CHAPTER 3:

E-Selection

Chapter 3
At the end of this chapter, you should be able to:
Describe the key strategic and policy issues of eselection. Describe the guiding principles that govern e-enabled employment selection processes and systems. Recognize selection systems technology as a tool to support the companys hiring goal Address the elements during the design and implementation of any new assessment system Consider a variety of procedural requirements when an organization plan an e-enable employment selection system
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e-Selection
The purpose of this chapter is to describe issues and guidelines that will help organizations design, implement, and sustain eenabled employment selection process and systems.

Organization Issues Technology Consideration

E-Selection
Predicting which applicants will be successful if hired through electronic selection.

Designing and Managing e-selection Processes

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Key strategic Issues and Policy Decisions

FUNDAMENTAL PURPOSES (WHY)
Cost reduction Maximum utilization of human capital Sustainability

GUIDING PRINCIPLES (HOW)

Risk management Buy versus build Functions that should be eEnabled Ownership Integration with other systems Free market versus regulation
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FUNDAMENTAL PURPOSES (WHY)

Cost reduction
Build the applicable database and management tools the capability to measure costs at the transaction level View tracking and management systems as part of the e-enabled process Major cost factors: cost drivers for e-enables selection

Major cost factors: cost drivers for e-enables selection

Cost of sourcing candidates into the employment process

Administrative costs associated with elements of the process that may not be eenabled

Cost Drivers for e-Enabled Selection.

Costs of administering the individual screening events

Loss rates between events in the whole process

Maximum Utilization of Human Capital

2 Types of measures : Measures the capital represented by each person who goes through the process. Measures the extent to which the process results in decisions that maximize the utilization of that capital Through the process includes set of test scores, interviews ratings, resume quality indices, background check results, evaluation of skills, experiences, abilities and etc
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Ratio or differences between average test scores for selected candidates to average test scores for all candidates Percentage of candidates who satisfy minimum requirement such as for drug test or background checks.

New hire performance management results.

Percentages of candidates who exceed agreed-on standard of high capability even if that standard is higher than the minimum employment requirements

Examples of measures of Human Capital Utilization

Percentage of candidates who satisfy employment requirements as a function of recruiting source Retention rates, post-hired

Sustainability
Refers to the organizations willingness and ability not only to maintain the e-enabled system but to progressively evolve the system to satisfy changing requirements and capitalize on improvements in technology and the science of selection.

Clear ownership

Professional support

Funding strategy

KEY ELEMENTS THAT ENABLE SUSTAINABILITY

User satisfaction

Business contribution
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Issues in Guiding Principles

How the organization wants to do business in this domain of HR process Its largely determined by the organizations overall culture and HR strategy.

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Buy VS Build Risk Management (Employment Discrimination)

Expertise VS Automaticity

GUIDING PRINCPLE
Free Market VS Regulation

Whose functions this system will support Ownership Integration with other HR systems and process

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RISK MANAGEMENT
THE LIKELY TO HAVE CERTAIN UNIQUE IMPLICATIONS FOR MANAGING THE RISK ASSOCIATED WITH EMPLOYMENT DISCRIMINATION LAWS. MANAGING RISK ASSOCIATED WITH EMPLOYMENT LAW ACCOUNTABILITY FOR MINIMIZING RISK BY MONITORING INDICATORS OF RISK, EG: GROUP DIFFERENCES IN SELECTION, PROMOTION RATES FORM OF SPECIFIC AUTOMATIC SYSTEM TRIGGER THAT ARE BUILT INTO PROCESS EITHER TO STOP OR TO WARN USERS WHEN A RISKY SITUATION IS EVIDENT
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DESIGN SYSTEM THAT PROVIDE USERS WITH RISK LEVEL FOR VARIOUS POSSIBLE DECISIONS.

E-EMPLOYMENT THAT INCREASE POTENTIAL CLASS SIZES IN POSSIBLE CLASS ACTION LAWSUITS
PROPOSAL TO CONSIDER APPLICANTS WITH THREE CRITERIA:
EMPLOYER HAS ACTED TO FILL IN PARTICULAR POSITION. INDIVIDUAL HAS FOLLOWED EMPLOYERS STANDARD PROCEDURE. THE INDIVIDUAL INTERESTED IN THE POSITIONS.

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Buy Vs Build
One of the most difficult strategic decisions an organization may have to make is whether to buy or build and if buy how to integrate the roles of the third-party provider with the existing HR IT group. Current trends decide to buy and rely on vendors support due to vendors ability to specialized and flexible systems

Hybrid approach: adopt vendors systems, retain functional specialist in the business, integrate the role of specialist and management of vendor.

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Expertise Vs Automaticity
Question of how to build the HR expertise into system. (Replacing HR specialist with system) Minimize HR expert support: info necessary for employee to use the system, apply job, assessment, review, choose and hire candidates To decide the type and level of hr expert to be exported into e-enable process To systemize expertise that is not associated with significant accountability.
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Functions that should be e-enabled

Three users: people, HR specialist, managers To redesign of user relationship and roles with e-enable When HR strategy is to increase the self service capabilities of non-specialist employees, then design the system that facilitate or enable wider range of functions.

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Ownership
To the extent that e-enabled selection systems are designed to facilitate HR-managed processes, the HR organization should be viewed as the owner of the system, vendor supporting the system would be accountable to the HR organization HR expertise as the primary source for the design and operational oversight of e-enable
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Integrations with Other System

e-Enabled employment selection may function independently of other HR system and processes or may be integrated to some extent with those other systems. To gather and use not only employment test data, competency data, performance data, training and development, compensation, job history and progression, background and health data. Integration and issue of privacy, data access, and use Design of the core employee database that would jointly support multiple applications.
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Free Market vs Regulation

Degree of regulations that will be imposed on the system process and user capabilities System to be open, free market (employee have unfettered access and all managers have unlimited ability to make personnel decision) uncontrolled possibility of understaffed. Design to develop, assess and certify job skills to automatic compensation growth choose to govern employees access and managers use of system that support personnel movement and compensation Regulation purpose: 1) a fair ROI in development employee, 2)stable number of skilled workers, 3) equal opportunities and access for employees, 4) general homeostasis in the org workforce Organizations culture, business strategy, industry, work climate, management-labor relationship and HR strategy will determine degree of regulations
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Technology Consideration
Support the company hiring goal Make the hiring support function easier and more efficient and effective Must be employed because it complements the way the company does business and allow HR to do its job better Technology consideration include;
Choosing the Technology Developing and Implementing the Technology Solution Tips and Guidelines Future Technology Development

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 Un-network PC-based applications

provide a consistent administration and scoring environment this application can be built either by vendor or by internal IT resource.

Existing company system (HRIS) or an intranet applicant

eg; certain types of HRIS system can be programmed to administer and score selection assessments This approach allows for centralized database of test result and easier roll out of scoring, cut score, and test content changes. These types of system is usually home grown-test vendors are reluctant to support their products Very dependent on the companys ability to allocate IT resource.

Internet application administered via an application service provider (ASP) model by the testing vendor
most common method for implementing e-assessment via computer allow company to completely outsource the implementation, maintenance, and support of the assessment.
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e-Selection Decision Points

Considerations PC-Based Intranet(Internal to Company) Application Service Provider(by Vendor)

Cost
Centralized Databasing Ease of Updating

Low
Low Difficult

Moderate
High Easy*

High
High Easy

Support
Implementation Timeline Integration with Other HR Systems

Difficult
Moderate Difficult

Moderate
Moderate* Moderate-Easy High

Easy
Fast Moderate-Easy Low

Demands on Internal Moderate-High IT Resources

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Develop And Implementing The Technology Solution

The following topic are critical:Implementation requirements Cost considerations End-to-end versus modular solutions Access channels Professional standards User interface Data management

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Implementation Requirements
The integration of technology makes the implementation more complex. The technology platform and its features, functions, and reliability can often determine the difference between a successful and unsuccessful implementation. Corporate and local IT resources must be engaged in the process early on to determine the level of successful and successful implementation
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Cost Consideration (Customization as the main factor)

Look and feel Types of applicant data collected Organization setup Hiring process Customized versus existing assessment content Reporting Data transfer and system integration Platform Integration Volume
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End-to-End versus Modular Solution

Depending on their current process and existing systems. Vendors partnership (broaden offerings, end-toend) Now, broadening their offering to give more endto-end solution to their client. Company are more often seeking one vendor who can deliver a total end-to-end solution (eg: performance management, Hr related reporting, benefits, compensation management).
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Access channels
Testing Centers Within Existing Business Locations. Third-party Testing Centers. Interactive Voice Response.(IVR) Anywhere Access Via The Web. Semi-Proctored Environment.

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Professional Standards
The most critical areas requiring special attention are administration and test security. For tests designed to assess examinees knowledge, skill and abilities(KSAs), standardization helps to ensure that all examinees have the same opportunities to demonstrate their competencies.

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 Standard suggest that standardization is of most concern with regard to KSA testing, as opposed to personality or biodata testing Technology can aid the organization effort to standardize a selection process. Test security become an issue as well. Other important although less critical include eassessments for applicants with disabilities, the potential of excluding large portions of an applicant pool without convenient access to a particular access channel.
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User Interface
Interface can be vary from simple web pages to engaging multimedia experiences Accomplished by developing rich, multimedia assessments that are not only designed to impress applicants but convey the realistic preview of the job

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Data Management
E-assessment s have substantial technical requirements that can add a number of complexities to assessment implementation Three key issues: assessment setup, quality assurance / control and reporting
E-assessment are almost invariably stored and deployed using relational databases eg; Oracle or SQL server which is assessment content and examinee data are stored in multiple tables that add significant time to development effort
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Quality assurance /control To test drive a beta version of the software for quality assurance and avoid error (100% correct- item scoring, scale scoring and all related cutoffs) developing interim scoring utilities or simulations that expedite the entry of applicant data. Reporting and analysis designing real time reporting and analysis process to accelerate decision making and overall process flow Business intelligence platforms that allow users to flexibly perform online, real time analysis and generate custom reports Beginning of data standards to govern integration of systems
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TIPS and GUIDELINES

Involve internal IT resources early. Remember the real purpose of the hiring process and the needs of the key stakeholders. Gather input from key stakeholders early and ask for feedback from them often during the design process. Be realistic and fair about project timelines. Create a true partnership among the key project team members and other stakeholders.
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 Allow appropriate time to quality check the technology tool and train new users. Avoid the temptation to make that one last little change or addition.

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Future Technology Development

Technology keep changing, innovation. Integration of various systems eg; selection process - prescreening, testing, interviewing, offer, into overall tracking systems
Integration through partnership, merger, expansion for more convenient faster and cost effective service delivery.

Unproctored internet base with reliable and valid testing Focus on multimedia applications eg: fun assessment for candidates, computer decision making games Research on equivalence, fairness, validity, reliability and job relevance of the contructs
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Selection Systems Technology

Developing and Implementing the Technology Solution Choosing the Technology
Implementation requirements Cost considerations End to-end Versus Modular Solutions Assess channels Professional Standards Data Management

Tips and Guidelines

Future Technology Developments

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Designing and Managing e-Selection Process

Administrative Decisions

Flow Chart Current Process

Equivalence

Flow Chart the New Process

Scoring Systems

Users
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Example of e-enabled selection process

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Managing the e-Enabled Process

Preparing to Test: Processes to Arrange in Advance

Test/ Event Administration

Managing the Applicant Flow and Test Program

After the Test/ Event

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 Prepare the Test

Prescreen candidate entering resume, answering questions about desired work, web delivered assessment such as biodata and work attitude etc Test general information about the organization testing program, descriptions of test for various job, practices examination. Self identify the need for disability accommodation Method of identifying and observing candidate. Remote, unproctored assessments should be followed by assessment in controlled, supervised setting
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 Test / Event Administration

Test administration issues: usability, test access, feedback and scoring Usability important for experienced and inexperienced computer users Test security in mind of user, should not permit to take test dishonestly; using calculator, cut / paste, reboot computer. (eg locked out non essential function) Test timing, does not run too slow / quick or running out when loading Anticipated technical problems ( loss power) Managing access by lock out non-test functions Automated test delivery and immediate scoring to speed scoring process

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 After the Test

Knowing immediately whether or not the candidate has qualified Produce database of searchable score results and other test characteristics eg: specific test delivered, history and dates of testing

Managing applicant flow and test program

Tracking the number of candidate available, number of qualified, expected pass rate to know when to source more candidate and when to stop Electronic management of account (order and manage access to test inventory, using interface to grant other privilege to view test info online)
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Vendor Management and Partnership

STEPS OF VENDOR MANAGEMENT

Scope of Work

Negotiating the Contract

Service Level Agreements

Managing Milestones

Ongoing Maintenance

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 Scope of work : product and service deliverable, anticipated deadlines for completion of each deliverable Negotiating the Contract: issue RFP, detailed set of guidelines and expectations, or general proposal for each vendors discretion. Timelines, consulting expenses, ability to customize, meeting the hardware, software, network, standardized test conditions, using assessment product consistently and fairly, quality assurance of test delivery, scoring accuracy and delivery of score data and report
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 Service Level Agreement:

Availability / uptime Schedules downtime System performance metrics Technical support

Managing Milestones
Client should have responsibility and accountability as well as vendor eg; consequences of failure, deadlines are not met etc

Ongoing Maintenance
Collaborate further to see that training is effective and that ongoing maintenance concerns are met eg software updates to improve usability, document procedures when the software, hardware and technology complete.

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VENDOR PRODUCT
PASS (Personnel Automated Screening Software) SHC Solutions Data Management Solutions Software

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VENDOR PRODUCT(CONT.)
Provides online test, online application and online assessment Suits with job vacancies (online), typical project outline, data sources, tools and protocols and competitive advantage Uses competencies modeling technique, structured online interview and e-simulation exercise
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VENDOR PROCUCT (CONT.)

Provides more advanced operations, tend to use Microsoft Excel thick sheet and Microsoft Words Processor Templates Helps to implement a screening process/ online test in advance (20 minutes per candidates)

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VALUE OF E-SELECTION PROGRAMMES

Helps to reduce cost and time consuming Develops more opportunities for worldwide applicants Helps to convince the stakeholders and other established company to cooperate with our company Gains more accuracy on finding right talent to fill in job vacancies

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 All selection software are recognized by established companies like TESCO, Kimberly Clark, Samsung Reduced error in fraudulent information from candidates Overall system are useful to the company in order to help us in making better decision and achieve business goals in the future.
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FUTURE e-ENABLED SELECTION PROCESS

Selection system using virtual conferencing devices linked with 3G devices to select a foreign candidate in future.

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EXERCISE
1) Discuss 5 issues related to principles / policies that need to be addressed by an organization that wants to implement an e-enabled selection assessment systems and process. 2) Sustainability is one of the purpose of eselection process that should be acknowledged and managed. Briefly define the meaning of sustainability and elaborate 5 key elements that enable sustainability. 3) List and discuss 5 guidelines in helping organization design, deliver, implement and sustain e-selection system.
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