? Why or why not?
3. One commonly cited drawback of referrals is that they can limit diversity in an
organization. Why can this happen and why is this a problem?
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12.2 Providing a Realistic Job Preview
Instructions:
12.3 Choosing the Right Assessment Method for the Job
Instructions:
Students will construct a selection battery for the job of a dental hygienist in a midsized practice.
Students may wish to consult O*NET to aid them with the task. Students should describe how
they would construct and utilize the following selection tests:
1) Structured interview questions
12.4 Creating and Evaluating a Behavioral Interview Question
Instructions:
Students will divide into pairs for this exercise. Using the STAR method, each pair of students
will create four behavioral interview questions to measure creativity for a marketing job. A
rating form should also be developed which indicates how different types of answers will be
scored. After completion of the questions and rating forms, each pair of students will match up
with another pair of students and they will practice interviewing each other using their questions
and scoring forms.
Debrief Questions:
1. Describe any challenges you had in creating the interview questions and scoring
forms.
2. How easy was it to use your rating form? Were there any answers given by your
interviewees that you were not sure how to rate?
3. Why are behavioral interview questions better than many other types of interview
questions?