maanantai 23. tammikuuta 2017

CASE 1

Recruitment and Selection


Summary of Case: 


·         A young woman shares her story on being hired and working for the clothing company Abercrombie
·         There was no interview process, but the staff, or so called “Models” were hired based on physical appearance and Western beauty standards.

·         The newly hired employees were to scout for new “models” based on a checklist of physical attributes. Those that did not meet the checklist would work in the back.

·         The company strictly laid out rules for employers looks and clothing during service.

·         The company is now making attempts to change their hiring process, after a serious of lawsuits and charges of discriminatory behavior.

Challenges:


·         Abercrombie makes a HR process mistake and leaves itself vulnerable to lawsuits and discrimination charges by not ensuring job related selection.

·         Physical attributes do not determine whether a person is great at retail.

·         There was no actual interview or other background check to determine whether the woman (or the other applicants) were suitable for the job.

·         Hiring decisions were highly discriminatory, only taking on minorities to avoid lawsuits.

·         Abercrombie sells a “lifestyle” and is highly brand conscious, and want their employees to represent that brand. This focus on physical attributes is highly discriminatory. The brand cannot be connected to one opinion of physical attractiveness.


Key Concepts, Theory and Models


The hiring process of a company needs to be well thought through, in order to avoid complaints and possible law suits. The hiring process consists of three equally important aspects:
  •        Recruitment
  •        Selection
  •        Socialization

1.The recruitment can take place through several different channels (current employees, websites, agencies, social media, customers etc.). It is important to gather a vast pool of applicants, if the company has more than one position to fill. ( L. Gomez-Mejia, D. Balkin, R. Cardy, 2012, p. 199-205.)

In the case of Abercrombie, the recruitment took place in a public place, based of physical appearance. A member of the staff would make the decision on whether a person checked the criteria and invite said person to a “group interview”.

According to Business News Daily, the best sources to find the best talents is to use social media, ask current employees to market the position or recommend someone, to market compensation packages, to make use of technology and hire someone off-site, and to be quick with the hiring process ( N. Taylor, 2016).

2. The selection requires reliable and valid testing of the applicants to ensure the best hiring decision. But before one starts testing candidates, it is crucial for the employer to determine what kind of traits, skills and performance they are looking for in their new recruit. By looking at the job description and carefully considering what attributes are needed, a company can find an above average candidate, that eventually will yield up to 40 % more profit! On the other hand, making a poor recruitment decision, will cost the company. Unqualified or unmotivated employees require more guidance, more supervision, and can lead to higher numbers of employee turnover. (. (L. Gomez-Mejia, D. Balkin, R. Cardy, 2012, p. 199.). According to the Boston Consulting Group, recruiting ranked number one out of 22 in HR functions having the highest impact of revenue and profit. So, making good recruitment decisions is a key part of any business strategy and HR department. (J.Sullivan, 2015)

Once the characteristics and qualifications needed have been determined, there are several different selection tools for the employer to make use of. Some of the tools are deemed more reliable than others (L. Gomez-Mejia, D. Balkin, R. Cardy, 2012, p. 208-216.) In my experience the most used tools in Finland are: Application form, Pre-written letter of recommendation, Interviews, ability tests and personality tests. In addition, some employers demand a background check. Other tools can also be used. The authors of the book “Managing Human Resources”, presented the benefits and cons of the different tools.

An application form helps the employer screen a large pool of candidates, and reduces the number of acceptable applicants significantly. A letter of recommendation is often useful, if it is detailed and tells more specific skills, instead of just being a positive recommendation. Interviews can either be unstructured or unstructured. An unstructured interview has its downsides, as personal chemistry and bias influences the hiring decision. A structured interview, with set questions and a panel that makes notes, is more valid, and eliminated problems. The applicants are also more easily compared with set questions. Ability tests are highly reliable and valid. The applicants get to prove cognitive, physical or work ability by being given a set of tasks to complete. The tasks are often strongly connected to the set job description and gives valuable insight into the applicant’s capabilities. Personality tests are being used by many companies, especially if the company utilizes an agency to complete the recruitment. Whether the tests are reliable is still under discussion, and validity is also being questioned. Does a certain personality trait make you good at a certain job? Making hiring decisions based on personality traits may leave the company vulnerable to lawsuits. (L. Gomez-Mejia, D. Balkin, R. Cardy, 2012, p. 208-214.)

Sandra Hess, ranks the different employee selection tools, and ranks work samples and work simulations as the best method for ensuring future job performance. She also points out that cognitive tests to measure logical ability and reasoning gives a great understanding of a person’s ability to tackle problems and explore solutions. Cognitive ability has a direct link to job performance in multiple job types, but is especially critical for the performance in complex positions. ( S.Hess, 2016)

In the Abercrombie case, no tools were used to determine, whether an applicant was suitable for the position or not. The company is taking a major risk in completing their employment decisions based on looks. If a person, tried to apply for a job at Abercrombie, and doesn’t meet the checklist of physical attributes, and therefore does not get hired, he or she could sue the company for discriminatory behavior. This would probably lead to the company being convicted, as they have no set hiring process, and cannot prove that the applicant lacked the qualifications or skills to complete the retail job.

3.Socialization is an important part of the recruitment process, that often gets overlooked. After deciding on a suitable candidate, it is crucial to complete the orientation into the company to make the new recruit feel at home in the team. (L. Gomez-Mejia, D. Balkin, R. Cardy, 2012, p. 199.) Once the effort has been made to find a suitable candidate, it is wise to take care of that relationship and make the recruit want to stay in the company.

The woman in the Abercrombie case, described a very bizarre behavior after the “selection” had been made. The new recruits got ordered to look a certain way, and to complete certain job related tasks. The recruitment process does not seem to be the only faulty aspect of Abercrombie, but the employee rights also seemed very limited. Young people being forced to work overtime and dress in a sexual way, for example.


News articles related to recruitment and selection

In the following sections I will briefly present two news articles related to recruitment and selection. The first one, describes the new trend of finding the right people, the ones that are motivated but may lack a certain set of skills. Especially smaller companies, make their hiring decisions based on personal characteristics, drive and motivation, and put less value on formal education, degrees or prior work experience. This is a new trend that is emerging, and therefore I wanted the present this article in addition to the material from the course literature.

The second article presents a case of an unsuccessful recruitment process, that lead to a settlement of 24 million USD. Making sure that the hiring process is indiscriminate is a key part of HR, and the article shows the importance of constantly evaluating HR process and recruitment practices.


“Seek These 7 Character Traits To Avoid The Risk Of Bad Hires”

Making a bad recruitment decision is immensely expensive for a company. Forbes lists seven characteristics that are nonnegotiable when hiring new employees: Respect, belief, loyalty, commitment, trust, courage and gratitude.

At Fishbowl, candidates are asked to give examples of situations when they have exemplified said traits during an interview. The traits lead to better-than-average hiring decisions and a higher retention rate. Instead of looking for a set of qualifications or skills, Fishbowl is successfully looking for the “right people”.



“Secret Service Settles Discrimination Lawsuit with Black Agents”

The American Secret Service has paid a compensation of 24 million USD and is set to reform its recruitment system after a class-action lawsuit for discrimination against African-American applicants.  

The plaintiff accused the Secret Service of not hiring African-American applicants, and not promoting them during their career. The Secret Service has admitted to discriminatory practices and is now reforming its Human Resources Process.  The Secret Service will lean on outside experts to consider their practices and to remove any room for discriminatory processes.




 Litterature; 

J, Sullivan, 2015, “Bad Recruiting? It Can Cost Your Company a Whole Lot of Money”, Talent Management and HR, https://www.eremedia.com/tlnt/bad-recruiting-it-can-cost-your-company-a-whole-lot-of-money/ (23.1.2017).

L.R Gomez-Mejia, D.B Balkin, R.L Cardy, 2012, “Managing Human Resources”, 7th Edition, chapter 5 and 3. Pearson Education Inc. New Jersey

N. Taylor, 2016, “Six ways to ensure you are recruiting the best talent”, Business News Daily, (http://www.businessnewsdaily.com/6252-tips-for-recruiters.html), 23.1.2017

S.Hess, 2016, “6 Talent Assesment Tools, Ranked from Most to Least Effective”, Furst Person, (http://www.furstperson.com/blog/which-talent-assessment-tools-are-the-most-accurate) 23.1.2017


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