hiring decisions mana 4328 dennis c. veit dveit@uta.edu

Hiring Decisions

MANA 4328

Dennis C. Veit

dveit@uta.edu

Final Selection

Top Down Selection (Rank) vs. Cutoff scores Is the predictor linearly related to performance? How reliable are the tests?

1. Top-down method – Rank order

2. Minimum cutoffs – Passing Scores

Final Decision

Random Selection Ranking Grouping

Role of Discretion or “Gut Feeling”

Types of Contracts

Legal Employment contract Employment-at-will

Psychological An implied contract Employee promises: Hard work, extra effort,

commitment to company goals. Employee expects in return: Job security, fair

treatment, development, pay and benefits.

Employment-at-will

VS.

Employment Contract

Employment-at-will Employer not obligated to retain for specific time Termination for any legitimate reason without liability Disclaimers in applications and offer letter

Employment Contract Employment for a definite period of time Entitlements for compensation / benefits

Offer Letter

Legal document Should be carefully worded Creates obligations (intended or unintended) Letter from HR or legal

Attraction tool Final incentive for prospective hire Should make new employee feel welcome Letter from manager or company president

Job Offer Content

Start date Usually allows notice for previous employer

Benefits Usually a blanket statement and refer to HR documents

Conditions of employment Reference checks, drug screen, I-9, medical exam etc.

Other conditions Confidentiality / Non-compete / Arbitration

Working hours

Acceptance date

Job Offer Content

Base compensation Based on payroll schedule rather than annual salary Payment schedule (especially if monthly) FLSA designation

Bonuses As specific as possible including dates and criteria

Stock options Consult an expert Grant price / criteria / vesting / contingencies

Job Offer Content

Integration clause Letter contains all terms and conditions Letter supercedes all other documents or conversations

Employment-at-will disclaimer Employment is not for a specific duration Employment terminable by either party at any time Include the “magic words” but don’t go overboard

Responses

Yes Follow immediately with positive communication Instructions for start day (when, where, etc)

No Try to find out why Working conditions vs. $$$

Maybe / More time.... Find out when Answer any questions

Those Not Selected

Maintain positive relations with fair treatment Inform promptly Thank them for applying and acknowledge the effort Tell them they were a finalist with good skills to offer

Most companies do not provide details of decision

Keep applications on file

Notify by mail or by phone for higher jobs

Independent Contractors

“You have been retained as an independent contractor....

....for the XYZ project...

....to be completed by ABC date.”

“As a contractor you are not entitled to any benefits....

....company will not withhold any taxes, FICA or other deductions.”

Managing Retention

Cost of turnover and replacementTypes of Turnover

Involuntary turnover Voluntary turnover out of company control Voluntary turnover that company can control

Turnover and performance Increases costs Decreases productivity

Positive vs. Negative Turnover

Analyzing Turnover

Diagnosing retention problems Active: Employee surveys Active: Exit interviews Passive: Research and HRIS data mining

How much is too much turnover? Depends on the organization Depends on the position

Why Do People Leave?

Why Do People Leave?

Desirability of Leaving Job satisfaction “Shocks” Switching costs Career progression

General Ease of Leaving Labor market conditions Human capital (education and training) Job offers

Alternative Staffing Options

Band Aid vs Cure Approach

Develop a Plan

Alternative Staffing Options

Quality vs Quantity

Cultural effects

Alternative Staffing Options

Blended Workforce Problems:

Full time employees may feel ____ Non-Full time may feel ______

Alternative Staffing Options

Choose Wisely Choose Purposefully

Proactive Strategically

* Your staffing solution should support your business _______

Alternative Staffing Options

Part-time employees Work flow Shared positions

Temps Traditional Use Seasonal Boring jobs

Alternative Staffing Options

Using Temporary Agencies Advantages:

Employee is agencies No benefits There when you Need them Temp to Perm

Alternative Staffing Options

Disadvantages Lack of Incentive time Lack of commitment Intergration Turn over high Not able to secure “Full time employment” Training time Communications problems

Alternative Staffing Options

Independent Contractors Independent Contractor Part-time Legal concerns

Definition of Independent Contractors

Gain Expertise

Alternative Staffing Options

Outsourcing Old concept Problem? Competitive expertise

Key to Outsourcing???