Employee screening: recruitment and selection

Section four of the Personnel Today Management Resources one stop guide on employee screening, covering: best practice recruitment and selection procedures; complying with the law relating to recruitment and selection; and dealing with external recruitment and selection providers. Other sections .

Use this section to Find out more about how to develop best practice recruitment and selection procedures Comply with the law relating to recruitment and selection Examine how to draw up job descriptions, design application forms and use CVs Get the best out of checking references and interviewing candidates Look at the role of HR and line management in recruitment and selection Use external recruitment and selection providers

Job descriptions

Job descriptions are a vital part of the recruitment process and are useful for all posts. If you do not identify clearly what the role entails and what skills, competencies, knowledge and experience candidates will need, finding the right person will be difficult. You will also increase the chances of claims of unfair discrimination.

Four in five employers (82 per cent) use job descriptions for at least some of their posts, according to a study by IRS.¹ More than one in five use job descriptions deliberately in recruitment and selection to prevent discrimination and for defending cases when it is claimed to have occurred.

More than 83 per cent of those using job descriptions do so to develop selection criteria for applicants.

Almost three-quarters of employers use person specifications in their organisations, according to the IRS study. Person specifications expand on the information contained in the job description; examining which competencies the candidate needs to perform the role satisfactorily.

Objectivity

A good job description helps potential applicants assess themselves for the job. Using up-to-date job descriptions can help in defence against unfair discrimination complaints, allowing you to show you have judged candidates equally. You must be able to justify objectively any criterion used in the job description or person specification that may be viewed as discriminatory. Check that job descriptions and person specifications include any amendments facilitating the appointment of disabled people.

Conciliation body Acas recommends making sure that any criteria relating to personal qualities or circumstances:

Is essential and directly related to the job

Is applied equally to all groups irrespective of age, sex, race, creed, disability, membership or non-membership of a trade union.

Table 1: How are job descriptions being used?
Use of job descriptions:	% of firms
Using job descriptions for all posts	70.8
Using job descriptions for most posts	3.2
Using job descriptions for some posts	8.8
Culture does not support formality of job descriptions	25.4
Use competency frameworks instead	15.6
Application of job descriptions:
To develop selection criteria	83.4
To send out to prospective candidates	75.4
To give to recruitment agencies	46.2
Areas covered in job descriptions:
Job title	100
Summary of main purpose of the job	97.1
Principal job duties with brief descriptions	96.7
Statement relating to other duties	81.2
Details of those reporting to job-holder	76.5
Location	53.5
Grade of job	51.6
Statement relating to fact that duties might change	43.6

Source: IRS study of 250 firms in 2003
(Setting the tone: job descriptions and person specifications)

Application forms and CVs

Application forms are second only to interviews as the most popular selection tool, and many employers make them compulsory for all job types. They play a key role in helping to find suitable candidates, but they do need to be designed well.

Consider what to ask

You need to consider clearly which questions to ask: not necessarily the same should be asked of all prospective workers. For example, an applicant for an administrative job with a haulage company should not be asked for details of driving convictions, if these are only relevant to the recruitment of drivers. However, some questions will be clearly relevant to all applicants. It is acceptable to ask all candidates certain core questions, such as whether they are eligible to work in the UK.

Gathering information

Questions should be designed to obtain no more than the information actually needed, for example, "Do you have any criminal convictions involving dishonesty?". Whether by omission of an explanation or otherwise, applicants should not be led to believe they have to disclose spent convictions if they do not.

You need to make it clear on the application form what information you will seek, from whom and how.

Under the DP Act, you are not obliged to tell individuals what is going to happen to information, provided it is no more than they are likely to expect. If you are recruiting for a specific job, you do not need to explain how you will use the information if this is self-evident. For example, there is no need to explain that information will be passed from the personnel department to the department where the job is located. But if you are, for example, conducting an initial trawl of applicants for a range of different jobs, perhaps to keep on file and return to as needed, you should explain this.

Checking information on applications

The Data Protection Act 1998 does not prevent you checking whether a candidate is lying on an application form. But if checks are to be carried out, the candidate should be made aware. Educational institutions often want the candidate's permission to disclose information verifying qualifications.

The Employment Practices DP Code Part 1: Recruitment and Selection recommends that employers only seek information that is entirely necessary.

DP code benchmarks on applications

State to whom the information is being provided and how it will be used if this is not self-evident

Only seek personal data that is relevant to the recruitment decision

Only request information about applicants' criminal convictions if justified in terms of the role offered

Make it clear that spent convictions do not have to be declared, unless the job is covered by the Exceptions Order to the Rehabilitation of Offenders Act 1974

Explain any checks that might be undertaken to verify the information provided in the application form, including the nature of additional sources from which the information may be gathered

If sensitive data are collected, ensure a sensitive data condition is satisfied

Provide a secure method for sending applications.

Use of CVs

The use of CVs is widespread among employers, although not as common as that of application forms.

Using CVs to recruit people is a cheap selection method that gives applicants a chance to highlight their strengths and experience and offers a rounded picture of an individual, something that is not particularly easy with application forms.

But using CVs does mean applicants are not performing on the same level playing field, there is often a lot of irrelevant infor-mation to be waded through and it can be easy to overlook some candidates if their CV does not stand out. Applicants can also be very selective with the information they give.

CVs are typically used more for managerial and professional posts than for skilled manual positions, according to the CIPD's 2001 recruitment survey.

Job interviews

Interviews are the number one selection tool for most companies, regardless of debate over their effectiveness as predictors of future job performance.

Almost all the employers who responded to a CIPD survey used interviews in selec-tion.² Interviews are rated widely as the most important tool in making selection decisions.

Interviews present you with an ideal opportunity to screen potential candidates, probing their attitudes to a manner of issues, such as diversity. They allow you to discuss any discrepancies that arise and to discuss any relevant convictions in detail. They provide a chance to give the candidate a clear overview of the business and the job.

Interviews are used either as, or as part of, the final basis of the decision of who to select. They can be conducted face-to-face, by telephone or via a video link.

Telephone interviewing

Telephone interviewing is becoming more common, particularly with the growth of call centres, as a cheap, preliminary screening method that speeds up the vetting process. Using the telephone allows you to be sure candidates can communicate effectively, which can not be ascertained from an application form.

Telephone interviewing also helps remove bias based on candidates' appearances and helps widen the range of applicants, includ-ing older people, the disabled, and ethnic minorities. It is important to make sure there is no discrimination on the basis of accent. Telephone interviewers should also be trained at eliciting necessary information without taking over the conversation.

When arranging job interviews, make sure:

You give as much information to the candidate about the job

The interview is conducted or supervised by trained individuals

The interview is structured to follow a set of questions, which have been previously agreed and which mirror the person specification or job profile

You allow the candidate to ask questions.

Employment Practices DP Code Part 1 benchmark

Ensure that the personal data that is recorded and retained following interview can be justified as relevant to and necess-ary for the recruitment process itself or for defending the process against challenge.

Reference checking

Reference checking is one of the most widely practiced recruitment methods, used by 73 per cent of employers, according to a 2002 CIPD survey.³

It is important:

not to place too much importance on the referee's word as opposed to details provided by the candidate

to get at least two references on work performance to check for consistency

to always give the candidate the chance to discuss any conflicting information (as recommended by the DP code).

Timing of reference checks

The timing of reference checks depends on how much importance is attached to the information. Carrying out checks early allows references to play a larger role in the recruitment decision and for discussion of inconsistencies. Leaving reference checking until a late stage means you are less likely to lose good candidates because of delays in getting hold of references and reduces the risk of damage to candidates' careers with existing employers.

Public sector employers tend to obtain references much earlier in the selection process than those in the private sector, according to an IRS survey.⁴

What sort of information to expect from following up references

The CIPD recommends that only factual or verifiable data be relied on in reference checking.

When following up references, information typically sought includes the following:

Absence record

Opinion of candidate's performance, including time keeping

Opinion of candidate's suitability for vacancy. The CIPD does not recommend references should collect subjective information on an applicant's suitability

Work history

Punctuality

Disciplinary record

Responsibilities of current job

Motivation and commitment

Gaps found in CV/application form

Current salary

Reason for leaving.

Some employers also seek information on qualifications, criminal convictions and credit-worthiness, but the above are the most commonly sought.

Whether to give employees access to references

See Section 6.

Choosing referees

References are usually sought from existing and former employers. Who to approach - HR or line management - will depend on what the job is and what skills it requires.

Make sure referees are able to offer recent and first-hand knowledge of the applicant if they are being asked about performance, as opposed to merely checking facts. Ask nominated referees to suggest other possible referees but clear this with the applicant.

Table 2: Taking up references
When employers take up references	% of firms
Before holding interviews, public sector	19.2
Before holding interviews, private sector	less than 4
After making a job offer	70.3
Public sector employers waiting this late	30.8
Public sector employers obtaining references after final interview but before the selection decision	50

Source: IRS survey of 113 employers in 2002 (References: the check´s in the post)

Are references effective?

Some employers, such as BT in its graduate recruitment programme, believe asking applicants to provide names of personal referees is valueless as references will always be complimentary.

References supplied are more likely to be lenient than not and offer a lot of scope for biased responses. To improve reliability:

Compare similar jobs in terms of content

Base questions on job analysis

Solicit facts rather than opinions and evaluations

Ask for specific examples

Define personality traits if they are to be measured

Contact the referee to probe further.

Giving a structure to the reference checking process

Giving a structure to the reference checking process makes it easier to obtain relevant and comprehensive replies from referees. It helps the scoring and interpreting of data and comparison of candidates.

Typical structures involve questionnaires sent to referees and structured interview schedules for verbal references.

Verbal interviews - face-to-face or over the telephone - are preferred by some employers because they believe they allow referees to be more honest and allow more opportunity to dig around. Face-to-face tend to be reserved for key senior posts.

Many employers prefer written interviews, believing they foster greater objectivity, with more time built in to check facts. They allow referees more time to reflect on the wording of their answers and what information to give, which may or may not be an advantage.

What happens if the reference is unsatisfactory?

A job offer is a legally binding contract. Unless the candidate has lied, job offers cannot usually be withdrawn because information revealed in a reference has changed the employer's mind about the appointment. Withdrawing the job offer could leave the employer open to claims for breach of contract because of earnings lost during the applicable notice period.

To avoid this, offer employment on a conditional basis, with the clause 'subject to satisfactory references'.

References have had a direct impact on some recruitment decisions in six out of 10 respondents to an IRS survey.⁴ References led to the rejection of at least three candidates in a quarter of cases, with one in 10 organisations rejecting five or more people, according to the survey. Employers with sensitive posts, such as those involving work with children and vulnerable adults, are more likely to reject larger numbers of applicants - 23.5 per cent rejected at least five people in the previous year because of the nature of their references, compared to only 1.7 per cent of employers without such posts.

Drawing up a reference-checking policy

Step 1	Decide whether to apply checking across the board or to specific jobs or candidates
Step 2	Decide what can or cannot be included in references supplied by others and how to prevent the expression of opinions and other non-factual information
Step 3	Decide when to follow up references
Step 4	Devise which structure you prefer - written or face-to-face
Step 5	Draw up a list of questions
Step 6	Choose referees.

The Employment Practices DP Code again draws attention to the issues of keeping the applicant informed, seeking consent and giving the applicant a chance to explain discrepancies.

Benchmarks on verification

Explain to applicants as early as is reasonably practicable in the recruitment process the nature of the verification process and the methods used to carry it out

If it is necessary to secure the release of documents or information from a third party, obtain consent from the applicant

Give the applicant an opportunity to make representations should any of the checks produce discrepancies.

The role of HR and line managers in recruitment

Responsibility for recruitment and selection has been increasingly devolved from the HR function with more and more line managers making recruitment decisions, sometimes as equal partners. But in a large number of organisations, HR still retains a policing role ensuring good practice and adherence to equal opportunities policies.

Line managers take the lead role in recruitment in 37 per cent of the organisations polled, with HR assuming overall responsibility in 35 per cent of cases, according to an IRS study.⁵

HR professionals increasingly act as specialists providing consultancy to line managers. HR practitioners see their responsibilities shifting away from implementing recruitment policies and practices to supporting and providing advice to line managers, according to a CIPD survey.⁶ But offering support to line managers takes half as much time again than any other single activity, according to the survey

Almost a third of organisations have started to offer candidates extra ways of applying for jobs, such as via e-mail, and 39 per cent of organisations have devolved recruitment for this to line managers, according to a separate CIPD survey.⁷

Yet another CIPD survey found that electronic HR was used for recruitment and selection by 55 per cent of respondents.⁸

Training line managers

The issue of training line managers has become much higher on the HR agenda. Three-quarters of nearly 700 senior HR professionals surveyed by Personnel Today in 2003 said they were concerned about line managers' overall capabilities.⁹ Poor line management contributes to recruitment and retention problems, according to the survey. More than 80 per cent of respondents said they planned to invest in developing their line managers over the following year.

With legislation being tightened up in a range of areas governing screening employees and with recruitment increasingly in the hands of line managers, it is even more important than before that they are adequately trained.

Line managers, and any other staff involved in recruitment, need to be encouraged to understand the wisdom of employing a diverse workforce, as well as keeping an eye out for unsuitable applicants.

In terms of employing those with criminal records, line managers should be trained to understand the following:

Risk assessment

Identifying safeguards

Making objective decisions

Handling confidential information

Legislation including the Rehabilitation of Offenders Act and 'spent' convictions

The three different types of disclosures

Avoiding discrimination.  

Use of automated systems for screening

The same principles apply to automated screening systems as to any other systems in that employers need to make sure they comply with the DP Act's requirements on handling and storing personal data.

You must not:

Store any sensitive data on an individual (such as criminal or alleged criminal activities) without their express consent - unless legally bound or to protect the employee's vital interests.

You need to seek an applicant's consent and make sure checking is proportionate to the role.

Employers exchanging data outside of the UK also need to be mindful of the European Commission's Directive on Data Protection. This directive prohibits the transfer of personal data to non-European Union nationals who do not satisfy the European 'adequacy'standard for privacy protection.

Because of the different approaches to privacy in the UK and the US, the US Department of Commerce and the European Commission developed a 'safe harbor' framework. US companies who certify they are 'safe harbor' compliant offer adequate privacy protection as defined by the directive. So if the screening process involves transfer-ring data between countries, you must make sure you are complying with this directive.

Further guidance

Safe harbor: The US Department of Commerce (www.export.gov/safeharbor)

Headhunters and recruitment and temporary agencies

Apart from offering stopgap solutions to cover for absence or temporary staffing needs, the use of temporary staff offers the employer the chance to check out a person's performance with a view to offering them a permanent job.

Ninety per cent of employers offer at least some of their permanent vacancies to temps supplied by an agency, according to IRS research.¹⁰

Traditionally, agencies have tried to make this harder for employers to do - four out of five agencies imposed fees for this practice, according to IRS survey, the Go-betweens. But the new Conduct on Employment Agencies and Employment Business Regulations, coming into force this month, will make this easier, imposing limits on such fees.

The regulations that come into force this month will also:

require employers to notify temps of any vacancies arising among the permanent workforce

tighten up requirements on agencies in screening and selecting temps and potential recruits.

Agency requirements under new regulations

Under the new regulations, apart from limiting temporary to permanent fees, all agencies are required to improve their selection and screening of temps and potential recruits. It is possible that agencies' additional costs incurred in improving pre-employment checks will be passed on to the employer.

Agencies must:

carry out their own investigations of candidates

take all reasonable steps to pass on this information

make all 'reasonable and practicable' enquiries to make sure employing the person would not be detrimental to the employer's or individual's interests

pass on any information they later obtain showing that the person might after all be unsuitable, for up to three months after.

For sensitive posts, agencies must also:

obtain copies of any qualifications and two references, and pass copies on to the employer before supplying an individual to the employer

take 'all other reasonably practicable steps to confirm that the jobseeker is not unsuitable for the position concerned' for work with under-18s and vulnerable adults.

Choosing agencies

Employers rely on previous experience in choosing an agency. Four in 10 take account of costs, with few concerned about equal opportunities polices or quality kite marks, according to the IRS survey.

Half of employers take account of an agency's specialist expertise in their own industry, the local labour market, the occupations they are interested in, or a combination of these.

How employers choose an agency, according to IRS survey :

Proven effectiveness/personal experience: 91 per cent

Reputation - 50 per cent

Specialist expertise - 50 per cent

Lowest cost - 41 per cent

Personal recommendation - 24 per cent

Commitment to equal opportunities - 22 per cent

Using temporary agencies and recruitment consultancies

Recruitment consultancies and employment agencies do not tend to specialise in supplying temps or permanent employees. Only one-third make this specialisation, according to the DTI. Of these, 23 per cent concentrate on permanent recruitment and 14 per cent on temps. Instead, agencies tend to specialise in a particular geographical area, industry or occupation.

Employers use agencies more heavily for temporary workers than for permanent recruits, according to an IRS survey .¹⁰ Employers tend to use agencies to supply temporary workers for certain types of jobs, particularly clerical, secretarial, nursing, care and computing staff. But they use agencies for different types of jobs when recruiting for permanent vacancies.

There are differences in usage between the private and public sector. Ninety seven per cent of public sector employers surveyed by IRS used agencies for clerical and secretarial posts, compared to 85 per cent of private sector firms. Only 12 per cent of public sector organisations fill their permanent positions for clerical and secretarial staff through agencies, compared to 65 per cent of the private sector. This is likely to be down to the public sector's emphasis on public, open recruitment.

Difficulties in using agencies

More than half (57 per cent) of employers surveyed by IRS with experience of using agencies have encountered difficulties in the following areas:

Customer focus: agencies giving insufficient attention to customer by failing to ensure continuity of account handler, and not giving time and attention to understanding the employer's requirements; being unreceptive to feedback on performance; giving more priority to sales targets than customer needs

Candidate suitability: sending temps or potential recruits who do not meet the specification; insufficient candidates; substituting quantity for quality in terms of potential recruits sent for interview

Understanding: failing to understand the employer's requirements; failing to impart these details and background information on the employer to jobseekers

Timeliness: delays in supplying staff; not meeting agreed deadlines; not being flexible and responsive where urgent staffing needs arise

Costs: inaccurate billing; overcharging; disputes over temp-to-perm fees

Poaching: recruiting the client employer's own staff as agency temps or on behalf of other employers.

The regulations aim to ensure that employers, as well as the workers, will be clear as to the basis of their use of an employment business or agency. You need to make sure the following details are agreed and spelled out in a single document supplied before any services are provided:

Firm's status - showing whether acting as employment business or agency

Process to be followed if any of the workers proves unsatisfactory to the employer

Fee involved - how it will be calculated, and the terms relating to refunds or rebates.

Getting the best out of the agency relationship

The Recruitment Employment Confederation, which has some 6,000 members and represents some 50 per cent of agencies, advises employers to:

ask the supplier to spend adequate time with you to find out about your organisation and the type of skills you require

build a close relationship with the chosen supplier, giving them access to key people in your organisation

give regular feedback to the supplier

encourage the supplier to anticipate demand through understanding your business schedule, current projects and expected orders to help them source staff

agree standards, such as the attitude you expect from temps.

Headhunters

The headhunting industry took a battering in the recent economic downturn, with many search and selection firms diversifying into areas such as management development. But they are still a popular method of recruiting permanent, senior level employees and interim managers.

Interim management is a growth area, with organisations increasingly handing over responsibility to interims for strategic areas such as mentoring or acquisition management. And organisations frequently turn to external providers to help them find these interim managers. Four out of 10 captains of industry would use a specialist firm to source an interim executive, according to research.¹¹

The Association of Executive Search Consultants - which has members worldwide - has a clients' bill of rights that gives good indicators as to what to expect from any recruitment firm. According to the bill, you should expect the following from your headhunting firm:

An accurate and candid assessment of capabilities of candidate to perform job

To be told who will conduct the search

A high-level consultative relationship

Information to be held in strictest confidentiality

Demonstration of clear understanding of position, company and objectives or search

Regular, detailed progress reports of search

Qualified candidates who fit the position and culture of your organisation.

Any conflicts of interest should be revealed. Regular information should be fed back, on areas such as availability of candidates, comparative assessment of candidates, remuneration levels and general market research into how the organisation is perceived in the market, what the competitors are doing and what kind of recruitment strategies are currently working.

When narrowing down candidates, the consultant should be able to discuss level of experience, significant achievements and their relevance to the position; educational background; intellectual, interpersonal and motivation competencies; personal strengths and weaknesses in respect to the position; perceived cultural fit, and remuneration.

Table 3: Use of agencies in recruitment
Role	% of employers
	Temps	Permanent
Managers	31%	65%
Professionals (eg engineers, doctors, dentists, vets, teachers, IT professionals, lawyers)	57%	66%
Associate professional and technical roles (eg technicians, IT service delivery, nurses)	51%	53%
Personal and protective services (eg support staff in caring roles)	20%	6%
Sales	20%	27%
Clerical and secretarial	89%	46%
Craft and skilled jobs in manufacturing	28%	16%
Operatives and assembly workers	34%	12%

Source: IRS study on employment agencies, 2002

The AESC advises employers to:

provide a full and accurate description of your organisation, business needs and culture, the position to be filled and your criteria for the ideal candidate

demand a report detailing the consultant's understanding of desired level and type of experience required in the candidate, along with educational background and technical skills needed to successfully perform the position, as well as the responsibilities of the position and any interpersonal skills needed

give consultant access to all those involved in the selection process

demand status reports on which companies have been targeted, what market research has been carried out, what obstacles to attracting candidates have been identified and which candidates are currently being developed.

Evaluating agency performance

Establish at the outset how you will be assessing the agency's performance and inform the agency

Any formal performance monitoring will benefit from benchmarking data against which to compare the agency

Decide whether or not equal opportunities monitoring is to be used, and, if it is, decide the extent to which the agency will be involved in monitoring.

References

¹Setting the tone: job descriptions and person specifications, study of 250 employers, IRS, 2003

²Recruitment and Retention Survey, CIPD, 2001

³Recruitment and Retention Survey, CIPD, 2002

⁴References: the check's in the post, IRS survey of 113 employers, 2002

⁵Recruitment and selection tools, IRS study, 2001

⁶Where we are, where we're heading, CIPD survey, 2003

⁷Recruitment and Retention Survey, CIPD, 2003

⁸People and Technology, CIPD, 2003.

⁹UK line managers - are they good enough?, Personnel Today survey of 700 HR professionals, 2003

¹⁰The go-betweens, IRS study, 2002

¹¹Survey of 200 chairmen, chief executive officers and managing directors in the FTSE top 500 companies, MORI, 2002

One stop guide on employee screening: other sections Section one: The importance of screening candidates Section two: Policy and process Section three: Methods of employee screening Section four: Recruitment and selection Section five: Case studies Section six: The law Section seven: Resources Section eight: Jargon buster Section nine: Model documents (this section contains a job description for a senior manager, application forms for manual posts and non-manual posts, a reference request form and reference clause in an offer letter, all of which can be found in the recruitment section of XpertHR's policies and documents service) Section ten: Checklists