Improving Organizational Commitment and Retention

Effective Employee Selection is the Missing Link

Jack E. Smith, Ph.D.

So, you’ve decided that turnover rates in your hospital are too high, and you want to improve employee
commitment and retention. When you begin examining the relevant literature, you quickly discover that
most programs focus on improving the commitment and retention of current employees. While these
“treat ‘em right” initiatives can be effective, too often the missing link in turnover reduction efforts is an
examination of the relationship between employee selection and employee retention.

Effective staffing can have a positive impact on employee retention. As a result, it is critical to evaluate
and improve this process. Candidates with a high
Effective staffing can have a positive propensity for turnover can be identified before
impact on employee retention. they enter the organization, and doing so can
pay off in significantly improved retention rates.
Strategies for improving the employee selection process include tracking recruitment sources; using
realistic job previews (RJPs); using assessment tools and interviews to predict turnover; and hiring for
fit and motivation.

Tracking Recruitment Sources

Tracking the effectiveness of various recruitment sources is an excellent first step for reducing turnover.
Healthcare organizations use a variety of sources for recruiting job applicants, including classified ads,
walk-ins, state employment agencies, agency personnel, employee referrals, online recruiting and
professional recruiters.

So, the obvious question becomes: Which of the recruitment sources is best for retention? The answer
is: It depends. Effectiveness is influenced by the specific job in question, the job level (e.g., entry-level,
professional, managerial), the geographic location of the hospital and other factors. Given the variables,
it is important for each organization to systematically collect its own data on the effectiveness of its
recruitment sources.

Figure 1 shows how tracking the recruitment source data for a hypothetical hospital can be used to
help make recruitment source decisions related to improving retention.

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 Source # of Apps Passed Accepted Offer 6-Month Survival Rate

Classified Ads 210 100 (48%) 80 (38%) 60 (29%)

Walk-Ins 40 28 (70%) 22 (55%) 15 (38%)

State Agencies 100 45 (45%) 32 (32%) 23 (23%)

Employee Referrals 50 40 (80%) 35 (70%) 32 (64%)

Total 400 223 (56%) 169 (42%) 130 (33%)

Figure 1: Tracking Recruitment Source

In this example, it is apparent that employee referrals provide the organization with employees who
have the highest probability of remaining with the organization, without giving up anything in terms
of employee ability. Both the six-month survival rate and percentage of candidates passing the assessment
step indicate that more emphasis should be placed on using employee referrals as a recruitment source.

Unfortunately, only 12.5 percent (50 of 400) of the applicants come from this source. If the organization
does not have a formal referral program in place, it’s time to start one. And if the hospital does have a
program, then it’s time to give it more emphasis (e.g., better communication of program, higher incentive
for referral).

Using Realistic Job Previews (RJPs)

Attracting potential employees to the organization is a primary goal of recruiting. But attempts by the
organization to sell itself as a great place to work may give applicants inflated expectations about the nature
and rewards of employment. Numerous studies dealing with voluntary turnover have shown that “unmet
expectation” is a critical factor in determining early exits from the organization. Recent theory and research
suggest that employers might be better off avoiding “sugar coating” the message to applicants and providing
realistic job previews (RJPs) instead.

RJPs should address all aspects, both positive and negative, of the job and work climate, including the
position itself, the unit or department, the organization and even the location of the work site. Figure 2
provides RJP examples for some healthcare-related jobs.

+ Being on-call + Working long (e.g., 12 hour) shifts

+ Working with people with contagious diseases + Working overtime
+ Working on holidays + Being “pulled” to other floors or units
+ Working evenings

Figure 2: Possible RJP Examples for Healthcare

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While an RJP should be included in any structured interview format, other RJP formats may include
brochures, formal oral presentations, assessment center exercises, videotapes, and realistic information on
web sites. By communicating accurately with applicants regarding the job and the organization, those who
accept employment will be more satisfied and therefore less likely to leave voluntarily (Wanous, 1992)

Making the Most of Realistic Job Previews

Realistic Job Previews (RJPs) improve employee retention by providing applicants with a highly accurate
description of the job and the organization, which can reduce turnover related to unmet expectations.

Here are a few tips for maximizing the effectiveness of RJPs:

+ Place the RJP early in the staffing process to allow for self-selection on the part of the candidate.
For example, one home-care firm has its job candidates (nurses, aides and social workers) spend two
days working with inner-city clients before a final hiring decision is made. This step allows candidates
to preview the job and make a more informed decision.
+ Some research indicates RJP information presented via a two-way communication process (e.g., verbally)
facilitates applicant attention and comprehension better than RJP information presented via one-way
communication (e.g., brochures or videotapes).
+ RJPs are most effective when they are specific and address all aspects—both positive and negative—of
the work setting. For example, a statement of: “You will sometimes be expected to be on-call” will have
limited impact on a job candidate, particularly one who wants the job and is overwhelmed by other
information. A more effective RJP discussion would include information regarding the frequency and
duration of being on call (e.g., This job requires you to be on call every other weekend).

Using Assessment Tools to Predict Turnover

A study conducted by Barrick and Zimmerman (2005) identified three sets
of assessment variables for predicting employee turnover:

Biodata
Longevity at former employers, referral by current employees and having friends or family members
working at the new organization all increase the likelihood new employees will stay.

Attitudes and behavioral intentions

Applicants who express “intention to stay” with the organization and “desire for the job” are more
likely to stay.

Dispositions
Self-confident, decisive individuals are more likely to stay.

Figure 3 (next page) provides examples of the types of questions that can be used to predict the
propensity for turnover.

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 Assumption Possible Questionnaire

Candidates with long tenure
at their previous employment
are more likely to remain with the
organization.
Which of the following I haven’t held a full-time job
best describes the number 1 job
of full-time jobs you’ve held 2 jobs
over the last five years? 3 jobs
More than 3 jobs

Candidates who are referred by How many friends or family None

current employees who are family members do you have working 1
or friends are more likely to remain at this organization? 2
with the organization. 3
4 or more

Candidates who have I can see myself working Strongly Disagree

a high intent to stay with for this organization several Disagree
the organization are more years from now. Neither Agree Nor Disagree
likely to remain. Agree
Strongly Agree

Candidates who have a strong I have a strong desire to Strongly Disagree

desire to be hired for the target work for this organization. Disagree
job are more likely to remain Neither Agree Nor Disagree
with the organization. Agree
Strongly Agree

Candidates who have a I always carefully weigh costs Strongly Disagree

predisposition for being decisive and benefits when making Disagree
are more likely to remain with the decisions that affect my life. Neither Agree Nor Disagree
organization. Agree
Strongly Agree

Figure 3: Formal Selection Assessment Examples

Generally speaking, these items are placed into an assessment inventory and scored according to pre-
determined keys. While these types of assessments have a good track record for predicting turnover, users
should be careful interpreting and applying them in the workplace. Organizations should strongly consider
involving an assessment professional (e.g., industrial and organizational psychologist) to develop and
validate the instrument.

Using Interviews to Predict Turnover

The job interview has the potential for measuring a wide range of candidate characteristics—including
retention potential—depending on what questions are asked and how responses are scored. For organizations
in which development of previously mentioned assessment tools may not be feasible, the same issues can be
addressed during the interview process. Figure 4 presents examples of meaningful interview questions.

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 Assumption Possible Questionnaire

Candidates who have long Some people stay with a single organization all of their working lives,
tenure at their previous others move around quite a bit. Please describe the organization you stayed
employment are more with the longest.
likely to remain with the + Was the length of time you stayed with this organization typical for you?
organization. Why or why not?
+ W hy did you stay with this job for this period of time?
+ W hy did you eventually leave the job?

Candidates who are referred
by current employees who
are family or friends are more
likely to remain with the
organization.
+ What did this person tell you about our hospital?
+ W hat did this person say that made you want to seek employment here?
+ How long has this person worked here?
+ How much confidence do you have in this person’s opinion?

Candidates who have a + What aspects of employment at XYZ Hospital do you find most appealing?
strong desire to be hired + W hy does this appeal to you so much?
for the target job are more + If this aspect of employment were not present, how interested
likely to remain with the would you be in employment at XYZ Hospital?
organization.

Figure 4: Possible Interview Questions

Hiring for “Fit” and Motivation

Using assessment tools that are valid and select for “fit” will provide a hospital with a higher quality
employee, affecting turnover in two ways. First, valid selection procedures reduce the need to terminate
some employees. The rate of involuntary turnover in healthcare organizations, which runs approximately
30 percent, can be greatly reduced by making quality hires. Second, hiring quality employees substantially
improves the chances that other retention initiatives will be effective.

Research clearly shows that high-performing employees are more likely to embrace in-house retention
efforts such as job design (e.g., job enrichment), employee involvement and empowerment, and rewards and
incentives. A wide range of personality and ability assessment inventories exist that can be used to improve
the accuracy of the selection process.

Supply the Missing Link

As you begin to consider various approaches to reducing turnover, be sure to include efforts to improve
the selection process. This missing link in turnover reduction should be an integral component of any
retention initiative. While it’s true that most strategies for reducing turnover will focus on what can be done
to improve the satisfaction, loyalty and retention of current employees, organizations are remiss if they fail
to carefully examine and improve their selection process and hire for “fit”.

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About the Author:
Jack E. Smith, Ph.D. Based in suburban Detroit, Dr. Smith has over 30 years of research and training
experience, including supervisor of test development and validation for the State of Ohio, 16 years as a
professor of human resource management at the University of Detroit, and most recently as Scientific
Advisor to TestSource. Throughout his career, he has been active in consulting, research, and training
at numerous major corporations, including Ford, DaimlerChrysler, Prudential, Unisys, ExxonMobil and
Verizon, among others. He specializes in assessment development, personnel selection, management
training, and total quality management.

Jack has published in such prestigious journals as Personnel Psychology, Training and Development Journal,
Quality Progress, Journal of Business Ethics, and The CPA Journal. He is a member of the American
Psychological Association, Society for Industrial and Organizational Psychology, the American Society for
Training and Development, The Society for Human Resource Management, and the American Society of
Quality. He holds a Ph.D. in industrial and organizational psychology from The Ohio State University.

About TestSource:
Headquartered in Grand Rapids, Michigan, TestSource specializes in the design, development and
validation of healthcare-specific assessment solutions. These assessments are designed to assist healthcare
organizations achieve critical initiatives such as: reducing new-hire turnover and hiring service-oriented
applicants. The company has been in business since 1992 and serves over 360 healthcare organizations
throughout 43 states.

References:
Barrick, M. R. & Zimmerman, R. D. (2005). Reducing voluntary, avoidable turnover through selection.
Journal of Applied Psychology, 90, 159-166.

Wanous, J. P. (1992). Organizational entry: Recruitment, selection, orientation, and socialization

of newcomers (2nd ed.). Reading, MA: Addison-Wesley.

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