How a structured selection process increases the probability of hiring the best candidate and as a result, increases a company’s performance.

CHAMBERS, WILLIAM (2016) How a structured selection process increases the probability of hiring the best candidate and as a result, increases a company’s performance. [Dissertation (University of Nottingham only)]

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Abstract

When managers recruit for a role, they often conduct the interview in an unstructured way and hire whom they believe is the right fit for the role. Even though they may be aware of the need to select for talent, managers are often under time pressure to fill the vacant position or lose the open headcount, so they simply hire to fill the vacancy.

This paper proposes that when using a structured selection process, the company or organisation increases the probability of hiring the best candidate compared to typical, unstructured job interviews. Unstructured interview techniques are reported to be a low predictor of how someone would perform once hired, accounting for only 14% of an employee’s successful future performance in the role.

From the literature reviewed there is strong evidence to support using both a Structured Interview in combination with General Mental Ability Test to select candidates. A significant amount of research and testing has shown that using these two tests will result in a 63% success rate in hiring compared to other interview and hiring processes.

As a result of hiring the best candidate for the role, in most cases, the candidate will perform better, be more engaged and therefore result in an increase in a company’s performance. This position is well supported by the literature on this subject. However, the ongoing success of the candidate also depends significantly on the ability of the hiring manager, the level of engagement within the team and the individual hired.

By adopting structured interviews and general mental ability tests as tools for employee selection, companies and organisations should profit from reduced new-hire costs like training, selection, and recruitment, as well as improved performance and productivity with the existing workforce through a reduction of poor performers and reduced payroll costs as employees are more productive.

In this paper, types of hiring techniques will be compared to determine which is more effective in hiring the right candidate for the role with a focus on the differences in techniques, highlighting the advantages and disadvantages to the company or organisation.

Item Type: Dissertation (University of Nottingham only)
Keywords: English
Depositing User: Chambers, Bill
Date Deposited: 25 Apr 2018 13:58
Last Modified: 01 May 2018 11:43
URI: http://eprints.nottingham.ac.uk/id/eprint/36060

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