Human Resource Management

Human resource management (HRM) is evolving in response to various trends that shape the
modern workforce and workplace. These trends impact the way HR managers handle their tasks
and responsibilities, transforming traditional practices and requiring new approaches in talent
acquisition, workforce management, and employee development.
1. Workforce Demographics and Diversity
The workforce is becoming increasingly diverse. From 1992 to 2022, the proportion of non-
white employees has grown, with notable increases in Asian and Hispanic workers. Additionally,
the aging workforce, with those over 55 expected to make up 25.6% of workers by 2022, poses
challenges for employers needing to replace retirees. Many organizations address this gap by
rehiring retirees, utilizing foreign labor through visa programs like the H-1B, and incorporating
nontraditional work arrangements, such as temporary, part-time, and independent contractor role
2. Trends in How People Work
The landscape of work is shifting significantly, with a marked trend away from manufacturing
toward service-oriented roles, particularly in regions like North America and Western Europe.
Currently, over two-thirds of the U.S. workforce is employed in service sectors, with the Bureau
of Labor Statistics predicting that by 2020, 87% of wage and salary jobs will be in service
industries. This shift is fueled not only by the nature of demand but also by evolving workforce
models, including the rise of "on-demand" or gig work, where companies like Uber, Airbnb, and
Elance tap into a flexible pool of freelancers and independent contractors who work as needed
rather than in traditional employment roles.
This shift toward on-demand work presents unique challenges for human resource management,
including creating policies that address compensation, job security, and the matching of tasks
with available talent. Critics argue that while this model offers flexibility, it can also result in
unpredictability and a lack of worker agency, as computerized platforms often determine tasks,
schedules, and pay rates.
Another significant trend is the growing emphasis on "human capital," reflecting the increasing
need for knowledge, skills, and technological competence across job roles. Service roles like
consulting and law have long required specialized knowledge, but even traditionally lower-skill
roles, such as bank tellers or retail clerks, now demand a level of tech-savviness. As such, firms
are investing more in the education, training, and development of their workforce, recognizing
that superior human capital can be essential for competitive success. Managers now face the
challenge of selecting, training, and empowering employees to take on more responsibility,
adapting HR practices to foster a knowledgeable and capable workforce in this evolving
landscape.
3. Globalization
Globalization continues to drive economic growth, fueled by free trade agreements that lower
tariffs and encourage international business. Companies like Toyota and Apple operate across
borders, which enhances competition and pushes firms to optimize costs, productivity, and
quality. To remain competitive, many firms offshore parts of their operations or services to
countries with lower labor costs. However, globalization also introduces complex people-
management challenges as HR managers must navigate diverse cultures, regulatory
requirements, and workforce expectations in various regions.
In summary, HR managers face a dynamic environment shaped by shifting workforce
demographics, evolving work models, a focus on human capital, and the demands of
globalization. These trends require adaptive HR strategies and innovative practices to support
organizational goals in a rapidly changing global landscape.
4. Economic Trends
• Post-Recession Caution: Following the 2007–2008 financial crisis, companies are
cautious with expansion, emphasizing financial stability over growth.
• Aging Workforce: With baby boomers retiring, the labor force is growing more slowly,
creating hiring challenges, especially for skilled roles.
• Skill Imbalance: There’s high demand for tech skills but fewer jobs requiring college
degrees, leading to underemployment and worker dissatisfaction. HR needs to improve
job alignment and engagement strategies.
5. Technology Trends
• Digital Recruiting: Social media platforms like LinkedIn are now essential for direct,
faster recruitment and reaching diverse talent.
• Mobile and Cloud: Mobile and cloud tech improve real-time feedback and streamline
HR processes, making management more efficient.
• Data-Driven HR: Talent analytics helps predict candidate success, using data to refine
hiring and performance management.
• Automation and Remote Work: Automation affects all industries, and remote work is
rising. HR must adapt to flexible work policies and remote productivity tools.
In short, HR must be strategic, using tech tools and adapting to economic changes to address
workforce challenges effectively

Today’s Human Resource Management

A Brief History of HRM:
 • Early Beginnings: Personnel management, which involves attracting, selecting, training,
and motivating employees, has roots dating back to ancient times.
• Industrial Revolution: In the late 1800s, with rising labor issues in factories, employers
set up welfare and safety departments, marking the start of formal personnel
management.
• Early 1900s: Companies created dedicated hiring offices, training programs, and payroll
departments, making personnel management a specialized field.
• Union and Employment Laws: By the 1930s and later in the 1960s, new labor and equal
employment laws made HR departments crucial for handling unions and preventing
discrimination claims.
• Modern HR: With globalization and technology, HR shifted towards managing human
capital—emphasizing skills, engagement, and knowledge to gain a competitive edge.
Distributed HR and the New HRM:
• Digital Tools and Employee Involvement: Technologies like social media and mobile
apps enable more HR functions to be handled directly by employees and managers.
o For instance, LivingSocial uses a tool called Rypple for peer feedback, which
feeds into formal appraisals.
o Google leverages crowdsourcing in hiring, allowing employees to help evaluate
candidates.
• Back to Line Managers: Many HR tasks are shifting back to line managers, as was
common before dedicated HR departments existed. Companies like Hilton Worldwide
distribute HR tasks to employees and managers, using the savings to focus on strategic
HR efforts.
In essence, today’s HR is increasingly collaborative, technology-driven, and integrated
throughout organizations rather than being limited to a central HR department.

Key Digital and Social Media Trends in HR

Digital and social media tools are reshaping HR practices:
1. Career Transparency: Sites like Glassdoor let employees share reviews and salaries,
prompting companies to improve transparency and fair processes.
2. Digital Recruitment: LinkedIn helps recruiters find both active and passive candidates,
while tools like Gild identify top talent through online code analysis.
3. Retention via Talent Analytics: Algorithms now flag high-potential employees likely to
leave, allowing companies to proactively address retention.
 4. Training Optimization: Data tools assess which training courses most impact
performance, refining learning strategies.
5. Smart Mentorship Pairing: Personality-based tools enhance mentor-protégé matching,
improving mentorship outcomes.
6. Market Insights: Real-time analytics on job postings help companies stay competitive
on hiring trends, salaries, and benefits.
These tools enable more efficient, data-driven HR management.

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1. HR as a Strategic Partner:
o HR has moved from administrative tasks to a strategic role, aligning its policies
and practices with the organization’s long-term goals. Strategic human resource
management (SHRM) involves developing HR practices that promote the skills
and behaviors needed to reach company goals. For instance, if a company’s
strategy focuses on innovation, HR will emphasize hiring creative talent and
fostering a culture that supports innovation.
2. Performance Improvement:
o Modern HR departments focus on enhancing employee and organizational
performance through three main levers:
▪ HR Department Lever: Ensures HR services are efficient. For example,
outsourcing certain HR functions (like payroll) can save costs, while using
technology, such as automated systems, improves service speed and
accuracy.
▪ Employee Costs Lever: HR advises on workforce budgeting, ensuring the
company optimizes spending on salaries, benefits, and incentives.
▪ Strategic Results Lever: HR creates policies that support strategic goals.
For example, if the goal is superior customer service, HR will focus on
recruiting, training, and retaining employees who excel in service-related
skills.
3. Performance Metrics:
o Performance metrics allow HR to measure the success of its programs and
practices. These can include tracking turnover rates, training effectiveness, and
employee satisfaction. For example, IBM’s HR used data to demonstrate the
value of reorganizing its operations, showing top management how new systems
would improve employee skill alignment and readiness.
4. Evidence-Based Management:
 o Evidence-based management means HR decisions are based on data and research
rather than intuition. For instance, instead of guessing which training program
will improve performance, HR can use studies showing that hands-on workshops
yield better retention rates. High-performance work systems—like self-directed
teams at GE—are examples of practices backed by evidence to improve
productivity and engagement.
5. Adding Value:
o HR today aims to directly contribute to business value, emphasizing profitability
and measurable outcomes. For instance, HR might implement a performance
incentive program that boosts productivity, thereby increasing revenue. HR’s goal
is to show tangible improvements in the organization as a result of its policies and
practices.
6. Sustainability Focus:
o Increasingly, HR is concerned with sustainability—not only profit but also
environmental and social impacts. Companies are embracing corporate
responsibility, which means integrating practices that benefit the environment and
society, in addition to business growth. For example, PepsiCo’s “Performance
with Purpose” initiative balances financial results with commitments to
sustainability in environmental, social, and employee well-being.
7. Employee Engagement:
o Engaged employees are productive, motivated, and aligned with the company’s
goals. Research shows that high engagement correlates with better performance.
HR improves engagement by implementing programs that meet employees’
developmental and recognition needs. Kia Motors, for example, saw performance
improvements by increasing engagement through better leadership programs,
communication, and rewards. Engaged employees contribute more effectively to
the organization’s success.
Together, these trends signify HR’s transformation into a core business partner, using data and
strategy to enhance performance, sustainability, and employee engagement.

The Evolving Role of HR Managers

Today’s HR managers are expected to be strategic partners, not just experts in hiring and
training. They need to understand business strategy, speak the CFO's language, and use data to
justify HR initiatives.
Key Competencies for HR Managers (SHRM)
1. Leadership & Navigation: Direct and contribute to initiatives within the organization.
2. Ethical Practice: Uphold values, integrity, and accountability.
 3. Business Acumen: Understand how HR contributes to the business’s strategy.
4. Relationship Management: Manage interactions to support organizational goals.
5. Consultation: Advise stakeholders on HR-related issues.
6. Critical Evaluation: Analyze data to make informed decisions.
7. Global & Cultural Effectiveness: Value diverse perspectives and manage a global
workforce.
8. Communication: Ensure clear exchange of information within the organization.
Key HR Knowledge Areas
1. Talent Acquisition & Retention
2. Employee Engagement
3. Learning & Development
4. Total Rewards (Compensation & Benefits)
5. Organizational Effectiveness
6. Workforce Management
7. Diversity & Inclusion
8. Technology & Data
HR and Ethics
HR managers ensure ethical practices in areas like workplace safety and employee privacy,
maintaining the organization's integrity.
HR Certifications
HR professionals often pursue certifications such as those offered by the HR Certification
Institute (HRCI) or SHRM, demonstrating expertise in HR practices and competencies.
Conclusion
HR managers today must drive organizational success by aligning HR practices with business
strategy, using data, and promoting a positive and ethical workplace culture. Certification
programs help HR professionals stay current and prove their expertise.

HR and the Manager’s Human Resource Philosophy

A manager’s philosophy of human resource management is shaped by their assumptions about
people and work. These assumptions—such as whether people can be trusted or why they act the
way they do—inform decisions around hiring, training, leadership style, and employee relations.
This philosophy isn’t fixed; it evolves over time as a manager gains more experience and
knowledge. For example, after worker unrest at Foxconn’s Apple iPhone plant, management
softened its personnel approach. A manager’s philosophy may also be influenced by the
organization’s leadership.
Organizational Influence on Philosophy
An organization’s top management typically sets the tone for the company’s personnel
philosophy, often through actions rather than explicit statements. For example, Polaroid’s
founder emphasized giving employees the opportunity to fully utilize their talents, share in the
company’s progress, and have a fulfilling work life. Similarly, SAS and Google prioritize trust,
innovation, employee growth, and a supportive culture, making them attractive places to work.
In conclusion, a manager’s HR philosophy guides how they interact with and manage
employees, and should evolve as they learn and adapt to new experiences.

Chapter 4
The talent management process, as outlined in this content, is essential for aligning human
resource practices with organizational goals. It spans various interdependent activities, including
recruitment, selection, training, appraisal, career planning, and compensation, which were
traditionally approached in a sequential or stepwise manner. However, a purely stepwise
approach often overlooks the interconnected nature of these activities and the overarching goals
they should collectively serve.
Key Points in Talent Management:
1. Integrated Approach: Rather than handling each HR function as an isolated step,
managers should view the process holistically. For example, training is not merely a
follow-up to hiring but works in tandem with ongoing appraisal to support an employee’s
continuous development and performance enhancement.
2. Focus on Results: Talent management aims to achieve specific outcomes, such as
increased customer satisfaction or enhanced productivity. Managers begin by identifying
the organizational competencies needed to reach these goals and then determine how
recruitment, selection, training, and compensation can build and sustain these
competencies.
3. Coordination and Consistency: In talent management, consistency across HR functions
is crucial. Using a unified "competency profile" helps ensure that recruitment, training,
 appraisal, and compensation decisions all align with the same set of skills and behaviors.
This consistency improves efficiency and effectiveness across the board.
4. Technology and Software: Many organizations now utilize talent management software,
which facilitates the coordination of recruitment, onboarding, performance management,
and compensation processes. These systems integrate each function and ensure that all
organizational levels work toward shared goals, streamlining HR operations and reducing
the potential for redundancy or conflict among HR activities.
The Basics of Job Analysis in Talent Management
Job Analysis is the foundation of talent management, providing essential information for
effective recruitment, selection, training, performance appraisal, and compensation. It involves
gathering detailed information about job roles within an organization, such as duties,
responsibilities, required skills, and performance standards. This process ensures that the
organization has clarity on what each position entails and the traits needed for employees to
perform successfully.
Key Components of Job Analysis:
1. Work Activities: Understanding the tasks and activities required in a job (e.g., teaching,
selling), including the methods, purposes, and timing of each task.
2. Human Behaviors: Determining physical or mental demands, such as communicating,
problem-solving, or lifting weights.
3. Tools and Equipment: Listing any tools, equipment, or materials an employee needs to
perform their job duties effectively.
4. Performance Standards: Defining benchmarks for acceptable performance levels in
quality or quantity for each job task.
5. Job Context: Considering the working conditions, physical environment, schedules, and
interpersonal interaction required in the role.
6. Human Requirements: Outlining the necessary knowledge, skills, training, experience,
and personal attributes required for the job.
Importance of Job Analysis Information in HR Functions
Job analysis data supports virtually all HR functions:
• Recruitment and Selection: Identifies the job’s specific duties and the human attributes
required, aiding in recruiting and hiring the right candidates.
• Equal Employment Opportunity (EEO) Compliance: Helps define essential job
functions, important for compliance with regulations like the Americans with Disabilities
Act (ADA).
 • Performance Appraisal: Provides a basis for evaluating employees’ actual performance
by comparing it with the job’s standards and duties.
• Compensation: Assists in setting salary levels based on the job’s skill requirements,
responsibility, and working conditions.
• Training: Highlights specific duties and required skills, helping managers identify
training needs for the position.
Steps in Conducting Job Analysis
1. Define the Purpose: Decide how the job analysis information will be used, as it may
guide which data collection methods to employ.
2. Review Background Information: Examine the organization chart, process chart, and
any existing job descriptions to understand the job’s context within the organization.
3. Workflow Analysis: Study the flow of work among jobs in a process to ensure that job
responsibilities align logically and that the role is necessary. Workflow analysis may lead
to adjustments or reengineering of the job for improved efficiency.
Workflow Analysis
Workflow analysis is an in-depth review of how tasks move from one role to another within a
specific work process. This approach allows managers to identify inefficiencies or redundancies
and can lead to reengineering the workflow for better alignment with organizational objectives.
In sum, job analysis is a critical starting point in talent management, informing key HR practices
that contribute to the organization’s overall effectiveness. Through understanding each position's
demands and qualifications, organizations can better align their talent management strategies
with business goals

Improving Performance: HR as a Profit Center and Job Redesign for Productivity

In today's competitive environment, HR departments play a strategic role in enhancing
organizational performance by improving workflow efficiency and redesigning jobs to boost
productivity. Workflow analysis and business process reengineering are two key strategies
that can lead to significant improvements in performance, cost savings, and employee
satisfaction.
Workflow Analysis and Job Redesign at Atlantic American Insurance
At the Atlantic American insurance company, the HR team conducted a workflow analysis to
identify inefficiencies in their insurance claims processing. By tracing the steps each claim took,
from receiving mail to final processing, they pinpointed several areas where automation could
replace manual tasks. Key improvements included:
1. Automation of Mail Sorting: Reduced from four to one the number of employees
handling mail by introducing an automatic sorting machine.
2. Enhanced Date Stamping: Implemented a new date-stamping machine that stamps 20
pages at once, increasing efficiency.
3. Automatic Barcode System: Used software to add barcodes automatically, eliminating
the need for manual barcoding.
These changes not only sped up the process but also reduced labor costs, transforming a
traditional workflow into a cost-effective and efficient operation.
Business Process Reengineering (BPR)
BPR involves redesigning business processes to streamline operations and often uses
technology to automate and consolidate tasks. For example, instead of separate departments
handling different parts of a process, small, multifunctional teams can be established, each
responsible for a sequence of tasks.
The BPR approach at Atlantic American followed these steps:
1. Identify the Process: Focus on the insurance claims process.
2. Measure Current Performance: Assess inefficiencies in the existing steps.
3. Identify Improvement Opportunities: Find areas to reduce redundancy and increase
automation.
4. Redesign the Workflow: Implement the new technology to replace manual steps.
5. Assign Ownership: Ensure specific individuals or teams own the redesigned process,
enhancing accountability and performance.
Job Redesign for Motivation and Efficiency
Beyond workflow changes, job redesign can improve employee motivation and efficiency. Three
common methods include:
• Job Enlargement: Adding related tasks to an employee’s role. For example, an
assembler may now handle both attaching the seat and the back of a chair.
 • Job Rotation: Shifting employees across different tasks or roles to add variety and
enhance skillsets.
• Job Enrichment: Empowering employees with more responsibility and control over
their tasks, leading to increased motivation and job satisfaction. Psychologist Frederick
Herzberg’s theory suggests that job enrichment—adding elements of responsibility and
achievement—motivates workers intrinsically.
Conducting Job Analysis
When performing job analysis, HR managers can use several steps and methods to gather
accurate and comprehensive data:
1. Define the Purpose: Establish the purpose of the job analysis to select the appropriate
data collection method.
2. Gather Background Information: Review organizational charts, process charts, and job
descriptions to understand job context.
3. Select Representative Positions: If there are multiple similar roles, analyze a
representative sample.
4. Collect Job Information: Use interviews, observations, or questionnaires to gather
details about tasks, responsibilities, and required skills.
5. Verify Information: Confirm accuracy with the jobholder and supervisor.
6. Create Job Descriptions and Specifications: Develop documents that summarize job
responsibilities and required traits.
By utilizing multiple methods, such as interviews and questionnaires, managers can gain a more
accurate picture of job requirements and avoid missing any infrequent but crucial tasks.
Summary
Incorporating workflow analysis, process reengineering, and job redesign into HR strategies
helps companies streamline operations and improve productivity. At the same time, approaches
like job enrichment contribute to higher job satisfaction and motivation, which can result in
better overall performance and retention.

Job Analysis Methods in Detail

Job analysis helps organizations understand the requirements and responsibilities of each
position, informing decisions around hiring, training, and compensation. Here are some widely-
used methods for gathering job data:

1. Job Analysis Interviews

Interviews can range from highly structured with specific questions to unstructured, open-ended
conversations. The interview method involves speaking directly with employees to gain insight
into their daily responsibilities, work environment, and any unique aspects of their roles.
• Types of Interviews:
o Individual Interviews: Conducted one-on-one with employees, offering detailed
insights into a single job.
o Group Interviews: Useful when multiple employees perform similar tasks,
saving time and providing a consensus view. Often, the group interview includes
the employees’ supervisor to ensure accuracy.
o Supervisor Interviews: Held with supervisors who understand job requirements
and can offer a broad view of responsibilities and performance expectations.
• Typical Questions: Questions cover a variety of topics, such as:
o Job duties: “What are your major duties and responsibilities?”
o Skills and experience: “What skills, education, and experience are necessary for
this job?”
o Working conditions: “What are the physical, emotional, and mental demands?”
o Performance standards: “What standards or goals do you typically meet?”
Structured Interviews :Many managers use questionnaires to guide the interview.
Figure 4-4 presents one example. It includes questions regarding matters like the
general purpose of the job; supervisory responsibilities; job duties; and education,
experience, and skills required.

Such structured lists are not just for interviews. Job analysts who collect infor-
mation by personally observing the work or by using questionnaires—two methods

explained later—can also use structured lists.11

• Pros:
o Allows for detailed information gathering, especially regarding infrequent but
essential activities.
 o Facilitates rapport-building, helping employees feel comfortable sharing job-
specific frustrations or challenges.
• Cons:
o Potential for biased responses if employees see the interview as a review of their
efficiency or as linked to salary adjustments.
o Time-consuming, especially when many employees hold the same position.

Interviewing Guidelines : To get the best information possible:

● Establish rapport with the interviewee. Know the person’s name, speak under-
standably, briefly review the interview’s purpose, and explain how the person
was chosen for the interview.
● Use a structured guide that lists questions and provides space for answers. This
ensures you’ll identify crucial questions ahead of time and that all interviewers
(if more than one) cover all the required questions. (However, also ask, “Was
there anything we didn’t cover with our questions?”)
● Make sure you don’t overlook crucial but infrequently performed activities—like
a nurse’s occasional emergency room duties. Ask the worker to list his or her
duties in order of importance and frequency of occurrence.
● After completing the interview, review the information with the worker’s
immediate supervisor and with the interviewee.

2. Job Analysis Questionnaires

Questionnaires ask employees to document their job duties and responsibilities. These can range
from structured checklists to open-ended questions, capturing both specific tasks and a
general overview of the role.
• Types of Questionnaires:
o Structured Questionnaires: Employees are given a detailed list of tasks (e.g.,
“operate machinery,” “handle customer complaints”) and asked to specify how
often they perform each task and how much time they dedicate to it.
 o Open-ended Questionnaires: These include questions like “Describe the main
functions of your job,” allowing for narrative responses.
o Hybrid Questionnaires: Combine both structured and open-ended questions to
gather more nuanced information.
• Pros:
o Efficient for collecting data from many employees, especially across similar roles.
o Cost-effective, especially compared to individual interviews.
o Easy to analyze when using standardized questions.
• Cons:
o Development and testing of the questionnaire can be time-consuming.
o Responses may lack detail, and some employees may misrepresent their duties,
either intentionally or due to misunderstanding the questions.
3. Observation
Direct observation involves watching employees as they perform their jobs to understand their
tasks and work habits. Observers document each step of the job cycle, which could range from a
few minutes (e.g., for assembly-line workers) to several hours or days (e.g., for project
managers).
• Best for:
o Jobs involving repetitive, physical tasks, such as manufacturing or retail positions.
o Situations where direct observation can clarify the specific movements,
procedures, and tools involved in the work.
• Pros:
o Allows analysts to see actual work practices rather than relying on descriptions.
o Helps capture real-time activities and environmental factors that might not be
mentioned in interviews or questionnaires.
• Cons:
 o Unsuitable for jobs involving mental or intermittent tasks (e.g., legal work or
emergency response).
o Can lead to reactivity—employees may alter their usual performance because
they know they are being observed.

4. Participant Diaries or Logs

Employees keep a daily record of their activities, noting tasks and time spent on each. This
method provides a real-time view of daily responsibilities, especially useful for jobs where tasks
vary significantly day-to-day.
• Pros:
o Provides an in-depth view of day-to-day tasks.
o Useful for documenting sporadic or non-routine activities that might not emerge
in a one-time interview or observation.
• Cons:
o Relying on employees to consistently record every activity can be difficult; they
may forget or omit tasks.
o Requires time and commitment from employees, which can impact accuracy.

5. Quantitative Job Analysis Techniques

These methods assign numerical values to various job elements, enabling organizations to
objectively compare and classify jobs. Common quantitative methods include:
• Position Analysis Questionnaire (PAQ): A popular tool that uses a detailed,
standardized questionnaire of 194 job elements, rated across five main categories:
1. Decision-Making/Communication/Social Responsibilities
2. Performing Skilled Activities
3. Physical Activity
4. Operating Vehicles/Equipment
5. Information Processing Each job is rated on the extent to which it involves each
category, resulting in a quantitative score that can be used for job comparisons,
particularly for pay or rank.
• Department of Labor (DOL) Procedure: This method uses categories related to data,
people, and things to describe job requirements. Each function is given an importance
 rating, allowing the job analyst to create a numeric code for the position. This score is
valuable for pay decisions and role comparisons.
• Pros:
1. Enables standardized job comparisons for objective decisions on pay, promotions,
and performance.
2. Particularly useful for large organizations with multiple similar roles.
• Cons:
1. May overlook unique qualitative aspects of the role.
2. Requires training and expertise to properly interpret and implement the results.

6. Electronic Job Analysis Methods

Organizations increasingly use online platforms to distribute and collect job analysis data,
particularly for geographically dispersed employees. This approach can involve web-based
questionnaires or virtual meetings to finalize job details.
• Pros:
o Efficient for remote data collection and enables real-time collaboration among HR
staff, managers, and employees.
o Cost-effective as it reduces travel and in-person meeting requirements.
• Cons:
o Risk of incomplete responses or misinterpretation without face-to-face
interaction.
o Initial setup and training may be required to ensure data is collected accurately
Writing Effective Job Descriptions: A Detailed Guide
A job description is a crucial HR tool that defines what a job entails, how it is to be performed,
and the working conditions associated with it. These descriptions are often the end result of
thorough job analysis and are essential in many HR functions, such as recruitment, performance
evaluation, and compensation. Let’s walk through the components of a well-structured job
description and how it benefits various contexts, including business and non-business settings.

Importance of Job Descriptions

Accurate job descriptions serve several purposes:
1. Guidance for Employees: Clearly outlines their roles and responsibilities.
 2. Hiring and Training: Assists in attracting the right candidates and tailoring training
programs.
3. Performance Evaluation: Sets a standard for performance metrics.
4. Legal Compliance: Helps ensure compliance with labor laws by outlining exempt vs.
non-exempt status.
5. Employee Development: Identifies areas for growth, training, and skill development.

Key Components of a Job Description

1. Job Identification
o Job Title: Clearly specifies the job name (e.g., Inventory Control Clerk).
o FLSA Status: States whether the role is exempt or non-exempt from overtime and
minimum wage provisions as per the Fair Labor Standards Act (FLSA).
o Approval Date: Ensures the description is up-to-date and accurate.
o Other Details: May include department, division, job location, immediate
supervisor’s title, and pay scale or grade/level of the job.
2. Job Summary
o Essence of the Role: Summarizes the job’s main purpose and essential functions.
For example, a job summary for a Mailroom Supervisor might say: “Responsible
for receiving, sorting, and delivering incoming mail, as well as handling outgoing
mail and ensuring timely and accurate posting.”
o Exclusion of Ambiguities: Avoid phrases like "other duties as assigned" as they
may lead to misunderstandings about the job's scope.
3. Relationships
o Defines how the job holder interacts with others inside and outside the
organization.
o Example:
▪ Reports to: Vice President of Employee Relations.
▪ Supervises: HR clerk, test administrator, labor relations director, and a
secretary.
▪ Interacts with: Department managers, external employment agencies, and
union representatives.
4. Responsibilities and Duties
 o This section lists all major duties, providing detail on each. Duties should be
specific and include tasks like “achieve quantitative sales goals” or “approve
purchase requests up to $5,000.”
o Authority Limits: Describes the job holder’s authority, such as the ability to
discipline staff, approve leave, or handle hiring within a certain scope.
5. Standards of Performance
o Defines how each responsibility will be measured. This can be quantitative (e.g.,
meeting sales targets) or qualitative (e.g., maintaining high customer service
standards).
o Helps set clear performance expectations, supporting both the employee and
supervisor in evaluating work quality and efficiency.
6. Working Conditions
o Describes the physical, environmental, and mental demands of the job. For
example, it might specify that the job involves lifting 30-pound boxes or working
in a loud manufacturing environment.
7. Job Specification
o Lists the qualifications required, including necessary skills, knowledge, education,
and experience. For instance, a Marketing Manager might need a Bachelor’s
degree in Marketing, 3+ years of experience, and knowledge of digital marketing
tools.

HR in Practice Example: Hotel Paris

The HR manager at Hotel Paris realized that outdated or missing job descriptions were impacting
the effectiveness of her employment system. Accurate job descriptions are vital for setting clear
expectations and improving employee performance. Without them, efforts to enhance hiring,
training, and employee satisfaction can be compromised.

Non-Business Application Example: Childcare

In non-business settings, like hiring a childcare worker, job descriptions can be equally
important. By creating a detailed job description, parents can better define expectations, such as
prioritizing early-childhood learning activities. This can lead to more effective recruitment, fair
compensation, and improved job satisfaction for the caregiver, ultimately benefiting the child’s
development.
Creating and Updating Job Descriptions

There’s no single standard for job descriptions, but many HR professionals use resources like:

• Standard Occupational Classification (SOC): Provides detailed job categories, which

can be useful in defining duties and requirements.
• Online Resources: Websites like Monster’s job description center offer templates and
examples that help structure job details.
• Job Analysis: Reviewing current employees’ actual work provides real-world insights
into each role.

By carefully crafting job descriptions and keeping them current, organizations ensure that each
employee understands their role, responsibilities, and the criteria by which they will be
evaluated. This, in turn, leads to better hiring, training, and employee satisfaction
ADA Compliance in Job Descriptions
Job descriptions must define essential functions of a role to comply with the Americans with
Disabilities Act (ADA). Essential functions are core duties an employee must be able to perform,
with or without accommodation.
Key Factors for Essential Functions:
1. Purpose: Is the function central to the role?
2. Resources: Are there others who can perform it?
3. Skill Level: Does it require specific expertise?
4. Consistency: Is the function consistently required?
For instance, a receptionist’s role may essentially involve answering calls and greeting visitors.
Evidence of Essential Functions:
 • Employer’s Judgment and Written Job Descriptions prepared before hiring.
• Current/Past Employee Experiences in the role.
Reasonable Accommodations:
If an individual cannot perform certain tasks, employers must provide accommodations unless it
causes "undue hardship." Examples include modified equipment, flexible schedules, and
accessible workplaces.
Performance Standards and Working Conditions:
Clear performance standards for each duty should be listed, such as timely invoice postings. Any
relevant working conditions (e.g., noise, hazards) should also be specified.

Improving Performance: HR Tools for Line Managers and Small

Businesses Using O*NET
Small business owners often face challenges in conducting job analyses, particularly when they
lack dedicated HR professionals or job analysts. Two common hurdles are the need for a
streamlined approach and concerns about missing important duties in job descriptions. To
address these, business owners can turn to tools like O*NET, which provides comprehensive
information on various occupations, including job duties, skills, and educational requirements.
Steps to Use O*NET for Job Descriptions:
1. Review Your Plan: Align job needs with your company’s plans. Consider growth,
expansion, or the need for new positions.
2. Develop an Organization Chart: Create a chart reflecting both the current and future
structure of the company.
3. Job Analysis Questionnaire: Gather information about each job’s duties using a
questionnaire.
4. Obtain Job Duties from O*NET: Access O*NET’s online database
(http://online.onetcenter.org). Search for the specific job title, such as "Retail
Salesperson," to get a comprehensive list of duties.
5. List Human Requirements from O*NET: Use O*NET to gather information on the
necessary knowledge, skills, and abilities for the role.
6. Finalize the Job Description: Based on the information gathered, write a complete job
description, including duties, tasks, and human requirements.
O*NET is a valuable resource for small businesses looking to create accurate and effective job
descriptions, even without specialized HR expertise.
Writing Job Specifications
A job specification is a detailed statement that answers the question, "What human traits and
experience are required to do this job effectively?" It outlines the qualities of the ideal candidate,
guiding recruitment, testing, and selection. Job specifications can be included as part of the job
description or be a separate document.
1. Specifications for Trained vs. Untrained Personnel
• Trained Employees: Job specifications are straightforward for those with prior
experience. Key factors often include the length of service, quality of training, and
previous performance.
• Untrained Employees: For those you intend to train on the job, job specifications are
more complex. They focus on potential, looking at qualities such as physical traits,
personality, interests, and sensory skills. For example, for a job requiring detailed hand
manipulation (like assembling circuit boards), finger dexterity may be an important
specification.
2. Job Specifications Based on Judgment
 • This approach involves supervisors and HR managers making educated guesses about the
human traits needed for the job. They analyze the duties and deduce which skills or
qualities are required. Common examples include intelligence, education, and physical
traits.
• Job specifications are often informed by resources like job description websites or
O*NET, which list required skills and qualifications.
• A simple approach can also involve evaluating common work behaviors that are
applicable across most jobs, like industriousness or attendance.
3. Job Specifications Based on Statistical Analysis
• This more rigorous approach involves statistically testing the relationship between certain
traits and job performance. Steps include:
1. Analyzing the job and defining performance criteria.
2. Selecting traits believed to predict performance (e.g., finger dexterity).
3. Testing candidates on those traits.
4. Evaluating their job performance.
5. Statistically analyzing the correlation between traits and performance.
• This method is defensible in legal terms because it uses measurable evidence to
demonstrate how specific traits impact job performance, unlike the judgmental approach
which is more subjective.
4. Job-Requirements Matrix
• This matrix organizes job duties and their associated requirements in five columns:
1. Main job duties.
2. Task statements related to each duty.
3. Importance of each duty.
4. Time spent on each duty.
5. Knowledge, skills, abilities, and other human characteristics (KSAOs) needed for
each duty.
• Task statements provide detailed descriptions of what workers do, how they do it, and the
necessary skills. The job-requirements matrix is a structured way of documenting job
expectations.
5. Employee Engagement Guide for Managers
 • The engagement of employees is influenced by certain personal traits. Research has
identified qualities that are likely to lead to higher engagement, such as adaptability,
emotional maturity, positive disposition, and achievement orientation.
• Hiring individuals with a demonstrated commitment to engagement in other areas of
life—like volunteering or serving in demanding roles—can help increase the likelihood
of attracting engaged employees.
6. Using Competency Models
• As organizations flatten hierarchies and broaden employee roles, job descriptions based
solely on tasks and duties can become less effective. A growing number of companies
now focus on competency models that outline the knowledge, skills, and experience
needed to perform effectively in a role.
• These models focus on the competencies necessary for job success, allowing flexibility in
how tasks are carried out, particularly in dynamic work environments where job duties
may overlap or evolve. Competency models serve as a comprehensive guide for
recruitment, training, and performance evaluation.
In summary, job specifications are an essential part of recruiting the right talent, whether you're
hiring someone experienced or training someone new. They provide a clear framework for
defining the qualifications and competencies necessary for success, and can be created using a
mix of judgment, statistical analysis, and competency-based approaches.
 Chapter 5
Workforce planning and forecasting is a strategic HR process that helps organizations ensure
they have the right people, with the right skills, at the right time. The primary goal is to identify
gaps between the current workforce and the organization’s projected needs. The process involves
several key steps that generally include:
1. Analyzing Business Plans and Workforce Data: This step involves reviewing the
company's strategic goals and current workforce data to understand how projected
business changes might affect staffing needs. For example, if the business plan includes
expanding sales, this could drive a need for additional sales and support staff.
2. Projecting Workforce Supply and Demand: Here, the organization anticipates which
positions will need to be filled and identifies potential workforce gaps. Workforce supply
and demand projections consider factors such as employee retirements, potential
promotions, and external hiring needs.
3. Developing a Workforce Strategic Plan: Based on identified gaps, this plan outlines
priorities for recruitment, training, and other HR interventions to ensure future staffing
needs are met. This might include targeted training programs for current employees or
new recruitment initiatives for hard-to-fill roles.
4. Implementing and Monitoring Changes: This step involves rolling out the workforce
plan and using metrics to track progress. Many organizations use specialized software,
like Towers Watson’s “MAPS,” to monitor recruitment metrics and analyze workforce
trends, helping HR managers stay aligned with strategic objectives.
Workforce planning spans all roles, from entry-level to executive positions. For executive
positions, the process is often termed succession planning, focusing on preparing future leaders
for senior roles.
Strategic Integration with Workforce Planning
Workforce planning is deeply integrated with an organization’s strategic and business planning.
Strategic decisions, such as launching new products or entering new markets, directly influence
workforce needs and should inform related HR plans, like recruitment, training, and
development. Aligning workforce planning with broader business strategy ensures that HR
initiatives effectively support organizational goals, ensuring the right talent is in place to drive
future growth.
Employment planning relies on forecasts, using projections to guide hiring decisions. Managers
typically need to forecast in three areas: personnel needs (demand), internal candidate supply,
and external candidate supply. This helps identify gaps between staffing needs and available
resources, guiding action plans to fill those gaps.

Forecasting Personnel Needs (Labor Demand)

To determine staffing needs, managers consider factors such as company growth, turnover
history, and anticipated retirements. For example, at Valero Energy, staffing shortfalls led to
strategies for retention, recruitment, and candidate screening improvements.
Personnel needs reflect demand for the company's products or services, factoring in strategic
plans, turnover rates, and productivity. Demand can fluctuate short-term (seasonally, like
retailers hiring for holiday sales) and long-term (based on industry trends and economic
forecasts). Basic methods to project demand include:
1. Trend Analysis: Examines past employment levels over a set period, providing a
baseline forecast. For instance, by tracking staffing trends over five years, a company can
estimate future needs. However, this approach doesn’t account for factors like
productivity or skills changes.
2. Ratio Analysis: Estimates staffing based on the historical ratio between business metrics
(like sales volume) and staffing levels. For instance, if one salesperson generates
$500,000 in sales, a $3 million revenue goal would require six additional salespeople.
This method assumes stable productivity; if productivity shifts, so does the staffing ratio.
3. Scatter Plots: Uses visual data plots to analyze relationships between variables like sales
volume and staffing levels, providing a more detailed view of workforce needs as
demand changes.
 4.

Computerized Forecasts enable managers to include multiple variables—like age, tenure,

turnover rates, and training time—into personnel projections. For instance, at Chelan County
Public Utility District, a statistical model highlighted occupational "hotspots" in specific roles,
like systems operators, guiding focused retention and hiring plans.
Managerial Judgment is also crucial, as historical data alone often doesn’t capture future
changes. Managers adjust forecasts based on factors like market expansion, quality upgrades,
productivity improvements, and financial constraints, ensuring projections remain relevant amid
evolving business conditions
To address staffing needs, organizations forecast the supply of inside and outside candidates:
Forecasting the Supply of Inside Candidates
1. Tracking Internal Talent: Managers assess current employees for promotion or new
roles. For small teams, this might be done manually or through skills inventories. Larger
firms use software like Survey Analytics or SumTotal to manage employee skills
information. This data includes experience, education, skills, and performance, aiding in
internal promotion and development planning.
2. Personnel Replacement Charts and Cards: These tools display potential replacements
and their readiness for top positions.
3. Markov Analysis: A statistical method that shows the probability of employees moving
through positions, helping predict internal candidate availability for future openings.
4. Data Security: Protecting employee data is essential, as breaches can expose sensitive
information.
Forecasting the Supply of Outside Candidates
If internal candidates are insufficient, managers look to external sources, considering:
1. Labor Market Conditions: Local unemployment rates and industry trends indicate
hiring ease or difficulty.
2. Economic Projections: Resources like the U.S. Bureau of Labor Statistics and O*NET
provide insights into occupation-specific forecasts.
3. Skills Shortages: Technology-driven demand may reveal a gap in basic skills, prompting
focused recruitment and training strategies.
Predictive Workforce Monitoring
Instead of periodic reviews, predictive workforce monitoring involves continuous evaluation
of workforce needs. For example, Intel and Boeing conduct regular assessments to anticipate
talent gaps due to retirements or changing skill demands, helping ensure a proactive approach to
workforce planning.

Matching Projected Labor Supply and Demand culminates in a workforce plan that outlines
staffing strategies to address projected gaps. This includes identifying positions to be filled, potential
internal and external candidates, and necessary resources like recruiter fees, training, and relocation
costs.

Succession Planning focuses on preparing for leadership roles. It involves three main steps:
 1. Identifying Key Positions: Based on strategic goals, management identifies future
leadership needs, defines essential skills, and assesses current talent.
2. Developing Candidates: High-potential employees receive training, cross-functional
roles, job rotations, and international assignments to prepare for future roles.
3. Assessing and Selecting: Candidates are evaluated, and the most suitable are chosen to
fill key roles.
Example: At Dole Foods, succession planning uses software from Pilat NAI. Managers submit
online résumés, self-assess on core competencies, and receive evaluations from their supervisors.
HR leaders then create individualized development plans, ensuring readiness for future
leadership positions.
Importance of Effective Recruiting
Recruiting is essential to creating a strong applicant pool for open positions, giving companies
options for selecting the most qualified candidates. Without effective recruiting, limited
applicants may force hires from a small pool, reducing the chance to choose top talent.
Recruiting challenges persist, even with high unemployment. In manufacturing, for instance,
shortages in skilled labor are common due to the high-tech nature of many roles. With talent
shortages identified as a major risk to business, effective recruiting has become increasingly
crucial. Poor recruitment, such as unprofessional recruiters or unclear branding, can deter
potential hires. Positive employer branding—conveying values, culture, and a commitment to
innovation or social responsibility—can significantly enhance recruiting efforts.

The Recruiting Yield Pyramid

The recruiting yield pyramid helps organizations anticipate recruiting efforts by illustrating the
relationship between leads, interviews, offers, and hires. For example, if a firm needs 50 new
accountants and knows that:
• Offers to hires are 2:1,
• Interviews to offers are 3:2,
• Invitations to interviews are 4:3,
• And leads to interviews are 6:1,
It would need around 1,200 leads to produce enough candidates to reach its hiring goals,
efficiently managing each recruiting stage.
Understanding Employment Law in Recruiting
Employment laws significantly shape recruiting practices, ensuring fairness and
nondiscrimination. Key regulations prevent methods that may limit qualified applicants, such as
gender-specific language in job ads or over-reliance on word-of-mouth recruitment, which may
inadvertently favor particular groups. Additionally, laws prohibit anti-competitive hiring
practices, like agreements between companies not to recruit each other’s employees.
Supervisor's Role in Recruiting
Effective recruiting often requires close collaboration between HR and supervisors who know
the job’s specifics and team dynamics. This cooperation helps ensure recruiters understand job
requirements beyond formal descriptions, supporting a better match for the open position.
Advantages of Internal Candidates
Hiring from within can be beneficial. Companies already understand an internal candidate’s
strengths and weaknesses, and internal hires are typically more committed to the company,
potentially boosting morale and engagement among employees. They also may need less training
and often accept lower starting salaries than external candidates, making them cost-effective.
Studies suggest that internal hires often perform better than external ones in key roles, including
CEO, although external hiring can bring in valuable new perspectives.
Challenges of Hiring Internally
Internal hiring isn’t always ideal. It may result in “inbreeding,” where a lack of new ideas could
hinder innovation. Additionally, internal politics can influence hiring decisions, and rejected
employees may feel demotivated. Clear communication on why they were not selected and what
steps they can take to improve is essential for maintaining morale.
Finding and Assessing Internal Candidates
Firms typically use job postings and skills inventories to find internal candidates. Job postings
publicize openings within the organization, listing the job’s qualifications and attributes. Skills
inventories further help by identifying employees with the required experience or skills for a
role, allowing the employer to match open positions with the best internal talent. However, office
politics and connections can sometimes overshadow these formal processes, potentially leading
to suboptimal placements.
Rehiring Former Employees
Rehiring former employees comes with pros and cons. Former employees are known entities and
familiar with company operations. However, it’s essential to assess whether they hold negative
feelings about the company before re-employment.
Employee Engagement through Promotion from Within
Promotion from within is a powerful tool for improving employee engagement. Many
organizations, such as FedEx, prioritize internal recruitment to enhance employee commitment.
FedEx’s system encourages employee loyalty and development through practices like annual
employee surveys, recognition programs, and leadership evaluations. Additionally, FedEx uses a
formal job-posting system (JCATS) that ensures employees have equal access to open positions
and are evaluated fairly based on their job performance and length of service.
Managers can foster engagement by:
1. Taking a genuine interest in employees' career goals.
2. Offering career-oriented performance appraisals.
3. Having a clear and transparent job-posting system.
4. Providing necessary training and development opportunities.
5. Balancing retention with opportunities for career growth within the company.
Outside Sources of Candidates
While internal recruitment is effective, companies often look outside for candidates, especially
when they require skills not currently available in-house. Several external sources for recruiting
include:
1. Informal Recruiting and the Hidden Job Market
Many jobs are filled informally through word of mouth or serendipitous encounters with
the right candidates. Studies suggest that up to half of all positions are filled this way.
2. Online Recruiting
Many employers now recruit through their websites or job boards such as Indeed and
CareerBuilder. These platforms are accessible and provide a broader reach. Companies
may also use niche job boards, like those for specific industries or job types, such as
VetJobs or JobsInSports.
Online recruiting tools have become more sophisticated, offering features like virtual office
tours (e.g., Deloitte’s use of Weibo to offer virtual tours of its offices) or video interviews
through platforms like HireVue.
Pros: Online recruiting is efficient, reaching large numbers of potential candidates quickly and
cost-effectively. The comprehensive nature of job postings online also provides more detailed
information to attract the right candidates.
Cons: However, it may inadvertently exclude certain demographic groups (e.g., older
individuals, some minorities) who are less likely to use the internet. Additionally, it can lead to
an overwhelming number of applicants, which may be difficult to manage.
 3. Applicant Tracking Systems (ATS)
With the influx of applications from online job boards, most employers now use
Applicant Tracking Systems (ATS) to streamline the recruitment process. These
systems help employers attract, gather, screen, and manage applications. They also offer
features like requisition management, data collection, and reporting to improve recruiting
efficiency.
For example, a bank might use its ATS to filter out candidates who don't meet basic job criteria,
then employ phone or automated interviews to narrow down the pool. These systems help
organizations save time and resources while ensuring a more structured hiring process.
In summary, promoting from within and leveraging both formal and informal external sources
for recruitment are critical strategies to foster engagement and attract the right talent.
Additionally, using tools like ATS and online recruiting platforms helps organizations manage
the complexities of hiring in a modern, digital workforce.

Trends Shaping HR: Science in Talent Management

Google's Approach to Recruitment
Google has adopted a scientific, data-driven approach to recruitment. Instead of relying on job
boards or external agencies, Google uses gHire, its proprietary candidate database, to proactively
source and engage candidates, often keeping in touch with potential hires for years. Additionally,
Google heavily emphasizes employee referrals and has streamlined its selection process to
make it easier for referred candidates to be hired. Their in-house team accounts for about half of
their yearly hires, reducing the need for external recruiters.
Improving Online Recruiting Effectiveness
Challenges in Online Recruiting
Job seekers often face issues with online job boards, such as inadequate job descriptions and
difficulty formatting résumés. To address this, employers are:
• Making job listings easy to find and providing detailed job information.
• Streamlining the application process by allowing candidates to apply directly online.
• Improving web ads to include comprehensive job details and company culture insights to
attract better candidates.
However, risks such as data security and the legitimacy of job postings remain. Applicants
need to be cautious about sharing personal details, as job boards may not always verify the
authenticity of recruiters.
Key Takeaways
• Proactive and data-driven recruiting: Google’s in-house team and focus on referrals
set a trend for more personalized and effective recruitment.
 • Improved online applications: Companies are optimizing online recruitment by
providing detailed job information and simplifying the application process.
• Security concerns: Employers must address data security issues and ensure that online
recruitment platforms are trustworthy.

Trends Shaping HR: Digital and Social Media

Social media is revolutionizing recruitment. Accenture forecasts that 80% of new hires will come
through social media connections. Recruiters use platforms like LinkedIn to find passive
candidates (those not actively job-hunting), leveraging tools like LinkedIn Recruiter Lite to
search resumes and connect with potential employees. Companies also use Twitter to announce
job openings and engage with candidates, while tools like TalentBin scan platforms like Pinterest
for tech talent.

Social media allows companies to build an online presence and showcase the benefits of working
with them. For instance, Hewitt Associates used text messaging at a diversity conference to
recruit attendees by inviting them into their mobile network for job updates. LinkedIn’s Recruiter
Lite helps employers search for talent, send personalized InMail messages, and even discover
candidates in LinkedIn groups.

Cloud-based systems, such as Oracle's Talent Acquisition Cloud, integrate recruitment with
applicant tracking, requisitions management, and interview scheduling. These systems allow
companies to post jobs on social media, notify employees about open positions, and track
referrals.

Advertising

Despite the rise of digital platforms, print ads still play a role in recruitment. The choice of
advertising medium should align with the target job market. Local newspapers may be ideal for
blue-collar or entry-level positions, while specialized journals are better for skilled workers.

Technology has expanded recruitment strategies. For example, Electronic Arts (EA) promotes
internships through their video game manuals, building a large database of potential candidates.
The effectiveness of an ad also depends on its construction, following the AIDA model
(Attention, Interest, Desire, Action) to capture interest, highlight job benefits, and prompt action.

Employment Agencies

There are three main types of employment agencies: public (government-run), nonprofit, and
private agencies. Public agencies are useful for filling local positions and providing career
assistance through state-run centers. Nonprofit agencies often help specific groups, like those
with disabilities, find employment.

Private agencies are key for hiring clerical, white-collar, and managerial staff. Employers might
use them when they lack an in-house HR department, need to fill jobs quickly, or seek to reach
underrepresented groups. However, employers should monitor the quality of screening and
conduct additional reference checks to avoid hiring unsuitable candidates.

Recruitment Process Outsourcing (RPO)

RPO providers manage all or most of a company's recruitment functions. This approach offers
flexibility, allowing companies to scale recruiting efforts as needed. Major RPO providers like
Manpower Group and IBM can assist with temporary staffing and long-term recruitment.

Temporary Workers and Alternative Staffing

Temporary staffing is increasingly common as companies look for flexibility. During economic
downturns, temporary positions grew significantly. These workers often fill short-term projects
or replace permanent employees on leave. Companies like Nike use staffing agencies to manage
temporary workers.

Employers should be clear about policies regarding temp agencies and the hiring process,
especially if they wish to transition a temp to a permanent position. For temporary employees,
job insecurity, lack of benefits, and job misrepresentation can be concerns that need addressing
to maintain good working relationships

Know Your Employment Law

Contract Employees
When using contract or temporary employees, businesses should be aware of their dual
employment status, meaning they may be considered employees of both the staffing agency and
the company. Employers can reduce liability by letting agencies handle training, pay rates, and
policies. Employers should also screen workers carefully, especially those with access to
sensitive information, and avoid treating temporary workers like full-time employees (e.g., no
business cards or employee ID). Tracking the number of temporary employees and ensuring
agencies follow proper procedures can help mitigate risks and ensure compliance with labor
laws.

The New Extended Workforce

Employers are increasingly relying on extended workforces, such as freelancers and contractors,
to handle tasks like programming or marketing. Platforms like Elance and TopCoder allow
employers to recruit talent based on reputation and project experience, democratizing the hiring
process and giving line managers more control.
Offshoring and Outsourcing Jobs
Offshoring and outsourcing involve sending jobs overseas or to external vendors. While
offshoring offers cost savings, it presents challenges such as cultural misunderstandings, privacy
concerns, and the need for specialized training. Companies like GE have moved jobs abroad, but
rising wages and reputational issues are bringing jobs back to the U.S.
Executive Recruiters
Executive recruiters, or headhunters, are used to fill high-level positions. They come in two
forms: retained (paid regardless of hire) and contingent (paid only if a hire is made). Executive
recruiters are valuable for finding top talent, particularly those not actively job hunting.
However, employers should ensure recruiters fully understand their needs and provide properly
vetted candidates.
Working with Recruiters
When working with recruiters, employers should:
1. Ensure the firm can conduct a thorough search.
2. Meet the recruiter handling the assignment.
3. Clarify fees and agreements in writing.
4. Ensure the recruiter has vetted candidates.
5. Recheck references independently.
6. Consider industry-specific recruiters for specialized roles.
Internal Recruiting
More companies are bringing executive recruiting in-house, saving costs and gaining more
control. For top positions, they may still use external recruiters. Internal recruiting teams have
been cost-effective for large companies like Time Warner.

Referrals and Walk-Ins

Employee referral programs are an effective and cost-efficient recruitment strategy. Employers
often offer incentives, like bonuses, for successful referrals. Referral programs tend to yield more
applicants and hires, as employees provide reliable recommendations. However, reliance on
referrals can lead to a lack of diversity in the workforce. Walk-ins, or direct applicants, are
especially useful for hourly positions. Employers should treat walk-ins with respect and may
conduct brief interviews for future openings.
On-Demand Recruiting Services (ODRS)
ODRS provide short-term, specialized recruitment services for specific projects, charging by the
hour or project rather than per hire. These services can be more affordable than traditional
recruitment agencies.
College Recruiting
College recruiting helps employers create an applicant pool by visiting campuses. It can be
expensive and time-consuming, but effective recruiters should be well-prepared and personable.
Employers like GE visit multiple schools annually, while companies like Shell Oil select schools
based on quality and diversity. Building relationships with career centers can improve results.
College recruiters should assess candidates’ skills and make the employer appealing to
candidates through personal interaction and follow-ups.
Internships
Internships benefit both students and employers. Interns gain skills and potential job offers,
while employers evaluate talent. Around 60% of internships lead to full-time offers, but some
internships may involve unpaid, menial work, which can damage employer reputations.
Telecommuters
Telecommuters work remotely, using technology. For example, JetBlue employs agents working
from home to handle reservations, using company-provided equipment and training.
Military Personnel
Veterans are a valuable source of trained, disciplined recruits, though they face higher
unemployment rates. Programs like Walmart’s veteran hiring initiative and government tax
credits aim to reduce these barriers. Employers should avoid misconceptions about veterans,
such as the impact of post-traumatic stress disorder, as these often don’t affect job performance.

Recruiting a More Diverse Workforce

Recruiting a diverse workforce is essential, not just socially responsible, as it supports the
increasing number of women, minority, and older worker candidates. Special efforts are needed
to attract these groups.
Recruiting Women
Although women have made significant progress in various careers, challenges remain in male-
dominated fields like engineering, as well as in terms of pay equity and work-life balance.
Effective strategies for recruiting women include management-driven initiatives, showcasing
women in nontraditional roles on company websites, and offering flexible work policies like
part-time tracks and generous parental leave. Targeting women's organizations and career fairs,
offering family-focused benefits, and maintaining a zero-tolerance harassment policy are also
crucial.
Recruiting Single Parents
Single parents often face work-life balance challenges, including lack of sick days and family
support. To attract and retain them, employers should create a supportive work environment with
flexible scheduling, understanding supervisors, and programs that assist with the unique
challenges of single parents.
Recruiting Older Workers
Older workers, especially those aged 45 to 64, are a growing segment of the workforce. They
bring reliability, experience, and strong work habits. To attract older workers, employers should
offer flexible or reduced work schedules, phased retirements, and benefits for part-time
employees. Ads should emphasize flexibility and equal opportunity, and challenge stereotypes
about older workers.
Recruiting Minorities
Recruiting minorities requires understanding the barriers they face, such as educational gaps or
lack of role models. Employers should offer remedial training, flexible work options, and
opportunities for minorities to assist in recruitment. Collaborating with diversity-focused
organizations and providing mentoring and role models can also help.
Recruiting People with Disabilities
People with disabilities are capable and efficient workers in various fields. Employers can tap
into this workforce by partnering with agencies that specialize in disability employment, using
accessible recruiting methods, and offering inclusive job training and placement programs.
Developing and Using Application Forms
Purpose of Application Forms
Application forms serve as the initial step in the recruitment process, helping employers
prescreen applicants. They gather key information that can help assess a candidate's
qualifications, work history, stability, and potential for success on the job.
1. Judging qualifications: Application forms help determine if an applicant has the
necessary education and experience.
2. Assessing progress and growth: This is especially important for managerial positions
where career advancement matters.
3. Stability check: Information on the applicant's previous work history can provide
insights into their reliability.
4. Predicting success: The data may give employers an indication of whether a candidate is
likely to succeed on the job.
Application Guidelines
Employers must use application forms carefully to avoid legal and operational issues. Some key
points to consider:
• Employment History: Ask for detailed information on prior employers, including
supervisor names and contact details for reference checks.
• Accuracy: Ensure applicants sign the form certifying that the information provided is
accurate, as exaggerating qualifications is common (40-70% of applicants may do so).
• Completion: Applicants should fill in the form fully. Simply writing "see résumé" is not
acceptable.
 • Specialized Forms: Depending on the position, the application may vary, with technical
roles requiring more detailed education/training questions, and factory roles focusing on
skills and tools.
Application Forms and Equal Employment Opportunity (EEO) Law
Application forms must comply with equal employment laws. Problematic items include:
• Education Dates: Asking for graduation dates can reveal an applicant’s age, which is
discriminatory.
• Arrest Records: Disqualifying applicants based on arrests is typically unlawful and
disproportionately affects minorities.
• Physical Disabilities: It’s illegal to ask for a list of physical disabilities unless the
question specifies those that may interfere with job performance.
• Video Résumés: These allow applicants to present themselves via video, showcasing
their personality and skills. However, they can lead to discrimination claims because they
might reveal personal characteristics (age, gender, etc.) that should not influence hiring
decisions. Employers should ensure videos don’t introduce bias.

• Membership in Organizations: Application forms may ask for membership in clubs or

societies, but this can inadvertently reveal protected information about an applicant’s
race, religion, or marital status. Employers should instruct applicants not to include such
personal details to avoid discrimination.

• Emergency Contact Information: Employers can legally ask for an emergency

contact’s name and phone number. However, asking about the relationship could reveal
personal details like marital status or family structure, which is illegal to consider in
hiring decisions. Only the contact information should be requested, not relationship
details.
• Marital Status: Employers should avoid asking about marital status, as it may lead to
discrimination based on gender or family status.
• Housing: Questions about homeownership or renting can be discriminatory, particularly
against minority groups.
In general, avoid questions that could inadvertently reveal personal characteristics like race,
religion, marital status, or ancestry, unless directly related to the job.
Using Application Forms to Predict Job Performance
Some employers use application information, also known as biodata, to predict employee
performance and tenure. For example, applicants with longer tenure at previous jobs are often
more likely to stay longer and perform better. When using biodata:
1. Legal compliance: Avoid using items that violate equal employment laws (e.g., age,
race, gender).
 2. Non-invasive items: Use questions that are non-invasive, such as GPA or previous job
sales achieved, but avoid intrusive ones like birth order or personal relationships.
3. Accuracy concerns: Be mindful that some applicants may try to manipulate answers to
impress the employer.
Mandatory Arbitration Clauses
Many employers include mandatory arbitration clauses in their application forms to reduce the
costs of litigation. This requires applicants to agree to arbitration instead of suing in court if a
dispute arises. To ensure the enforceability of such clauses:
1. Fair process: The arbitration process must be clear, fair, and not overly biased toward
the employer.
2. Transparency: Use simple language, and ensure the agreement is signed and dated
separately from the application.
3. Cost: Employers should bear most of the arbitration costs, and the process should be
efficient and allow for judicial review if necessary.
However, mandatory arbitration clauses can negatively impact the attractiveness of a company.
Many candidates find these clauses off-putting, which can reduce interest in working for the
company.

Chapter 6
Employee Testing and Selection

Why Employee Selection is Important

Employee selection is a critical process for any organization, as it directly impacts productivity,
costs, and legal compliance. Here’s why selecting the right employee is essential:
1. Person-Job Fit: The primary goal of employee selection is to find candidates whose
skills, knowledge, and abilities align with the requirements of the job. This ensures they
have the capabilities to perform effectively, contributing to overall organizational
success.
2. Person-Organization Fit: Beyond job skills, candidates should align with the
organization’s values and culture. A person may be technically skilled but might struggle
in a company with a different ethos or expectations. For example, an airline pilot
accustomed to American Airlines’ structure might find it challenging to adapt to
Southwest’s values, which emphasize teamwork across roles.
 3. Enhanced Performance: Employees who fit both the job and the organization are more
likely to perform well. Hiring someone without the necessary skills or who disrupts the
work environment can hinder team performance and impact the organization’s success.
4. Cost Efficiency: The hiring process itself is costly, and hiring the wrong person only
increases these costs. Estimates suggest that replacing an employee who doesn’t work out
can cost around $50,000, considering recruitment, onboarding, training, and productivity
losses.
5. Legal Implications: Employee selection processes must comply with equal employment
laws, ensuring they are non-discriminatory. Additionally, negligent hiring—failing to
conduct thorough background checks—can expose organizations to liability if an
employee with a history of problematic behavior causes harm. In the case of Ponticas v.
K.M.S. Investments, an employer was found liable for not adequately screening an
employee who later committed an assault.
In summary, effective employee selection is vital for ensuring the right fit, optimizing costs,
maintaining performance, and avoiding potential legal issues.
Employee selection tools, such as tests, interviews, and assessments, help ensure candidates are
suitable for a role. Two critical attributes of these tools are reliability and validity:
1. Reliability: This indicates the consistency of a test. A reliable test yields similar results
over repeated administrations. For example, a test is reliable if an applicant scores
similarly on multiple attempts. Reliability can be measured by comparing scores across
different times, versions, or question sets.

Validity: Validity ensures the test measures what it claims to measure and is relevant to job
performance. Types of validity include:
o Criterion Validity: The test scores correlate with job performance; high test
scores should reflect high performance.
 o Content Validity: The test reflects essential job tasks. For instance, a dental
school test involving tooth carving has high content validity.
o Construct Validity: The test assesses important job traits, such as honesty or
teamwork.
While reliable and valid tests are important, they should be used alongside interviews and
reference checks for a comprehensive evaluation of candidates.
Digital and Social Media Trends in HR: Talent Analytics
Talent analytics is transforming employee selection by using advanced data analysis to reveal
patterns and traits linked to employee success. This approach leverages statistical techniques,
algorithms, and data mining to help employers understand which characteristics are most
effective for specific roles.
For instance, Bon-Ton Stores Inc., a department store chain, used talent analytics to address high
turnover among its cosmetics sales associates. Surveys of 450 associates revealed that top
performers were not just friendly and enthusiastic, as initially assumed, but excelled in problem-
solving. These insights enabled Bon-Ton to refine its hiring criteria, focusing on candidates who
could meet customer needs through effective problem-solving, ultimately improving employee
retention and performance.

Evidence-Based HR: Steps for Validating a Selection Test

Validating a selection test means proving that the test accurately predicts who will succeed in a
particular job. Criterion validity is a common way to do this, focusing on a test’s ability to
forecast actual job performance. Here’s a more detailed look at each step:
1. Analyze the Job: First, define what success looks like in the role and what skills, traits,
or abilities (predictors) are essential. For example, manual dexterity might be crucial for a
factory worker, while communication skills are vital for a customer service role. This
step often involves creating or updating job descriptions to match these requirements.
2. Choose the Tests: Once you know what skills and traits you’re looking for, select tests
that assess them. Employers often use a combination of tests (a test battery) to measure
various attributes. For example, they might combine a personality test with a skills test to
get a fuller picture of the candidate.
3. Administer the Test: Tests can be given to current employees (concurrent validation) or
new hires (predictive validation). Concurrent validation checks if current employees'
scores match their performance, while predictive validation is generally more reliable. In
predictive validation, applicants are tested before they’re hired, but their test scores aren’t
used in the initial hiring decision. After they’ve been on the job for some time, you can
check if those who scored well are indeed higher performers.
 4. Relate Scores and Criteria: In this step, you determine if there’s a significant statistical
relationship between test scores (predictors) and actual job performance (criteria).
Correlation analysis helps measure this relationship. For instance, if the test is effective,
you should find that high test scores correlate with high job performance. Creating an
expectancy chart can further show how test scores relate to the likelihood of good job
performance.
5. Cross-Validate and Revalidate: To ensure reliability, re-test the tool with a different
group or at regular intervals. This checks for consistency over time and across different
groups, providing additional proof that the test is a stable predictor of job success.

Additional Considerations:
• Bias: Ensure that tests do not unfairly disadvantage certain groups. Biased tests could fail
to accurately measure abilities across diverse groups, leading to inaccurate or
discriminatory hiring practices.
• Utility Analysis: This evaluates whether the cost of testing is justified by the improved
quality of hires. It considers factors like the cost per test, the test’s predictive accuracy,
and the financial impact of improved job performance.
Overall, by using these steps, employers can be more confident that their selection tests not only
match candidates to roles accurately but also improve overall hiring effectiveness.

Validity Generalization allows companies to use selection tools validated elsewhere without
conducting their own studies, making it ideal for smaller organizations. It involves assessing:
1. Existing Validation: Whether the tool has proven effective for similar purposes.
2. Subject Similarity: If the new organization’s candidates are similar to those where it was
validated.
 3. Job Similarity: If the job roles are comparable across settings.
According to Uniform Guidelines, validation is only required if there’s adverse impact;
otherwise, validity generalization can justify using tools validated in other contexts.
Employment Law and Testing
If a selection procedure has an adverse impact on a protected class, employers must validate that
the test is job-related and does not discriminate against minority or nonminority groups. This
standard also applies to interviews, appraisals, and other selection techniques.
Test Taker Rights and Security The American Psychological Association (APA) outlines
privacy and feedback rights for test takers, although not legally enforceable. These rights
include:
• Confidentiality of test results.
• Informed consent for results’ use.
• Access only to qualified interpreters or sufficient interpretive information.
• Fair testing conditions, preventing prior access to questions or answers.
Under the Federal Privacy Act, federal employees can review their personnel files and have
limited protection against unauthorized disclosure of personal information.
Gender Considerations in Testing Socialization can lead to gender biases in test responses,
possibly nudging individuals toward traditional gender roles (e.g., male engineers, female
nurses). Employers should interpret test results with caution, considering that these scores may
reflect upbringing rather than inherent skill.
Workplace Testing Use Many employers use tests for hiring:
• 41% test for basic skills (reading, writing, math).
• 67% use job skills tests.
• 29% include psychological assessments.
Higher-skill positions see increased testing, not only to identify good hires but also to avoid
potentially problematic ones.
Types of Tests
Tests used in employment selection can be classified into cognitive abilities, motor/physical
abilities, personality and interests, and achievement.
1. Cognitive Abilities
o Intelligence Tests: These assess general intellectual abilities, such as memory,
reasoning, vocabulary, and numerical skills. IQ tests like the Stanford-Binet and
Wechsler tests are commonly used.
o Specific Cognitive Abilities: These tests focus on particular skills like deductive
reasoning, memory, or numerical ability. Examples include mechanical aptitude
tests like the Test of Mechanical Comprehension, designed for jobs like
machinists or engineers.
2. Motor and Physical Abilities
o Motor Abilities: Tests such as the Crawford Small Parts Dexterity Test measure
dexterity and reaction time, useful for roles requiring fine motor skills like
assembly work.
o Physical Abilities: These assess strength, endurance, and coordination, such as
pull-ups or running tests. Physical ability tests are commonly used for roles like
military or firefighting positions.

3. Personality and Interests

o Personality Tests: These assess traits such as introversion, stability, and
motivation. Common dimensions include the "Big Five": extraversion, emotional
stability, agreeableness, conscientiousness, and openness to experience. These
traits are linked to job performance, particularly conscientiousness, which is a
consistent predictor of success.
o Projective Tests: These include techniques like inkblot tests, where the person’s
responses reflect their personality.
 o Self-Reported Tests: Examples include the Myers-Briggs and DiSC profiles,
which categorize personality types and behavior patterns useful in career planning
and team dynamics.
Conclusion: Each test type helps employers assess different aspects of potential employees'
abilities, personality, and physical fitness to ensure the right fit for the job
Caveats in Testing:
1. Projective Tests: Require expert interpretation, making them difficult to analyze
accurately.
2. Legal Issues: Some personality tests (like the MMPI) may violate the ADA if used to
screen out applicants with psychological conditions.
3. Validity Concerns: Self-reported personality tests may have low validity, raising
concerns about their use in hiring.
4. Faking Responses: Applicants may falsify answers on personality and integrity tests, so
tests must predict job performance effectively.
Interest Inventories:
• These tools match a person’s interests with those of people in various occupations to
predict job fit and reduce turnover (e.g., the Strong-Campbell Inventory, Self-Directed
Search).
Achievement Tests:
• These assess job-specific knowledge, like the Purdue Test for Machinists, to evaluate
what someone has learned.
Computerized Testing:
• Online and computerized testing is growing, with adaptive tests offering personalized
assessments and improving validity. Companies use multimedia tools to assess practical
skills and safety (e.g., Ford testing assembly workers)

Crowdsourcing at Google:
Google uses crowdsourcing in its hiring process to foster collaboration. When a candidate
applies, their information is matched with current employees in the ATS. If a match is found,
those employees provide feedback on the candidate's suitability. This helps recruiters assess how
the candidate will fit into Google’s culture while encouraging collaboration among employees.
Work Samples and Simulations
Work Samples involve presenting job candidates with tasks that are directly related to the job
they’re applying for. These tasks simulate real-life job duties, such as a cashier operating a
register or a mechanic installing equipment, allowing employers to evaluate how well candidates
can perform these tasks.
Benefits of Work Samples:
• Directly measures job performance: It assesses how well candidates can perform the
actual tasks of the job, not just their theoretical knowledge.
• Difficult to fake: Since candidates must perform real tasks, they can’t fake their way
through it.
• Fairer for minorities: Work samples are less likely to favor certain groups over others,
unlike tests that may be culturally biased.
Example of Work Sample: A work sample for a maintenance mechanic might involve tasks
like installing pulleys and belts or aligning motors. Experts evaluate each task, scoring
candidates based on how accurately and effectively they complete them.

Situational Judgment Tests (SJTs)

SJTs assess a candidate’s judgment in real-life, workplace situations. Candidates are presented
with hypothetical scenarios related to their job and must choose the best course of action. These
tests evaluate decision-making, problem-solving, and interpersonal skills.
Example Scenario: A sales associate at Best Buy faces a situation where a customer is about to
purchase a phone from Amazon after asking detailed questions. The candidate must decide how
to respond—choices might include:
• Telling the customer to buy it from Amazon.
• Offering alternatives or explaining the advantages of similar phones available in-store.
Benefits of SJTs:
• Real-world application: They simulate situations candidates might actually face on the
job, providing insight into how they would behave in those circumstances.
• Broad skill assessment: They can assess various skills such as customer service,
teamwork, and conflict resolution.

Management Assessment Centers

A Management Assessment Center is a structured simulation used to assess leadership and
managerial potential. Over 2-3 days, candidates participate in various exercises and simulations
designed to mimic tasks they would encounter in a managerial role, with their performance
evaluated by experts.
Typical Exercises in a Management Assessment Center:
1. In-basket: Candidates handle a series of work-related tasks (emails, reports) to assess
their decision-making and prioritization skills.
2. Leaderless Group Discussion: A group of candidates works together to solve a problem,
while assessors evaluate their leadership, teamwork, and communication skills.
3. Management Games: Candidates simulate managing a business, solving problems
within a competitive market environment.
4. Oral Presentations: Participants deliver presentations to assess their communication
skills.
5. Interviews and Testing: Interviews help assess a candidate’s motivations and past
performance, while testing might evaluate personality, abilities, and interests.
Benefits of Management Assessment Centers:
• Realistic simulations: These exercises closely resemble the tasks candidates would face
in managerial positions.
• Comprehensive evaluation: The center assesses multiple aspects of a candidate’s
leadership potential, including decision-making, teamwork, and problem-solving.
• Expert evaluation: Assessors, often experienced managers or psychologists, provide
detailed feedback on candidates' performance.
Drawbacks:
• Costly and time-consuming: Creating and running assessment centers is expensive and
requires significant resources.
• Complex logistics: Organizing these centers can be complicated and requires careful
planning.
In summary, these techniques—Work Samples, Situational Judgment Tests, and
Management Assessment Centers—are all aimed at assessing real-world capabilities. They
focus on how candidates perform in job-relevant tasks and situations, providing a better
prediction of job success compared to more abstract testing methods

Situational Testing and Video-Based Situational Testing

Situational testing evaluates how candidates respond to job-related scenarios. It includes
techniques like work sampling and in-basket exercises at assessment centers, along with video-
based simulations and situational interviews.
1. Video-Based Situational Testing: Candidates are shown scenarios on video depicting
common workplace situations. The video pauses at critical moments, asking the
 candidate to select the most appropriate response from multiple-choice options. This
method helps assess candidates’ problem-solving, judgment, and interpersonal skills.
Example Scenario: A manager blames an associate for a messy department, although the
associate was not responsible. The candidate must choose how they would respond, with options
like confronting the manager, talking to the responsible colleagues, or waiting for a better time to
discuss it.
2. Video Games for Evaluation: Some companies, like Knack, use video games to assess
skills like creativity and multitasking, providing insight into candidates' cognitive and
social abilities in real-time.

Miniature Job Training and Evaluation

This approach trains candidates in essential job tasks and assesses their performance before hire.
It works on the assumption that candidates who learn the tasks during training will be able to
perform well on the job. Like work sampling, this method directly involves job-related tasks,
ensuring content relevance and validity.
Example from Honda: When Honda hired workers for its Alabama plant, it collaborated with a
state agency to conduct training sessions that taught job-specific skills. Candidates watched
videos of current employees, practiced tasks, and had their performance evaluated by agency
assessors. Those who performed well were invited to apply.

Realistic Job Previews

This method provides candidates with a transparent view of the job's responsibilities and
challenges, helping to set accurate expectations. Studies show that applicants given realistic job
previews may decline the offer if they find it unappealing, leading to lower turnover for
employers. For example, Walmart improved retention by discussing work schedules and
preferences with new hires.

Choosing a Selection Method

When choosing a selection tool, employers consider several factors:
• Reliability and Validity: How consistently the tool measures job-related abilities.
• Return on Investment: The utility of the tool relative to its cost.
• Applicant Reactions: How candidates perceive the tool's fairness.
• Usability: The ease of implementing the tool within the hiring process.
• Adverse Impact: Whether the tool unintentionally discriminates against certain groups.
 • Selection Ratio: Whether the tool effectively screens candidates to leave only the best fit.
Employers select tools based on a balance of these factors to improve hiring success and reduce
turnover

Improving Performance: HR Tools for Line Managers and Small Businesses

Employee Testing and Selection
In many companies, line managers independently handle employee screening beyond initial HR
pre-screening.
1. Job-Specific Screening Tools: Line managers can design practical, job-relevant tasks.
For instance, a marketing manager might ask a candidate to create an ad sample, or a
production manager could ask an applicant to solve an inventory problem. These tools are
easy to use and legally safer.
2. Small Business Testing: Tools like the Wonderlic Personnel Test (measuring mental
ability) and the Predictive Index (assessing personality traits) are simple, effective
options for smaller firms.
3. Value of Past Performance: For roles like NFL players, studies show that past
performance can predict future success better than formal testing.
Using relevant and straightforward screening methods helps managers make informed hiring
decision

Background Investigations and Other Selection Methods

Why Perform Background Checks and Reference Checks?
Background checks help confirm candidate information and avoid costly hiring mistakes. For
instance, one company nearly hired a CEO with families in two states, and 32% of educational
verifications done by HireRight had discrepancies.
Most employers verify background details like employment history, education, criminal records,
and driving records. Reasons include ensuring accuracy and spotting red flags; 23% of executive
résumés contain false information. Background checks also help avoid hiring individuals with
criminal backgrounds who could cause internal issues, as seen in a Chicago firm that unwittingly
hired gang members who then stole company assets.
Depth and Challenges
The depth of checks varies by role—credit checks might apply more to accountants, for example.
However, many employers hesitate to provide in-depth references due to legal risks, sharing only
limited information like employment dates.
Know Your Employment Law: Giving References
Federal laws, like the Privacy Act of 1974 and the Fair Credit Reporting Act of 1970, govern
reference information, giving individuals rights to access records about them, including credit
files and government records. Employers must also consider common law, including defamation
risks if reference information is false and damaging.
True but private information can still be grounds for a lawsuit if shared widely and causes harm.
This leads many employers to restrict who provides references and what they share—often
limited to employment dates and titles. Some firms avoid disclosing details to mitigate risks,
although withholding crucial information, like a previous incident involving violent behavior,
can also be legally dangerous.
To avoid legal issues, companies should limit references to authorized personnel, avoid vague or
unsolicited comments, and be cautious with "trap" questions like "Would you rehire this
person?"
Checking Candidate Backgrounds
Employers can verify a candidate’s employment history with previous supervisors, confirm job
responsibilities, or use credit rating agencies for insights on reputation and lifestyle. Automated
reference-checking systems like Pre-Hire 360 allow references to anonymously rate candidates,
which can streamline the process and reduce bias.
Using Preemployment Information Services
Many companies use employment screening services like ADP, First Advantage, and HireRight
to check applicants’ histories in areas such as credit, driving records, and workers’ compensation
claims. They also search social media platforms and use digital tools like LinkedIn’s Reference
Search to gain insight into applicants' backgrounds. However, caution is needed to avoid legal
risks and errors:
1. Equal Employment Opportunity (EEO) Compliance: Laws like "Ban the Box" in
some states restrict employers from asking about criminal history early in the hiring
process.
2. Federal and State Regulations: The Fair Credit Reporting Act and state laws regulate
how background information is obtained and used. Employers must:
o Disclose their intent to check a background.
o Certify compliance with federal and state laws.
o Provide Report Copies if considering adverse action.
o Notify applicants of adverse actions and share their legal rights.
3. Accuracy of Background Information: Criminal background reports can sometimes
yield inaccurate matches. Employers should double-check findings to avoid costly errors,
as some background check firms have faced penalties for incorrect reports.
Improving Background Checks
To make background checks more valuable:
• Obtain Applicant Consent: Include a signed statement in the application authorizing
checks.
• Use Telephone References: Phone calls can yield more honest feedback on employment
details and qualifications.
• Follow Red Flags: If a reference seems hesitant, ask follow-up questions to clarify.
• Compare Résumé and Application: Look for discrepancies as applicants may be more
careful on official applications.
• Ask Open-Ended Questions: Encourage references to speak openly about the
applicant’s work style.
• Seek Additional References: Ask each reference to suggest another contact, possibly
yielding more objective insights.
These methods help employers collect reliable, job-relevant data while respecting applicants'
rights and reducing legal risks
READ PAGE 188-189
The Polygraph and Honesty Testing
A polygraph measures physiological changes thought to indicate lying, but its accuracy has led
to restricted use. The Employee Polygraph Protection Act of 1988 bars most employers from
using polygraphs, allowing exceptions mainly in national security, counterintelligence, and
private security roles. Even in permissible situations, strict criteria must be met before polygraph
testing.
With polygraphs limited, paper-and-pencil honesty tests have gained popularity. These tests
assess tendencies toward dishonesty and are seen as predictive for reducing theft and other
misconduct. Practical guidelines for honesty screening include:
• Asking direct questions about past behavior.
• Observing body language and evasive answers.
• Conducting credit checks and background checks.
• Utilizing written honesty and drug tests.
States like Massachusetts and Rhode Island impose restrictions on honesty testing.
Graphology
Graphology, or handwriting analysis, is sometimes used to assess personality traits, but its
validity is questionable. Studies show it often lacks scientific reliability.
Human Lie Detectors
Some employers use "human lie detectors" who interpret body language and facial cues to detect
deception, although the reliability of this method varies.
Physical Exams
Physical exams, typically given after a job offer, confirm if an applicant meets job physical
requirements and help reduce absenteeism and accidents. Under the ADA, exams are allowed if
uniformly applied to all applicants for a job category and if they don’t exclude applicants with
disabilities who can perform essential job functions with reasonable accommodations.
Graphology
Graphology is the analysis of handwriting to infer personality traits, but its validity is highly
questionable. Scientific studies show it is not reliable, and any success in identifying traits likely
stems from other background information. Despite this, some companies still use handwriting
profiles in hiring.
“Human Lie Detectors”
Some employers use experts, like former FBI agents, to detect deception during interviews by
observing signs like pupil size or nervous behaviors. However, this method lacks scientific
support and is highly subjective.
Physical Exams
Employers often require medical exams after a job offer to ensure applicants can meet physical
job demands, detect health issues, and set a baseline for workers' compensation claims. Under
the Americans with Disabilities Act (ADA), medical exams are only allowed after a job offer
and must be standard for all applicants.
Substance Abuse Screening (Expanded)
Substance abuse screening is a common practice in many workplaces. Employers often require
drug tests before hiring to ensure applicants are not using illegal substances or have a history of
substance abuse. Some employers also conduct drug tests after incidents such as workplace
accidents, or if there are behavioral signs that an employee may be under the influence (e.g.,
chronic tardiness, erratic behavior).
Types of Drug Tests:
• Urine Testing: The most common form of drug testing. It detects the presence of drugs,
but may not distinguish between legal and illegal substances. For example, over-the-
counter medications like Advil may show up as marijuana in urine tests.
• Hair Follicle Testing: Analyzes hair samples to detect long-term drug use (for up to 90
days).
• Breath Alcohol Tests: Measure the amount of alcohol in the bloodstream, typically used
for alcohol testing.
• Blood and Saliva Tests: Can be used for more immediate detection of substances in the
bloodstream, such as alcohol or cocaine.
Limitations: While drug tests can detect traces of drugs, they do not indicate whether someone
is currently impaired or under the influence at the time of the test. This is a key concern in some
safety-sensitive jobs, where impairment may directly affect safety and performance.
Challenges: Despite being widespread, drug testing has limitations, including the possibility of
false positives (e.g., testing positive for marijuana after using legal substances) and efforts by
individuals to cheat the tests (e.g., using detox products or adulterants).
Drug Testing Legal Issues (Expanded)
Drug testing in the workplace can raise privacy and legal concerns. Employees often claim that
drug tests violate their right to privacy or argue that they are unjustly discriminated against if
they test positive for drugs.
Legal Considerations:
• Americans with Disabilities Act (ADA): The ADA protects individuals with
disabilities, including those in recovery from substance abuse. If an individual is no
longer using illegal drugs and has undergone or is participating in a rehabilitation
program, they are considered a qualified applicant under the ADA, and cannot be denied
employment solely due to past drug use.
• Drug-Free Workplace Act (1988): Federal contractors are required to maintain a drug-
free workplace, though it doesn't mandate drug testing. It only requires employers to take
action if they find an employee using illegal drugs.
Employee Privacy: Drug testing can be seen as an invasion of privacy, particularly if it involves
highly personal information (e.g., hair follicle tests). In some states, laws protect employees'
rights against unwarranted drug tests.
Firing Employees: If an employee tests positive for drugs, most employers will not hire them or
may terminate existing employees. However, employees in some states or industries may have
legal recourse if they believe the test violated their rights. For example, in safety-sensitive roles
(e.g., truck drivers, air traffic controllers), courts typically support employers in firing employees
who fail drug tests, as safety is a high priority.

Complying with Immigration Law

In the U.S., employers must verify that employees are eligible to work, without discriminating
based on nationality or citizenship. This is done through the I-9 Employment Eligibility
Verification form, where applicants provide documents to prove both identity and work
eligibility, such as a U.S. passport or work permit. Employers can also use E-Verify, an online
tool that cross-references I-9 data with government databases, which is mandatory for federal
contractors.
To avoid discrimination claims, employers must verify documents for all applicants, not just
those they suspect might be ineligible. The government is cracking down on employers hiring
undocumented workers and is tightening rules on fake documents. Employers must ensure
authenticity, including verifying Social Security numbers and preventing identity theft.