Chapter 8 Staffing | 343

other tasks and rushes the interview process so that it is impossible to gather sufficient informa-
tion on a candidate, contamination error would result. Similarly, if a test measures knowledge,
skills, or abilities that are not essential for the job and the evaluation of these noncritical factors
impacts the ratings for the more important dimension, contamination error would result.
Reliability is a prerequisite for validity. A test cannot be valid without first being reliable.
Validity refers to whether what is being assessed relates or corresponds to actual performance on
the job. It examines whether the skills, abilities, and knowledge being measured make a difference
in performance. Validity is critical not only to ensure proper selection, but it also becomes the
chief measure by which employers defend discrimination allegations in court. Although no laws
specifically require employers to assess the validity of their screening devices, illustrating that spe-
cific criteria are valid selection measures and are, therefore, job related is the major way for
employers to respond to such claims.
There are two types of validity that support selection criteria. The first is content validity.
Content validity illustrates that the measure or criterion is representative of the actual job content
and/or the desired knowledge that the employee should have to perform the job. Content validity is
determined through the process of job analysis, which is discussed in Chapter 6. For example, to
receive a real estate license and work as a licensed salesperson or broker, an individual must pass an
examination that tests knowledge of job-related concepts, activities, and processes. Content validity, in
and of itself, does not guarantee successful performance on the job, much as completing a prerequisite
course in a degree program does not guarantee successful completion of a later course.
The second validity measure is empirical, or criterion-related, validity. This measure demon-
strates the relationship between certain screening criteria and job performance. If individuals who
obtain higher scores or evaluations on these screening criteria also turn out to be high performers
on the job, then this type of validity is established.
It is important to realize that reliability alone is not sufficient for determining the appropriate
screening criteria. These criteria must also be valid. Validity not only ensures the best possible
strategic fit between applicant and job, but it also ensures that the organization will have a readily
accepted means of defending discrimination charges at hand. Criteria cannot be valid that are not
already reliable. Conversely, criteria can be reliable without being valid. It is critical for decision
makers to understand this difference and develop their screening criteria accordingly.

Interviewing
The first set of critical decisions in the selection process involves the interviewing process.
Employers first need to determine who should be involved in interviewing applicants. A number
of different constituents can provide input.
Prospective immediate supervisors, peers, and/or subordinates might be asked to participate in
interviewing candidates. Coworker input can be critical in organizations that emphasize teams and
project groups. The input of customers might also be sought, particularly for employers in service
industries. Those involved in selecting appropriate interviewers must consider the different perspec-
tives that different individuals or groups offer and the relevance of these perspectives for selecting
the best applicant. Interviewers should be chosen from diverse racial, ethnic, age, and gender back-
grounds. Another decision must be made as to whether interviews will be conducted in an individ-
ual or group format. Group interviews can save time for both the organization and applicant, but
they often involve creating a less personal atmosphere for applicants. Group interviews may make
it more difficult for interviewers to get a sense of the applicant’s interpersonal style.
Interviewing applicants involves making subjective assessments of each applicant’s qualifica-
tions for a job. However, interviewers commonly make interpretation errors that should be
avoided in an effective interviewing process. Among these are similarity error, in which the inter-
viewer has a positive disposition toward an applicant considered to be similar to the interviewer in
some way; contrast error, in which the candidates are compared to each other during the interview
process instead of the absolute standards and requirements of the job; first impression error, in
which the interviewer immediately makes a positive or negative assessment of the candidate and
uses the remaining interview time to seek information to support that contention; halo error, in

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344 | Part 2 Implementation of Strategic Human Resource Management

which a single characteristic, positive or negative, outweighs all other dimensions; and biases that
are based on the interviewee’s race, gender, religion, age, ethnicity, sexual orientation, or physical
condition rather than factors that relate to job performance.
One recent study examined the effects of interviewee behavior on the assessments made by
those conducting interviews.47 Two different interviewee behaviors, ingratiation and self-
promotion, were examined related to interview outcomes. Ingratiation involves displaying behavior
that is perceived to conform to the desires of the interviewer, while self-promotion involves the
assertion of the interviewee’s own strengths and competencies. The study found that ingratiation
played a bigger role in interview outcomes than any other factor, including objective credentials.
This added potential bias on the part of interviewers needs to be controlled to ensure the efficacy
of the interview process.
Group interviewing allows different interviewers to compare and contrast their interpreta-
tions of the same interview information. Consequently, this often helps overcome many of the
errors that individual interviewers might make.
One interviewing technique that has become increasingly popular in recent years is behav-
ioral interviewing, which involves determining whether an applicant’s anticipated behavior in a
variety of situations and scenarios posed in interview questions would be appropriate for the
employer. Behavioral interviewing can be used with experienced applicants as well as with those
who have little or no professional work experience because it asks about situations the candidate
might likely find him or herself facing on the job. Behavioral interviewing with candidates who
have professional experience can also involve candidates presenting real-life situations in which
they were involved and how they handled them.
To use behavioral interviewing, the first step is to determine the most important behavioral
characteristics required for a given job or to work in a certain unit. These can be identified by
examining the key traits displayed by high-performing incumbents. Behavioral interviewing
assumes that candidates have already been screened for technical skills and focuses more on the
human interaction traits and people skills an applicant would bring to a job. Questions might be
what an applicant did in a certain past situation or might do in a given situation as well as things
he or she most enjoyed, least enjoyed, and would opt to change about a given situation. Behavioral
interviewing is used extensively by Dell Computer, AT&T, and Clean Harbors Environmental Ser-
vices.48 Dell collects data from 300 of its executives to determine the qualities most needed for
success within the organization. AT&T has developed a series of behavioral questions that address
the core competencies of organization, interpersonal communication style, decision making, and
problem analysis. Clean Harbors, which specializes in cleanups of hazardous materials in the envi-
ronment, looks for problem-solving ability, openness to new ideas, and enthusiasm.49
Behavioral interviewing generally reduces potential employer liability because of its focus on
specific behaviors that are considered critical for effective performance. Typically, in asking inter-
viewees to provide examples of behavior, job candidates might be asked to describe situations,
explain actions taken and the reasons for such actions, and explain outcomes. Proper behavioral
interviewing will involve all three dimensions of questioning: situations, actions, and outcomes.
Exhibit 8.4 provides some examples of behaviorally based questions.
Regardless of who conducts the interviews and whether they are administered in a group or
individual format, a decision needs to be made as to whether the actual format or process of the
interviews should be structured or unstructured. Structured interviews follow a set protocol: All
interviewees are asked the same questions and are given the same opportunity to respond. There
is standardization in that it becomes easier to compare applicant responses to identical questions,
and legal liability can be minimized because all applicants are treated the same. However, struc-
tured interviewing provides limited opportunity to adapt the interview process to any unique cir-
cumstances surrounding any applicant.
An unstructured interview is totally spontaneous and one in which questions are not planned
in advance. The topics of discussion can vary dramatically from one candidate to another. Such a
process allows interviewers to gain a greater sense of the applicant as an individual, but it often
makes comparison among different candidates difficult. A semistructured interview would fall
somewhere between these two extremes. With a semistructured interview, the interviewer asks

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 Chapter 8 Staffing | 345

EXHIBIT 8.4
Sample Behavioral Interview Questions
Describe a situation in which you experienced conflict with a coworker (or supervisor).
Provide an example of your seeing a project from conceptualization to implementation
and the challenges encountered.
Provide an example of a problem that you failed to anticipate.
Provide an example of a decision you made that you would make differently if given the
opportunity again.

© Cengage Learning
Describe a situation in which you had to manage a problem employee or confront a
performance problem.

each candidate a set of standard questions. However, the interviewer can determine exactly which
questions each candidate is asked and can be flexible and probe for specifics when answers are
provided. Although structured interviews provide the greatest consistency, unstructured interviews
provide the greatest flexibility. The organization must determine which is more important strategi-
cally. For example, in interviewing for jobs that require a great degree of creativity, the interviewer
may wish to use a less-structured approach to determine how the applicant handles an unstruc-
tured situation. If it is critical to compare candidates closely across several criteria, a more struc-
tured approach might be more advantageous.
Regardless of interview structure, the selection process is aided when the interviewer asks spe-
cific, pointed questions. Asking candidates to describe behaviors they have engaged in or actions
they have taken in specific situations is far more meaningful for assessment purposes than
closed-ended “yes or no” questions. This strategy of behavioral interviewing has become increas-
ingly popular in organizations. Candidates can and should be presented with scenarios they
might expect to encounter on the job for which they are being interviewed and be asked how
they would handle the situation. This can assist the organization in determining the fit between
the applicant and organizational culture and processes. Interviewing by itself generally has rela-
tively low reliability and validity. Consequently, it is critical to employ other criteria in the screen-
ing process to increase the likelihood of selection of the best applicants.
A number of employers are now utilized using virtual interviews as part of the screening pro-
cess. Engaging in videochat sessions via Skype can allow organizations to interview candidates
from a distance without incurring travel expenses or inconveniences associated with travel. More
sophisticated platforms allow for recorded interviews, which can be reviewed or viewed by others
in an organization. One survey found that the number of employers utilizing some kind of Web-
based video interviewing jumped from 10 to 42 percent in a single year.50 Juice and food producer
Ocean Spray sends job candidates an e-mail link that invites candidates to respond to preset inter-
view questions while being recorded on a webcam. This process allows consistency across candi-
dates, illustrates more of the candidate’s personality than a phone interview could provide and
also allows the candidate to “interview” at a convenient time. It also saves the organizations a tre-
mendous amount of time and money while also allowing more efficient processing and screening
of applicants.51 Wal-Mart uses a similar video interview process for its pharmacist candidates,
allowing the employer to better assess a candidate’s potential ability to interact with customers.52

Testing
Another critical decision in the selection process involves applicant testing and the kinds of tests
to use. The needs of the organization and job structure (specific responsibilities, interpersonal rela-
tionships with others, and so forth) will determine whether any or all of the following should be

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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
346 | Part 2 Implementation of Strategic Human Resource Management

assessed: technical skills, interpersonal skills, personality traits, problem-solving abilities, or any
other job-related performance indicators. The key variable that should influence testing is job
requirements. Any testing that is not specifically job related could be legally challenged, particu-
larly if adverse impact can be shown.
The timing of testing can vary from organization to organization. Traditionally, testing has
been conducted after the interviewing and screening process because of the expense of testing
and time required to score and evaluate test results. However, some organizations are now testing
earlier in the selection process because costs involved with interviewing often exceed the costs of
testing. Clearly, it makes sense for an employer to use more cost-effective screening techniques
earlier in the selection process.
Perhaps the most useful types of tests are work sample and trainability tests. Work sample
tests simply involve giving the applicant a representative sample of work that would be part of
the job and asking the individual to complete it. These tests are useful when the employer needs
employees who will be able to perform job responsibilities from the first day of employment.
Trainability tests measure an applicant’s aptitude and ability to understand critical components of
the job that the company may be willing to teach once the employee is hired. They are useful
when the employer needs some familiarity with the nature of the work but seeks to train the new
employee in the organization’s way of doing things.
Both work sample and trainability tests can provide candidates with realistic job previews.
Traditionally, organizations emphasized only the positive aspects of jobs during the recruiting pro-
cess. This approach kept the applicant pool large and allowed the organization to reject the appli-
cant, instead of vice versa. However, by hiding negative aspects of jobs, employers often hired
individuals who became disillusioned once employed and left the organization shortly after hire.
This results in a waste of both time and money and loss of efficiency. The idea behind realistic
job previews is to make applicants aware of both the positive and negative aspects of the job. If
the applicant is hired, the new employee has realistic expectations and is less likely to become dis-
satisfied with the job and quit. Realistic job previews also increase the likelihood of a candidate’s
self-selecting out of a position; however, this is in both the applicant’s and employee’s best inter-
ests. The predictive power of work sample and trainability tests for an appropriate fit between an
applicant and job/organization has been found to be quite high.
Applicants might also be asked to provide samples of their previous work. A means of asses-
sing the validity of collected information (such as samples of work and past work projects) also
needs to be determined. Such work may be falsified. Its integrity can be verified by asking candi-
dates detailed questions about its content or the process by which it was completed.
Other types of testing need to be administered very carefully. Personality testing often centers
around what have been called the “Big Five” personality dimensions.53 These traits are considered
most relevant to performance in any kind of work environment. As illustrated in Exhibit 8.5, they

EXHIBIT
Personality Dimension
(1) Sociability
(2) Agreeableness
(3) Conscientiousness
8.5
The Big Five Personality Dimensions
Characteristics of a Person Scoring
Positively on the Dimension
Gregarious, energetic, talkative, assertive
Trusting, considerate, cooperative, tactful
Dependable, responsible, achievement oriented,
© Cengage Learning

persistent
(4) Emotional stability Stable, secure, unworried, confident
(5) Intellectual openness Intellectual, imaginative, curious, original

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 Chapter 8 Staffing | 347

are sociability, agreeableness, conscientiousness, emotional stability, and intellectual openness. Per-
sonality testing can be useful to anticipate how employees might behave, particularly on an inter-
personal level, but personality tests can be problematic on two levels. First, personality testing has
been successfully challenged in many courts because of the impact of certain questions on mem-
bers of protected classes. Second, few, if any, jobs require one specific type of personality to ensure
success. No employer has ever been able to argue successfully in court that a specific personality
type or dimension was necessary for effective job performance. As a result, 82 percent of employ-
ers do not utilize personality testing in the hiring or promotion of employees. The few organiza-
tions that do utilize this testing tend to limit its use to mid-level managers and executives.54
Personality testing is easier to defend, however, when certain personality traits can be
directly attributed to superior job performance and an absence of such traits attributed to poorer
performance. Yankee Candle, based in South Deerfield, Massachusetts, asks each of its managers
to complete a standard personality assessment and then compares the results with individual
store performance. This has allowed the organization to develop a behavioral profile of high-
performing managers, which considers traits such as sense of urgency, independence, motivation,
communication style, and attention to detail, and becomes the basis for assessing applicants for
future employment.55
Under the Americans with Disabilities Act, physical testing can be done only after a job offer
has been made unless an employer can show that there are specific, critical physical requirements
for job performance. The use of honesty testing has been declining since Congress passed the
Employee Polygraph Protection Act in 1988. This Act, which prohibits such tests, is problematic
and generally unreliable. Research has shown that employee theft is usually influenced more by
factors external to the individual (pay inequity, working conditions, or abusive treatment from
superiors) than internal factors, such as inherent dishonesty. Drug testing has been challenged in
the courts under the legal doctrine of invasion of privacy; however, no federal right-to-privacy sta-
tutes prohibit testing of either on- or off-the job drug use by employees. Drug testing is, however,
coming under increased scrutiny by the courts, and rulings favoring employers versus employees/
applicants have been inconsistent. If any drug testing is conducted, those who sanction and
administer the tests need to ensure that they do not unduly target members of protected classes.

Call Center Staffing at Capital One

Capital One is one of the largest suppliers of consumer MasterCard and Visa credit cards in
the world, with more than 44 million cardholders and more than 20,000 employees. More
than 75 percent of its employees are call-center customer service associates, and 3,000 new
call-center employees are hired annually. The tremendous growth of the organization
required that it develop a strategy for staffing its call centers that would recruit and retain
the best individuals, reduce turnover and associated costs, and increase sales volume. After a
three-year planning period, Capital One rolled out its company information-based strategy
(IBS). A major component of IBS is the proprietary database software that allows Capital
One to achieve its staffing goals. Applicants for call-center associate jobs can either call a
toll-free telephone number and proceed through a battery of screening questions or answer
the same questions online. These questions relate to the job characteristics deemed to be
most critical to success as a call-center associate at Capital One. Those who receive accept-
able scores are invited to a regional assessment center, where they undergo an average of
five hours of additional computer-based tests and assessments spread over a two-day period.
The IBS uses multiple technologies, including real-time automated decision making, simula-
tions, and online videos. The IBS has decreased time-to-hire by 52 percent, increasing
the rate at which Capital One can hire by 71 percent. Moreover, the system has resulted in
a 12 percent increase in the number of calls handled per hour, a 36 percent increase in the
rate of closing sales, an 18 percent decrease in unproductive downtime, and a 75 percent
decrease in involuntary attrition during the first six months on the job.56

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348 | Part 2 Implementation of Strategic Human Resource Management

The most important criterion for determining whether testing will be effective and withstand
any potential legal challenges is whether the testing is specifically related to the job for which an
applicant has applied. Job relatedness is most commonly shown through validation of a specific
test. There are three types of validation: content validity, criterion-related validity, and construct
validity. Content validity involves the use of specific job requirements as a means of testing,
where the applicant is tested on skills that will be used on the job. For example, an applicant for
a bookkeeping or accounting position might be asked to post ledger entries or prepare a financial
statement accurately. Criterion-related validity involves the testing of attributes that have been
shown to correspond to successful performance on the job. For example, an applicant could be
asked to complete a simulation based on actual experiences incumbents in the position have
encountered. Construct validity is similar to criterion-related validity but focuses on traits, such
as honesty and integrity, rather than on specific skills.

Simulation Testing at Toyota

In 2005, Toyota Motors needed to fill 2,000 jobs from tens of thousands of applicants for
its new $800 million assembly plant in San Antonio, Texas. Applicants for these positions
began their application process not via an application form or interview but, rather, at a
computer screen, performing a job simulation. Skills such as the reading of dials and
gauges, identification of safety issues, and assemblage of components and processes were
measured as well as candidates’ abilities to assess and solve problems and learn. Applicants
were also provided with video links where they could actually see and hear about the jobs
for which they were applying from current employees. Those who successfully completed
the simulation were invited to return for a hands-on opportunity to demonstrate their
skills. Online simulations such as these allow employers to make better hiring decisions,
allow prospective employees a better sense of the reality of their jobs, and reduce both
recruiting costs and employee turnover. Toyota estimates that the use of this screening pro-
cess saved the organization $2.6 million associated with the opening of the San Antonio
plant. The assembler testing process has been cited as a “best practice” at Toyota and is
being used to assist with the opening of new plants in Canada and Europe. The simulation
process is also being expanded for administrative jobs.57

References and Background Checks

Reference checking is usually part of the selection process; however, most prospective employers
do little more than waste valuable time during this process. Generally, employers contact indivi-
duals whose names have been provided by the applicant, despite the fact that common sense
dictates that an applicant would not submit a reference who would provide a negative recommen-
dation. However, few employers bother to investigate the applicant’s background any further.
Employers can and should call individuals other than those named by the applicant. When con-
tacting references the applicant has provided, requests can be made for additional contacts within
or outside of the organization. Once an individual has worked within a given industry in a given
geographical location for a few years, he or she becomes well networked within the local industry.
These contacts can and should be used for checking references. There are often far fewer degrees
of separation between an applicant and an employer than the employer might imagine.
Much like testing, reference checking was often done after the interviewing process and usu-
ally as the final step in the selection decision. More recently, however, many organizations have
begun checking references prior to interviewing to allow them to eliminate candidates and gather
information to be used later in the interviewing process.
One potential limitation with reference checking is that many past employers will not provide
any information at all; they may do nothing more than verify the dates of employment, position
held, and/or salary level. Increasing liability for libel, slander, and defamation of past employees

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 Chapter 8 Staffing | 349

has caused more organizations to adopt a policy of not commenting on past employees’ employ-
ment history. This can be overcome at times through a well-established professional network,
whereby individuals will confidentially tell those in other organizations whom they know and
trust about a problem former employee.
Reference checking has become more critical for organizations because courts have been
holding employers responsible for an employee’s acts if the employer did not conduct a reasonable
investigation into the employee’s background. The doctrine of negligent hiring requires employers
to balance an applicant’s right to privacy, with the responsibility for providing a safe workplace for
employees and customers. Fifty-five percent of employers cite the risk of legal liability for negli-
gent hiring as a reason for checking references.58 At the very least, the employer should verify all
dates of employment and education and investigate any time gaps on an applicant’s résumé.
In attempting to balance the need to avoid defamation suits brought by former employees
with the need to avoid possible negligent referral charges for failure to warn another employer
about a past employee’s suspected potential to cause harm, employers are faced with a catch-22:
Giving either too much or too little information can expose them to a lawsuit. As a public policy
issue, many states have adopted laws that provide qualified immunity to an employer who pro-
vides reference information in good faith. Employers who knowingly provide false or misleading
information are not immune from liability. To date, 35 states have enacted such legislation,
which has been supported by the Society for Human Resource Management.59
Many employers also now check candidate backgrounds through social media sites. One
survey found that more than 45 percent of recruiters admit to checking candidate profiles on
social media sites and 70 percent of this group reports to having rejected a job applicant based
on information the recruiter found online.60 However, another survey found that the percentage
of organizations that use any kind of online search engines to screen job candidates decreased
from 34 to 26 percent from 2008 to 2011.61 Using social media to check a candidate’s back-
ground can be risky for several reasons. First, it might uncover information related to the pro-
tected class status of an applicant, which might not be known otherwise to the organization.
Second, a social media search might uncover information that is irrelevant to the position for
which the candidate has applied (and should not be considered) yet causes the applicant to be
viewed in an otherwise more positive or negative manner. For example, the applicant may
show an interest in certain outside hobbies or pursuits that are similar to those of the recruiter
or engage in certain political activities that are at odds with the beliefs and preferences of the
recruiter.

International Assignments
One final challenge that organizations face in staffing is selecting among current employees for
overseas assignments. Traditionally, such assignments have been made based on past proven suc-
cesses within the organization and the employee’s work-related technical skills. Although technical
ability is certainly a valid selection criterion, the main reason employees fail on international
assignments has less to do with technical skills than with interpersonal and acculturation abilities.
Lack of adaptation of not just the employee but the employee’s family has caused problems for
numerous organizations in their international operations as well as with relations with foreign offi-
cials, customers, and business partners.
Organizations are now realizing that assessing the technical backgrounds of such employees is
merely an initial screening criterion. To ensure the success of overseas assignments, employers are
increasingly testing employees’ adaptability, open-mindedness, ability to tolerate uncertainly and
ambiguity, and independence. Similarly, many are also interviewing and screening family members
who would be accompanying the employee on the assignment. In certain cases, the employee is
able to adapt, but problems with family members adapting either require the employee to return
home before the end of the assignment or have a negative impact on the employee’s performance.
Screening employees as part of staffing international operations has consequently become much
more elaborate and strategic to ensure the success of the assignment.

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350 | Part 2 Implementation of Strategic Human Resource Management

As the economy and workforces have become more diverse and global, organizations have
developed a much heightened interest in assessing how well an individual might function in an
increasingly global and multicultural work environment. Consequently, a large number of assess-
ment tools have been developed that attempt to measure an individual’s adaptability, cultural sen-
sitivity, and values. These instruments are useful not only for employees who are being considered
for international assignments but also for domestic employees in organizations that have global
customer and/or employee bases and/or value an understanding of and appreciation for cross-
cultural sensitivity. Reading 8.2, “Assessment Instruments for the Global Workforce,” identifies
and explains 18 different tools for measuring these traits and qualities in individuals.
One significant challenge with international staffing involves the sourcing and acquisition of tal-
ent in emerging economies. The tremendous potential for growth in the economies of countries such
as Brazil, Russia, India, and China has set off a near-frenzy of organizational entry into these markets.
However, in many cases, the demand for workers with certain skills exceeds the supply available
locally. Economic activity in the emerging “BRIC” (Brazil, Russia, India, and China) economies is
experiencing 40 percent annual compounded rates of growth, compared to 2–5 percent in the west
and Japan. The competition for talent in these markets is intense, and employees there are experienc-
ing employment choices and have high career expectations for the first time in their lives. Employers
who simply try to export their domestic talent to these locations often experience abysmal results.
Those organizations that are to be the most successful in attracting and retaining talent in
such markets need to focus on four means of distinguishing themselves as employers to attract tal-
ent. These means are purpose, brand, culture, and opportunity.62 Purpose involves a strong guid-
ing mission and values, evidence of global citizenship, and a perceived commitment to the region
and its people. Brand involves a reputation for global reputation for excellence and inspirational
leadership. Culture involves transparency of operations and processes and a merit- and talent-
based recognition system. Opportunity involves challenging work, accelerated career tracks, con-
tinuous opportunities for training and development, and competitive compensation practices.

Documentation of Employment Eligibility

One of the chief challenges employers face in the hiring of low-skilled employees is ensuring that
applicants have the legal right to work in the United States. Because there is no widespread, reliable
system for verification of the legitimacy of documentation an applicant might provide, employers
have to utilize extra caution in hiring. If documentation is suspect but later found to be valid, an
employer can face unlawful discrimination charges. On the other hand, in spite of stiffer penalties
and increased enforcement of worker eligibility, some employers feel that they have no choice but
to hire illegal immigrants because of the unduly slow process associated with obtaining work visas
vis-à-vis the employer’s need for employees. This is particularly true in industries such as agriculture
and hospitality and seasonal businesses that rely on large numbers of foreign employees.
Employers who wish to hire foreign workers who have not obtained citizenship first need to
prove that there are no domestic workers with the skills and availability to perform the responsi-
bilities of a given job and that the employment of foreign workers will have no adverse impact on
wages and working conditions. Even once an employer decides to hire a foreign employee whose
documentation appears to be valid, verification of the authenticity of the documentation by the
Social Security Administration can take months.
It is estimated that there are more than 11 million foreign individuals working illegally in the
United States and that these individuals account for nearly 5 percent of the U.S. labor force.63 In
many instances, these individuals work in low-skilled jobs that are being shunned by an increas-
ingly educated U.S. citizenry. In 1960, 50 percent of employees in the United States had not com-
pleted high school; currently, that figure is less than 10 percent.64 Simply deporting such workers,
even if were logistically possible, would decimate certain sectors of our economy. The economic
arguments both in favor of and against the employment of illegal workers are compelling. These
individuals tend to pay less in taxes than the financial burdens they impose on services such as
medical care and education. However, they also contribute billions of dollars annually into the

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 Chapter 8 Staffing | 351

Social Security system, for whose benefits they are ineligible. They also pay state and local sales
and properly taxes in the communities in which they reside.
While the political and economic debates concerning foreign workers will continue, this area
of employment provides both tremendous opportunities for employers to fill their ranks with low-
skilled workers for whom there is a demand, but at the same time, ensuring the legality of such
individuals’ employment status is fraught with delays, possible penalties, and ambiguity. Employ-
ers need to carefully and strategically monitor employment of foreign workers as well as maintain
their currency in the relevant and evolving laws and regulations in this area.

New Trends in Staffing

Three notable trends are taking place in organizations related to their staffing programs. The first
of these is employment branding. Employment branding involves the creation of an image of the
organization as an employer, much like an organization may attempt to create a brand around its
products and services. An employer’s employment brand involves the dissemination of informa-
tion that allows current and prospective employees as well as the business community to perceive
the organization in a certain way. Numerous “best” lists are published each year, which employers
strive to be a part of, including best employers for women, older workers, workers with disabilities,
gay and lesbian employees, working mothers, and so on. Organizations may brand themselves
through their advancement opportunities, higher-than-market compensation, flexible work
arrangements, prestige of the employer’s reputation, or the organization’s social consciousness.
Branding initiatives generally involve an attempt to make an employer the “employer of choice”
for at least a certain segment of the workforce.
Employers create an employment brand by first making a candid assessment of their
strengths as an employer. Employee satisfaction and attitude surveys can provide data as to what
aspects of their employment current employees most value. Applicant cover letters can also con-
tain information regarding why applicants seek employment with a given organization. Once
these factors have been identified, employers need to consider if they are currently attracting the
applicant pool they seek to employ. If not, surveys can be conducted to determine why desired
applicants are not seeking employment with the organization.
Once this information has been collected, an employer can then develop its message for prospec-
tive employees regarding what the organization is and what it aspires to be. Follow-through requires
careful oversight and management of the organization’s culture, mission, and employment policies
and practices. A critical part of an organization’s employment branding is its culture, particularly rela-
tive to relationships, authority, and accountability.65 Meetings and interviews with prospective
employees should communicate the organization’s culture as part of the employment brand. Ideally,
strong employment branding combined with effective recruitment and selection processes should
result in higher retention rates, lower overall recruitment costs, and improved company image.

Employment Branding at W. L. Gore

In 2010 Newark, DE-Delaware–based W. L. Gore and Associates launched a global branding
campaign designed to attract the most qualified professionals in medical research, engineer-
ing, and other technical fields to the organization. Using the theme “join Gore and change
your life,” Gore developed a platform on the Careers section of its website for its existing
employees to tell individual stories concerning how the products they have personally helped
to design and market have changed lives. Included with these stories is information about the
hierarchy-free environment of the workplace and the organization’s culture and key values,
which combine to create a workplace with no job titles. The bottom line message is that
working at Gore allows individual to make a difference in the lives of others as well as
make the world a better place.66

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352 | Part 2 Implementation of Strategic Human Resource Management

The second trend in staffing is candidate relationship management (CRM). CRM involves
building a relationship with job applicants that transcends the current hiring cycle and process.
Similar to employment branding, CRM is designed to engage candidates in an ongoing manner
and heighten the image of the organization as a desirable place to work. It may be the case that a
position is not available for a strong candidate at the time of candidate inquiry, there may be more
desirable candidates than there are current openings, or a candidate may have personal circum-
stances that prevent acceptance of an offer of employment at a particular point in time. CRM
involves the creation of an ongoing relationship with potential employees that can be capitalized
on when a position becomes available within the organization and/or the candidate becomes avail-
able. The end result of this activity is the creation of a pipeline of talent that remains interested in
and available for employment with an organization over time.
CRM activities usually center on the creation and maintenance of a database of possible can-
didates for employment as well as regular communication with these individuals to keep them
engaged and their interest level elevated. Many CRM activities parallel those that organizations
have developed with key customers to maintain and nurture the client relationship. Prospective
employees can be sent e-mails, newsletters, links to blogs, birthday cards, and other correspon-
dence to keep the organization in the forefront of their minds. Such activities tend to be extremely
cost-effective relative to later savings realized in terms of both time and direct out-of-pocket
recruiting expenses.67

CRM at Whirlpool
Whirlpool Corporation is a global manufacturer of major home appliances under brand
names that include Maytag, Amana, KitchenAid, and Jenn-Air. Candidate recruiting at
Whirlpool is treated as an opportunity to market both the organization and its product
lines. Every job candidate is an existing or potential customer, so Whirlpool’s Exceptional
Candidate Experience (ECE) program was designed to develop both the employer brand
and customer loyalty.
The ECE involves a three-stage process—initial candidate touch points, candidate
engagement, and candidate closings—with the goal of providing an exceptional experience
to ensure that the candidate leaves with a positive impression of the organization, regardless
of whether an offer of employment is made. The first stage-initial candidate touch points
focuses on consistent, positively branded messages about the organization and its products,
which are designed to create an inviting image. Candidate engagement ensures that every
candidate is treated warmly and engaged during the interview process. This includes gifts of
Whirlpool products in appreciation for the time candidates spend during the interview pro-
cess. The final stage—candidate closings—attempts to ensure that all job candidates remain
customers for life, regardless of the outcome of the interview.
Whirlpool realizes that prospective and existing employees have many choices for
employment and that top performers have near-limitless choices. The ECE is designed to
ensure that Whirlpool is not only successful in recruiting the best available talent but that
the process also creates ambassadors of the company and its products.68

CRM activities go beyond simply engaging current and prospective applicants in seeking to
attract applicants from unconventional places. Two commonly overlooked sources of employees
are customers and former employees. Recruiting employees from an organization’s customer
base can be convenient, cost-effective, and result in highly qualified, enthusiastic employees
who already believe in the organization and its products or services. Targeting customers who
may not currently be on the job market can increase both the quantity and quality of the

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 Chapter 8 Staffing | 353

employer’s applicant pool. Existing customers have experience with the organization’s products
and services and can provide additional insights into the development and marketing of the
organization’s offerings. A perennial favorite on Fortune magazine’s “TOO Best Companies to
for Work For” list is The Container Store, which recruits employees almost exclusively from its
customer base.69
A number of organizations are increasingly utilizing former employees as a target appli-
cant pool. This activity has been prompted by a fundamental shift in the employment relation-
ship from the traditional, long-term “loyalty” paradigm to one that is more short-term and
transactional in nature.70 Former employees can be a valuable resource to an employer, given
that they know the organization’s products/services, culture, market, and customers. Many
employers are also creating alumni networks for former employees, keeping these individuals
in touch via social events and written and electronic communications. Former employees can
be similar to internal hires in that they result in lower recruiting costs and a shortened time-
to-hire cycle, given that they are known entities within the organization. Former employees
can also bring a heightened sense of the marketplace, depending on their interim employment.
Former employees also tend to be more productive because of the loyalty and goodwill created
by the employer as part of the re-employment decision.71 Returning employees have higher
retention rates than other employees, and re-employment also allows employers to recoup
some of the training and development costs of these former employees as well as benefit from
any additional training and skill development that the employee has obtained since leaving the
organization.72
CRM has another important dimension: public and customer relations. Job candidates who
have a negative experience as part of the application process can affect an organization’s sales
and reputation. One recent survey found that 8 percent of job applicants who had a negative expe-
rience with an organization had sufficient anger and resentment to cause them to end their rela-
tionship with the organization as customers and share this resentment with others.73 Job
applicants may resent the fact that the organization considers them “good enough” to be a cus-
tomer but not so as an employee. CRM, particularly in those organizations who market directly
to consumers, need to ensure that all job applicants, particularly those who were not hired, are
treated with respect throughout the application (and rejection) process.
The third trend in staffing is a heightened awareness of fit between an applicant and the
organization’s culture. An increasing number of employers are using various types of assessments
in screening employees to determine whether there is an optimal “fit” between an applicant’s
interpersonal style and preferences for certain types of work environments and the organization’s
culture. One recent study found that more than half of hiring managers ranked fit as more impor-
tant to their hiring decisions than either analytical thinking of communication skills, citing its
positive impact on retention.74 Assessments can take various forms including complex surveys,
in-depth questioning, and spending extended periods of time with prospective coworkers. They
can also involve simple questions such as “if you could be any superhero, who would it be?”
(AT&T), “what color best represents your personality?” (Johnson & Johnson), “what animal are
you?” (Bank of America), and “describe your perfect last meal” (Whole Foods).75
Assessments for fit can allow job candidates to self-select out of the application process and
help to avoid some of the above-mentioned issues, which can be associated with candidates who
are not selected by the employer. While these assessments can become an important part of an
organization’s staffing strategy, they run the risk of having employers select candidates who
might not be the most skilled or talented applicants. On the other hand, fit is a stronger predictor
of retention than skills and can result in significant savings for an employer relative to recruiting
and orientation or onboarding costs. Online retailer Zappos doesn’t assess job candidates for fit
but realizes its importance in creating a high-performance work environment. As a result, the
organization will offer new employees who might be struggling $40004,000 to resign after a week
of employment rather than continue to invest in training an employee who simply doesn’t get
along with coworkers.76

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354 | Part 2 Implementation of Strategic Human Resource Management

The potential downside to “hiring for fit” is the risk that hiring managers and employees may
be biased in favor of candidates who are similar to themselves. Diversity initiatives may be
thwarted by assessing and measuring how well an individual fits in. Innovation, creativity, and
suggesting new and better ways of doing things can also be derailed if the process of hiring for
fit is blind toward the developmental needs of the organization and some of the specific employee
skills that may be needed to accomplish strategic objectives. Numerous studies have documented
the benefits and competitive advantages that diverse workforces provide to employers. Diverse
workforces have also been shown to produce an average of 15 times more sales revenue than
those that are less diverse.77 Hiring for fit and promoting diversity need not be at odds with each
other if the organization’s culture stresses the value of a diverse work place and incorporates these
considerations when determining “fit.” In asking nonjob-related questions regarding personal out-
of-work activities, favorite vacation spots, and so on, employers can show preference toward non-
typical responses in light of the contribution this diversity might provide to the organization’s cul-
ture and its performance.

Conclusion
An organization can only be successful and reach its strategic objectives by employing individuals
who have the capacity and desire to contribute to its mission. The staffing function, therefore,
plays an important role in facilitating an organization’s success. When unemployment is low,
organizations face even greater challenges in staffing because the forces of supply and demand
drive wages up and provide greater career opportunities with other organizations.
An effective staffing strategy requires in-depth planning for the recruiting process to ensure
efficiency and generation of a qualified applicant pool. How selection will proceed relative to the
process and the kinds of applicant information needed must also be determined. The strategic
decisions organizations need to make relative to staffing are summarized in Exhibit 8.6. Staffing
is the key or core component that forms the backbone of an integrated, strategic system of HR

EXHIBIT 8.6
Strategic Issues in Staffing

Recruiting Selection

• Permanent versus temporary • Reliability

• Internal versus external • Validity
• In-house versus outsource • Interviewing
• Methods Who
Individual versus group
Structured versus unstructured
• Testing/assessment
• References

Employment Branding
International Assignments
Candidate Relationship
© Cengage Learning

Management

Fit

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 Chapter 8 Staffing | 355

management by ensuring that there is an optimal fit between employees and the strategic needs of the
organization. If an organization’s staffing is deficient, the effectiveness of its HR programs and policies
will be impaired. As one HR professional commented, “Good training will not fix bad selection.”

Critical Thinking
1. How does an organization’s investment in staffing • High school principal
benefit the organization after an applicant becomes an • Nursing supervisor
employee? • Factory foreman
• Chief medical resident
2. What problems can result from cutting corners to save
• Police chief
time or money in the staffing process?
3. What are the major strategic choices an organization 7. Discuss the challenges organizations face associated
faces concerning staffing? What are the advantages with the employment of foreign workers.
and disadvantages of each alternative? 8. How might an employer create an employment brand-
4. What are the pros and cons (from the employer per- ing strategy?
spective) of conducting executive searches in-house 9. What are the pros and cons of establishing a CRM
versus outsourcing the function? What are the pros program?
and cons of internal versus external executive search
10. What are the pros and cons of hiring for “fit?” How
from the applicant’s perspective?
can an employer best ensure that new employees will
5. Devise a staffing strategy for the following organizations: fit with the company culture while simultaneously
managing diversity and ensuring that the most quali-
• A church-based soup kitchen staffed with
fied candidate will be hired?
volunteers
• A professional baseball team Reading 8.1
• A small Internet startup
11. Evaluate the future potential and possibilities for the
• A publisher of a large daily newspaper in a major city
contingent employment market and industry.
• A police department
• A 400-room luxury hotel Reading 8.2

6. Develop a set of behaviorally based interview questions 12. What types of positions in what types of industries might
for the following jobs: each of the eighteen inventories be used to assess?

Exercises
1. Visit a major employer’s Web site (such as those pro-
Bank of America http://www.bankofamerica.com
vided here or any others). Apply for a specific job with
the same company both via online means and through Hewlett-Packard http://www.hp.com
submitting a résumé by postal mail. Compare and Computer
contrast the processes. As an applicant, which did Eastman Kodak http://www.kodak.com
you find preferable and why? Specialized Bicycles http://www.specialized.com
Cisco Systems http://www.cisco.com 2. In small groups, discuss your experiences with and
GE Energy http://www.gepower-careers.com determine the pros and cons of online recruiting
Advanced Micro http://www.amd.com from the employer’s perspective.
Devices 3. Develop a behavioral interviewing protocol for your
Booz Allen Hamilton http://www.bah.com current or most recent job.

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