ABSTRACT

This chapter focuses on an empirical model for testing the hypotheses generated by the theoretical framework concerning the determinants of a firm's recruitment and selection strategies. It presents the results of the estimated models. A firm's choice of recruitment and selection strategy depends on specific firm characteristics, its industry, and the labor markets from which it hires. The chapter examines six specific hiring strategies: the formal planning of recruitment and selection, the formal evaluation of the firm's recruitment and selection policies, the number of recruiting sources regularly used, the number of candidates to interview per hire, the number of selection tests to be used for screening candidates, and the firm's preference for informal versus formal recruiting sources. In particular, firms in finance, insurance and real estate, agriculture, mining and construction, and the transportation industries are all significantly less likely than manufacturing firms to formally evaluate their staffing policies.