Ithaca, NY � November
2002 � Which is a better choice � the external job candidate who scored
exceptionally high on an interview or the internal candidate who has an
above-average, but not exceptional, past-performance record?
While it may be tempting
to hire the freshest face with the glowing interview, the best choice,
time and again, is the above-average employee in the organization who has
consistently been rated well in the past, according to a new study by a
Cornell University researcher and his colleagues. The researchers provide
estimates of the strength of the relationship between past and future performance
that supervisors can use in the hiring process.
�Past-performance appraisals
are by far much more valid in predicting future job performance. Thus,
as in most cases where there is reliable, valid information about an above-average
internal candidate, that candidate should be selected over top external
candidates who might have had a stellar interview,� says Michael Sturman,
an associate professor of organizational management, communications and
law in Cornell's School of
Hotel Administration. Past-performance records, he says, are much better
predictors of future performance than other recommended, but less valid,
selection tools, such as structured interviews, cognitive-activity tests
and job simulations. This is especially true, Sturman notes, for professional
positions such as managers and supervisors, but it also holds true for
jobs such as sales positions, bank tellers and production workers.
Sturman's report, �How
to Compare Apples to Oranges: Balancing Internal Candidates' Job-Performance
Data with External Candidates' Selection-Test Results,� co-authored with
Robin A. Cheramie and Luke H. Cashen, doctoral candidates at the E.J. Ourso
College of Business Administration at Louisiana State University, was published
by the Center for Hospitality Research at Cornell's Hotel School in September.
The full report is available free at www.hotelschool.cornell.edu/chr/research.
The report also was published in the August 2002 issue of the Cornell Hotel
and Restaurant Administration Quarterly.
Even though an employee's
job performance may vary over time as the worker acquires experience, gains
or loses motivation and has different opportunities to succeed or fail,
employers can expect an employee who has done well in the past to deliver
a solid, positive performance record for years to come, the researchers
found.
Sturman and his colleagues
analyzed 20 human-resources studies on individual performance over three
or more time periods published in a range of scholarly journals on management,
marketing and psychology. Together the studies' findings comprised hundreds
of observations about on-the-job behavior in a wide range of positions.
The researchers then calculated the correlation between past appraisals
and current performance in several different job types, including both
professional and hourly positions in a range of fields, such as academia,
sales, banking, insurance, manufacturing and finance. The range of jobs
included both those that are evaluated objectively and those that are evaluated
subjectively.
The �Apples and Oranges�
report offers mathematical approaches employers can use to calculate the
weight that should be accorded a particular type or age of appraisal. For
example, Sturman and his colleagues found that the older the appraisal
of an employee, the less it should be weighted, but on average, the validity
of past employee data, even relatively old data, tends to be much more
accurate than selection tests or interviews.
�Hiring decisions should
be made based on whatever tool provides the most accurate prediction of
future performance,� advises Sturman. �To do that, the information should
be weighted by its validity.�
The researchers also caution
employers to use statistical or other hard evidence rather than emotions
or �gut feelings� when making hiring decisions. For both internal and external
candidates, hiring data should be collected in a consistent and even-handed
fashion, says Sturman.
The Cornell Hotel and
Restaurant Administration Quarterly, of which Sturman serves as an editor,
is considered the premier journal of applied research serving the hospitality
industry and is published under the aegis of Cornell's Center for Hospitality
Research. The center conducts and sponsors research studies aimed at improving
the hospitality industry's fundamental operating knowledge.
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