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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
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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