Improving Organizational Commitment and Retention

Effective Employee Selection is the Missing Link

Jack E. Smith, Ph.D.
So, youve decided that turnover rates in your hospital are too high, and you want to improve employee commitment and retention. When you begin examining the relevant literature, you quickly discover that most programs focus on improving the commitment and retention of current employees. While these treat em right initiatives can be effective, too often the missing link in turnover reduction efforts is an examination of the relationship between employee selection and employee retention. Effective stafng can have a positive impact on employee retention. As a result, it is critical to evaluate and improve this process. Candidates with a high

Effective stafng can have a positive impact on employee retention.

propensity for turnover can be identied before they enter the organization, and doing so can pay off in signicantly improved retention rates.

Strategies for improving the employee selection process include tracking recruitment sources; using realistic job previews (RJPs); using assessment tools and interviews to predict turnover; and hiring for t and motivation.

Tracking Recruitment Sources

Tracking the effectiveness of various recruitment sources is an excellent rst step for reducing turnover. Healthcare organizations use a variety of sources for recruiting job applicants, including classied ads, walk-ins, state employment agencies, agency personnel, employee referrals, online recruiting and professional recruiters. So, the obvious question becomes: Which of the recruitment sources is best for retention? The answer is: It depends. Effectiveness is inuenced by the specic job in question, the job level (e.g., entry-level, professional, managerial), the geographic location of the hospital and other factors. Given the variables, it is important for each organization to systematically collect its own data on the effectiveness of its recruitment sources. Figure 1 shows how tracking the recruitment source data for a hypothetical hospital can be used to help make recruitment source decisions related to improving retention.

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Source
Classied Ads Walk-Ins State Agencies Employee Referrals Total

# of Apps
210 40 100 50 400

Passed
100 (48%) 28 (70%) 45 (45%) 40 (80%) 223 (56%)

Accepted Offer
80 (38%) 22 (55%) 32 (32%) 35 (70%) 169 (42%)

6-Month Survival Rate

60 (29%) 15 (38%) 23 (23%) 32 (64%) 130 (33%)

Figure 1: Tracking Recruitment Source In this example, it is apparent that employee referrals provide the organization with employees who have the highest probability of remaining with the organization, without giving up anything in terms of employee ability. Both the six-month survival rate and percentage of candidates passing the assessment step indicate that more emphasis should be placed on using employee referrals as a recruitment source. Unfortunately, only 12.5 percent (50 of 400) of the applicants come from this source. If the organization does not have a formal referral program in place, its time to start one. And if the hospital does have a program, then its time to give it more emphasis (e.g., better communication of program, higher incentive for referral).

Using Realistic Job Previews (RJPs)

Attracting potential employees to the organization is a primary goal of recruiting. But attempts by the organization to sell itself as a great place to work may give applicants inated expectations about the nature and rewards of employment. Numerous studies dealing with voluntary turnover have shown that unmet expectation is a critical factor in determining early exits from the organization. Recent theory and research suggest that employers might be better off avoiding sugar coating the message to applicants and providing realistic job previews (RJPs) instead. RJPs should address all aspects, both positive and negative, of the job and work climate, including the position itself, the unit or department, the organization and even the location of the work site. Figure 2 provides RJP examples for some healthcare-related jobs.

+ Being on-call + Working with people with contagious diseases + Working on holidays + Working evenings
Figure 2: Possible RJP Examples for Healthcare

+ Working long (e.g., 12 hour) shifts + Working overtime + Being pulled to other oors or units

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While an RJP should be included in any structured interview format, other RJP formats may include brochures, formal oral presentations, assessment center exercises, videotapes, and realistic information on web sites. By communicating accurately with applicants regarding the job and the organization, those who accept employment will be more satised and therefore less likely to leave voluntarily (Wanous, 1992)

Making the Most of Realistic Job Previews

Realistic Job Previews (RJPs) improve employee retention by providing applicants with a highly accurate description of the job and the organization, which can reduce turnover related to unmet expectations.

Here are a few tips for maximizing the effectiveness of RJPs:

+ Place the RJP early in the stafng process to allow for self-selection on the part of the candidate. For example, one home-care rm has its job candidates (nurses, aides and social workers) spend two days working with inner-city clients before a nal hiring decision is made. This step allows candidates to preview the job and make a more informed decision. + Some research indicates RJP information presented via a two-way communication process (e.g., verbally) facilitates applicant attention and comprehension better than RJP information presented via one-way communication (e.g., brochures or videotapes). + RJPs are most effective when they are specic and address all aspectsboth positive and negativeof the work setting. For example, a statement of: You will sometimes be expected to be on-call will have limited impact on a job candidate, particularly one who wants the job and is overwhelmed by other information. A more effective RJP discussion would include information regarding the frequency and duration of being on call (e.g., This job requires you to be on call every other weekend).

Using Assessment Tools to Predict Turnover

A study conducted by Barrick and Zimmerman (2005) identied three sets of assessment variables for predicting employee turnover: Biodata Longevity at former employers, referral by current employees and having friends or family members working at the new organization all increase the likelihood new employees will stay. Attitudes and behavioral intentions Applicants who express intention to stay with the organization and desire for the job are more likely to stay. Dispositions Self-condent, decisive individuals are more likely to stay. Figure 3 (next page) provides examples of the types of questions that can be used to predict the propensity for turnover.

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Assumption
Candidates with long tenure at their previous employment are more likely to remain with the organization.

Possible Questionnaire
Which of the following best describes the number of full-time jobs youve held over the last ve years? I havent held a full-time job 1 job 2 jobs 3 jobs More than 3 jobs None 1 2 3 4 or more Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree

Candidates who are referred by current employees who are family or friends are more likely to remain with the organization.

How many friends or family members do you have working at this organization?

Candidates who have a high intent to stay with the organization are more likely to remain.

I can see myself working for this organization several years from now.

Candidates who have a strong desire to be hired for the target job are more likely to remain with the organization.

I have a strong desire to work for this organization.

Candidates who have a predisposition for being decisive are more likely to remain with the organization.

I always carefully weigh costs and benets when making decisions that affect my life.

Figure 3: Formal Selection Assessment Examples Generally speaking, these items are placed into an assessment inventory and scored according to predetermined keys. While these types of assessments have a good track record for predicting turnover, users should be careful interpreting and applying them in the workplace. Organizations should strongly consider involving an assessment professional (e.g., industrial and organizational psychologist) to develop and validate the instrument.

Using Interviews to Predict Turnover

The job interview has the potential for measuring a wide range of candidate characteristicsincluding retention potentialdepending on what questions are asked and how responses are scored. For organizations in which development of previously mentioned assessment tools may not be feasible, the same issues can be addressed during the interview process. Figure 4 presents examples of meaningful interview questions.

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Assumption
Candidates who have long tenure at their previous employment are more likely to remain with the organization.

Possible Questionnaire
Some people stay with a single organization all of their working lives, others move around quite a bit. Please describe the organization you stayed with the longest. + Was the length of time you stayed with this organization typical for you? Why or why not? + W hy did you stay with this job for this period of time? + W hy did you eventually leave the job?

Candidates who are referred by current employees who are family or friends are more likely to remain with the organization. Candidates who have a strong desire to be hired for the target job are more likely to remain with the organization.

+ What did this person tell you about our hospital? + W hat did this person say that made you want to seek employment here? + How long has this person worked here? + How much condence do you have in this persons opinion? + What aspects of employment at XYZ Hospital do you nd most appealing? + W hy does this appeal to you so much? + If this aspect of employment were not present, how interested would you be in employment at XYZ Hospital?

Figure 4: Possible Interview Questions

Hiring for Fit and Motivation

Using assessment tools that are valid and select for t will provide a hospital with a higher quality employee, affecting turnover in two ways. First, valid selection procedures reduce the need to terminate some employees. The rate of involuntary turnover in healthcare organizations, which runs approximately 30 percent, can be greatly reduced by making quality hires. Second, hiring quality employees substantially improves the chances that other retention initiatives will be effective. Research clearly shows that high-performing employees are more likely to embrace in-house retention efforts such as job design (e.g., job enrichment), employee involvement and empowerment, and rewards and incentives. A wide range of personality and ability assessment inventories exist that can be used to improve the accuracy of the selection process.

Supply the Missing Link

As you begin to consider various approaches to reducing turnover, be sure to include efforts to improve the selection process. This missing link in turnover reduction should be an integral component of any retention initiative. While its true that most strategies for reducing turnover will focus on what can be done to improve the satisfaction, loyalty and retention of current employees, organizations are remiss if they fail to carefully examine and improve their selection process and hire for t.
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About the Author:

Jack E. Smith, Ph.D. Based in suburban Detroit, Dr. Smith has over 30 years of research and training experience, including supervisor of test development and validation for the State of Ohio, 16 years as a professor of human resource management at the University of Detroit, and most recently as Scientic Advisor to TestSource. Throughout his career, he has been active in consulting, research, and training at numerous major corporations, including Ford, DaimlerChrysler, Prudential, Unisys, ExxonMobil and Verizon, among others. He specializes in assessment development, personnel selection, management training, and total quality management. Jack has published in such prestigious journals as Personnel Psychology, Training and Development Journal, Quality Progress, Journal of Business Ethics, and The CPA Journal. He is a member of the American Psychological Association, Society for Industrial and Organizational Psychology, the American Society for Training and Development, The Society for Human Resource Management, and the American Society of Quality. He holds a Ph.D. in industrial and organizational psychology from The Ohio State University.

About TestSource:
Headquartered in Grand Rapids, Michigan, TestSource specializes in the design, development and validation of healthcare-specic assessment solutions. These assessments are designed to assist healthcare organizations achieve critical initiatives such as: reducing new-hire turnover and hiring service-oriented applicants. The company has been in business since 1992 and serves over 360 healthcare organizations throughout 43 states.

References:
Barrick, M. R. & Zimmerman, R. D. (2005). Reducing voluntary, avoidable turnover through selection. Journal of Applied Psychology, 90, 159-166. Wanous, J. P. (1992). Organizational entry: Recruitment, selection, orientation, and socialization of newcomers (2nd ed.). Reading, MA: Addison-Wesley.

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