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Psychology in the recruitment market:
     Approaches businesses take when hiring

                 Dr Peter Saul
               www.petersaul.com.au




                                              Dr Peter Saul
Attracting and Holding Staff




Source: AFR, 29 July 2008, p. 67



                                                   Peter Saul Peter Saul
                                                          Dr -Peter Saul
                                                           Dr AIPEG
What is management trying to do when hiring?

    Acquire the knowledge and skills it needs to get work done
     now.
      Choices: relocate/promote, employ, contract, outsource, redesign
      work

    Strengthen the potential to grow the knowledge and skills the
     organisation will need in the future
    Build a cooperative, harmonious organisation and workplace
     that is aligned with strategic corporate mission and values
    Maintain the organisation’s stated remuneration policy
    Adhere to the requirements of enterprise agreements and
     employment laws




                                                          Peter Saul Peter Saul
                                                                 Dr -Peter Saul
                                                                  Dr AIPEG
What are candidates trying to do?

 Get an interesting job with good pay, opportunities to develop
  their talents, and prospects for future advancement

 Join an organisation they would be proud to work for

 Enhance their self esteem and social status

 Join an organisation that fits with their lifestyle and stage of life

 Enhance their feelings of job security (including the reliability
  of future income)




                                                       Peter Saul Peter Saul
                                                              Dr -Peter Saul
                                                               Dr AIPEG
Some recruitment tools used by employers

  Advertisements – in house and/or externally
    (and use of employee networks)
  Letter of application and CV
  Interviews of job candidate
    (Interviews may be by HR, manager/supervisor, work colleagues)
  Reference checking
    (Discussions with previous managers and HR staff)
  Online searches (e.g. Facebook)
    (Now used by over 25% of employers)
  Recruitment specialists (e.g. Chandler & Macleod)
  Psychological testing
   (intelligence, reasoning, interests, personality, abilities)
  Work simulations
  Probationary periods; induction processes; training and
   support

                                                        Peter Saul Peter Saul
                                                               Dr -Peter Saul
                                                                Dr AIPEG
Some psych tools used by candidates

 Career guidance services
  (that may use a variety of tests of
  intelligence, interests, abilities, personality, etc)

 Self-assessment instruments, books, etc
  (e.g. see Professor Martin Seligman’s website on “authentic
  happiness”; and Dr Stephen Covey’s book “The 7 Habits of Highly
  Effective People”)

 Psych-based training and development or coaching services




                                                          Peter Saul Peter Saul
                                                                 Dr -Peter Saul
                                                                  Dr AIPEG
What best predicts future performance?

 Work Sample tests (.54 correlation with overall job
  performance)
 General Mental Ability tests (.51)
 Structured employment interviews (.51)
 Peer Ratings (.49)
 Job Knowledge tests (.48)




Source: “Recruiting and Retaining Top Talent in a Tight Labor Market “
Wayne F. Cascio, Ph.D., Graduate School of Business, University of
Colorado – Denver. (Viewed on MGSM website in 2001).


                                                         Peter Saul Peter Saul
                                                                Dr -Peter Saul
                                                                 Dr AIPEG
Psych testing has many critics

“The Myers-Briggs Type Indicator has achieved cult status… It
appeals to many managers, educationalists and counsellors
…despite the fact that as many as three-quarters of people achieve
a different personality type when tested again. And it is easily
faked.

…I conclude that personality tests are
discriminatory, unreliable, invalid and cannot predict work
performance.”




Source: “Personality tests have too many deep-seated problems.”
Professor Robert Spillane, Macquarie Graduate School of Management
(Australian Financial Review, 21 February 2012, p. 51)

                                                      Peter Saul Peter Saul
                                                             Dr -Peter Saul
                                                              Dr AIPEG
6 hour testing marathon as part of merger




 Source: Australian Financial Review, 8 March 2012, p. 68


                                                            Peter Saul Peter Saul
                                                                   Dr -Peter Saul
                                                                    Dr AIPEG
In summary

 Psychology and psychological tests and methodology can play
  a valuable role in improving the quality of recruitment
  decisions in the hands of HR professionals who are trained to
  use them wisely.

 Psychology can improve the design of jobs and person
  specifications in the first place so that we have better targets to
  recruit to.

 It can also assist in building effective teams and improving
  leadership training and coaching so that recruitment decisions
  that are good enough deliver satisfactory work performance.

 When feedback on psychological assessments is given to job
  candidates it can help people make better career decisions.


                                                     Peter Saul Peter Saul
                                                            Dr -Peter Saul
                                                             Dr AIPEG

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Psychology in the recruitment market

  • 1. Psychology in the recruitment market: Approaches businesses take when hiring Dr Peter Saul www.petersaul.com.au Dr Peter Saul
  • 2. Attracting and Holding Staff Source: AFR, 29 July 2008, p. 67 Peter Saul Peter Saul Dr -Peter Saul Dr AIPEG
  • 3. What is management trying to do when hiring?  Acquire the knowledge and skills it needs to get work done now. Choices: relocate/promote, employ, contract, outsource, redesign work  Strengthen the potential to grow the knowledge and skills the organisation will need in the future  Build a cooperative, harmonious organisation and workplace that is aligned with strategic corporate mission and values  Maintain the organisation’s stated remuneration policy  Adhere to the requirements of enterprise agreements and employment laws Peter Saul Peter Saul Dr -Peter Saul Dr AIPEG
  • 4. What are candidates trying to do?  Get an interesting job with good pay, opportunities to develop their talents, and prospects for future advancement  Join an organisation they would be proud to work for  Enhance their self esteem and social status  Join an organisation that fits with their lifestyle and stage of life  Enhance their feelings of job security (including the reliability of future income) Peter Saul Peter Saul Dr -Peter Saul Dr AIPEG
  • 5. Some recruitment tools used by employers  Advertisements – in house and/or externally (and use of employee networks)  Letter of application and CV  Interviews of job candidate (Interviews may be by HR, manager/supervisor, work colleagues)  Reference checking (Discussions with previous managers and HR staff)  Online searches (e.g. Facebook) (Now used by over 25% of employers)  Recruitment specialists (e.g. Chandler & Macleod)  Psychological testing (intelligence, reasoning, interests, personality, abilities)  Work simulations  Probationary periods; induction processes; training and support Peter Saul Peter Saul Dr -Peter Saul Dr AIPEG
  • 6. Some psych tools used by candidates  Career guidance services (that may use a variety of tests of intelligence, interests, abilities, personality, etc)  Self-assessment instruments, books, etc (e.g. see Professor Martin Seligman’s website on “authentic happiness”; and Dr Stephen Covey’s book “The 7 Habits of Highly Effective People”)  Psych-based training and development or coaching services Peter Saul Peter Saul Dr -Peter Saul Dr AIPEG
  • 7. What best predicts future performance?  Work Sample tests (.54 correlation with overall job performance)  General Mental Ability tests (.51)  Structured employment interviews (.51)  Peer Ratings (.49)  Job Knowledge tests (.48) Source: “Recruiting and Retaining Top Talent in a Tight Labor Market “ Wayne F. Cascio, Ph.D., Graduate School of Business, University of Colorado – Denver. (Viewed on MGSM website in 2001). Peter Saul Peter Saul Dr -Peter Saul Dr AIPEG
  • 8. Psych testing has many critics “The Myers-Briggs Type Indicator has achieved cult status… It appeals to many managers, educationalists and counsellors …despite the fact that as many as three-quarters of people achieve a different personality type when tested again. And it is easily faked. …I conclude that personality tests are discriminatory, unreliable, invalid and cannot predict work performance.” Source: “Personality tests have too many deep-seated problems.” Professor Robert Spillane, Macquarie Graduate School of Management (Australian Financial Review, 21 February 2012, p. 51) Peter Saul Peter Saul Dr -Peter Saul Dr AIPEG
  • 9. 6 hour testing marathon as part of merger Source: Australian Financial Review, 8 March 2012, p. 68 Peter Saul Peter Saul Dr -Peter Saul Dr AIPEG
  • 10. In summary  Psychology and psychological tests and methodology can play a valuable role in improving the quality of recruitment decisions in the hands of HR professionals who are trained to use them wisely.  Psychology can improve the design of jobs and person specifications in the first place so that we have better targets to recruit to.  It can also assist in building effective teams and improving leadership training and coaching so that recruitment decisions that are good enough deliver satisfactory work performance.  When feedback on psychological assessments is given to job candidates it can help people make better career decisions. Peter Saul Peter Saul Dr -Peter Saul Dr AIPEG