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UDC 338.2 DOI: http://dx.doi.org/10.20534/AJH-17-1.2-161-168
A.V. Kozlov 1 J. Kakela 1
1 Peter the Great St. Petersburg polytechnic university, St. Petersburg, Russia
INVESTIGATION OF RECRUITMENT AND SELECTION PHASE TESTING: CASE OF TECHNICAL UNIVERSITY GRADUATES
Abstract
Objectives: The goal of the paper is to investigate of methods used by Human Resource Management Departments of Russian companies at the phase of personnel recruitment, testing and selection.
Research methods: To have an overall picture how the graduates of universities find their jobs and how they are tested, a survey was developed and 82 representatives of the target group, graduates of the Peter the Great Saint-Petersburg Polytechnic University were interviewed. Respondents of the survey were also asked to evaluate the current state of Human Resource Management in Russia.
Research outcomes: The new information about Peter the Great Saint Petersburg Polytechnic University graduates in terms of in which field they are employed, how they found their current employer and how they were tested when they applied their current position.
Originality: The results obtained are absolutely original since all data was received in the course of interviewing based on original survey.
Practical relevance: Findings will provide useful information for the universities, graduates and recruiters. Keywords: Human Resource Management; recruitment; personnel testing; university graduates.
INTRODUCTION
It's been more than 25 years since the Soviet Union became Russian Federation, which is a relatively short time for any nation to make a complete reform of the economy. Since 1991, there has been a great development in business and trade. Today, the different regions of Russia: Saint Petersburg and Moscow and others including Far North are full of multinational and local firms, which have generated enormous amount welfare for the citizens by trading goods and employing a vast amount of people. The transform of the economy also required tremendous changes in the field of Human Resource Management (HRM); central planning did not simply fit modern business model, where flexibility is one of the key factors to staying competitive.
The most visible change is probably in the mentality of the people; changing the job is rather common in Russia, and it is seen as a normal event of life path. In the Soviet Union changing a job was rather unusual and people used to work in the same position for years. These changes have, in general, a positive influence on the economy, but there are some issues which these rapid changes have developed. Companies in Russia often re-
port, that it is rather demanding to find employees with long-term career orientation, which means that the constant flow of employees keeps Human Resources Management departments busy. In 90's, Russia had to make a complete shift also in HR policies. Especially foreign businesses had difficulties to find skilled personnel and management to their subsidiaries in Russia. Therefore, there was a great demand for consultation which focused on educating Russian personnel but also HRM departments in Russian companies. Contemporary HRM in Russia bases on the principles Western model of HRM, which was introduced by the foreign consultants but many experts say that it is still not fully applicable [1].
Recruitment and selection are both essential procedures in any HRM department but they focus on different aspects [2; 3]. Therefore, they are both explained in this work regarding how they differ from each other. Candidate testing is usually a part of selection process, which means that according to the aim of the research, the methodology of testing and test validation will be explained in this paper.
Recruitment and selection are among the key processes in any modern company where skills and com-
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petencies are highly valued [4; 5]. The question is, in which scale companies in Russia test the candidates before hiring them. It has been only 26 years since the economic reform. Therefore, the assumption is that candidate testing is used, but only occasionally. Candidate testing is very typical for Western model of HRM but some experts say that Western model of HRM is still not fully applicable in Russia [6].
Thus the goal of the investigation is identifying the ways the university graduates find their jobs and how they are tested, what the recruitment channels are, how candidates were tested, how much time testing took and what the number of supervisors testing involved was. The findings will help the university and the recruiters to develop their processes, but also students and graduates to find more efficient ways to find a job in Russia.
EXISTING LITEraTURE
Recruitment and selection are the key processes in any human resource department. They are without a doubt, one of the top challenges in every organisation [7]. Recruitment as phenomena focuses on attracting people, who could be suitable to fulfil a specific role or job in the organisation. Recruitment often initiates from the leave of the existing employee. Commonly happens, that organisation attempts to find a replica of the previous employee to solve the problem of knowledge and skills transfer [8]. The more systematic approach includes, first of all, reviewing the post and second, to reallocate some of the duties for existing staff if possible. Organisations are often hiring, even though the number of personnel has remained the same, especially when organisations are growing and more labour force is required to fulfil the needs of the organisation. For the organisation, a better solution is to act proactively in recruitment, than just to react to a single employee's departure. However, the recruitment decision should be made only after a deep overview of the situation and to be sure that there are no better alternatives (e. g. automation), meaning that the first phase of the recruitment process is to have a systematic overlook of the situation to determine the actual requirements of the organisation [9].
In the past, most of the people were hired simply to carry out manual labour, where little skill, experience and intelligence where needed to accomplish the task. Training was inexpensive and done in a very short period. Finding a new employee was relatively simple, and there were no barriers to fire a person in the case of underperforming in the assigned task or displeasing
the management in other ways. Such policies remain in some industries and some parts of the world, but in modern industrialised countries, it has become comparatively rare. Also, some form of specific skills is often required or at least attributes, which other candidates do not share to the same extent. In recent years, demand for higher skilled labour has been growing and the need for employees, who are capable of fulfilling professional and managerial positions, has increased notably in the last 20 years. According to the experts, still will be a trend of the future as well [10].
As mentioned earlier, recruitment as a process is one of the key functions of Human Resource Management. Recruitment means activity, where new candidates are attracted to fulfil a position in the organisation when labour is needed. Recruitment as a phenomenon has a long history, but HRM as a branch of study it is still relatively novel. Recruitment bases on a need of labour, defined by the organisation. In the modern world, recruitment takes place mostly in human resource departments, which monitor labour flow and seeks for new candidates if needed [11].
There are some theories, how recruitment should be, but factors such as what kind of applicant's organisation is seeking for depends on the needs of each organisation. First of all, a firm could reduce the friction in the jobseekers' application, which may lower the cost of recruitment, but also, a firm could attract same applicant pool with lower compensation expectations. Second, if an organisation is seeking for more knowledgeable, better-informed applicants, job advertisement should be more informative and more specific. Another option is to use recruitment channels, which associate with more knowledgeable job-seekers [7].
Another widely used technique is called the repertory grid which has many different versions. In the most common form of it, employees are asked to focus on five or six job incumbents, with who they have worked with an anonymous basis. In the following step, these five or six people are named by letters, for example, A to E. Respondents are asked to choose three from these letters and to describe how two are similar, and one is different from the third, in terms of how they work. For example A and B rather work during the lunch break to accomplish an important task; while C rather enjoys his lunch could be a typical answer. These answers are used to form a core construct. Later on, respondents evaluate the overall working effectiveness of the persons from A
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to E. In case that A and B are more effective performers than C, there is a need for some deductions, especially if other respondents provide similar answers. In this case, a key competence has been revealed by defining which distinguishes poor performers from good ones. The key competence in this example is clearly the work commitment. There are many other structured questionnaires which have been created to collect data about specific j obs, but in this work, we will not go deeper to that [12].
Talking about terminology, we have to state that different descriptions of recruitment are presented:
Yoder defines recruitment as a process to "discover the sources of manpower to meet the requirement of staffing schedule and to employee effective measures to attracting that manpower in adequate number to facilitate effective selection of an effective workforce" [13].
The following paragraph displays the basic setup of the process chain starting from attracting the prospering candidates and selecting the best ones from the pool of candidates [14].
When there is an existing pool of applicants, the process leads to the selection phase. In the selection process, human resource department should decide, which candidate they perceive the most suitable for the job. In this phase, the best candidates are usually well examined and recruiters should decide which of the candidate fulfils the best their requirements [12]. Results of the examination should be carefully checked to be sure that the gathered information is reliable and valid, because later on, this information will be used in the final decision making. Different researchers offer different nominations for reliability. Dessler describes reliability as "the consistency of scores obtained by the same person when retested with the identical or equivalent test" or either simply "reliability refers to the stability of the measure" [15]. Reliability can be measured for instance organising the test twice in with an individual responded, to see if there is a significant difference in results between different days. For organisations, it is relevant to distinguish, if candidates possess wanted competences. According to our personal experience, for instance, American Airlines run candidates throughout different phases of examination, including practical ones, before any decisions take place. Even though researchers have widely examined selecting techniques over the years, still many of the firms rely on basic, almost unquestioned principles of selecting the right people. Mostly they focus on finding a perfect match in candidate skills and the job require-
ments. For them, a perfect candidate matches the job requirements in all areas. The ideology behind is that only a perfect matching candidate guarantees the best employee performance. Therefore, the final selection decision must be based on a perfect match between 'whole person' and 'the whole job', which requires a complete examination of the person, but also the job and only then a smart decision can be made. According to several studies, most of the recruiters, base their decision-making on finding a best fitting employee [16].
Lying is not uncommon issue in the labour market. That's why applicant's background should be carefully checked before decision making, but for some reasons, still many of the companies do not check their applicants past carefully enough. Later on, leaving background check undone may cause major issues, in case that dishonest employee gets hired by accident. Background checks can include data gathering about applicant's past and present. If the applicant is a foreigner, legal matters such as legibility to work should be reviewed to avoid future concerns with migratory authorities. A credit check is recommendable if the job description includes money handling. Earlier employers can provide some useful information, but many of the managers do not see it very useful because former employees do not necessarily provide correct information about the employee. They can either protect the former employee's reputation, or they just give false information just to get rid of the employee, in case, that applicant is still working in his current job. There are also possible legal matters which may prevent current or former employee giving rightful information about the applicant. There are two main aims why background should be properly checked: To verify the applicant's personal information and to prevent harmful ones from entering to the organisation [9]. Hiring an unfitting person is also costly for the company. For example in U.S, hiring an unsuitable candidate can cost as much as approximately 1.5 times employee's annual salary including benefits [17].
Validity measures how well-collected data fits the actual target investigation or to the aim of the data gathering. What comes to validity, there are also differences in perception between different scholars about it. For example Robert Orton defines validity slightly differently: Validity refers to the confidence one has in the meaning attached to the score." Dessler offers two ways to validate tests: Criterion validity and content validity. Criterion validity bases on the assumption that those
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candidates, who perform well in the test, will show better performance also in their jobs and vice versa. By implementing content validity method, employer adds a sample from the actual task from the job to the test to ensure that there is a link between test results and actual job description [9].
METHODOLOGY There are two most commonly used research methods. Quantitative research is a method for testing objective theories by examining the relationship between variables. These variables can be measured on instruments so that analysis of these variables is possible to do by using statistical procedures. The final report should base on several parts including introduction, literature and theory, methods, results and final discussion [18]. Quantitative and qualitative research they both share the same basis. Both take into consideration reliability and study designs. Therefore, approaches are relatively similar. The reliability and validity base on the research question, whether or not the item or subject proposes the information wanted. Research methods are valid if they successfully propose true responses which are relevant to the desired information [19]. Among scholars, qualitative research is defined as a broad umbrella term that covers many techniques and philosophies. Because of that, it's rather challenging to find just one exact definition for it. Comprehend way to explain it, is that qualitative research is an approach that allows studying people's experiences in detail by implementing a specific set of research methods, such as focus groups, in-depth interviews, observation, visual methods, content analysis and life histories or biographies [20].
FINDING AND RESULTS The research results are based on the answers of 82 graduated individuals from Peter the Great St. Petersburg Polytechnic University. The most of the respondents were between 25-34years old by forming 46,3% of the responses. The second largest group of respondents were individuals between 21-24 years old by 34,1%. The most of the respondents by the gender were women by 65,9%. 34,1% of the sample were men, which may indicate that women are employed sooner than men in Russia after their graduation. According to Euromonitor, Russia has the highest share of female employees in Europe [21].
In the survey, industries were divided by the Standard Industrial Classification of Economic Activities (SIC). The largest sector, in which graduates of the re-
search were working, was the sector information and communication by 15,9%. Another 15,9% of the respondents worked in other service activities.
- The third largest group of respondents worked in the field of manufacturing with 13,4%.
- A fourth largest group of graduates with 12,2% was working in the construction sector.
- Education employed 8,5% of the respondents while the field of electricity, gas, steam and air conditioning supply employed 9,8% of the graduates.
- 6,1% of the respondents worked in the field of professional, scientific and technical activities.
- In finance and insurance activities worked 4,9% of the respondents Administrative and support service activities employed 2,4% of the graduates. In the field arts, entertainment and recreation worked 3,7% of the respondents. The same percentage was with the sector of wholesale and retail trade, repair or motorcycles and motor vehicles.
- In public administration and defense or compulsory social security worked only 1,2% of the respondent meaning only one person from all the respondents. As well, only one responded was working in accommodation and food services. Same was with transportation and storage.
The research revealed that the most of the respondents (17,1%) found their current jobs from the University events and lectures. This finding suggests that university has established tight connections with the companies from different areas of economic activities.
Research also shows other detail, which has a correlation with the hypothesis that relationships seem to have very important role in Russia: 15,9% of the respondents replied that they found their current position by having a lead from a family member. 13,4% had a lead or a reference from an existing company employee. Therefore, 29,8% of the respondents found their jobs by using their relations. Other significant sources of employment were online portals of commercial recruitment agencies by 13,4%. 12,1% of the graduates got hired after being directly in contact with the management.
According to Hofstede theory of cultures, Russia scores high 93 in power distance. This part of the theory deals with the fact that not all the individuals of the society are equal. This means that power holders, in this case, managers are far more distant from e. g. assembly
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line workers [22]. What is unclear, in which scale candidates were familiar with the management, this is also related to the earlier finding, which suggests that majority of the survey participants found their job based on the information provided by their family members and personal acquaintances.
As was expected, private recruitment agencies like Indeed, Superj ob and Head Hunter performed much better than the public recruitment services. 9,8% of the applicants were hired after visiting the office of a private recruitment agency and only 2,4% by visiting in a public recruitment agency. 3,7% found their current job from the web page of a public employment agency and 11,8% from the web page of a private recruitment firm. Therefore in total, 6,5% ofthe applicants were employed after using public recruitment services and 21% by using private employment services. Conferring to these findings, the question is if public employment services are really needed, as we see from the results that private recruitment firms tend to be much more efficient than the public ones.
3,9% of the respondents found their current job by discovering an open position at the company web page and other 3,9% from the newspaper advertisement. What comes to social media, only one person found a current job by using Linked In and three persons (3,9%) by using Vkontakte. None of the respondents found a job by utilising Facebook as a source of the lead. According to TNS Web-Index Russia, Vkontakte is the most popular social media in Russia with 55,7 million monthly users, which covers 52,7% of the whole population. Facebook has only 24,8 million monthly users in Russia, which means that only 23,5% of the whole population is using it monthly. According to these statistics, it is clear that Facebook has still a long way to go in Russia. Notable is that even though Facebook and Vkontakte are rather similar, Russians seem to use Vkontakte much more diversely, where Facebook seem to stand for keeping in touch with foreign friends. In addition, LinkedIn has only five million users in Russia, but in this research, at least one person was hired after contacting a recruiter in LinkedIn. Our own estimation is that LinkedIn has already a stable foundation among Russian graduates and managers but, it is still relatively unknown among blue collar workers, which usually present the majority of people in any nation named.
Intellectual skills were the most tested feature in the companies, where respondents were currently employed. As much as 69,5% of the respondents replied
that their intellectual skills were tested before they could start in their current job. The second most commonly used test was personality test, which was done for 54,9% of the respondents. A background check was done for 25,6% of the respondents. 18,3% replied that they were not tested at all. 12,3% announced that their physical capability was tested. Overall health test was done for 15,9% of the respondents. The motorial test was prepared for 6,1%. The drug test was also done for 6,1% of the respondents.
In most of the cases, testing took only 30 minutes according to 38, 2 percent of the respondents. 26% of the respondents reported, that testing took one hour. 25 percent replied that testing took 2-3 hours. In the case of two respondents counting 2,8 percent of the answers, testing took as much as 3-5 hours. 6 respondents were tested six hours or more forming 8,2% of the answers.
As research in this research, half of the respondents replied that in contemporary Russia, human resource management is more or less systematic. The reason for why respondents evaluated the situation as described may be the difference between what they have studied about human resource management in the university and what the reality is when they apply for jobs. There are many ways to improve HRM in Russian companies, but first of all, companies should change their approach from traditional job analysis to competency model, which focuses instead of past, to the future which will enhance the overall performance level. Another thing is that companies should do their best to maintain a good employer brand which will eventually reduce the cost of employing by attracting more talented and motivated candidates [5]. A High labour turnover may frustrate employers in Russia. Even though there a clear cons which are visible in a form of increased cost, there are also positive features which could benefit the company, in case they maintain good relations with departing employees. Many employers may not recognise that by being in good terms with former employees may later on bring them extra value, because some of the leaving workers may turn out to be their future clients. By being good and fair for the leaving employees is also important in terms of attracting new, potential candidates. By having a good relationship with the departing employees is definitely a part of employer brand and this is something that companies should understand. There are only few companies who have taken this policy as far as Ernst&Young. Even though they work in the field which is known of its high
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completion in terms of finding competitive consultants, they have announced that in any case, they keep up good relations with former employees no matter if they choose to work for a competitor after a while. Instead of ending relationship after the contract, they prefer to maintain a good relationship with these "Boomerang workers" [23].
Companies in Russia should:
- Focus on recruiting and selecting young, educated and motivated employees with sufficient language skills
- Collaborate actively with the universities.
- Encourage and motivate employees for long-term career planning.
- Reward and keep good relations with the current and former employees.
- Put more value on employee satisfaction.
- Offer career opportunities and better compensations for well performing workers.
Conclusions
Aim of this study was to find out some new information about Peter the Great Saint Petersburg Polytechnic University graduates in terms of in which field they are employed, how they found their current employer and how they were tested when they applied their current position. Nevertheless, there are some limitations in this study, which should be considered in the future research of the same field, but in general, this study succeeded to disclose some interesting details of the job applying experiences of Peter the Great Saint Petersburg Polytechnic University graduates. One ofthe limitations of the study is that in different fields, job applying process can differ a lot; therefore to have an overlook of the situation in a particular sector, there is a recall for more research. One interesting area of future research would be to define how often Russians are employed in the field of their major and how mobile Russian labour really is in terms of changing the location. As was the hypothesis, personal relations seem to have an important role in Russian society. Assumption was that many of the respondents had found their occupation by utilizing personal networks including family members during job seeking. In fact, quite many of the survey respondents eventually found their occupation by having some assistance from their acquaintances. Personal relations work as a trust factor, as we know the fact that opportunism was rather common in 90s during the economic reform. Even though research gives an indication that Russian human resource management is not as systematic as it could be, but there are also signs that
there is a rapid undergoing development in the area of HRM in Russia. We should also remember that 25 years is relatively short period for a complete economic transform and therefore more time is needed to bring into use all the reforms without forgetting the required adjustments for the local business environment and traditions. Earlier studies revealed that Russian labour has been very flexible since the nation adopted market based economy. There has not been any maj or strikes since 90s even though that the economic environment has faced several downs, for example the crisis in 1998 which influenced somehow the majority of the country's labour force in terms of reductions in compensation and redundancies. The flexibility of the labour allows companies to do the needed adjustments to survive during the economic downs. One of the challenges in Russia is that the labour force differs a lot in terms of skills and knowledge but also the mentality can vary a lot between the regions. Therefore just one model of HRM sounds rather impossible to implement nationwide due to considerable labour diversity. In Saint Petersburg and Moscow regions Western model of HRM seems to be rather well adapted according to the survey responses, which revealed that the maj ority ofthe respondents were actually tested somehow when they applied for their current position. This conclusion is supported by the fact that the candidate testing is very typical in Western model of human resource management. Other well known fact is that the majority of the multinationals are located in these two major cities. In most of the cases, multinationals have their own corporate culture and HRM practices, which are adapted by the local employees and maybe later on applied in their own businesses. As was described in theory section, in 90's Western consultation companies played a major role in educating local companies and employees for international business practices. Most of them were also located in Saint Petersburg and Moscow regions, which may be another reason why candidate testing seems to be rather common in companies, where the Peter the Great Saint Petersburg Polytechnic University graduates of the survey worked. The vast majority of the people who participated in this survey were working in the local companies, which means that candidate testing is used not only in foreign companies. Even though candidate testing seems to be well applied, there is still place for development in the field of HRM due to the novelty of modern business in Russia. The assumption is that development of HRM in Russia will accelerate rapidly in the next 5-10 years, when vast quantities of
Economics Austrian Journal of Humanities and Social Sciences 1-2 (2017)
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young, business educated Russians are start to take over current state of HRM in Russia after 26 years from the
managerial positions. economic transform.
Findings will help the university and the recruiters to Acknowledgements
develop their processes, but also students and graduates The paper is elaborated in framework of scientific proj-
to find more efficient ways to find a job in Russia. The ect№ 16-32-00040 supported by Russian Foundation for
research will also provide useful information about the Humanities.
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Information about the authors
Aleksandr V. Kozlov, Doctor of Economics, professor, Professor of the Institute of Industrial Management, Economics and Trade of Peter the Great Polytechnic University.
Address: 195251, Polytechnicheskaya, 29, 4th Building 4, room 317, St, Petersburg, Russian Federation
tel: 8(812) 775-05-30
E-mail: avk55-spb@yandex.ru
ORCID: http://orcid.org/0000-0001-9375-0262
Juuso Kakela, Master program student of the Institute of Industrial Management, Economics and Trade of Peter the Great Polytechnic University.
Address: 195251, Polytechnicheskaya, 29, 4th Building 4, room 317, St, Petersburg, Russian Federation
tel: 8(812) 775-05-30
E-mail: avk55.spb@gmail.com
ORCID: http://orcid.org/0000-0003-8148-0856
