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Cost of failed hire
The financial and operational expenses incurred when a new employee does not perform well or leaves shortly after joining, including direct costs ranging from 35,000 to 150,000. Example: A finance manager leaves after 18 months, costing €120,000 in recruitment, training, and lost productivity.
Employee turnover
The rate at which employees leave an organization, leading to recruitment and training costs. Example: A call center with 30% annual turnover constantly hires and trains new staff.
Productivity loss
Reduced output and efficiency caused by poor performance or new employees. Example: A weak software developer slows projects and causes rework.
Impact on colleagues
Negative effects on team morale, workload, and collaboration. Example: Team members take on extra work after a leader resigns.
Recruitment costs
Expenses for attracting candidates, such as advertising and agency fees. Example: €8,000 in job ads and €15,000 agency fee for a marketing role.
Training costs
Investments in teaching employees to perform their jobs. Example: A 6-week training program costs €10,000.
Onboarding costs
Costs of integrating new hires into the organization. Example: IT setup, HR sessions, and mentoring cost several thousand euros.
Predictive validity
The extent to which a selection method predicts future job performance. Example: A cognitive test with validity 0.45 predicts performance better than CV screening.
Correlation coefficient
A statistical measure of the relationship between two variables, from -1 to +1. Example: A 0.50 correlation shows strong linkage between test scores and performance.
Incremental validity
Additional predictive value gained by adding a selection tool. Example: Combining cognitive tests with conscientiousness improves prediction.
Construct validity
The degree to which a test measures its intended construct. Example: A leadership test measures leadership rather than intelligence.
Convergent validity
When related measures show strong positive correlations. Example: Two leadership questionnaires correlate highly.
Discriminant validity
When unrelated measures show low correlations. Example: Leadership scores do not correlate with physical fitness.
Reliability
The consistency of results across time or raters. Example: Interviewers give similar ratings to the same candidate.
Standardization
Uniform administration and scoring of selection methods. Example: All candidates receive the same interview questions.
Candidate experience
Applicants' perceptions of the selection process. Example: Timely feedback improves employer branding.
Technique cost
The financial resources required to use a selection method. Example: Assessment centers cost €2,000 per candidate.
Technique duration
Time required to complete a selection method. Example: A 10-minute online screening test saves time.
Job complexity
The difficulty and skill level of a role. Example: Senior roles require case analyses; warehouse jobs use work samples.
Bias against minority groups
Systematic disadvantages for underrepresented groups in selection. Example: Verbal tests disadvantage non-native speakers.
Ease of use
How user-friendly a selection technique is. Example: Auto-scored online tests are easier than manual interviews.
Legal standards
Laws regulating fair and non-discriminatory hiring. Example: Rejecting a pregnant candidate is illegal.
Ethical standards
Moral principles such as fairness and privacy in selection. Example: Informing candidates how data will be used.
Social desirability
Candidates answering in socially acceptable ways rather than truthfully. Example: Exaggerating teamwork on personality tests.
Job relevance
The degree to which selection methods relate to job tasks. Example: Writing tasks for copywriters.
Transparency
Clear communication about selection procedures. Example: Explaining steps on a career website.
Recruiter behavior
How recruiters act toward candidates. Example: Respectful interviewers create positive impressions.
Timing and feedback
Process speed and quality of candidate feedback. Example: Feedback within one week improves experience.
Work samples
Simulations of real job tasks with high validity. Example: Coding tasks for programmers.
Situational judgment tests (SJTs)
Hypothetical job scenarios assessing responses. Example: Choosing how to handle coworker conflict.
Structured interviews
Standardized, competency-based interviews. Example: Identical questions scored with BARS.
Personality questionnaires
Tools measuring traits like the Big Five. Example: Conscientiousness predicts job reliability.
Resumes/CVs
Summaries of qualifications with low predictive validity. Example: Claimed Excel skills fail testing.
80% rule
Guideline for detecting adverse impact in selection. Example: Female pass rate below 80% of male rate.
Selection ratio
Proportion of applicants hired. Example: Hiring 10 out of 200 applicants equals 0.05.
Stereotype threat
Performance impairment due to fear of confirming stereotypes. Example: Older workers underperform on cognitive tests.
Modular approach
Flexible combination of selection methods. Example: CV screening, testing, and interviews.
Select out strategy
Eliminating unsuitable candidates early. Example: Removing candidates who fail safety standards.
Select in strategy
Aiming to find the perfect candidate. Example: Delaying hiring while searching for ideal fit.
Online assessment
Digital testing tools for efficiency. Example: Hudson assessments used remotely.
Resume screening
Initial CV review with low validity. Example: Used only to check minimum qualifications.
Privacy concerns
Issues with collecting unnecessary personal data. Example: Requesting marital status on resumes.
Resume fraud
Falsifying information on CVs. Example: Fake degrees discovered in background checks.
Cybervetting
Reviewing online presence for hiring insights. Example: Checking LinkedIn but avoiding Facebook.
Spelling errors impact
Errors negatively influence competence perceptions. Example: Recruiters doubt attention to detail.
References checking
Feedback from previous employers. Example: Supervisor confirms project leadership.
Knowledge tests
Tests measuring job-specific knowledge. Example: Language tests for translators.
Big Five personality model
Five traits predicting work behavior. Example: Used to assess teamwork and reliability.
Extraversion
Sociable and energetic personality trait. Example: Useful for sales roles.
Openness to experience
Creativity and curiosity trait. Example: Valuable in innovation roles.
Emotional stability
Confidence and stress resilience trait. Example: Important for emergency services.
Agreeableness
Cooperative and helpful trait. Example: Predicts teamwork success.
Conscientiousness
Organized and disciplined trait. Example: Strong predictor of job performance.
Cognitive ability tests
Measures of mental ability with high validity. Example: Numerical reasoning for analysts.
Unstructured interview
Informal interviews with low validity. Example: Casual chats about hobbies.
Halo effect
Bias where one positive trait influences overall judgment. Example: Well-dressed candidates rated higher.
Contrast effect
Ratings influenced by comparison with prior candidates. Example: Average looks strong after poor candidates.
Situational interview
Hypothetical future-focused questions. Example: Handling an angry customer.
Behavioral interview
Past-focused questions using STARR. Example: Handling difficult customers previously.
STARR technique
Situation, Task, Action, Result, Reflection method. Example: Explaining actions and lessons learned.
Competency analysis
Identifying key job-related skills. Example: Communication and problem-solving for managers.
Brain teasers
Puzzle questions with low predictive validity. Example: Estimating windows in a city.
Physical work samples
Objective hands-on task simulations. Example: Mechanics assembling parts.
Psychological work samples
Subjective simulations like role-plays. Example: In-basket exercises.
In-basket exercise
Task prioritization under time pressure. Example: Managing emails and deadlines.
Case analysis
Job-relevant problem-solving tasks. Example: Market-entry strategy.
Presentation exercise
Assessing communication through presentations. Example: Sales pitch delivery.
Role-play
Simulated interactions to assess behavior. Example: Performance feedback conversation.
Group discussion
Evaluates teamwork through collaboration. Example: Solving a business problem together.
Assessment center
Multiple exercises assessing job competencies. Example: Interviews, cases, and role-plays in one day.
Behavior Anchored Rating Scales (BARS)
Rating scales with behavioral examples. Example: Leadership rated from passive to proactive.
Procedural justice
Fairness of selection procedures. Example: Same steps for all candidates.
Distributive justice
Fairness of outcomes and rewards. Example: Equal pay for equal performance.
Interactional justice
Fair interpersonal treatment. Example: Respectful communication with candidates.
Informational justice
Clear explanations of decisions. Example: Explaining rejection reasons.
Interrelational justice
Respectful and dignified treatment. Example: Avoiding rude communication.
Equity theory
Employees compare effort and rewards. Example: Reduced effort after perceived unfairness.
Input-output ratio
Balance between contributions and rewards. Example: Skills compared to salary.
Discrimination cases
Legal actions for unfair hiring decisions. Example: Pregnancy-based rejection compensation.
AI in selection
Using AI for screening with bias risks. Example: AI reflecting historical gender bias.
Digitalization trends
Increasing use of technology in hiring. Example: Volvo using AI pre-screening.
Public sector selection
Bureaucratic, fairness-focused hiring. Example: Civil service exams.
Private sector selection
Flexible and profit-oriented hiring. Example: Startup using informal interviews.
Representative bureaucracy
Public workforce reflects society's diversity. Example: Diverse public servant hiring.
Public service motivation
Motivation to serve society. Example: Choosing government work for social impact.