Personnel Psychology · 1989 · 152 citations · 11 references
Applicant QualityInformal Recruiting SourcesHuman Resource ManagementPolicy AnalysisOrganizational BehaviorGender DisparitySource EffectivenessGender StudiesBiasApplicant PoolManagementInsurance RegulationsInsuranceGender DiscriminationJob AnalysisSelection BiasHealth PolicyAnd AgeCandidate SelectionAnd Hire PerformanceWorkforce DevelopmentSociologyBusinessGender DivideRecruitment
The study examined applicant pools and new hires to assess how recruiting source affects applicant quality and hire performance. The authors analyzed a pre‑established database of life‑insurance agent applicants and hires from a large insurer to examine recruiting activity. Informal recruiting sources produced higher‑quality applicants, higher selection ratios, and better new‑hire survival across all groups, while formal sources were more frequently used by females and blacks; however, no source differences were seen in new‑business commissions, and the authors warn that policy changes must be monitored for adverse effects on protected groups.
This study investigated both an applicant pool and its resulting class of new hires in an attempt to clarify a number of empirical questions concerning recruiting source effectiveness. A pre‐established database of applicants and hires for the job of life insurance agent in a large insurance company was analyzed for recruiting activity. Differences in applicant quality and new hire survival were found in favor of the informal recruiting sources. A second measure of hire success, new business commission credits, failed to show differences across recruiting sources. The informal recruiting sources yielded significantly higher selection ratios than did formal sources for all groups. Examination of recruiting source use showed significant group differences, with females and blacks using the formal recruiting sources more frequently than males, non‐minorities, and Hispanics. While the informal recruiting sources yielded higher quality applicants and more successful hires for all groups, this research cautions that the implementation of revised recruiting policies must be carefully monitored for adverse effects on protected groups.
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