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5 Offers 10 Interviews 40 Invites 60 Applicants 240 Adapted from R.H. Hawk, The Recruitment Function (New York: American Manage Association, 1967). Yield Pyramid

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Yield Pyramid. Hires 5. Offers 10. Interviews 40. Invites 60. Applicants 240. - PowerPoint PPT Presentation

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Page 1: Yield Pyramid

Hires 5

Offers 10

Interviews 40

Invites 60

Applicants 240

Adapted from R.H. Hawk, The Recruitment Function (New York: American ManagementAssociation, 1967).

Yield Pyramid

Page 2: Yield Pyramid

Recruitment Sources (Techniques)

• In-House (e.g., hiring or promotion from within the organization)

• Newspapers, Trade/Professionals Publications

• Outside Companies (Headhunters, Employment/Temp Agencies, Executive Search Firms

• Job or College Fairs

• Internet-based

• Private sites (e.g., Monster)

• Professional Organizations

• Company web site

Page 3: Yield Pyramid

Some Factors in Considering Recruiting Sources

• Cost

• Time Requirements

• Number and Quality of Applicants

• Type of Job (e.g., manual labor, managerial)

• Type of Applicant (knowledge, skills, demographic and minority representation)

Page 4: Yield Pyramid

Recruiter Characteristics ---

• Demographics (e.g., gender, race, age)

• Functional job area (similarity to job being recruited)

• Personality (e.g., warmth, enthusiasm, supportive, personable)

Administration of Recruitment ---

• Promptness of follow-up contact (short timeframe is best)

• Amount of information requested of applicant (more information = less # of applicants)

Other Recruitment Issues

Page 5: Yield Pyramid

• Money and time spent on recruiting by HR = 16%

• Evaluation of recruitment effectiveness (often limited to criteria such as meeting deadlines)

• Extent of recruiter training (most not trained; less than half of organizations used formal, standardized training programs)

Organizational Emphasis on Recruitment

Page 6: Yield Pyramid

Realistic Job Preview Effects

RJP VACCINATION OF EXPECTATIONS SELF SELECTION

INTERNAL FOCUS OFCONTROL

COMMITMENT TO CHOICE OF ORGANIZATION

PERCEPTION OF HONESTYAND CARING

ROLE CLARITY

COPING MECHANISMSDEVELOP FOR

NEW JOBS

INVOLUNTARY TURNOVER

JOB PERFORMANCE

NEEDS ARE MATCHED TO

ORGANIZATIONALCLIMATE

JOB SATISFACTION

VOLUNTARY TURNOVER

TENURE IN THE ORGANIZATION

Page 7: Yield Pyramid

Men wanted for hazardous journey. Low wages, bitter cold, long hours of complete darkness. Safe return doubtful. Honour and recognition in event of success.

~ Ernest Shackleton's advertisement for 1914 Trans-Antarctic Expedition

Realistic Job Preview!!!

Page 8: Yield Pyramid

Selection Ratio (SR) = n

N

Job openings

Applicants

Test Validity [Criterion-related]: The extent to which test scores correlate with job performance scores [Range is from 0 to 1.0]

Test Utility Key Points

Page 9: Yield Pyramid

Proportion of “Successes” Expected Through the Use of Test of Given Validity and Given Selection Ratio, for Base Rate .60. (From Taylor & Russell, 1939, p. 576)

Selection RatioValidity .05 .10 .20 .30 .40 .50 .60 .70 .80 .90 .95 .00 .60 .60 .60 .60 .60 .60 .60 .60 .60 .60 .60 .05 .64 .63 .63 .62 .62 .62 .61 .61 .61 .60 .60 .10 .68 .67 .65 .64 .64 .63 .63 .62 .61 .61 .60 .15 .71 .70 .68 .67 .66 .65 .64 .63 .62 .61 .60 .20 .75 .73 .71 .69 .67 .66 .65 .64 .63 .62 .61

.25 .78 .76 .73 .71 .69 .68 .66 .65 .63 .62 .61 .30 .82 .79 .76 .73 .71 .69 .68 .66 .64 .62 .61 .35 .85 .82 .78 .75 .73 .71 .69 .67 .65 .63 .62 .40 .88 .85 .81 .78 .75 .73 .70 .68 .66 .63 .62 .45 .90 .87 .83 .80 .77 .74 .72 .69 .66 .64 .62 .50 .93 .90 .86 .82 .79 .76 .73 .70 .67 .64 .62 .55 .95 .92 .88 .84 .81 .78 .75 .71 .68 .64 .62 .60 .96 .94 .90 .87 .83 .80 .76 .73 .69 .65 .63 .65 .98 .96 .92 .89 .85 .82 .78 .74 .70 .65 .63 .70 .99 .97 .94 .91 .87 .84 .80 .75 .71 .66 .63 .75 .99 .99 .96 .93 .90 .86 .81 .77 .71 .66 .63 .80 1.00 .99 .98 .95 .92 .88 .83 .78 .72 .66 .63 .85 1.00 1.00 .99 .97 .95 .91 .86 .80 .73 .66 .63 .90 1.00 1.00 1.00 .99 .97 .94 .88 .82 .74 .67 .63 .95 1.00 1.00 1.00 1.00 .99 .97 .92 .84 .75 .67 .631.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 .86 .75 .67 .63

Note: A full set of tables can be found I Taylor and Russell (1939) and in McCormick and Ilgen (1980, Appendix B).

(SR)

Page 10: Yield Pyramid

Mean Standard Criterion Score of Accepted Cases in Relation to Test Validity and Selection Ratio(From Brown & Ghiselli, 1953, p. 342)

Validity CoefficientSelectionRatio .00 .05 .10 .15 .20 .25 .30 .35 .40 .45 .50 .55 .60 .65 .70 .75 .80 .85 .90 .95 1.00

.05 .00 .10 .21 .31 .42 .52 .62 .73 .83 .94 1.04 1.14 1.25 1.35 1.46 1.56 1.66 1.77 1.87 1.98 2.08

.10 .00 .09 .18 .26 .35 .44 .53 .62 .70 .79 .88 .97 1.05 1.14 1.23 1.32 1.41 1.49 1.58 1.67 1.76 .15 .00 .08 .15 .23 .31 .39 .46 .54 .62 .70 .77 .85 .93 1.01 1.08 1.16 1.24 1.32 1.39 1.47 1.55 .20 .00 .07 .14 .21 .28 .35 .42 .49 .56 .63 .70 .77 .84 .91 .98 1.05 1.12 1.19 1.26 1.33 1.40.25 .00 .06 .13 .19 .25 .32 .38 .44 .51 .57 .63 .70 .76 .82 .89 .95 1.01 1.08 1.14 1.20 1.27.30 .00 .06 .12 .17 .23 .29 .35 .40 .46 .52 .58 .64 .69 .75 .81 .87 .92 .98 1.04 1.10 1.16 .35 .00 .05 .11 .16 .21 .26 .32 .37 .42 .48 .53 .58 .63 .69 .74 .79 .84 .90 .95 1.00 1.06.40 .00 .05 .10 .15 .19 .24 .29 .34 .39 .44 .48 .53 .58 .63 .68 .73 .77 .82 .87 .92 .97.45 .00 .04 .09 .13 .18 .22 .26 .31 .35 .40 .44 .48 .53 .57 .62 .66 .70 .75 .79 .84 .88.50 .00 .04 .08 .12 .16 .20 .24 .28 .32 .36 .40 .44 .48 .52 .56 .60 .64 .68 .72 .76 .80.50 .00 .04 .07 .11 .14 .18 .22 .25 .29 .32 .36 .40 .43 .47 .50 .54 .58 .61 .65 .68 .72.60 .00 .03 .06 .10 .13 .16 .19 .23 .26 .29 .32 .35 .39 .42 .45 .48 .52 .55 .58 .61 .64.65 .00 .03 .06 .09 .11 .14 .17 .20 .23 .26 .28 .31 .34 .37 .40 .43 .46 .48 .51 .54 .57.70 .00 .02 .05 .07 .10 .12 .15 .17 .20 .22 .25 .27 .30 .32 .35 .37 .40 .42 .45 .47 .50.75 .00 .02 .04 .06 .08 .11 .13 .15 .17 .19 .21 .23 .25 .27 .30 .32 .33 .36 .38 .40 .42.80 .00 .02 .04 .05 .07 .09 .11 .12 .14 .16 .18 .19 .21 .22 .25 .26 .28 .30 .32 .33 .35.85 .00 .01 .03 .04 .05 .07 .08 .10 .11 .12 .14 .15 .16 .18 .19 .20 .22 .23 .25 .26 .27.90 .00 .01 .02 .03 .04 .05 .06 .07 .08 .09 .10 .11 .12 .13 .14 .15 .16 .17 .18 .19 .20.95 .00 .01 .01 .02 .02 .03 .03 .04 .04 .05 .05 .06 .07 .07 .08 .08 .09 .09 .10 .10 .11

Selection Ratio

Example

Page 11: Yield Pyramid

1) The 1st day on the job is crucial! It is important to manage it well and make it a positive time. Employees remember it for years, particularly if it is an unpleasant experience

2) Impressions formed during the first 60-90 days are difficult to alter. So, it is important to make this time a positive experience for newly-hired employees

3) Ensure that new employees see how their job fits within the framework of the overall organization. (As such, the organization needs to communicate information about it’s goals and objectives)

4) Avoid ‘information overload.” It’s best to provide the new employee with information in reasonable amounts and in a meaningful sequence

5) Ensure that the new employee’s immediate supervisor is ultimately responsible for the orientation program

6) Social and family adjustment concerns should be addressed in the orientation program

Basic Orientation Principles

Page 12: Yield Pyramid

Simple Regression Equation Multiple Regression

y = a + bx

Test Score

Slope

y-intercept

Predicted Score

y = a + b x + b x + b x …..

Predicted Score

y-intercept

1 1 2 2 3 3

Weights

Regression

Basic Process:

• All applicants take every test.

• Scores are weighted and combined to yield a predicted score for each applicant.

• Applicants scoring above a set cutoff score are considered for hire

Key Points:

• Regression is a compensatory approach. That is, a high score on one test can compensate for a low score on another.

• Best for tests to not relate to each other, but relate highly to the criterion.

Page 13: Yield Pyramid

How Four Job Applicants with Different Predictor Scores Can Have the Same Predicted Criterion Score Using Multiple Regression Analysis

Applicant Score on X Score on X Predicted Criterion Score 1 2

A 25 0 100

B 0 50 100

C 20 10 100

D 15 20 100

Note: Based on the equation Y = 4X + 2X. 1 2

Compensatory Example

Page 14: Yield Pyramid

Predictor 1 Criterion Predictor 2

R = r + r For example, if r = .60 and r = .50, then R = (.60) + (.50) = .36 + .25 = .61

2 2 2

2 2 2

c.12 1c 2c

1c 2c

c.12

r r1c 2c

Independent Predictors

Page 15: Yield Pyramid

R = 2

c.12

r r - 2r r r2 21c 2c 12 1c 2c

For example, if the two predictors intercorrelate .30, given the validity coefficients from the previous exampleAnd r = .30, we will have

12

R = = .472

c.12

1 - r212

(.60) + (.50) - 2(.30)(.60)(.50)2 2

1 – (.30)2

r r

r

1c 2c

12

Interrelated Predictors

Predictor 1 Predictor 2

Criterion

Page 16: Yield Pyramid

WAB

100

0

Pass

Fail

Cutoff score

Paper & Pencil Math Test

100

0

Pass

Fail

Cutoff score

Paper & Pencil Aptitude Test

100

0

Pass

Fail

Cutoff score

Basic Process:

• All applicants take every test.

• Applicant must achieve a passing score on every test to be considered for hire.

Key Point: A multiple cut-off approach can lead to different decisions regarding who to hire versus using a regression approach.

Multiple Cutoff Approach

x x

x

Page 17: Yield Pyramid

Interview

100

0

Pass

Fail

Cutoff score

Paper & Pencil Knowledge Test

100

0

Pass

Fail

Cutoff score

Work Sample Test

100

0

Pass

Fail

Cutoff score

Multiple Hurdle Approach

Basic Process:

• All applicants take the 1st test.

• Pass/fail decisions are made on the 1st and subsequent tests and only those who pass can continue on to the next test [a sequential process].

Key Point:

Useful when a lengthy, costly, and complex training process is required for the position.

Eliminated from the selection process

Eliminated from the selection process

Eliminated from the selection process

xxxxxxxxxx

xxxxxx

xxx

xxx

xxx xxxxxxx

Page 18: Yield Pyramid

Basic concept: Small differences in test scores might reasonably be due to measurement error. Therefore, you do not want small differences in test scores to trump all other consideration in ranking individuals in hiring.” (p. 82).

Banding

Page 19: Yield Pyramid

Banding (cont.)

SED Banding Types

Fixed Sliding

..........

Both use the top score to establish the top of the band

All those from the band are selected before those from

the lower band

............

Bands slide down after each person is removed from the top (bands re-established)

98 94 92

88

98 94 92 88

Example of a band of 6 points