Recruitment and Selection Practices in the Australian Automotive Industry. Lily Ivicic, Keong Yeo, & Sally Carless

Transcription

1 Recruitment and Selection Practices in the Australian Automotive Industry Lily Ivicic, Keong Yeo, & Sally Carless

2 Overview 1. Background 2. Method 3. Results 4. Summary 5. Limitations 2

3 Literature Review Existing literature has focused primarily on the recruitment and selection process of managers (Di Milla & Smith, 1997; Shackleton & Newell, 1991) and, to a lesser extent, tertiary graduates (Carless, 2007) Few, if any have focused on individuals involved in vocational education and training This is of concern, as apprenticeships and vocational qualifications are one of the most common credentials in Australia (NCVER, 2001) 3

4 Types of Recruitment Sources Recruitment sources refer to the different sources whereby potential applications are reached These include: Referrals by employees Employment agencies Newspaper or radio adverts Walk-ins Internet websites Job fairs Recruitment agencies 4

5 Recruitment Sources Realistic information hypothesis proposes that persons recruited via certain sources (eg current employees) are likely to have more accurate information about what a job entails than those recruited through other sources (eg newspaper ads) Lacking such information, less likely to be able to make a good decision about the job & org fit. If they take the job, these less informed individuals are more likely to be unhappy with job choice and may be more likely to leave 5

6 Types of Recruitment Sources Wanous (1992a) suggested that sources such as referrals and re-hires should be considered inside or internal sources, while agencies and advertisements as outside or external sources Research has demonstrated recruitment source effects organisational behaviours and outcomes For example, Moser (2005) suggested that employees hired through internal sources reported lower levels of unmet expectations, and higher levels of job satisfaction and commitment 6

7 Types of Selection Methods A variety of selection methods can be used to reduce the initial volume of applicants to a manageable number According to Schmidt & Hunter (1998) these methods have varying degrees of validity Application form (p =.35) Cognitive ability tests (p =.51) Conscientiousness (p =.31) Structured and unstructured interviews (p =.51 and.38, respectively) Work samples (p =.54) References (p =.26) 7

8 Impact of Organisation Characteristics Range and type of selection methods used tends to vary according to a number of organisational characteristics: Size of organisation (Millward, 1992; Bartram et al, 1995) Type of job vacancy (Harding & Wooden, 1997) Resources available (Hodgkinson & Payne, 1998; Oswald & Ployhart, 2001) 8

9 Overview 1. Background 2. Method 3. Results 4. Discussion 5. Limitations 9

10 Method Sample and Procedure Yellow Pages directory was used to randomly source autoelectric/mechanic organisation that employee apprentices The survey was administered over the telephone and via a paper form 54 telephone interviews were completed (36% response rate) 29 usable paper surveys were received (11.6% response rate) Survey content Content was derived from a study on graduate recruitment and selection (Carless, 2007) and adapted for the purpose of this study 10

11 Method cont. Survey content The survey comprised the following sections: > Organisation characteristics Existence of a specific personnel function and size of the organisation > Recruitment sources A number of sources were listed. Respondents were asked to indicate the sources they used in the past year, and the number of applicants from the sources used Respondents were also asked to note the average level of education of applicants each source (1= Partial completion of secondary school, 2= Completion of secondary school, 3= Technical college certificate or diploma and 4= Undergraduate degree), as well as level of satisfaction (1= Highly Dissatisfied to 7= Highly Satisfied) 11

12 Method cont. Overall applicant quality was measured by two items on a 7-point Likert scale ranging from 1= Very Low, to 7= Very High. > Selection methods A number of selection methods were listed. Respondents were required to indicate and order the selection methods used (1= First Procedure, 2= Second Procedure etc). If a method was used at more than one stage in the process, it had to be numbered at each stage > Verification of applicant information Seven verification practices were listed, and respondents were required to indicate which method/s they used 12

13 Overview 1. Background 2. Method 3. Results 4. Summary 5. Limitations 13

14 Results: Organisational Characteristics 100% were from a private organisation 71.1% indicated conducting the selection process themselves 75.9% were from a small organisation (1-9 employees) 20.5% were from a medium organisation (20-49 employees) 2.4% were from a larger organisation (100+ employees) 14

15 Recruitment Summary Sources Government employment services Frequency of use Number of Applicants Mean Education Level Mean Satisfaction Level Direct enquiry Internet job site High schools TAFE colleges Recruitment agency Newspaper advertisements Employee referrals Past applicants Word of mouth (employee referrals) Word of mouth (family or friends) Company website

16 Comparison of satisfaction with recruitment sources A one-way between-groups ANOVA, post hoc analysis TAFE College, significantly different from high schools and recruitment agencies. 16

17 Source Group Comparisons Source Group N Total Number of Applicants Total mean level of Education Total Mean level of Satisfaction External (0.56) 4.90 (0.86) Internal (word of mouth, family & friends) (0.49) 4.45 (0.17) Comparison of groups (education & satisfaction) not signif. 17

18 Recruitment characteristics from key sources (last apprentice hired) Source N Months at Organisation Word of mouth (family or friends) Performance Mean Satisfaction Mean (0.90) 5.40 (0.90) TAFE College (0.95) 5.45 (1.06) High school (1.20) 5.23 (1.60) Direct Enquiry (1.12) 4.67 (1.12) * Standard deviations presented in parentheses 18

19 Summary: Recruitment Characteristics 26 organisations indicated they recruited through TAFE colleges (33%), making it the most popular source This was followed by high schools (N= 16, 20%), recruitment agencies (N=12, 15%) and direct enquiries (N=11, 14%) The source that was associated with highest mean level of education was TAFE colleges (M= 2.57), followed by recruitment agencies (M= 2.27) and word of mouth through employee referrals (M= 2.00) Recruiters tended to be more satisfied with apprentices hired from government employment service, TAFE colleges, high schools and recruitment agencies 19

20 Frequency of selection methods used N % Application Form Resume/CV One-on-one Interview Group/Panel Interview Cognitive Ability Test 0 - Physical Ability Test Personality Tests Integrity/Honesty Test Vocational Interest Inventory References Job sample/trial Telephone conversation Other

21 Selection method and personnel function (t-tests) Yes No Probability of zero difference Application Form 20.8% 16.9% ns Resume/CV 58.3% 79.7% <0.001 One-on-one Interview 70.8% 79.7% ns Group/Panel Interview 4.2% 13.6% Cognitive Ability Test Physical Ability Test 8.3% 16.9% Personality Tests 4.2% 15.3% Integrity/Honesty Test 12.5% 18.6% ns Vocational Interest Inventory 20.8% 25.4% ns References 29.2% 45.8% Job sample/trial 58.3% 57.6% ns Telephone conversation 45.8% 23.7% Other - 5.1% - Note: ns Not statistically significant 21

22 Selection method by size of the organisation 0-9* Probability of zero difference Application Form 17.5% 17.6% ns Resume/CV 74.6% 70.6% ns One-on-one Interview 82.5% 53.0% <0.001 Group/Panel Interview 9.5% 17.6% Cognitive Ability Test Physical Ability Test 14.3% 17.6% ns Personality Tests 12.7% 11.8% ns Integrity/Honesty Test 15.9% 23.5% Vocational Interest Inventory 23.8% 35.3% References 39.7% 41.2% ns Job sample/trial 58.7% 58.8% ns Telephone conversation 23.8% 52.9% <0.001 Other 3.2% 5.9% ns Note: * Number of employees; ns Not statistically significant 22

23 Order of selection methods used N Rank Mean Application Form Resume/CV One-on-one Interview Group/Panel Interview Cognitive Ability Test - - Physical Ability Test Personality Tests Integrity/Honesty Test Vocational Interest Inventory References Job sample/trial Telephone conversation Other

24 Verification of applicant details Verification of applicants education and work history were: Contacting referees by telephone (83.1%) Asking for written documentation of credentials (62.7%) Requesting written documentation from referees (38.6%) Contacting educational institutions to verify credentials (23.0%) Medical check of health status (21.7%) Checking for a criminal record (18.1%) Other (8.4%) Approximately 4.8% of respondents used no verification method at all Most respondents used a range of methods, with the mean of 2.5 methods used Approximately 60% contacted referees as well as asking for written documentation of credentials 24

25 Overview 1. Background 2. Method 3. Results 4. Summary 5. Limitations 25

26 Summary An important feature of this study was that it examined recruitment sources and selection practices for apprentices- a sample about which little is known With regard to recruitment, external recruitment sources derived a larger pool of apprentices compared to internal sources TAFE colleges were both the most popular recruitment sources ad had the highest mean satisfaction rating by employers Contrary to predictions, internal sources did not derive an applicant pool that was higher in quality Moreover, sources that derived apprentices with the highest job tenures were not linked with higher job performance or employer satisfaction 26

27 Summary The use of more robust and valid selection techniques such as cognitive ability tests and structured interviews was not evident This was consistent with existing research which indicates that the selection process tends to be less formal when filling vacancies for blue-collar jobs than white-collar jobs This finding might have been influenced by the demographic characteristics of the sample. All of the organisations surveyed were privately owned, with most having less then ten employees. More sophisticated methods, require greater financial, preparatory and administrative resources may have been out of scope for these organisations 27

28 Summary Consistent with graduate and managerial selection research (Carless, 2007; Scholarios & Lockyer, 1999) the interview was an integral part of the selection process, particularly the oneon-one, unstructured interview Majority of respondents also used a job trial period lasting for at least three months, rather than an assessment centre or job sample test. This was somewhat consistent with existing blue collar/semi skilled-unskilled research. Regardless of organisational characteristics such as personnel function and organisation size, most organisations used multiple selection methods Almost all respondents at least one method to verify the applicants background 28

29 Overview 1. Background 2. Method 3. Results 4. Discussion 5. Limitations 29

30 Limitations Small sample size, thereby limiting the type of analyses that could be undertaken Due to time constraints and the cross-sectional design of the study, apprentice satisfaction and performance ratings could only be recorded at a single point in time All of the scales used in the study were selfreport measures, meaning that ratings on sources and apprentices came from one subjective source 30

31 References Bartram, D., Lindley, P.A., Marshall, L., & Foster, J. (1995). The recruitment and selection of young people by small businesses. Journal of Occupational and Organisational Psychology, 68, Carless, S.A. (2007). Graduate recruitment and selection in Australia. International Journal of Selection and Assessment, 15, Di Milia, L., & Smith, P. (1997). Australia management selection practices: Why does the interview remain popular? Asia Pacific Journal of Human Resources, 35(3), Harding, D., & Wooden, M. (1997). Recruitment and selection in Australia: Results from a national survey of employers. DEETYA- Trends in Staff Selection and Recruitment. Hodgkinson, G.P., & Payne, R.L. (1998). Graduate selection in three European countries. Journal of Occupational and Organisational Psychology, 71, Millward, N. (1992). Workplace Industrial Relations in Transition. Aldershot: Darthmouth. NCVER (2001). Australian Apprenticeships: Facts, Fiction and Future. NCVER: Adelaide. Schmidt, F.L., & Hunter, J. (1998). The validity and utility of selection methods in personnel psychology: Practical and theoretical implications of 85 years of research. Psychological Bulletin, 124, Scholarios, D., & Lockyer, C. (1999). Recruiting and selecting professionals: Context, qualities and methods. International Journal of Selection and Assessment, 7(3),