Internal recruiting means considering present employees as candidates for openings. Promotion from within can help build morale and keep high-quality employees from leaving. For higher-level positions, a digital skills inventory system may be used to identify internal candidates, or managers may be asked to recommend individuals to be considered. Of course, internal promotions also create new openings that then have to be filled.

External recruiting involves attracting people outside the organization to apply for jobs. External recruiting methods include posting jobs on the company website or other online job sites, such as Monster.com; holding campus interviews for potential college recruits; using employment agencies or executive search firms to scout for potential talent; seeking referrals by present employees; advertising in traditional print publications; and hiring “walk-ins” (unsolicited applicants).

The organization must also keep in mind that recruiting decisions often go both ways—the organization is recruiting an employee, but the prospective employee is also selecting a job. For instance, when unemployment is low (meaning fewer people are seeking work), businesses may have to work harder to attract new employees. But when unemployment is higher (meaning more people are looking for work), organizations may find it easier to recruit prospective employees without having to resort to expensive hiring incentives. But even if a firm can take its pick of the best potential employees, it still should put its best foot forward, treat all applicants with dignity, and strive for a good person–job fit. Hiring the wrong employee can cost the company about half of a low-skilled worker’s annual wages or three to five times upper-level employees’ annual wages. Therefore, hiring the “wrong” employee for $50,000 per year could cost the company at least $25,000. These costs stem from training, counseling, low productivity, termination, and recruiting and hiring a replacement.

One generally successful method for facilitating a good person–job fit is what is called a realistic job preview (RJP). As the term suggests, the RJP involves providing the applicant with a real picture of what performing the job that the organization is trying to fill would be like.⁵ For example, it would not make sense for a firm to tell an applicant that the job is exciting and challenging when in fact it is routine and straightforward, yet some managers do this to hire the best people. The likely outcome is a dissatisfied employee who will quickly start looking for a better job. If the company is more realistic about a job, though, the person hired will be more likely to remain in the job for a longer period of time. Of course, a manager might not want to describe a job as boring and monotonous, even if that is in fact accurate. An effective solution to this dilemma may be to allow a job applicant to observe people performing the job or perhaps watch a short video of the job and then allow the applicants to make their own assessments.

The first step in selection is usually asking the candidate to fill out an application. An application form is an efficient method of gathering information about the applicant’s previous work history, educational background, and other job-related demographic data. Application forms are seldom used for upper-level jobs; candidates for such positions usually provide the same information on their résumé. Most applications are now prepared and submitted online, although some firms still use traditional paper forms.

Employers sometimes ask candidates to take tests during the selection process. Tests of ability, skill, aptitude, or knowledge relevant to a particular job are usually the best predictors of job success, although tests of general intelligence or personality are occasionally useful as well. Some companies use a test of the “Big Five” personality dimensions discussed in Chapter 8 (or other personality measures) to predict success.

Interviews are a popular selection device, although they are actually often a poor predictor of job success. For example, biases inherent in the way people perceive and judge others when they first meet affect subsequent evaluations. Interview validity can be improved by training interviewers to be aware of potential biases and by tightening the structure of the interview. In a structured interview, questions are written in advance, and all interviewers follow the same question list with each candidate. Structured interviews tend to be used for jobs that are relatively routine, such as some administrative assistant positions, data entry jobs, and college admissions processing positions. For interviewing managerial or professional candidates, a somewhat less structured approach can be used. Although question areas and information-gathering objectives are still planned in advance, specific questions vary with the candidates’ backgrounds. Sometimes, companies are looking for especially creative employees and may try to learn more about the individual’s creativity during an interview.

Organizations also use other selection techniques that vary with circumstances. Polygraph tests, once popular, are declining in popularity. On the other hand, organizations occasionally require applicants to take physical exams (being careful that their practices are consistent with the Americans with Disabilities Act). More organizations are using drug tests, especially in situations in which drug-related performance problems could create serious safety hazards. For example, potential employees who may be handling hazardous chemicals or medical waste or engaging in public transportation activities like driving buses are likely to be drug tested. Some organizations also run criminal background checks on prospective employees. Reference checks with previous employers are also used, but they have been shown to have limited value because individuals are likely to only provide the names of references that will give them positive recommendations. Even worse, some applicants literally make up references.⁶