An Introduction to Talent Management: Models & Strategy

Week 1 Introduction
One of the critical functions of Human Resources is staffing, which includes the recruitment and
selection process. Finding and hiring the right candidates is vital to the affluence and wealth of
any organization. Organizational goals such as productivity, market share, and customer
satisfaction can only be fulfilled by creating a high-quality workforce. Employees represent an
intangible asset to organizations and represent the foundation for innovation, knowledge, and
talent-driven organizations that invest in human capital.

Learning Outcomes
By the end of this module you should be able to:
1. Define the functions of talent management.
2. Identify decisions in talent management strategy.
3. Explain talent management ethics.
4. Identify external factors that influence talent management, specifically talent
acquisition.

The functions of talent management

- In order to successfully create a high-quality workforce, organizations need to focus on
locating talented people by attracting, recruiting, selecting, and retaining them. Factors
that assist in reaching this goal are competitive salaries with attractive benefits along
with training and developing a talent pool using effective talent appraisals. In addition,
being proactive and making succession planning a routine practice will minimize the last
minute need to fulfill vacancies.
1. Attracting- Attracting candidates that are a fit for a position or job by knowing what
motivates and inspires them to join the organization. Providing a clear job description
with job expectations assists in attracting the right candidates. In today’s era of social
media, it would be beneficial to add a video to grab the applicant’s attention and be
inspired to become a member of the organization.
2. Recruiting- Creating a pool of suitable applicants for subsequent selection in a timely
and cost-effective manner by utilizing various engaging methods.
3. Selecting- Choosing a candidate(s) that possess knowledge, skills, abilities, and
experience (in most cases) that are required to perform the duties and responsibilities
assigned to a vacant job.
4. Retaining- Providing an environment that takes into consideration employees needs,
motivates them to perform at their best, and maintain a low turnover rate, while
successfully reaching established organizational goals. If the five elements of job
satisfaction are reached: 1) a positive relationship with co-workers, 2) supervisors, 3)
satisfaction with the job itself, 4) opportunity for professional growth, and 5) reward
system, there is a greater chance that employees will remain within the organization.
5. Other –
a. Succession Planning is a process that integrates well with talent management
because it emphasizes the development or sourcing of capable employees who
 will be assuming jobs with more responsibilities and are accountable for their
performance.
b. Total Rewards is another function that coincides with talent management
because employers use the elements of extrinsic and intrinsic rewards, such as
salary, incentives, bonuses, benefits, and opportunities for professional growth.
This attracts potential employees to join and remain with the organization. Not
just attract potential employees, but to compensate them well based on the
skills, knowledge, and other attributes employees posses.
c. Training and Development focus on improving employees’ skills and assist them
in performing their assigned duties. Besides, investing in learning indicates that a
company values its employees by giving them an opportunity to develop further
skills that support their careers with the organization. This action also supports
succession planning, where employees have the opportunity to develop desired
skills and advance within the organization.
d. Performance Management is an important element for almost every dimension
of the human resources function and therefore talent management. Measuring
employee performance indicates their performance level and signals if further
training and education is required in addition to current skills brought to the
organization.
e. Career Development provides a platform to further employee learning, a chance
to develop desired skills in order to create a long-term career with the existing
company.
The creation of a talent management strategy is influenced by staffing models. For talent
management strategy to be effective, it needs to be aligned with staffing functions. For
example, if there is a job vacancy within an organization, it can strategically position itself if
succession planning is in place. In the event where an organization cannot fulfill the vacant job
internally, an organization can seek external candidates by exploring the labour market. Due to
the impact of globalization and its benefits, an organization can strategically recruit employees
from other countries instead of within its borders.

In general, there are many talent management strategies to consider in making correct
decisions when it comes to talent acquisition, such as:

- hire or retain,
- hire or acquire,
- attract and relocate, and
- overstaff or understaff, etc.

Staffing Quantity: Levels

- This model estimates the required workforce skills and compares the estimates to skills
available in the organization. The model determines if an organization is overstaffed,
understaffed, or fully staffed. Knowing the staffing position helps create a specific plan
on how to approach the various staffing levels.
Staffing Quality: Person/Job Match
- This model attempts to align candidates’ characteristics to job requirements to satisfy
human resources objectives for attracting, recruiting, selecting, retaining, and other
talent management functions.

Staffing Quality: Person/Organization Match

- This model not only attempts to align candidates’ characteristics to job requirements
but also examines how candidates fit or match the organizational strategy, culture,
values, norms, specific job requirements, and rewards.

Staffing System Components

- This model outlines basic activities for staffing such as the identification and attraction
of applicants, assessment and evaluation of applicants, and the final decision to hire.

Staffing Organizations
- This model identifies the need to create human resources policies and programs on
staffing activities. This encompasses legal requirements, staffing measurements, and job
analysis in order to create job descriptions and job specifications, and is the essence of
the staffing process

Talent management ethics

Ethics is distinguishing between right or wrong. This week we discuss basic talent management
functions from an ethics point of view, it underscores moral values and guidelines when it
comes to the talent management function. Aside from the human resources department,
several people could be involved with hiring talents in an organization, such as hiring managers,
co-workers, legal advisors, etc.

Human resources departments should set some limitations as part of the staffing process. For
example, consider the following:

Careful consideration of ethics and its principals are important factors when it comes to talent
management. Therefore, the following should be included in ethical staffing practices:
- The importance of representing the organization’s interests.
- Beware of conflicts and personal interests that may arise in an organization.
- Follow staffing policies and procedures including legislation.
- Refer to professional codes of conduct.
- When needed, seek ethics advice.
-
External Factors that Influence Talent Management

Globalization- It opens new opportunities to find talents and their unique skills outside of their
borders. It increases the chance to improve competitiveness and efficiency due to a large
number of diversified ideas and information.
Technology- A platform that allows businesses to quickly attract, recruit, select, and retain
employees due to the internet, which also provides a larger pool of candidates to be accessed.

Workforce demographics- It is an ever-changing labour force landscape that has been going
through a tremendous transformation and currently it contains five generations working
together. They are known as traditionalists, baby-boomers, generations X, Y (millennials) and Z.
Each generation is diverse in gender, cultural upbringing, experience they possess, gained
knowledge, inherent challenges, etc. They all bring unique functional experience and skills to
organizations.

Economy- The economic concept plays a major role in the sphere of talent management.
Whether the supply of labour varies from high to low will determine how challenging it is to
find qualified staff.

Unionized workforce- This type of workforce will be governed by a collective agreement which
will have a considerable impact on the talent management process.

Summary
- The effective execution of talent management functions, which include attracting,
recruiting, selecting, and retaining is important. These contribute to an organization in
terms of skills, knowledge, and experience that will help with productivity and
organizational growth. On the contrary, not having proper staffing processes or
established policies and procedures in place will hinder an organization's prosperity due
to the potential for poor decisions relating to hiring or promotions. In addition, it will
have negative financial outcomes not only affecting the Human Resources department
but the entire organization. Talent management is an integral part of succession
planning, total rewards, training and development, performance management, and
career development. Talen management is also impacted by external factors such as the
economy, globalization, technology, legislation, and responding correctly to ethical
issues.

Week 1:
Legal Requirements Affecting Talent Acquisition
Week 2 Introduction- Understanding the legislation that directly affects talent management
functions will assist in running the staffing process successfully. The complexity lies in many
legislative pieces that need to be understood and applied correctly. Since talent management is
an important dimension of human resources, knowing legislation will help alleviate the financial
risk associated with staffing, the negative publicity that may arise due to bad hiring practices,
and help reduce poor employee morale because of bad hiring decisions that by-pass or ignore
internal placements.

Learning Outcomes
By the end of this module you should be able to:
2.1 Identify legal implications of the employment relationship (employer-employee, employer-
independent contractor and employer- temporary employee).
2.2 Describe how human rights and employment equity legislation affect talent management.
2.3 Apply legal concepts: discrimination, adverse impact, bona fid e occupational requirements
and reasonable accommodation in talent management.
2.4 Define Canada Labour Code including 2 of its 3 parts: Union Relations and Employment
Standards Act

The Employee – Employer Relationship

- The importance of establishing the employee-employer relationship will determine
legislative compliance including requirements for statutory withholdings. Based on the
Chartered Professional Accountants (CPA) requirements there is a Contract of Service
and Contract for Service.
- Contract of Service
o An arrangement where an individual works for a specific or undetermined period
for the employer. Under this contract, an employee receives a salary or other
form of payment for completing the duties and responsibilities outlined in the
job description.
- Contract for service
o A business relationship where one party agrees to perform specific work
stipulated in the contract for another party. This generally requires the
accomplishment of a clearly defined task but does not normally require
contractors to do the work themselves. A person who carries out a contract for
service is considered a contract worker, self-employed, or an independent
contractor.
Canada Revenue Agency (CRA)
The CRA criteria assist in determining whether a Contract of Service (employee) or Contract for
Service (independent contractor) exists.

There are 6 criteria and they are:

1. Level of control payer has over the workers activities
2. Whether the worker or payer provide the tools and equipment
3. Whether the worker can subcontract the work or hire assistance
4. The degree of financial risk worker takes
5. The degree of responsibility for. Investments and management the worker holds
6. The workers opportunity for profit

Four legislative pieces

- Four legislative fragments influence the staffing process and they include constitutional
law, human rights legislation, employment equity, and various labour laws.
- As your progress through the next four pages, the image below will be highlighted to
indicate which legislative section you're learning about.
1. Constitutional law
a. Represents the supreme law in Canada and attempts to balance employee and
employer rights by using multiple legislative pieces. These include the Charter of
Rights and Freedom, human rights legislation, employment equity, employment
standards, etc.
b. Legislation that regulates the employment relationship will fall under federal or
provincial jurisdiction and must conform to the constitution of Canada by the
courts.
c. All legislative components are enforced and monitored by different levels of
government and have a tremendous impact on the staffing process and
therefore the legislation cannot be ignored.
2. Human rights legislation
a. Section 15(1) of the Charter of Human Rights and Freedoms states: “Every
individual is equal before and under the law and has the right to the equal
protection and equal benefit of the law without discrimination and, in particular,
without discrimination based on race, national or ethnic origin, colour, religion,
sex, age or mental or physical disability."
b. Therefore, it creates equal rights and opportunities for all individuals based on
19 prohibited grounds of discrimination.
c. Canada Human Rights Act applies to federally regulated organizations in Canada.
Each province and territory enacted its own human rights laws and codes. For
example, in Ontario, there is the Ontario Human Rights Code.
d. To limit discrimination with staffing functions, human rights laws address
concerns when it comes to:
i. Employment applications,
ii. Job advertisements,
iii. Harassment,
iv. Accessibility requirements for people with disabilities, and
v. Reasonable accommodation, etc.
3. Employment equity
a. This piece of legislation ensures that employment structure barriers will be
eliminated.
b. This ensures that individuals will be given equal opportunity for employment or
promotions within the company based on their skills and abilities. Employment
equity strives to increase the representation of four designate groups: women,
indigenous people, visible minorities, and people with disabilities. This legislation
does not apply to every organization. Regardless, almost every organization
attempts to provide equal employment opportunities, which is noted in the job
advertisement. The employment equity legislation applies to federally regulated
companies and Crown corporations with a minimum of 100 employees (Filsinger,
2010).
c. Privately-owned companies with 100 or more employees are required to have an
equity program in place if a federal government contract exceeds $200,000
(Filsinger, 2010).
 d. Employment equity emphasizes:
i. Hiring and promoting of the designated groups.
ii. Providing reasonable accommodation to correct the under-
representation of designated groups.
iii. Timetables for achieving needed numbers for hiring members of
designated groups.
4. Other labour laws
a. Employment Standards Legislation
b. The Employment Standards Act (ESA) emphasizes minimum terms and
conditions of employment. It falls under provincial legislation. Therefore, each
province has enacted its own ESA. When an employer provides employment
contracts or implements companywide policies of greater benefit then ESA, an
employer is bound by their contract and policy.
c. ESA does not apply to a number of employees who are covered under federal
employment law and individuals who are not employees but contractors.
d. Canada Labour Code (CLC)
i. This covers employees who work for a federally regulated company, such
as banks, airlines, radio and television broadcasting. The CLC consists of
three parts.
1. Part 1 governs Industrial Relations.
2. Part 2 governs Occupational Health and Safety.
3. Part 3 governs Federal Labour Standards.
e. Privacy Legislation
i. Personal Information Protection and Electronic Documents Act (PIPEDA),
is federal legislation that regulates the collection, use, and disclosure of
personal information.
ii. Watch the video, PIPEDA and Your Business to learn about protecting
customer and employee privacy.
Legal concepts
Equal employment opportunity and human rights legislation have become dominant in the eyes
of staffing organizations. Compliance with the various laws and regulations requires
comprehensive and integrated human rights programs that address the issues of
discrimination, bona Fide occupational requirements (BFOR), and reasonable accommodation.

Discrimination
- Discrimination is not acceptable to the staffing process and there are various types of
discrimination.
- Direct Discrimination is the act of treating people differently, negatively, or adversely
and making a distinction between certain individuals or groups based on prohibited
grounds of discrimination.
- Indirect, Adverse Affect or Constructive Discrimination is an act that does not directly
discriminate but results in excluding or restricting a group of persons who are identified
by a prohibited ground.
 o Example- Specific height requirements for fire-fighters often have an adverse
impact on individuals who cannot meet height requirements but can perform
the duties of the job itself.
- Systemic Discrimination is an established practice or procedure that may appear
neutral and apply equally to all employees but in actuality excludes employees in
protected groups from jobs or opportunities.
o Example- Paying female and male employees differently even though their skills,
responsibilities, working conditions, and efforts represent the same value to the
organization.
- Discrimination Based on Association is an act that occurs when individual(s) are being
treated unfavourably because of relationships or associations with a person(s) protected
by a prohibited ground.
o Example- An individual who has not received a job because he/she cares for a
disabled parent and there is the potential to miss work often.

Bona fide occupational requirement

- BFOR is a practice that establishes an essential requirement of the job and is thus not
discriminatory. Therefore, an employee must acquire certain characteristics and have
specific skills to function in the assigned job safely.
o Example- A company may be seeking male models to advertise male clothing.

Reasonable Accommodation
- Accommodation is an employer’s responsibility to eliminate rules, practices, or barriers
that have an adverse impact on individuals with disabilities, their religion, status, etc.
- Duty to Accommodate is a fundamental responsibility for employers to promote
inclusion and if needed modify the rules for individuals negatively affected. Employers
are required to modify those rules until it creates undue hardship for an organization.
Therefore, reasonable accommodation can take many forms, such as modified job
duties, altering a building to be more accessible, finding an alternative job, or varying
requirements to meet the work schedule.
o Example- Modifying the existing entrance to the facility by building a ramp to
allow all individuals equal access to the building.
Summary
Since staffing helps create employment relationships, doing it right requires creating a balance
of power in the employee-employer relationship that is influenced by legislative requirements.
Every facet of the staffing function can be affected by the legislation. When recruiting,
constitutional and employment laws are essential to the process. When selecting, again
constitutional, employment and labour laws play an indispensable role that cannot be ignored.
It is not only the responsibility of the human resources department to ensure every piece of
legislation is properly applied and executed, but it is also the responsibility of other parties
involved in hiring decisions to have a strong understanding of the legislation to conduct staffing
functions in compliance with legislative requirements.
WEEK 2
Talent Management Measurements
Week 3 Introduction
The importance of measurements in the talent management process signifies a scientific
approach to the effective acquisition of qualified staff. It denotes the connection between
cause and event, such as the occurrence of baby boomers’ retiring and potentially causing
significant labour shortages. Therefore, the implementation of succession planning should meet
those challenges and minimize any last-minute hiring. Also, the utilization of reliable and valid
selection methods will solidify the idea of approaching the process correctly by applying ethical
views that follow professional standards and are defensible in court. Measurements, such as
central tendency and standard deviations and correlation coefficients are frequently used in the
staffing process. These are important for hiring the best candidates based on validity and
reliability of the interview process, specifically utilized in testing and predicting employees’
performance based on test results. Likewise, it ensures that applicants are evaluated in a fair
and unbiased manner.
Learning Outcomes
By the end of this module you should be able to:
1. Identify reliability and validity of measurements used in the talent management process.
2. Explain central tendency and variability.
3. Discuss correlation coefficient.
4. Conduct Empirical Validation and Adverse Impact Analysis.
5. Explain the collection of assessment data.

IMPLEMENTATION OF MEASURMENTS
Since the acquisition of talent management entails complex processes that generally
encompass;
 direction,
 creation,
 coordination,
 analysis, and
 crafting the final decision in hiring.
The implementation of measurements represents the essence of the process.
There are several levels of measurement, for more information select each of the titles.
Nominal
- It refers to naming and identifying data.
o Example: How many females and males applied for a Human Resources
Generalist job? 3 Females and 2 males.
Ordinal
- This level of measurement refers to numbers that stand in relation to each other in a
ranked fashion.
o Example: Five job applicants may be ranked and ordered from 1 being the
highest to 5 being the lowest based on overall qualifications for the job.
Interval
- This measurement gauges data alongside and at equal distance.
 o Example: If an interval scale is used to rank order five candidates, the difference
in qualifications between those ranked 1 and 2 might be slight compared with
the difference between those ranked 4 and 5.
Ratio
- It refers to quantitative relations between two amounts.
o Example: What is the ratio of males to females who applied for a Human
Resources Generalist position? It is 2 to 3, or, 1:1.5.

TYPES OF DATA: NORMINAL ORDINAL INTERVAL/RATIO

THE FOUNDATION OF TALENT MANGMENT MEASURES: RELIABILITY AND VALIDITY
The staffing process should be created on a solid imperial platform. Human Resources
professionals must be able to demonstrate the reliability and validity of their selection process.
Reliability
- Reliability refers to consistency in the measurement process. If the process is repeated,
the information collected should provide roughly the same data. However, certain
errors may occur during the process. If those errors are manifested in predictable
behaviour, then those errors should not affect the accuracy of measurements but
should affect the interpretation of measurements.
Temporary Individual Characteristics
- Factors such as health, motivation, emotional state can temporarily cloud the judgment
and create errors when it comes to a measurement process.
Lack of Standardization
- Factors such as health, motivation, emotional state can temporarily cloud the judgment
and create errors when it comes to a measurement process. If there is no established
set of standardized measurements, it opens the opportunity to change circumstances by
applying different standards. Taking a chance by ignoring specific procedures and
implementing your own process for the occasion.
ChancE
- Taking a chance by ignoring specific procedures and implementing your own process for
the occasion.
(Catano, et al., 2016)

Validity
- Validity measures what is intended to be evaluated. If reliability refers to uniformity
among the scores, accuracy goes beyond this to access the extent to which the scores
truly mirror the characteristics being measured.
There are several approaches to validity.
 Construct Validity
 Content Validity
 Predictive Validity
 Predictive Validity
Concurrent Validity- This approach tests a group of employees and later correlate their
performance and test scores.
- Example- Test measures employee performance. (Catan, et al., 2017)
Content Validity- There is no criterion measure present. Therefore, it relies on judgment
validation.
- Example- Test questions match class material.
Predictive Validity- This approach tests a group of applicants and later correlate their
performance and test scores.
- Example- How well the test predicts some future behaviour.

Concurrent Validity- This approach tests a group of employees and later correlate their
performance and test scores.
- Example- Test measures employee performance.

Several factors can affect the validity and therefore pose a mistake in the accuracy of predicting
the validity. For example, cognitive ability as a predictor for specific job performance in an
organization.
Range Restriction- This refers to the size of the groups being measured. Validity coefficients
obtained from a homogenous subgroup of a large group will be smaller than ones gathered
from the large group.
Measurement Error- Since errors do occur, validity coefficients obtained from a predictor with
reliable measures will be higher than one obtained from a predictor with less than reliable
measures.
Sampling Error- An error sampling refers to an estimate that was taken from a sample of one
group and then compared to the entire group.

FAIRNESS AND BIAS

When judgment is used to conclude a process and determine the final decision, it usually raises
the question about what was used to finalize the process. Utilizing empirical methods will
create a level of fairness and minimize any potential bias. It underlines the importance that
every individual who takes a test should be assessed equitably. Also, a lack of consistency, not
exercising fairness and displaying bias is one of the major factors contributing to the occurrence
of discrimination in staffing. It is manifested in two ways: one on how it is measured and the
other is on how it is evaluated or scored.
Staffing Process Supports Fairness Bias

The analytical approach utilized in the staffing process. ✓  

Intuitive approach utilized in the staffing process.   ✓

Hiring decision based on rational approach will create. ✓  

Hiring decision based on “gut-feeling” approach will   ✓

create.
 Staffing Process Supports Fairness Bias

Hiring decision that uses subjective evaluation or process   ✓

will create.

Hiring decision that uses empirical evaluation or process ✓  

will create.

IMPORTANCE AND USE OF MEASURES IN THE STAFFING PROCESS: PART 1 OF 2

- If a Human Resources Manager has interviewed several applicants for one job opening,
it is possible to directly compare the applicants based on their assigned scores gathered
from several predictors. By employing statistical measures, it is also possible to rank
them based on their scores and additionally determine the range. Furthermore, if there
is an opportunity to know the average score (mean) for candidates, it can be easily
calculated. In some cases, this will depend on the number of interviewed candidates,
where it is possible to compute the median and mode as well. Knowledge and use of
central tendency are inevitable applications in the staffing process.
Central Tendency Types Examples with Calculations

How To Calculate The Mean

Definition
- The mean is often referred to as the average. The number in a set needs to be added
and divided with a number of occurrences.

Question 1
Find the mean (average) for the following set of numbers:
25, 13, 58, 69, 27, 35
Answer 1
- To find the average, numbers in a set they need to be added and divided with the
number of occurrences.
- 25+13+58+69+27+35 ÷ 6 = 38

How To Calculate Mode (Modal Value)

Definition- A value/number that occurs most often is the mode.
Question 1
Find the mode in the following case:
3, 5, 7, 4, 2, 7, 9, 5, 8, 7
Question 2
Find the mode in the following case:
2, 5, 6, 5, 6, 7, 8
Answer 1
To find the mode, the best approach is to put the numbers in order, as it makes it easier to
detect the mode.
2, 3, 4, 5, 5, 7, 7, 7, 8, 9
The mode is 7.

Answer 2
2, 5, 5, 6, 6, 7, 8
There are 2 modes: 5 and 6.

How To Calculate The Median

Definition- The number in the middle of the set is known as the median.

Question 1
Find the mode in the following case:
9, 12, 8, 14, 13, 10, 11

Question 2
Find median if there is a set with an even number
9, 12, 8, 13, 10, 11

Answer 1
If we arrange numbers in order, we can say that the median is 11.
8, 9, 10, 11, 12, 13, 14

Answer 2
In this case, the median is the average of two numbers in the middle.
8, 9, 10, 11, 12, 13

(10 + 11) ÷ 2 = 10.5

Standard Deviation
Utilizing another statistical approach, standard deviation, will help determine the average score
(mean). For example, if the mean was 65 and the size of the standard deviation was 5, most
applicant scores would normally fall between 60 and 70. Scores greater than 80 would be
exceptional and would indicate that the applicant receives a very high rating compared with the
average applicant. Therefore, standard deviation compares an individual’s raw scores to the
mean, to determine if their scores are above, at, or below the mean.
How to Calculate Standard Deviation.
Case
Twenty applicants completed a work-related test, as part of the selection process. Their scores
are as follows:
A = 10
B = 12
C = 14
D = 14
E = 15
F = 15
G = 15
H = 15
I = 15
J = 17
K = 17
L = 17
M = 18
N = 18
O = 19
P = 19
Q = 19
R = 22
S = 23
T = 24
Calculate the standard deviation
Below is the formula to calculate Standard Deviation (SD).
s=1n−1∑i=1N(xi−x¯)2
Formula
Breakdown  

s Standard deviation.

∑ Sum of.

xi Each value in the data set.

x¯ The mean of xi.

N Number of applicants in the data set.

= square root.

(xi−x¯)2 The value of x is squared.

Example (8-2)2
= (6)2 which means 6x6
= 36
Step 1. Calculate the mean (average).
Step 2. For each number subtract the mean and then square the result.
Step 3. Add up all of the squared results.
Step 4. Divide the sum by one less than the number of data points (n-1). This will give you the
sample variance.
Step 5. Take the square root of this value to obtain the standard deviation.
Step 1
μ = (10 + 12 + 14 + 14 + 15 + 15 + 15 + 15 + 15 + 17 + 17 + 17 + 18 + 18 + 19 + 19 + 19 + 22 + 23 +
24) ÷ 20 = 16.9
Step 2
(10 – 16.9)2 = (-6.9)2 = 47.61
(12 – 16.9)2 = (-4.9)2 = 24.01
(14 – 16.9)2 = (-2.9)2 = 8.41
(14 – 16.9)2 = (-2.9)2 = 8.41
(15 – 16.9)2 = (-1.9)2 = 3.61
(15 – 16.9)2 = (-1.9)2 = 3.61
(15 – 16.9)2 = (-1.9)2 = 3.61
(15 – 16.9)2 = (-1.9)2 = 3.61
(15 – 16.9)2 = (-1.9)2 = 3.61
(17 – 16.9)2 = (0.1)2 = 0.01
(17 – 16.9)2 = (0.1)2 = 0.01
(17 – 16.9)2 = (0.1)2 = 0.01
(18 – 16.9)2 = (1.1)2 = 1.21
(18 – 16.9)2 = (1.1)2 = 1.21
(19 – 16.9)2 = (2.1)2 = 4.41
(19 – 16.9)2 = (2.1)2 = 4.41
(19 – 16.9)2 = (2.1)2 = 4.41
(22 – 16.9)2 = (5.1)2 = 26.01
(23 – 16.9)2 = (6.1)2 = 37.21
(24 – 16.9)2 = (7.1)2 = 50.41
Step 3
47.61 + 24.01 + 8.41 + 8.41 + 3.61 + 3.61 + 3.61 + 3.61 + 3.61 + 0.01 + 0.01 + 0.01 + 1.21 + 1.21 +
4.41 + 4.41 + 4.41 + 26.01 + 37.21 + 50.41 = 235.80
Step 4
235.80 / 19 = 12.41
Step 5
√12.41 = 3.52
SD = 3.52
Calculating the Standard Score, or Z
We could compare the individual scores to the mean to see if the candidate scored above, at or
below the mean. For that, we need to utilize the formula for calculation of the standard score,
or Z.
Z = X (individual test score) - μ (mean) ÷ SD
For example, if we take the candidate Q score of 19 and apply it to the above formula
Z = (19 – 16.9) ÷ 3.52
Z = 0.59
The applicant Q scored about 0.59 standard deviations above the mean.
PART 2 OF 2
Correlation Coefficient
The application of the correlation coefficient will signal the relationship between two variables.
In the staffing process, to establish a correlation, there must be two scores for each applicant.
For example, one for cognitive ability and the other for job performance. A correlation
coefficient is expressed as “r”. “r” can range for -1.0 to +1.0. If “r” is closer to – 1 it means that
relations between two variables are nonexistent. In our example of cognitive ability and job
performance, it will signal that there is no relationship between test and performance.
Therefore, a high-test score will not predict that the applicant is going to be an excellent
performer. On the other hand, if “r” is closer to +1, it indicates that the relationship between
the two variables is very strong.
How to Calculate the Correlation Coefficient
Formula to Calculate Correlation Coefficient
r=n(∑xy)−(∑x)(∑y)[n∑x2−(∑x)2][n∑y2−(∑y)2]
Case
There are two sets of scores for 20 people. The first is the set of test scores for those 20
individuals. The second set of scores is an overall performance rating (on a 1-5 rating scale) for
the same people. Calculate the correlation coefficient to verify the relationship between the
two variables.
Performance
Person Test Score X Rating (Y)

A 10 2

B 12 1

C 14 2

D 14 1

E 15 3

F 15 4

G 15 3

H 15 4

I 15 4

J 17 3
 Performance
Person Test Score X Rating (Y)

K 17 4

L 17 3

M 18 2

N 18 4

O 19 3

P 19 3

Q 19 5

R 22 3

S 23 4

T 24 5
Answer/Calculation
Test
Score Performance
Person X Rating (Y) X2 Y2 XY

A 10 2 100 4 20

B 12 1 144 1 12

C 14 2 196 4 28

D 14 1 196 1 14

E 15 3 225 9 45

F 15 4 225 16 60

G 15 3 225 9 45
 Test
Score Performance
Person X Rating (Y) X2 Y2 XY

H 15 4 225 16 60

I 15 4 225 16 60

J 17 3 289 9 51

K 17 4 289 16 68

L 17 3 289 9 51

M 18 2 324 4 36

N 18 4 324 16 72

O 19 3 361 9 57

P 19 3 361 9 57

Q 19 5 361 25 95

R 22 3 484 9 66

S 23 4 529 16 92

T 24 5 576 25 120

SUM ΣX = ΣY = 63 ΣX2 = ΣY2 = ΣXY =

338 5948 223 1109

N 20        

mean 16.9        
When the above amounts are inserted into the correlation coefficient formula, r = 0.58, which
denotes that there is a correlation between the two sets of scores.
(Heneman, et al., 2010)

Select Next to learn how using these statistical approaches help in many ways, such as:
Who to hire?- Based on the calculated scores of several predicators.
What is the average score for applicants being interviewed?- Too low or too high.
What is the standard deviation?
Do the relations between two variables in the staffing show a correlation or not?
Adverse Impact
Adverse impact specifies that if a selection rate for protected groups is lower than that for the
relevant comparison group, it shows that an adverse impact exists, and the company needs to
correct it. It is also known as a 4/5th or 80% rule. For example, if women are hired for the same
position as men at a rate lower than 80%, this will be evidence of adverse impact. However, if
that percentage is above 80, then there will not be evidence of adverse impact.
Example
# of Selection Impact
  Applicants Hires Ratio Ratio

Males 60 40 67%
(40/60) 64%
(43/67)
Females 35 15 43%
(15/35)

In this case, it shows that the impact ratio is 64% and therefore, the result suggests that there is
an adverse impact on women since it is less than 80% (4/5).

Summary - Measurements contribute an important and significant component in the

acquisition of talents. It can help improve the effectiveness of the staffing process based on the
use of a science-based selection approach and not a practice-based selection approach. The
quality of measures entails concerns of reliability and validity and therefore both must be
established empirically, which require the utilization of statistical approaches. Since the entire
staffing process must be defensible, the application of measurements is essential to an
organization’s legal context

Week 4: talent management and job performance

Talent Management and Job Performance

Week 5 Introduction
As mentioned in the previous week, job analysis “represents a cornerstone for the human
resources profession.” Since it influences many dimensions of human resources, it is also linked
to job performance. To successfully measure employees’ performance against job descriptions
and established standards, a well-crafted job performance appraisal system helps detect
various performance behaviours. Furthermore, evaluating performance is significant for
validating the selection process because it uses specific knowledge, skills, abilities, and other
characteristics (KSAO) for selecting employees. Identifying different levels of employees’
performance assists in building not only a strongly based succession planning system but also in
creating a list of different competencies. These can be quickly utilized upon the sudden
departure of an employee. Another valuable attribute of job performance during internal
placements is that it can ensure the initial person/job match, which is exceptionally important.

Learning Outcomes
By the end of this module you should be able to:

4.6 Identify different types of work performance.

4.7 Define reliability and validity in the context of the staffing process.
4.8 Explain job performance criteria.
4.9 Evaluate the effectiveness of performance appraisal methods.

Job performance and criteria

The main objective of an employee’s job performance is to achieve goals set by the
organization. Job performance, as observable employees' behaviour, needs to include a
measurement component that identifies various levels of performance, from unacceptable to
outstanding. The level of employees’ performance will vary in an organization and will be based
on various factors, such as:
- knowledge,
- skills gained,
- ability to perform,
- self-confidence to complete the task,
- support received, and
- employees’ characteristics.
The creation of performance criteria can be somewhat daunting and challenging because it
needs to be aligned with the organizations’ core business and its values. Regardless, criteria
should be:

1.relevant, 2. reliable, 3. practical

Relevant- The criterion measures employees' behaviour and competencies pertinent to job
performance and linked to the job description.

Reliable- This criterion, to measure consistency, needs to monitor for deficiency and
contamination criteria.

Criterion Deficiency- Recognizes that within job behaviour there are competencies that are not
measured by the criterion although they should be measured.

Criterion Contamination- This signifies that within job behaviour there are competencies that
are measured by the criterion that should not be measured as they do not pertain to the
assigned job.
Practical- The criterion measures reasonable and suitable behaviour that is acceptable to the
organizational decision-maker.

Concepts of job performance

- As discussed so far, job performance is a multidimensional structure that includes,
employee behaviour, performance criteria, and some type of measuring tools.
Behaviours can be analyzed from four different perspectives, such as:
- The labour relations legislation practices
- Task Behaviour
o Duties that are part of the job description:
o job-specific behaviour,
o communication,
o administration, and
o planning.
o Previous
- Contextual Behaviour- The content is - Activities that are not part of the job description
but are essential to the organization are:
o volunteering,
o providing extra help at work,
o helping employees, and
o endorsing organizational objectives.
o Previous
- Counterproductive Behaviour- Voluntary/negative behaviour that hinders an
organization's existence are:
o theft,
o presenteeism,
o sabotage, and
o property damage.
o Previous
- Adaptive Work Behaviour- Behaviour is necessary for various changes that occur in an
organization such as:
o learning new technology,
o coping with work stress, and
o dealing with a challenging situation at work.
- The four behaviours constitute the importance of recruitment and selection because
they highlight positive/desired and negative behaviour that should be eliminated. They
guide not only the internal staffing process but the external process as well.

Campbells model of job performance e

- Job-Specific Behaviour: Performing technical tasks as part of job requirements.
- Non-job Specific Behaviour: Performing tasks that are not specific to any job.
- Communication Proficiency: Independent verbal and oral expression.
 - Demonstrating Effort: Commitment to all job tasks at the same intensity and level of
adversity.
- Maintaining Personal Discipline: Avoidance of negative behaviour and emphasis on
productive/positive behaviour.
- Peer and Team Performance: Level of support provided to coworkers by helping them
resolve issues and challenges.
- Supervision/Leadership: Behaviour that influences the performance of subordinates.
- Management/Administration: Other performance behaviour that does not decrease
and it is different from supervisor/leadership behaviour.

Measuring performance
- Predicting job-performance that is measured by job-related criteria signals the efficacy
of the staffing process. If we follow the premise that excellent performers contribute to
the wealth and reputation of organizations, then organizations need to create an
effective performance appraisal system that identifies outstanding employees.
Therefore, there is a benefit to create an effective performance evaluation system
because it would help to differentiate between poor and strong performers. This will
serve as a tool to help update the organization’s skills inventory and contribute to the
effectiveness of succession human resources planning.
- Performance Appraisal Methods
o There are various methods that organizations can utilize to measure employees’
performance. Which methods companies will use, depending on the system’s
effectiveness for ranking performers.
-  Ranking
o This method arranges employees in order of their perceived overall performance
level.
-  Graphic Rating Scale (GRS)
o A method that lists performance levels horizontally on the scale from
unsatisfactory to outstanding and performance standards (knowledge,
dependability, teamwork, etc.) vertically. Managers will circle an appropriate
level of performance with a corresponding performance standard. The assigned
values will be totalled to indicate the final level of performance.
-  Behavioural Anchored Rating Scale (BARS)
o The BARS method is similar to the GRS method. BARS method is more detailed in
explaining job behaviours. It uses empirically derived critical incident job
behaviours to anchor the values placed on a rating scale.
-  Behavioural Observation Scale (BOS)
o This method measures the frequency of observed behaviour. Once the list of
behaviours that represent different job dimensions is constructed, supervisors
are asked to monitor the frequency with which employees exhibit each
behaviour over a standardized time period.
-  Critical Incident
 o This method requires raters (managers) to observe the job behaviour of an
employee and to record those behaviours displayed by the worker that is critical
to effective or ineffective performance.
Summary
- Organizations’ performance appraisals and their criteria should be consciously designed
to match an organization’s goals and objectives due to the importance of identifying
performance behaviours. Desired contextual and task behaviour manifested in
employees’ performance will pave the road to the effective execution of assigned tasks
while counterproductive behaviour will signal negative voluntary behaviour that harms
organizations. Utilization of various performance appraisals will help categorize levels of
employees’ performance from bad/unsatisfactory to outstanding. From the staffing
process, this action is needed because it supports the platform not just for succession
planning but also helps with the updating of skills inventory.

Week 5: recruitment
Recruitment
Week 6 Introduction
Recruitment starts the staffing process with planning activities to achieve two main objectives.
One objective is to fulfill the job vacancy due to an employee departure (sudden or planned),
and another one is to scan the environment for potential talents that an organization would like
to hire regardless if there is a job opening or not. Therefore, the significance of the process is to
help identify current and future labour needs. In this case, properly designed job descriptions
will be utilized to create job advertisements, because information about job requirements,
skills, working conditions, and other attributes, should be listed in the job descriptions. In order
to generate a pool of qualified applicants, organizations will have the opportunity to choose
among numerous recruiting methods.
Learning Outcomes
By the end of this module you should be able to:
1. Discuss how external influences and organizational issues impact strategic workforce
planning.
2. Develop a talent acquisition strategy to identify qualified job applicants.
3. Explain external and internal methods used to attract qualified job applicants.
4. Explain criteria used in assessing recruitment methods.
5. Identify organizational issues when focusing on filling positions with employees already
employed in organization.
6. Explain administrative issues: requisitions, coordination, budget and recruitment guide
for recruitment process.

Factors affecting recruitment process

The recruitment process is affected by external and internal factors.
External Factors
 Economic Conditions
 Labour Market
 The Legal Environment
  Political Environment
 Competition
 Union Labour
Internal Factors
 Organization's Business Strategy
 Human Resources Planning
External Factors
Economic Conditions- Overall, economic conditions have an affect on job creations and growth
in a positive and negative way. If the economic climate in a region is flourishing, it means there
are job opportunities and therefore hiring is on the rise creating prospects for unemployment
to decrease. On the other hand, economic slowdown signals fewer jobs, which unfortunately
leads to hiring freeze or job losses.
Labour Market- The labour market represents a playing field between individuals who are
looking for new job opportunities and for employers who are seeking to hire new talents. First,
supply and demand are economic activities that can alter the hiring pattern.
Example- If the supply of labour is low and the demand for labour is high, hiring will pose new
challenges for employers because the availability of skilled labour will be diminished. Therefore,
it would be challenging to fulfill the demand for labour. On the other hand, the supply of labour
is high and demand for labour is low, it would suggest that the recruitment and selection
process will not be as challenging as in the previous scenario due to availability of skilled labour.
The Legal Environment- Government regulations can dictate the staffing process. Several legal
practices, as discussed in previous weeks such as employment equity, human rights, etc., have a
tremendous bearing on the hiring processes.
The Political Environment
Another factor that impacts staffing.
Example- The decision to increase the minimum wage in Ontario from $11.60 to $14.00, has
created higher labour costs to businesses. This consequently created an immediate reduction in
hiring, cutting employees hours, reducing benefits or in certain cases increased the demand for
skilled labour due to the wage increase (Mahboubi, 2018).
Competition- It can hinder an organization’s ability to hire and retain skilled labour due to its
inability to match the competitor’s compensation and benefits.
Labour Union- They are legal entities that have a dominant influence on many human resources
functions, including staffing practices, outlined in a collective agreement.
(Heneman, et al., 2010; Mahboubi, 2018)

Internal Factors
Organizational Strategy- Aligning staffing processes with organizational strategy puts the
highlights on workforce planning. Conducting a talent assessment of employees and matching
them with competencies required will determine if there is a need to hire more talents
(employees). Performing a labour market analysis will help to determine if those talents are
easily available or not. If the gap between current skills and skills needed is hard to close, then
an organization may consider building their own talents through employee development
programs. If organizations use a low-cost strategy in which case exceptional skills are not
required, the workforce planning for those organizations is simpler with less investment of time
and money.
Human Resources Planning- A planned strategy whose goal is to support the attainment of the
organizational strategy. The purpose of HR planning is to capitalize on the needed
competencies of the organization to add value to organizational effectiveness. Successful
application of HR planning and performance management assists in creating a pool of skills that
organizations can use in the future for various movements such as promotions, transfers,
lateral progress, etc. Any changes in the organizational and/or business strategy, merger and
acquisitions, company restructuring, etc., trigger a need to re-evaluate staffing needs and
determine if a given placement can be fulfilled internally.

Attracting job applicants

- Searching for remarkable applicants can be a daunting task. As much as employers are
evaluating future candidates, the same candidates are evaluating their potential
employers as well. The ideal outcome would be to find a perfect match.
- Image Advertising
o It is not always about the content of the job posting or which source
organizations use to generate a lot of recruits. It is also about image advertising
designed to highlight the organization’s profiles in a positive and appealing
manner.
- Reputable companies are like magnets. Job applicants are attracted to those companies
because they treat their employees fairly and provide excellent working conditions,
desirable compensation packages, and benefits such as health and pension.
- Self-Selecting Out
o The goal of both parties is to find a match: organization to find qualified
employees and employees being hired by a company of their choice. However, it
is not always that straightforward. During the process of recruitment, candidates
may decide they no longer want to be a member of a company for various
reasons discovered during the process. Therefore, they can select themselves
out and end the process. A company’s characteristics such as location, size, and
industry type can be determining factors for employees when choosing a future
employer.
- The Person to Organization Fit
o Finding the match, such as person to job fit is as important as a person to
organization fit. If for some reason, that match is omitted, it can lead to the
employer/employee relationship being severed due to job or organization
dissatisfaction developing.
- The Orgaznaitional Context
o Finding the match, such as person to job fit is as important as a person to
organization fit. If for some reason, that match is omitted, it can lead to the
employer/employee relationship being severed due to job or organization
dissatisfaction developing.

Recruitment sources
Employers have many opportunities to utilize various sources to attract unique candidates and
at times, don’t have to go far to locate exceptional employees. These employees could be
working in the organization already. Therefore, gathering the necessary information to create a
pool of skills where organizations can internally place candidates has proven to be a less
expensive, and more effective source. This promotes professional growth within the
organization. However, if skills cannot be located internally, the other option is to use one of
many external sources to fulfill the need.
External Sources
1. Job Advertisements- Companies have the option of creating job advertisements and posting
them in various newspapers, trade journals, public displays, ect., to attract candidates.
Currently, the success of using newspaper job advertisements is being debated due to fewer
people reading newspapers.
2. Walk-Ins- One of the oldest methods for hiring candidates are individuals who walk into the
organization searching for employment.
3. Online Recruiting- Over the past several years, recruiters have been using the internet to
search for job candidates. Corporations use company websites to provide a platform for
interested candidates to submit their cover letters and resumes. Another option is using online
websites such as Monster, Workopolis, and Indeed. These provide access to employers
searching for exceptional candidates and job seekers the opportunity to find organizations that
match their criteria.
4. Temporary Agencies- They will contact, screen, and present applicants to employers for
additional fees.
5. Executive Search Firms- Companies searching for higher-level professional positions may
utilize executive search firms to help locate these professionals. Their services will be paid as a
fee or as a retainer.
6. Professional Associations- Many professional organizations have a placement service for their
members to help organizations attract applicants with specialized skills or professional
credentials.
7. Colleges and Universities- Educational institutions serve as another external source that helps
organizations to match their hiring needs with graduating students’ interests.
8. Job fairs- Occasionally, businesses will hold job/career fairs to attract job applicants. During
this process, organizations have the opportunity to directly meet with future candidates.
Applicants also have the chance to learn more about the organizations of their choice.
9. Social Networking- The prospect of capturing the attention of many companies in their
search for talents is enriched with social networking. Some examples include LinkedIn,
Professional Associations, Alignable, Facebook, etc.
10. Service Canada- Service Canada Job Bank is an employment agency that tries to match
employee’s needs to job requirements posted by an organization. There are no fees attached to
this service.

Internal Sources
Skill and Management Inventories
This source includes information that allows the organization to assess the workplace
competencies and determine whether an organization can meet the demand for employees’
replacement or movement within the company.
Succession and Replacement Analysis
It utilizes various replacement records and tables to identify specific replacements for key jobs
in the organization. It underlines promotions and transfers of employees within the company.
The Markov Model
It is known by employing historical patterns of employees’ movement between jobs in the
organization that gives the opportunity to check for any transitional probabilities for promotion,
transfers. This model can obtain an accurate number of open positions throughout the
organization and therefore track career progression of its employees.
Movement Analysis
It gives companies a good insight on the number of open positions in various departments
including company’s locations, that needs to be filled and the number of employees who will be
moving within organization to fill these openings.

Guide for effective recruitment process

A well-developed recruitment process will promote fairness and consistency, attract excellent
candidates, improve productivity and therefore increase the organization’s profitability and
performance. To accomplish all this, a guide to an effective recruitment process should be
created that includes:
1. Identification of hiring needs. 2. Completion of a recruitment request form for
approval by supervisors and hiring managers. 3. If possible, identify candidates
within the company, if not, utilize the most effective external recruitment source.
4. Generate qualified job applicants in order to start the selection process.
Summary
- The recruitment process aims to attract and identify qualified applicants. Since it is
influenced by external and internal forces, organizations need to be proactive and
organize recruitment planning activities to identify whether to source candidates
externally or internally. Having the planning process in place allows organizations to
confirm if they have the skills needed to support the internal hiring process or not. Also,
monitoring the labour market will indicate the availability of certain skills outside of
organizations. Human resources professionals must recognize the effectiveness of
recruiting methods and select ones that support the organization's needs and its
recruitment strategy. All this indicates that the recruitment process sets the stage for the
rest of the staffing process.

Week 6: screening
Screening
Week 7 Introduction
Once a pool of qualified candidates has been generated, applicant screening starts and therefore
marks the second step in the staffing process. Out of many applications received, a handful of
qualified candidates will participate in the screening process. A carefully designed screening
process will include several predictors to assess candidates KSAOs (Knowledge, Skills, Abilities
and Other Characteristics) required to execute the job. One candidate, the finalist with the
maximum scores on all predictors who also meets the minimum job requirements, will receive an
official employment letter.

Learning Outcomes
By the end of this module you should be able to:
1. Describe external and internal assessment methods used to evaluate job applicants and
their impact on selection process.

Applicant screening
- Since the goal of the staffing process is to find exceptional candidates, the entire process
starts with generating a pool of applicants. Recruiters often use the Application Tracking
System (ATS) to filter information and search for applicants’ key skills,
accomplishments, and job titles. This includes any information relevant to the position
they are applying for by scanning applicants’ resumes, cover letters, and application
forms. This action will eliminate candidates who do not possess desired attributes and
help narrow the search. The pool can then be considerably reduced to a few select
candidates that are qualified for the targeted position(s) and can be considered for
additional screening evaluation.
- Once candidates pass the initial assessment, the chosen individuals will be subject to
more extensive evaluations to narrow the number of applicants for the interview process
even further. This includes screening interviews, various tests to measure applicants’
abilities to perform assigned tasks, references, and background checks. Consequently,
several predictors will be utilized to help finalize the hiring decision.
- These sequential assessment methods will apply the legislation components that avoid
discrimination, promotes employment equity and protects candidates’ personal
information.

Screening method
- If we look at the number of individuals who applied for a job and the number of
applicants hired, we can use the statistical measures to indicate the selection ratio (SR).
Example
A company hired 3 applicants out of 150 applications received. Calculate the SR.
SR = 3/150
SR = 0.02
- The process indicates that the utilization of screening methods helps minimize the
number of applicants selected for the job versus the number of applications received for
the job.

Summary
- Application of various screening methods has been an excellent tool used to identify
qualified candidates that possess the required qualifications, skills, capabilities, and
experience to execute assigned tasks. The initial screening methods such as job
applications, cover letters, resumes, references, and background checks differ in their
effectiveness. However, they can, if successfully developed, predict future behaviour
based on applicants’ past professional behaviour, education, and skills.
Assignment 1:Discussion 3 due Friday June 25

Week 8: Interview Process

Interview Process
Week 9 Introduction
After a careful initial screening, a small number of candidates will be chosen to move to the next
step of the staffing process, the screening interviews. The screening interviews represent the first
personal contact between future employers and applicants. It is a stage for both parties to
showcase their best professional and personal attributes and answer each other’s questions to
determine the adequate fit: person-job and person-organization fit. The hiring committee will
have the opportunity to ask questions about the information presented in the applicants’ resumes
to get more detailed information when assessing KSAOs, requirements for the job.
Learning Outcomes
By the end of this module you should be able to:
1. Conduct a screening interview.
2. Conduct a structured interview.
3. Evaluate the effectiveness of various interviewing techniques.

SCREENING INTERVIEWS
Before conducting the first face-to-face meetings/interviews, there are a few short initial
interviews that could take place such as short 5-minute phone interviews. If a number of
qualified candidates applied for a job, inviting them all to face-to-face interviews would be a
difficult and expensive undertaking. Therefore, asking short questions with “yes” and “no”
answers may help reduce the number of candidates.
For example, a candidate may appear qualified for the Human Resources Management position
with experience in a unionized workplace. However, it does not mean they participated in the
arbitration process. Asking them a specific question about their participation in the arbitration
process will eliminate their candidacy for the position of a Human Resources Manager if they do
not have that particular experience.
Another short initial interview that is cost-effective is a video interview. If candidates represent a
great match this can be effectively initialized through video chat by asking basic questions to
determine the next steps.
Computer-based is another form of short initial screening method that serves the same purpose.
Questions used during interviews in the screening process, as the ones described next, should not
be open-ended questions that can be answered with a “yes” or “no” response. The questions
should be constructed to support longer and more elaborate answers so that employers can draw
conclusions and assign scoring points, based on applicants’ answers.
Example of Interview Questions
Samantha is concerned her interview questions are not in-depth enough for the administrative
assistant interviews and asks her colleague Rob for feedback.

Hello Rob, how is your day going?

Great! I’m working on the new job postings. How are you?
It’s going well and been a busy week so far. Can I ask for your feedback on these questions for
an upcoming interview? I’m concerned they are not in-depth enough.
Certainly.

What are your thoughts on this question? Can you work under pressure?
This is an open-ended question, where the answer will be “Yes” or “No”. This isn’t a valid
question since we will not learn much about how a candidate works under pressure.

What about this instead.

Tell me about a time you helped an irate customer, who did not take “no” for an answer and you
were the only one on duty to help the customer and resolve the issue.
This question is great! The question calls for a lengthier answer and not just a simple “yes” or
“no” response from the candidate. We will learn about the candidate's ability to work under
pressure.

This is great feedback, thank you.

Your welcome!

TYPES OF INTERVIEWS PART 1

Various types of interview strategies are used in organizations to determine the best candidate
such as structured and unstructured interviews, panel or serial interviews, behavioural interviews,
and situational interviews.
On this page, we will discuss structured and unstructured interviews and panel or serial
interviews. The next page, part 2, will discuss behavioural interviews and situational interviews.
Structured and Unstructured Interviews
Structured interviews contain a predetermined set of questions that are focused on job specifics
such as skills, abilities and performance behaviour, that an employer requires for in a candidate.
Each candidate is asked the same set of questions. This yields fairness and consistency to
eliminate the potential for inaccurate evaluation of candidates and reduces the possible incidence
of biased interviewing.
Unstructured interviews are the opposite of structured interviews. These do not contain the
same type of questions. There are no prearranged questions for the interview and issues are
discussed as they arise. The perception is that time was not spent on the thoughtful interview
preparation. This type of interview leaves the door open for various types of biases and
erroneous candidate evaluation.
 Video: Structured Versus Unstructured Interviews (3:23)

Panel or Serial Interviews

Instead of having several interviews at different times and with different members of the
interview committee, a panel is formed of those same interviewers. During the interview process,
each member will pose questions to the interviewee. It may appear a bit intimidating for the
interviewee, but this type of interview reduces the extra time and cost of having a sequence of
separate interviews (serial interviews). It may also be less daunting for the applicant but may
seem a bit lengthier compared to a one-on-one regular interview.
PART 2
The Behavioural Interviews
Behavioural interviews are created to assess applicants' past job behaviour. The idea is that past
behaviour could predict future behaviour by analyzing answers applicants provide to the
behavioural type of questions.
Example:Tell me about the time you helped an upset customer.
 Video: How to Answer "Behaviour-Based Interview Questions" - Interview Tip (6:19)

The Situational Interviews

Like behavioural interviews, situational interviews are created to assess applicants' job behaviour
in certain situations. A hypothetical situation is described, and applicants are asked what they
would do. They can explain in detail their approach to the situation or what they did in the past
and how they resolved the issue/challenge.
Example
“To your surprise and dismay, you find that more than half the students in your class have failed
the first midterm of your course. You had thought of this as a good class and were expecting
them to do well. What do you do now?” (Das, 2007).

CREATING SCORING GUIDE

There is a debate on how useful screening interviews are in determining a perfect match between
employers and employees (Heneman, 2010). First, it takes time to design interview questions as
well as valid and reliable scoring keys, from the best and ideal answer to the least ideal answer.
However, well-structured interviews with set guidelines will certainly show from the employers’
perspective based on consistency, fairness, and prospects. This allows employers to learn about
candidates' past performance behaviours, educational background and their capabilities to
complete assigned tasks to make a solid hiring decision.
If a screening interview process for a job consists of fifteen questions, a majority of the questions
should be eligible for scoring. In that case, the hiring manager or hiring committee in charge of
creating questions will identify which questions are eligible for scoring. Not all questions are.

Example Scoring Guide

1. Tell me why should we consider hiring you for this role?
It would be hard to score answers to this question. Answers will vary for each candidate as it will
describe their professional work progress and how it links to the job they are applying for.
However, the following question will have the grounds for scoring:
2. Think about a time when you had a student who had difficulty participating in class
discussions and interactions with other students. How did you handle the situation?
To create a scoring guide for this question, you need to anticipate answers, from a strong suitable
answer to a weak unsuitable answer. The best answer will have the highest score attached
compared to the “weak unsuitable answer”.

Answer 1 (Score: 5-6)

After assigning groups to work on the case, I noticed that one student was trying to understand
the case by asking questions to his group members. Since he did not have a good understanding
of what was asked, his participation was minimal. This led to him becoming frustrated and
withdrawn from his group’s discussion. I noticed this right away. However, I waited until the end
of class to talk to him and find the best way to resolve this challenge. I learned that he landed in
Canada a few weeks before the start of the semester, English is his second language, and
adapting to the new culture, environment, school structure, and language was more than he
anticipated. I suggested a few options and followed up with him later, while I monitor his weekly
participation

Answer 2– (Score: 3-4)

After some commotion and disturbance during in-class interactions in a group project, I noticed
that one student had difficulty participating in a class discussion. I approached him at the end of
the class and suggested that he meets with the Program Coordinator to determine what can be
done.

Answer3 – (Score: 1-2)

I expect that all students equally contribute to the class discussions with no exceptions. Minimal
disturbance should occur in class so that all students can focus and concentrate on in-class
discussion questions and prepare their answers.
Creating a scoring guide will help methodically score the candidates and rank their interview
outcomes.

SUMMARY
Well-crafted interview questions, for any type of screening interview, should help establish
consistency, be connected to job tasks, and assist in creating an effective scoring system. Most
interview questions should be designed to generate more elaborate and descriptive answers to
help organizations, and candidates as well, to find a perfect match: a person-job and person-
organization fit.

WEEK 9: TESTING

Testing
Well-designed tests are considered part of the selection process and are used to narrow the field
of qualified candidates. They provide a fair and objective basis for assessing an applicant’s
potential, since the assessor’s bias, background, and perceptual inaccuracies do not influence the
test scores. There are many tests that companies could utilize and they can be put into three
categories: substantive, discretionary, and contingent tests. It is at the companies’ discretion to
decide which type of tests they are going to use. However, attention must be given to the proper
collection and use of information. Testing employees on the items relevant to their job suggests
high reliability and proven validity, which facilitates the interpretation of scores.
Learning Outcomes
By the end of this module you should be able to:
1. Discuss how substantive assessment methods: personality tests, ability tests, job
knowledge tests, performance tests, and integrity test have impact on selection.
2. Discuss how discretionary assessment methods impact selection.
 3. Discuss how contingent assessment methods: drug testing, medical and health testing
impact selection.
4. Describe various types of pre-employment test used to select employees.
5. Explain the legal issues involved when using a pre-employment test.

EMPLOYMENT TESTING
The most common test is the employment tests. They are one of the predictors used in the
staffing process aside from application forms, interviews, and reference checks. They are
objective, valid and versatile in several settings. The employer’s goal is to select individuals who
possess knowledge, skills, abilities and other attributes to perform well on the job. Therefore,
employment tests must be relevant to job performance.
The three categories of employment test are:
Substantive Tests
They are assessment methods used after initial screening methods that involve more precise data
concerning the match between a job candidate’s knowledge, skills, abilities and other
competencies (KSAOs) and the requirements of the job.

Discretionary Tests
They are typically subjective and intuitive assessment methods used to separate those who
receive job offers from the list of finalists.

Contingent Tests
They typically involve decisions about whether applicants meet certain objective requirements
for the job, such as possessing a licence or passing a drug test.
Throughout the next three pages, we will discuss each employment test in further detail.

SUBSTANTIVE ASSESSMENT METHODS

Several employment tests can be utilized to measure a candidate’s KSAO’s that lead to
successful job performance. They are:
Types of Substantive Tests
To learn more, select the titles below. You can also Open All and Close All.
Open All + | Close All —
Personality Tests
The objective of personality tests is to provide information about the job candidate’s behavioural
predispositions that is relevant to the organization’s and job environment.
“Big Five” is the most popular personality test. This test underlines five personality dimensions
that best predict an individual’s behaviour. The five dimensions are:
  Extroversion outlines comfort level in socializing with others, being assertive and
outspoken. This dimension best predicts performance in managerial and sales positions.
  Agreeableness highlights attributes of courteous, good-natured and caring individuals.
This dimension predicts performance for all occupational groups especially in the
medical field and social work environment.
  Conscientiousness emphasizes individuals who are responsible, organized, dependable
and persistent. This dimension predicts performance for all occupational groups.
   Emotional stability features an individual’s ability to cope well in a stressful situation. It
signifies calmness and a high level of self-confidence. This dimension predicts
performance in managerial positions.
  Openness to experience highlights individuals who are creative, curious, open to change.
This dimension is important in predicting training skills.
Another personality test that is usually used is the Myers-Briggs Type Indicator (MBTI). This is
mainly used not for job performance but for increasing self-awareness and providing career
guidance. There are four main psychological functions that individuals experience :
Extroversion / Introversion
Sensing/Intuition
Thinking/Feeling
Judging/Perception
Those four psychological functions can produce 16 personality dimensions known as:
 ISTJ Personality (The Inspector)
 INFJ Personality (The Counselor)
 INTJ Personality (The Mastermind)
 ENFJ Personality (The Giver)
 ISTP Personality (The Craftsman)
 ESFJ Personality (The Provider)
 INFP Personality (The Idealist)
 ESFP Personality (The Performer)
 ENFP Personality (The Champion)
 ESTP Personality (The Doer)
 ESTJ Personality (The Supervisor)
 ENTJ Personality (The Commander)
 INTP Personality (The Thinker)
 ISFJ Personality (The Nurturer)
 ENTP Personality (The Visionary)
 ISFP Personality (The Composer)
(Personality Perfect, 2019)
Ability, Aptitude and Cognitive Tests
Those tests are used to measure applicant’s proficiency or competencies they possess in order to
complete assigned tasks.
Four broad categories of human abilities refer to:
  Cognitive refers to mental ability and individual intelligence promotes effective learning,
efficient and accurate problem solving that includes clear communication.
  Psychomotor measures the correlations of the candidate’s mind (thought) and body
movement (hand-eye coordination and finger dexterity) necessary to perform the
assigned job duties.
  Physical measures muscular strength and cardiovascular endurance necessary to
complete assigned tasks. For example, a firefighter will need the strength to carry a
person out of a burning building.
  Sensor/Perceptual involves aspects of measuring vision which includes near and far
vision, hearing, and other senses. For example, a pilot needs an adequate near and far
vision to fly a plane.
Knowledge Tests
They directly measure an applicant’s knowledge of the information necessary to perform a job.
Tacit knowledge is typically measured through situational judgement tests. Situational
tests/exercises place an applicant in a hypothetical job-related situation and ask the applicant to
choose a course of action. Those tests are often used in selecting managers or professionals.
Performance and Work Samples
Performance tests tend to be used to assess the skills and competencies required to perform a job
and are different than traditional cognitive ability tests. They are commonly used as part of the
selection process.
Example
Oral communication skills are best assessed by watching the candidate give an oral presentation.
Written communication is best assessed by obtaining a sample of a candidate’s writing.
Regarding “Work Samples”, an applicant is given several tasks, that are organized into an
assignment, and asked to complete them.
Assessment Centres
These tests are based on a number of different performance techniques to assess the varieties of
behaviour necessary to complete a job.
Example
This can include written and oral presentations, role-playing performance, group discussions, etc.
Honesty/Integrity Tests
Since honesty or integrity tests are self-reporting paper and pencil assessments, they are
perceived as not reliable and thoughtful. This is due to candidates having the opportunity to
record what the other party needs to hear.
Also, a polygraph test in Ontario is prohibited under the Employment Standard Act (ESA) and
therefore is not used in the selection process

Discretionary Assessment Methods

Discretionary assessment methods help evaluate a candidate’s person to organization match to

confirm if there is a fit that supports the culture of the company. Some companies may assess a
candidate’s organizational citizenship behaviour that favours roles that are outside of job
requirements, such as helping others at work, volunteering, etc. All in all, discretionary
assessments can be subjective. They do not hold any substance of fairness when choosing
candidates based on KSAOs. They are based on the intuition and gut feeling of the decision-
maker.
Contingent Assessment Methods
The contingent assessment methods/tests are not always used. They are only used if it is required
by law and the nature of the job itself.
Types of Contingent Tests
To learn more, select each tab.
 Medical and Alcohol Tests
 Duty to Accommodate
 HIV or AIDS
 Genetic Testing
Medical and Alcohol Tests
In Canada, various human rights acts require that medical or physical examinations of job
candidates must be job-related. However, based on the Canadian Human Rights Commissions,
tests that are not acceptable are:
 pre-employment drug testing,
 pre-employment alcohol testing,
 random drug testing, and
  random alcohol testing of employees in non-safety sensitive positions.
Medical tests should be administered only after the applicant has been given an offer of
employment.

Duty to Accommodate
Employment cannot be denied to a person with a disability. The Ontario Canadian Human Rights
Acts requires employers to make accommodations in the workplace for people with disabilities
(duty to accommodate). The requirements for accommodation may be waived, if an employer
can show that:
  the cost of accommodation would alter the nature of the business or cause financial
hardship, or
  accommodation efforts can affect health and safety to workers or members of the public.

HIV or AIDS
The testing of applicants by Canadian organizations is prohibited. However, there are three
grounds used to treat people with AIDS or HIV differently:
  that individual carries out invasive procedures, such as surgery,
  the individual is required to travel to countries where AIDS carriers are denied entry,
  a sudden deterioration of the brain or central nervous system.

Genetic Testing
Genetic Testing This is a controversial issue that proposes job applicants be screened or
monitored for genetic predispositions or susceptibility to illness resulting from various
workplace chemicals or substances. Since it raises ethical and legal questions, it is illegal to
administer a genetic test in Canada.

LEGAL CONCERN WITH TESTING

When conducting testing, ethical standards must be in place, which controls the behaviour of a
person involved with testing. They include:
1. Respect for human dignity and human rights.
2. Promote human development in the workplace.
3. Integrity in a relationship by striving to balance the organizational and employee needs.
4. Responsibility to the community to encourage and foster a generally accepted code of
moral behaviour.
To protect the welfare and rights of applicants being tested, various standards must be developed
and implemented.
Other Testing Standards

Informed Consent
Job applicants must be informed about the testing PROCESS, WHY they are being tested and
about the TYPE of tests being used.

Access to Test Results

Job applicants must be able to receive feedback and be informed about any decision resulting
from the test outcome.

Privacy and Confidentiality

Job applicant’s information must be kept in strict confidence. Any information collected during
testing must be protected and safely secured.

Language and Culture

If a job applicant faces some challenges during the testing process due to a language barrier, the
applicants should be provided with a language translator. Sensitivity about cultural issues during
the testing process should be honoured as well.

Disability Issues
Job applicant’s disability conditions cannot be used as an excuse to screen out an applicant
unless it can be demonstrated that the ability in question is Bona Fide Occupational
Requirements. Employers are expected to make reasonable accommodation to meet the needs of
applicants with disabilities who meet job requirements.

SUMMARY
If an employer’s goal is to select the best suitable candidates to perform job tasks, then the
employer should be utilizing various tests, as part of several predictors, to assess candidate’s
KSAO’s that lead to a successful execution of job tasks. Employment tests can be grouped into
three main categories such as substantive, discretionary and contingent assessments. The
essential requirements for any tests or assessment procedure is that they strive to accurately
predict the individual’s performance or capacity to perform the essential components of the job
in an efficient, reliable, and safe manner. The emphasis is also on ethical and moral obligations
surrounding the testing procedures.

Assignment 3: Interview Questions and Rating Scale

Week 10: Decision Making

 
Decision Making
Week 11 Introduction
Finalizing a hiring decision, after the utilization of all predictors, will signal the end of the
staffing process. Predictors and different decision-making models used to collect information
during the selection process help evaluate candidates to determine the finalist with the highest
score. Since there are several decision-making models, an organization will decide which
model(s) to employ. Using statistical decision-making models versus personal judgment methods
will eliminate any biases or unfair practices, and will be legally defensible.
Learning Outcomes
By the end of this module you should be able to:
1. Explain the concept of a selection decision error.
2. Evaluate the use of a variety of selection decision making tools including multiple
regressions, multiple cut-off models, multiple hurdle model, combination model, profile
matching, and top down selection.
3. Demonstrate the methods of final choice for employee selection.
4. Explain the importance of preparation of employment contracts.
5. Apply important terms and conditions normally set out in an offer of employment.

SELECTION DECISION AND POTENTIAL SCREENING ERRORS

Setting up the scoring system is significant to organizations and applicants as it allows each
predictor and part of the screening process, to be scored based on the applicant’s answers.
However, a good selection decision can be tainted because of possible selection errors that could
occur during the selection process.
Example
An applicant in the above selection errors could be assigned to the scoring system itself. For
example, receiving a score of 8 out of 10 on the interview rating scale, where the cut-off score is
8.5, will indicate the candidate will be rejected based on that predictor. Does it mean that the
rejected candidate would not be a successful performer if hired? Is the cut-off score too high?
Based on the high cut-off score, we may have experienced too many “False Negatives”

APPROACHES TO COLLECTING APPLICANTS INFORMATION

To choose the most qualified candidate for the job, setting up cut off scores and standards are
essential elements in the hiring decision-making process. There are two main approaches to
collect information, known as statistical (numerical) and judgmental (non-numerical), with a
third approach being a mixture of the two. Careful consideration must be taken place to choose
the most appropriate decision-making model, so we need to evaluate each.
Statistical
This pure statistical approach is generally an advanced approach in comparison to the other two
because it uses scores from all the predictors to produce an overall combined score.
Judgemental
This approach does not include numbers to reach the final score but relies on instinct and “gut”
feeling when making a final hiring decision.
Statistical and Judgemental
This uses the attributes of both approaches. However, it is not considered to be the most
sophisticated method because it partially relies on instinct in addition to statistical data.
(Catano, et al., 2017)
Determining Assessment Scores
To determine assessment scores, companies can make use of a single predictor or multiple
predictors. Using a single predictor over multiple predictors could be advantageous. However, it
has its own flaws. For example, a company could utilize an interview as one predictor.
Select the  to view the advantages, and  to see the disadvantages, of each method.
Given the benefits and drawbacks of using single or multiple predictors, companies are in favour
of utilizing multiple predictors to make a final decision. If a company is using an interview as
only one predictor to select a successful candidate, it may turn out to be a mistake, since some
candidates do not do well in the interview. However, if other predictors were used in addition to
the interview, it can be determined that the candidate who did not do well in the interview
process, ended up being the candidate with the highest score and therefore hired. With multiple
predictors, scores from all predictors are combined, analyzed and final decision concluded.
Common predictors companies use:
 complete company's application forms,
 tests,
 interviews, and
 reference checks.

STATISTICAL DECISION MAKING MODELS

The effective staffing process lies in the successful application of decision-making models that
utilize multiple predictors.
To illustrate each model, we will use the same scenario.
Scenario
ABC company is in the process of hiring a Human Resources Administrator. We have three final
applicants. We have obtained information from all three applicants on a set of four predictors
shown in the chart.
To provide an example of each formula when making a statistical hiring decision with multiple
predictors we will calculate candidate 1’s total scores (TS) by highlighting the components used
for each formula in the below chart. For definitions on each decision-making model and how the
remaining candidate’s scores are calculated to determine a final hiring decision refer
to Candidate 1 to 3 Statistical Decision-Making Models Calculations section under the chart.
Use the Next and Previous buttons to see information on eatch calculation.
For further information select the eye icon (  ).
1. Unit Weighting Model Calculation
Formula: TS = P1 + P2 + P3 + P4
TS Candidate 1: 32 + 27 + 33 + 7 = 99

Predictors (P)

P4
P1 P2 P3 Reference
Applicants WAB Test Interview Check

Candidate 1 32 27 33 7

Candidate 2 34 18 47 8

Candidate 3 38 22 45 8

Maximum Possible Scores 40 30 50 10

 Predictors (P)

P4
P1 P2 P3 Reference
Applicants WAB Test Interview Check

Regression Weights 0.7 1 1.2 0.5

Cut-off Scores 30 20 35 7

Average Employee Score 33 25 40 8

PreviousNext
To learn more, select the titles below. You can also Open All and Close All.
Open All + | Close All —
Unit Weighting Model
The predictor scores are combined to get a total score (TS).
TS = P1 + P2 + P3 + P4
Using the chart scenario the TS calculations are:
99 TS Candidate 1 = 32 + 27 + 33 + 7 =107 99113
TS Candidate 2 = 34 + 18 + 47 + 8 = 107
TS Candidate 3 = 38 + 22 + 45 + 8 = 113
Based on the above scores, Candidate 3 will be hired.
Rational Weighting Model
Managers, often Human Resources Managers and subject matter experts (SME) determine the
weights for each predictor according to the relevancy and importance to predict job success.
TS = (w1xP1) + (w2xP2) + (w3xP3) + (w4xP4)
In the formula, “w” represents regression weights.
Using the chart scenario the TS calculations are:
TS Candidate 1 = 0.7 x 32 + 1 x 27 + 1.2 x 33 + 0.5 x 7 = 92.5
TS Candidate 2 = 0.7 x 34 + 1 x 18 + 1.2 x 47 + 0.5 x 8 = 102.2
TS Candidate 3 = 0.7 x 38 + 1 x 22 + 1.2 x 45 + 0.5 x 8 = 106.6
Based on the above scores, Candidate 3 will be hired.
Regression Model
Similar to the Rational Weighting model, with the Multiple Regression model the weights are
established based on the statistical process rather than on the managers and SME judgement.
TS = a + b1P1 + b2P2 + b3P3 + b4P4
In the formula “a” represents the intercept point where the regression intercepts the Y-axis and
“b1” represents the regression weights in the chart. For this example “a” is arbitrarily set to 1.1.
Using the chart scenario the TS calculations are:
TS Candidate 1 = 1.1 + 0.7 x 32 + 1 x 27 + 1.2 x 33 + 0.5 x 7 = 93.6
TS Candidate 2 = 1.1 + 0.7 x 34 + 1 x 18 + 1.2 x 47 + 0.5 x 8 = 103.3
TS Candidate 3 = 1.1 + 0.7 x 38 + 1 x 22 + 1.2 x 45 + 0.5 x 8 = 107.7
Based on the above scores, Candidate 3 will be hired.
Multiple Cut-Off Model
Multiple Cut-Off Model Applicants will be assessed on all predictors even if their scores for
some of the predictors fall below the cut-off score (provided in the chart).
TS Candidate 1 = (32) above + (27) above + (33) below + (7) above (rejected)
TS Candidate 2 = (34) above + (18) below + (47) above + (8) above (rejected)
TS Candidate 3 = (38) above + (22) above + (45) above + (8) above (accepted)
Based on the above scores, Candidate 3 will be hired.
Multiple Hurdle Model
Applicants who do not score above the cut-off score (provided in the chart) on the first predictor
will not advance to the next predictor. Therefore, they will be rejected from the selection process.
TS Candidate 1 = (32) pass + (27) pass + (33) fail (STOP) (fail)
TS Candidate 2 = (34) pass + (18) fail (STOP) (fail)
TS Candidate 3 = (38) pass + (22) pass + (45) pass + (8) pass (pass)
Based on the above scores, Candidate 3 will be hired.
Profile Matching Model
To set a passing score for each predictor, current successful employees will be assessed on
several predictors and their average scores will be applied to create an ideal profile of scores.
Applicants’ predictor scores will be compared with the average employees’ score (AvES). The
common method used to determine the degree of similarity between the average employees’
score and the candidate score is D2 method. This method finds differences between the
candidate's score and average employee’s scores on each predictor. Differences are squared and
summarized to represent the final score. A candidate with the lowest score will be hired.
D2 = (P1 – AvES1)2 + (P2 – AvES2)2 + (P3 – AvES3)2 + (P4 – AvES4)2
In the formula, AvES1 represents the Average Employee Score in the chart. For example, the 1
in AvES1 represents the Average Employee Score listed in the P1 column.
TS Candiate 1 D2 = (32-33)2+(27-25)2+(43-40)2+(7-8)2 = 15
TS Candiate 2 D2 = (34-33)2+(18-25)2+(47-40)2+(8-8)2 = 99
TS Candiate 3 D2 = (38-33)2+(22-25)2+(45-40)2+(8-8)2 = 59
Based on the above scores, Candidate 1 will be hired.
Hiring decision models are all good and effective models. There is not necessarily one best
decision-making model. However, which model a company will utilize, will depend on the
company preference and its staffing policy

Exercise 1
Assume that you are in the process of hiring a sales representative for your company.
You have three final candidates. Your company uses a unit weighting model for
choosing the most qualified candidates. Three following predictors are utilized, and the
scores are provided in the chart. Using a blank piece of paper or a Word document,
calculate the total score for each candidate using the unit weighting model to determine
a final hiring decision. To review the formula select this link, unit weighting
model.Opens in a new tab

Select Answer below to view the solution.

 Predictors (P)

P3
P1 P2 Reference
Applicants Test Interview Check

Candidate 1 35 48 13

Candidate 2 33 55 14

Candidate 3 30 40 12

 
Answer

TS = P1 + P2 + P3 + P4

TS Candidate 1 = 35 + 48 + 13 = 96

TS Candidate 2 = 33 +55 + 14 = 102

TS Candidate 3 = 30 + 40 + 12= 82

Based on the above scores, Candidate 2 will be hired.

Exercise 2
Using the same data from exercise 2, apply multiple hurdle model to choose the most
qualified candidates. Additional information to assist with your calculations is provided
below. Using a blank piece of paper or a Word document, calculate the total score for
each candidate using the multiple hurdle model to determine a final hiring decision. To
review the formula select this link, multiple hurdle modelOpens in a new tab.

Select Answer below to view the solution.

Predictors (P)

P3
P1 P2 Reference
Applicants Test Interview Check

Candidate 1 35 48 13
 Predictors (P)

P3
P1 P2 Reference
Applicants Test Interview Check

Candidate 2 33 55 14

Candidate 3 30 40 12

Maximum Possible Scores 40 60 15

Cut-off Scores 30 45 11
Answer

TS Candidate 1 = 35(pass) + 48(pass) + 13(pass) (pass)

TS Candidate 2 = 33(pass) +55(pass) + 14 (pass) (pass)

TS Candidate 3 = 30(at cut-off) + 40 (fail) + STOP (fail)

Since we have two candidates who passed all the predictors, the candidates with the
highest score will be hired – Candidate 2.

Group Decision Making and Employment Contract

As the saying goes “more heads are better than one”, suggests that a group decision in the hiring
process can potentially be a better solution than the hiring decision based on one individual. It
certainly reduces potential biases occurring and therefore promotes more fair and untainted
treatment of candidates. However, companies that emphasize a group decision in the staffing
process must be aware of any existence of group conformity and organizational politics.
Once a final hiring decision is reached, a company will be ready to offer a job to its finalist. The
job or employment offer will consist of several terms and conditions of employment, including:
 a quick overview of job requirements,
 compensation lever,
 employer compulsory benefits,
 working hours,
 reporting requirements,
 probationary period, and
 a termination clause.
The finalist has the chance to go over the written job offer and accept it or decline it. If the job
offer is not declined, the finalist has the chance to further negotiate the job offer and make a
counteroffer. Once the job offer is accepted by the finalist it becomes a written legally binding
document that both parties must honour.

SUMMARY
The successful hiring decision depends on several factors that must be considered and simply
answered by posing some questions such as, what approach to use, which predictor(s) to apply
and how many predictors to utilize, which model to consider, etc. Depending on a model,
typically hiring standards and cutoff scores must be established to determine passing levels for
each predictor. Regardless, the process should entail statistical approaches so that a solid hiring
decision is made based on empirical data and not just an instinct or gut feeling methodology. The
application of statistical approaches signal fairness and greatly reduces the existence of any
biases. Keep in mind, that a good selection decision can be corrupted due to possible selection
errors that can occur during the hiring process. Once a final decision is reached, the successful
candidate will receive a job offer and have a chance to accept or reject the offer. Once an offer is
accepted, it will denote a legally binding employment offer.

Assignment 1: Discussion (4 of 5) DUE JULY 23

Retention Management
Week 11 Introduction

In today’s fast-paced work environment and the rising tendency of changing jobs to acquire
better and more challenging opportunities, it may seem somewhat an archaic way of thinking
that employees hold onto one job for a long period of time. However, companies’ success lies in
the quality of its employees, along with their dedication and loyalty. Therefore, acquiring and
retaining qualified staff is of the essence. Organizations strive to sustain a balance between
maintaining growth and productivity and retaining their champion employees. Holding onto its
qualified employees can be a somewhat daunting task, because some employees will just up and
leave their employment, voluntarily or involuntarily. For companies, the question remains –
“What should companies do to retain successful employees and still maintain healthy growth and
productivity in an unstable work environment?”
Learning Outcomes
By the end of this module you should be able to:
1. Discuss an organization’s ability to retain capable employees with important KSAOs to
generate future success.
2. Identify a developmental planning process for high potential employees (i.e. succession
planning)
3. Explain three causes of turnover including drivers for each type and factors impacting it.
4. Explain the laws and regulations to consider in a retention strategy when making
decisions on an employee’s separation from the organization.

EMPLPOYMENT RETENTION
Retention management aims to ensure that organizations are not just in the business of hiring but
also keeping enough employees with important KSAO to generate a strong platform for a future
organization’s success. To optimize employee retention, employers need to focus on developing
a comprehensive retention strategy. Such endeavours, first and foremost, should concentrate on
retention costs and benefits. The retention activity should be analyzed realistically because there
will be employees who will leave voluntarily due to a number of reasons and even involuntarily.
Regardless, companies should be exploring the option of bringing new ideas, knowledge and
experience to their organizations to evolve and successfully thrive with their products and
services.
Based on Olenski (2015) best ways to retain employees is to:

The labour relations legislation practices

Hire Selectively
To avoid the high cost of hiring, employers should consider developing an effective staffing
manual that encompasses a step by step process on recruitment, selection and retention of its
employees. With recruitment, focus on sending a clear message on what are you looking for in a
candidate in terms of competencies and job requirements. Make sure that there is not just a
person to job fit but also the person to organization fit. With the selection process, develop
several predictors and assigned points to effectively rank the candidates and choose the one that
is perceived to be the best match. When retaining employees, do not overlook intrinsic rewards.
They are as important as extrinsic rewards. Listen to what your employees are suggesting or
asking and consider it when developing your retention strategy.

Offer Competitive Total Rewards

To offer competitive total rewards, employers need to consider incorporating all three categories
of a compensation system such as direct, indirect, and performance pay. Which option should be
better, to lead, lag or match the market also needs to be taken into consideration when creating a
compensation system. Provide incentives and strive to develop and implement a fair process with
procedural and distributive justice.

Provide a Comfortable Work Environment and Culture

Create a positive working environment between managers and employees by focusing on clear
and concise communication that explains companies’ expectations and deliverables. Establish
harmony by involving employees in constructive collaborations, promote expression of ideas,
and create values. Providing flexible working arrangements will send a message that employers
care about employees’ well-being. Recognizing the need to support its employees by offering a
proper balance between their personal and professional life will motivate them even more and
therefore decrease the turnover rate significantly.

Offer Training and Professional Development

Almost every employee would like to have an opportunity to professionally grow in their
company. First, once hired, providing training to its employees is the start. Employees need to
learn how effectively to perform tasks assigned to them, how to operate and use tools and
equipment, understand and appreciate the company’s values and its culture. Also, companies
could offer a customized career plan so that employees can increase their competencies and be
considered for any potential future jobs within their company.
Listen to Employees’ Needs
Regardless if employees' needs can all be met or not, the employer’s responsibility is to listen to
employees' needs and desires. Showing an effort in implanting some of the ideas, if financially
and strategically feasible, will signal a positive approach towards employee retention.

Share Basic Information on Financial Results

Sharing basic financial information with employees could be beneficial to those organizations
that do. It is known as “Open Book Management”. Certain financial information needs to be
filtered and not everything that is in the books needs to be put on display. Providing regular
updates on quarterly and annual company financial performance can foster employees’
understanding of why the company is not performing well and why those promised bonuses are
not possible. It can also empower employees to work harder to reach company goals. This also
makes everyone a stakeholder who collectively celebrates and shares the fruits of hard labour.
Therefore, it leads to higher job satisfaction and performance as part of employee retention.

Recognize Employees’ Accomplishment

Celebrating employees’ accomplishments suggest validation and appreciation of employees’
hard work. It should not go unnoticed. Offering incentives, fringe benefits, bonuses, and more
rewarding tasks that encourage motivation will promote employee retention.

RETENTION INITIATIVES
There are many reasons why employees leave their jobs and some of those departures are
avoidable and some are not. Regardless of what type of departure is transpiring in one
organization, it creates employee turnover.
There are several types of employee turnover:

To learn more, select the titles below. You can also Open All and Close All.
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Voluntary Turnover (VT)
There are two types of voluntary turnover, avoidable and unavoidable.
Avoidable
Depending on the employees’ departure from the company, there is a strong possibility that this
action can be prevented by offering pay raises, better benefits, more challenging jobs or work-
life balance. Learning the reasons why employees are quitting their jobs should be detected by
offering exit interviews. It is an interview conducted by employers to learn about employees’
reasons for leaving. That way employers can find out if there is a pattern to employees’
departures and if they need to create an action plan to minimize the consequences of turnover.
Unavoidable
This type of voluntary turnover is hard to control. Employees may experience a high level of job
satisfaction, respect for the organizational culture, and working environment but still, sadly leave
their jobs. In this instance, employers are unable to do much to keep their employees. As hard as
it can be, this movement can be viewed as a positive one, because employers now have the
opportunity to hire new people with innovative ideas, useful knowledge, and valuable
experiences. Several reasons that can be attributed to this type of turnover are dual-career
problems, pursuing a new more challenging career, childcare or eldercare, etc
Causes of VT
 Favourable labour market conditions
 Job dissatisfaction
 Desired transferable skills
 Personal reasons
 Working environment
 Job design
Involuntary Turnover (IV)
There are two types of involuntary turnovers, termination and downsizing.
Termination
The main culprit here is the unsatisfactory level of employees’ performance. If employee
performance is below the acceptable level, several situations may occur, and all should lead to
providing those employees with constructive criticism as part of their routine performance
evaluations. This allows employees the opportunity to correct and improve their performance. In
certain cases, additional training may be needed to increase employee performance levels. There
can be some personal reasons for the performance to drop down as well. At the point where
performance is not improving, despite all employer efforts to assist in improving employees'
performance as part of the retention initiative, employers may not have a choice but to terminate
the relationship with these employees.
Downsizing
This indicates that the reduction in the organization’s staffing level is necessary to maintain
successful business activities and healthy profits. An employer may have to lay-off some
employees before they proceed with the legislative termination. Therefore, the employees’
performance level is not in question. The retention initiative is manifested through employers’
efforts to keep employees by first laying them off before proceeding with the termination of their
employment.
Causes of IT
 Person/job match was not achieved
 Failure to follow rules and procedures
 Obsolete work units
 Mergers and acquisitions
 Loss of contract
 Declining profits
 Technological advancements
 Organizational restructuring, etc.

COST AND BEHAVIOUR OF TURNOVER

There are costs and benefits associated with turnover. Some of the costs may likely be
expressed financially while some will be considered a non-financial loss, such as
alternative work practices (group performance-based pay systems, teamwork, etc).

Financial Costs
Financial Costs
 HR staff (exit interviews, compensation).
   Manager’s time (interviews, retention attempts).

  Accrued paid time (vacation, sick days, other paid leaves).

  Temporary coverage (temporary employee’s compensation, overtime).

 Production and customer service delays.

 Decrease in quality of products or service.

 Other employees decide to leave.

Training Costs
Training Costs
  Formal training for trainee, instruction time, materials, equipment.

  On-the-job training (employee and employee time).

 Coaching time.

 Productivity loss.

Replacement Costs
Replacement Costs
  Staffing cost for new hire (cost-per-hire-calculations).

 Hiring inducements (bonus, relocation).

Orientation program time and material.

(Heneman, et al., 2010)
Benefits of Turnover
 New KSAO.

  Vacancy creates a transfer or promotion opportunity for others.

 Opportunity to restructure department or division.

  Replacement less expensive in salary and seniority-based benefits

Example of Financial Cost Estimates of Voluntary Turnover
The below chart is an illustration of financial costs estimates of voluntary turnover for a
hypothetical industrial supplier which employs 40 salespeople who receive $20 per hour
on average and who bring in approximately $8 million in total annual sales.

Materials &
Description Costs Hours Cost Equipment Other Costs

1. Separation Costs

Staffing Manager 1 $25.00    

HR Staff 1 $15.00    

Employee's Manager 3 $120.00    

Accrued Paid Time Off 160 $2,400.00    

2. Replacement Costs

Temporary Replacement

Compensation 160 -$800.00    

Difference
 Materials &
Description Costs Hours Cost Equipment Other Costs

Staffing Manager 1 $25.00    

Employee's Manager 1 $40.00    

Staffing Agency Fee       $800.00

Permanent Replacement

Compensation 960 -    
Difference $4,800.00

Cost -per-hire       $4,500.00

Hiring Bonus       $3,000.00

Laptop computer       $2,000.00

Employee's manager 3 $120.00    

 Materials &
Description Costs Hours Cost Equipment Other Costs

Orientation 8 $160.00    

3. Training Costs

Training Program     $1,000.00  

Trainee 80 $1,200.00    

Instructor 100 $1,600.00    

Mentor 520 $1,040.00    

Productivity/sales loss

Permanent       $50,000.00
Replacement

Temporary       $2,000.00
Replacement
 Materials &
Description Costs Hours Cost Equipment Other Costs

4. TOTAL COSTS   $1,145.00 $1,000.00 $62,300.00

(Heneman, et al., 2010)
Calculating the Turnover Rate
Companies can also calculate a turnover rate. Data required to calculate include:

 Time period to consider for a turnover ratio.

  Employees counts (full-time, part-time, seasonal, etc.).

  How to calculate the average number of employees over the time period
(straight or weighted average).

Once a company decides on how to gather data, the formula is as follows:

Turnover Rate (TR) = (# of employees leaving ÷ average number of employees) x

100
Example Calculation
At the start of the year, “ABC” company had 250 employees. During the year, 35
employees left the company. Another known fact is that at the end of the same year,
Dec 31st, the employee headcount was 240 employees. Calculate the annual turnover
rate.

Note: Average number of employees is calculated as follows: (250 + 240) ÷ 2 = 245

TR = (# of employees leaving ÷ average number of employees) x 100

TR = (35 ÷ 245) x 100 = 0.1428

TR = 14.28 %

Calculate the monthly employee turnover rate for the manufacturing company in
Guelph, knowing that the company had 876 employees on April 1st but ended up with
870 employees on Apr 30th. Fifty-six (56) employees left the company during the month
of April. Calculate the annual turnover rate.

Answer
Average number of employees is calculated as follows: (876 + 870) / 2 = 873

TR = (# of employees leaving / average number of employees) x 100

TR = (56 / 873) x 100

TR = 6.41%

LEGAL CONCERNS
When it comes to termination of employment, employers must make sure that
terminated employees are compensated according to the legislative requirements. In
some cases, employers are not required to provide departing employees with additional
compensation. This usually refers to employees who are employed for less than 3
months with a company.

Legislative Requirements and Employer Obligations

The topics listed below illustrate the employer’s legislative requirement regarding
various types of terminations including layoffs.

Voluntary Terminations
Employee Quit
Pay to terminated employees vacation owing and hours worked up to resignation.

Temporary Employment Separation

Layoffs
Issue Record of Employment (ROE) so that employees on lay off are in the position to
collect benefits from Service Canada for up to 13 weeks. If employees are not called
back to work after 13 weeks, then employers must proceed with the termination process
(wages in lieu of notice, if applicable, and severance payment, if applicable).

Involuntary Termination
Working Notice
A terminated employee, if they have more than 3 months of service, are entitled to
notice. If that notice is a working notice, the employer can ask a terminated employee to
remain at work during the length of the legislative notice.
Wages in Lieu of Notice
This notice is given to terminated employees who did not receive a working notice and
are entitled to be paid based on the length of service with the company. The maximum
benefit is based on 8 weeks of employees’ earnings.
Severance Payment
This payment is compensation that terminated employees receive in addition to any
other payment for their long-service and contributions to the company’s success.
Severance payment is legislated under the Ontario Employment Standards Act (ESA)
and under the Canada Labour Code (CLC), Part III. For other provinces and territories,
severance pay is not mandatory, and it is based on employers’ desire to compensate
their employees for their service and contribution. It is also considered a retiring
allowance. The maximum severance pay under ESA is based on 26 weeks of an
employees’ earnings and under CLC, Part III the maximum payment is 5 days of regular
pay, excluding overtime.
Retiring Allowance
Retiring allowance, aside from the mandatory severance payment, also includes any
additional payment (known as other payment) that is given to terminated employees on
top of severance pay. This is not considered income from employment and there is no
maximum amount required for this payment.
Example 1
Employment was terminated for one of the employees at “XYZ” company in Ontario with
26 years of service. Since the company qualifies to pay out severance payment to its
employees upon termination of employment under the Ontario ESA, this company
issued a termination payment (TP) of 45 weeks of salary to the terminated employee.

TP (45 weeks) = Wages in lieu of notice + Legislative Severance payment + Other

money

TP (45 weeks) = 8 weeks + 26 weeks + 11 weeks

Therefore, the retiring allowance is 37 weeks (26 weeks + 11 weeks).

Example 2
Refer to the previous example. However, in this case, the company issued a termination
payment (TP) of 34 weeks of employee’s salary to the terminated employee.

TP (34 weeks) = Wages in lieu of notice + Legislative Severance payment + Other

money

TP (34 weeks) = 8 weeks + 26 weeks + 11 weeks + 0 weeks

Therefore, the retiring allowance is 26 weeks.

SUMMARY
There are many activities that companies could consider to retain their stellar employees.
For example, career planning provides an opportunity for employees to develop future
marketable skills organizations need. This is one of the motivating factors for employees to
remain employed with the same company.
Another significant factor when it comes to retention lies in the culture of the companies
that value and support talented employees. The effective utilization of fair practices with
well-developed procedural and distributive justice will strengthen retention practices.
Recognizing the need for life-long learning and extensive continuing training and coaching
systematically supports the motivation to remain with the organization.
There will be times when employees will need to leave and terminate their employment due
to various personal reasons. This cannot be controlled by employers. Other departures may
be controllable, in which case companies need to utilize exit interviews. That way
employers can learn why employees are leaving their employment and develop effective
retention strategies to minimize the cost of turnover. During departures, employers need to
make sure that legislative requirements are applied and employees who qualify for
termination payments are compensated fairly.

DUE JULY 30 Assignment 4: Talent Acquisition, Group

Projects

Week 12
A Human Resources Department strives to proactively provide a competitive advantage by
attracting, deploying and retaining human capital. Since it is fundamentally connected to
other departments in an organization and as a strategic partner, it must align HRM
practices that ensure the quality of hires match the company’s strategy. On that note, HR
professionals must possess business, technical, change management and integration
competencies.
Traditionally, the HR managers were known as “personnel managers”. In the past, their
functions were based on more administrative tasks. The main administrative tasks
included filling out the proper paperwork with compliance and legal matters, replacing
employees who left, terminating employees who did not fulfill organizational goals and
objectives, and compensating employees for services rendered, etc. In today’s business
world, the position is viewed as a strategic business partner, change agent and employee
advocate.
Competitive Challenges Influencing HR Department from Talents Acquisition
The focus is on three main challenges, technology, globalization, and sustainability that the
business world is now facing that influences talent acquisition.
To begin, select the Next button. The Previous button will go back.
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Technology
 Online Job Advertising enables the posting of job requirements faster, reaching
wider territories and finding the right candidates quicker.
 Automatic Tracking System enables the electronic application processing of hiring
needs. It helps filter information in the applications automatically and based on
given criteria, such as keywords that include skills, education level, work
experience, etc.
 Creation of high-performance work teams by integrating technology that seeks
individuals with competencies to match business needs.
 Develop e-commerce and e-HRM for faster processing and services delivered.


 
 Globalization
 Expand into foreign markets, entails recruiting, relocation or finding qualified
employees to fulfill companies’ business objectives.
 Prepare employees to work abroad.

Sustainability

 Provide high-quality products, services and work experience that includes

recruitment, selection and retention of qualified employees.

 The increased value placed on the intangible values of companies’ employees.

 Adjust to changing characteristics and expectations of the labour force, including

the use of new work arrangements.

 Incorporate legal and ethical practices with staffing and retention practices.



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(Noe, et al., 2012)

According to Heneman (2010), HR departments in large organizations are noticing that

staffing activities have considerably increased over the past several years more than any
other HR activity. Since the HR department is viewed as a strategic business partner, a
change agent and employee advocate, it is critical that HR employees involved with the
staffing function requirements work closely with other strategic partners, not just within
HR.
The HR functions and their prospective reporting requirements for a large organization
are illustrated below:

(Heneman, et al., 2010) Text Alternative

Keep in mind that the organizational chart that represents reporting requirements for HR
varies from one organization to the next. Larger organizations will have more employees
working in the HR department and the possibility of additional levels of reporting.

In organizations that employ less than 80 workers on average, the human resources
tasks are completed by work unit managers, meaning there is no need to establish a
human resources department. As soon as the number of employees starts to grow to
represent a medium-sized organization, the tasks will be executed by human resources
professionals. The larger the organization, the more complex the HR department and
functions become, where some of the roles may be outsourced. Staffing activities could
vary within organizations and no one recipe applies to every organization in establishing
job requirements, recruitment sources, recruitment communication techniques, selection
methods, decision-making, and job offers.

Furthermore, some organizations may have:

Select Reveal to learn more about centralized and decentralized HR

Departments.

Centralized HR Department

Reveal
The functions of the HR department are consolidated and performed by a corporate HR
department (one location). Staffing policies and their processes will be conducted in a
consistent and coherent manner that underlines standardization.

Decentralized HR Department

Reveal
Functions of the HR department are distributed within each business unit or location,
and standardization will not be as rigorous or need to conform to corporate HR
standards. This is due to the different needs of each business unit which may pursue
diverse products and services.

(Heneman, et al., 2010)

Policies and Procedures

The administration of staffing systems relies heavily on effective written policies and
procedures. The two items are closely linked because policies are rules or statements
on how a company wishes to conduct business and procedures identify steps on how to
act in specific situations with a suitable course of action to complete a job.

Without policies, companies may create ad-hoc processes without consistency and
standardization, which can turn out to be costly and not beneficial to the successful
operation, not only of the HR department but the entire organization.

Sample of some staffing policies and procedures are listed below.

Outsourcing
To choose the most qualified candidate for the job, setting up cut off scores and
standards are essential elements in the hiring decision-making process. There are two
main approaches to collect information, known as statistical (numerical) and judgmental
(non-numerical), with a third approach being a mixture of the two. Careful consideration
must be taken place to choose the most appropriate decision-making model, so we
need to evaluate each.

Select the  to view the advantages, and  to see the disadvantages, of each
method.

Advantages

  The expertise of highly qualified and knowledgeable recruiters.

  Application of best practices from years of experience.

 Quality of new hires.

 Cost reduction.

 Reduced time to hire new staff.

 Talent pooling.

 Analytics and reporting.

 Service quality.

 Cost of technology.

 Accommodate high fluctuation in hiring volumes.

Disadvantages

 Cost of outsourcing.

 Hidden costs.

 Loss of knowledge and control in recruiting.

  Quality of service - "one size fits all" does not work well for all companies.

  Almost no knowledge of particular circumstances faced by some organizations.

It can be challenging to predict exactly the number of employees to hire in a given year.
One of the many roles of the Human Resources department is to be proactive and try to
anticipate employees’ movements within the company, as well as employment
terminations (voluntary and involuntary) based on historical data collected and analyzed
and to predict future needs. Also, scanning the environment to get a good sense of
available skills in the labour market can help build a supply of new hires with desired
competencies.

It is essential for the HR department to create various quantitative indicators to measure

the effectiveness of staffing systems operation. For example, scenario 1 will help
illustrate the evaluation and results of staffing systems. Scenario 2 illustrates another
useful indicator companies utilize to measure the effectiveness of the staffing function.
This is the cost or efficiency ratios, such as cost per hire, compensation per hire, and
staffing cost ratio.

Scenario 1: Evaluation and Results of Staffing

Systems
There were 18 vacancies that have been filled. Job postings for the vacant positions
generated 500 applications, who proceeded through the staffing process. Based on our
chart below, all 18 positions were filled. The new employees were tracked to determine
how many of them remained with the organization for 6 months and one-year post-hire.

No. of Vacancies Filled = 18

1
Ye
6 ar
Start Mont on
Staffi Offer Offer ed as hs on the
ng Vacan Applica Candidat Finalis Receiv Accept New the Jo
Steps cy nts es ts ed ed Hires Job b

No. of 18 500 70 36 18 18 18 15 12
Peopl
e
 No. of Vacancies Filled = 18

1
Ye
6 ar
Start Mont on
Staffi Offer Offer ed as hs on the
ng Vacan Applica Candidat Finalis Receiv Accept New the Jo
Steps cy nts es ts ed ed Hires Job b

Avg. 0 10 12 15 18 25 20    
No. of
Days

Select the eye icon (  ). for the calculation used to determine staffing results.

Staffing Process Results

1. Applicants/Vacancy 500/18 = 28 

2. Yield Ratio
candidates/applicants 70/500= 14% 
new hires /applicants 18/500= 3.6% 
offers accepted/received 18/18= 1 

3. Time Lapse
average days to offer = 18
average days to start = 20

4. Retention rate (6 months)

on the job 6 months / new hires 15/18 = 83% 

Retention rate (1 year)

on the job 1 year / new hires 12/18= 67% 
(Heneman, et al., 2010)
In this scenario:

  the first indicator (applicant per vacancy) signals the effectiveness of recruitment
activities to attract people to the organization.

  the second indicator (yield ratio) signals the percentage of people who moved on
to one or more of the next steps in the staffing process.

  the third indicator (time-lapse) points out the average amount of time elapsed
between each step in the staffing process.

  the fourth indicator (retention rate) highlights the retention rate for two periods:
six months and one year.

The quantitative measures are a useful evaluation tool for gauging the effectiveness of
staffing processes and for comparative purposes between two or more different units
within an organization. The data is also valuable to set tracking trends for future
evaluation.

Scenario 2: Measuring Cost or Efficiency Ratios in the

Staffing Function
company “XYZ” has been expanding for the past 2 years. Recently they hired 85
assembly line workers and 10 welders. Staffing costs for both positions are noted in the
chart. Please keep in mind that we estimated staffing costs for both jobs. The estimates
include job advertising, employee referral bonuses, travel cost for recruiters, recruiter’s
salary and benefit costs, approximately 10% is added for testing, reference checking,
administrative support, and other minor expenses.

Select the eye icon (  ) for the calculation used to determine Cost Per Hire
(CPH), Compensation Per Hire (CompPH), and Staffing Cost Ratio (SCR).

Compensation Staffing
New Staffing Cost Cost Per Hire Per Hire Cost Ratio
Job Category Hires (SC) (CPH) (CompPH)  (SCR)

Assembly Line 85 $127,500.00 CPH=SC/new compPH 1500/38000

Workers hires $38,000.00 
127000/85 3.95%
$1,500.00 
 Compensation Staffing
New Staffing Cost Cost Per Hire Per Hire Cost Ratio
Job Category Hires (SC) (CPH) (CompPH)  (SCR)

Welders 10 $35,000.00 CPH=350000/10 $55,000.00  3500/55000

$3,500.00  6.36% 

Multiple-Choice Questions 30

Calculation 10

Short Answer Questions 45

Use the key topic areas outlined below to guide your studies.

Multiple-Choice Questions
  Chapter 1

o Concepts of Recruitment and Selection

o  Social/Economic Factors Affecting Recruitment and Selection

  Chapter 2

o Foundation of Recruitment and Selection: KSAOs

o Legal Requirements and HR Practice

o Reliability and Validity

  Chapter 3

o Legal Concepts in recruitment and selection

  Chapter 4

o Job versus Position

o Job Analysis and Work Analysis

   Chapter 5

o Performance Appraisals Rating Systems

  Chapter 6

o Attracting Job Applicants

  Chapter 7

o Screening Methods

o Applicant Screening

o Selection Ratio

  Chapter 8

o  Employment Testing: physical, medical, cognitive, etc.

  Chapter 9

o Screening Interview Types/Methods

  Chapter 10

o Selection Errors

o The Context of Selection Decisions

o Statistical and Judgmental Approaches

  Chapter 12

o  Retention Management: turnover types, turnover ration, layoffs.

  Chapter 13

o  Talent Management / System Management

Short Answer Questions

   Chapter 3

o  Legal Concept in Recruitment and Selection: Discrimination

  Chapter 4

o  Job Analysis Methods

  Chapter 5

o  Task, Contextual, Adaptive & Counterproductive Job Performance

  Chapter 6

o  The Person-Organization Fit

  Chapter 7

o  Screening Methods

  Chapter 8

o  Employment Testing: Work Sample & Simulation Tests

  Chapter 10

o  Decision-Making Models

  Week 13

o  Outsourcing

Calculations
  Chapter 10

o Multiple Regression Model

o Multiple Cutoff Model

o Multiple Hurdle Model