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ERC Hiring & Selection Practices Survey March 2011 Conducted by ERC 6700 Beta Drive, Suite 300, Mayfield Village, OH 44143 440/684-9700 | 440/684-9760 (fax) | www.ercnet.org ERC Hiring & Selection Practices Survey About ERC
ERC is Northeast Ohio's largest organization dedicated to HR and workplace programs, practices, training and consulting. ERC membership provides employers access to an incredible amount of information, expertise, and cost savings that supports the attraction, retention, and development of great employees. We also host the nationally recognized NorthCoast 99 program and sponsor the ERC Health insurance program. For more information about ERC, please visit www.ercnet.org. ERC Hiring & Selection Practices Survey Introduction & Methodology

This report summarizes the results of ERC’s survey of organizations in Northeast Ohio, conducted in February of 2011, on practices related to hiring and selection. The survey reports trends in: • Reference, background, and credit checks • Sign-on and employee referral bonuses • Introductory All ERC members were invited to participate in the survey in early February via email invitation and other promotions, and participated in the survey throughout the month. The survey officially closed on February 25, 2011. In order to provide the most reliable and accurate information, data was cleaned and duplicate records were removed. Any outliers or invalid data were also eliminated, yielding a final data set of 117 participating organizations, only from Northeast Ohio. Qualitative data was coded where applicable or analyzed according to commonality or major themes, and all quantitative data was analyzed using statistical software to ensure data validity and reliability. This report shows several frequencies and response distributions. Breakouts of data are provided for industry and number of employees. Codes for industry data are as follows: M = Manufacturing, NM = Non-Manufacturing, and NP = Non-Profit. Frequencies of data responses may not total 100% exactly in some cases due to rounding of decimals or the ability for participating organizations to select multiple response options. ERC Hiring & Selection Practices Survey General Selection Methods

Percent of employers using the following selection methods to hire the majority of candidates
Industry
Number of Employees
All Respondents
Employment tests (ability, aptitude, or job knowledge) ERC Hiring & Selection Practices Survey Vendors used and recommended by respondents

Type of selection method
Recommended Vendors
Acxiom*, ADP, Allied Data, American Background Alliance, Asurint, Back Track*, Background Research Group, Castlebranch, CBC Innovis, Chase Protective Corporation, Choicepoint, Cogent Systems Inc, Cole Group Corporate Screening Services*, CrimCheck, Employee Screen IQ, E-Verify, GIS - General Information Services, Informus, Intellicorp*, Intelligius, Kroll, MedGroup, Openonline, Pinkerton, Pre Check*, Professional PIs Inc., Safe Guard, Screenpointe, Search First, Security Essentials, Staffing Solutions Enterprises, Superior Background Screening, Tenable, Tricor Employment Screening, TrueScreen, Webcheck 4.0 Acxiom*, ADP, BackTrack*, CBC Innovis, Choicepoint, Corporate Screening Services*, Kroll, Open on Line, Per Check, Security Essentials, Search First, The Pre-Check Company, Tricor Employment Screening ADP, Aultworks, Center for Corporate Health, Chase Protective Corporation, St. Vincent's Occupational Health Center*, Concentra Medical Center*, Corporate Screening Services, Inc., East Side Occupational Med Center, Employee Screen IQ, Euclid Hospital, LabCorp, Lake Health, Local Hospital / Medical Center, Lutheran Urgent Care, MedExam, MedGroup, MedSource, MedTox, Medworks, Occu-Center*, Omega Labs, Parma Hospital: Employers Health Source, Per Check, Quest Diagnostics, Safety Controls Technology, Solon Occupational Medical Center, Southwest Urgicare, Staffing Solutions Enterprises, Summa Center for Corporate Health*, Work Health Employment tests (ability, aptitude, or job knowledge) In-house test developed by vendor*, Bennett Mechanical Comprehension Test, HBMA, Human Capital Assessments, Industrial Edge, Kenexa Prove-It, Kurlan sales assessment, LCCC, London House, Nesco Temporary Agency, NOCTI, Pradco, Profiles International*, Proveit, SHL Solutions, Tooling University, Wonderlic*, Work Keys Caliper, Candidate Resources, Inc., CMA Consulting, ERC, Forte Institute, Human Capital Assessments, Omnia, Pradco, Predictive Index, Profiles International, PSI view point 6, PsyMax, Select Linx, Watterson and Associates Acxiom, BackTrack, Corporate Screening Services, Intellicorp, Pre Check, Security Essentials, Search First, TrueScreen * = indicates most commonly used and recommended vendors ERC Hiring & Selection Practices Survey Reference, Background, & Credit Checks
Percent of employers evaluating the following information in reference checks

Industry
Number of Employees
All Employers
Opinions about personality, fit, style, or motivation
Other information evaluated in reference checks


Percent of employers conducting reference checks in-house or with vendors

Industry
Number of Employees
All Employers
ERC Hiring & Selection Practices Survey Percent of employers that use background screenings to hire for all positions

Industry
Number of Employees
All Employers

If no, positions in which background screenings are used

• Money and inventory processing positions
Percent of employers that use credit checks to hire for all positions

Industry
Number of Employees
All Employers

If no, positions in which credit checks are used

ERC Hiring & Selection Practices Survey Drug Tests

Percent of employers that conduct drug testing for the following situations

Industry
Number of Employees
All Employers
Drug testing only if there is reasonable suspicion Follow-up actions or procedures taken when drug testing fails in any situations

(In order of most common; specific/full policies available upon request)

• Referral to Employee Assistance Program (EAP) • Termination • Mandatory substance abuse treatment or counseling • Second chance or last chance agreement • Suspension ERC Hiring & Selection Practices Survey Employment Tests
Percent of employers that use employment tests for the following positions

Industry
Number of Employees
All Employers

Other positions for which employment tests are used


Specific assessments used in the hiring process

• Machinist, welding, sewing, and electrical • Microsoft Office Tests (Word, Excel, etc.) • Specific assessments cited: Caliper profile, CRIW Achiever Assessment, Counterproductive Behavior Index Assessment, Wonderlic, Predictive Index, Watson Glazer, Gordon Personality Profile, Profile XT, Pradco Indices, The Achiever Personality Profile ERC Hiring & Selection Practices Survey Pre-Screening Interviews

Types and standard questions asked in pre-screening interviews

Type of question
Specific questions asked by respondents
Background, experience, and job responsibilities • Describe your work experience/education. • Describe current or past job duties. • What were your job responsibilities at current/previous positions? • What duties did you like most/least? • What are your current job responsibilities? • Walk me through your background. • Tell us about your background and experience related to the job. • Do your skills match our requirements? • How do your skills match our job description? • What are your current job responsibilities/typical day? • Tell me about your current position. • Share experience you've obtained in the specified field. • What previous positions have you held? Type of job, manager, and organization sought • What type of working environment are you looking for? • What type of position are you looking for? • What type of company do you want to work for? • What do you look for in an employer? What criteria do you have? • What kind of company are you looking to work for? • What are you looking for in your next role? • What are you looking for in a new employer? • What are they looking for in their next job? • What kind of position are you seeking? • What you looking for in a manager/leader? Schedule, location, shift, and start date • Are you looking for full-time or part-time? • Are you looking for full time? • Are there any times you are not available? • Are you a tobacco user? • If selected, how soon would you like to begin? • How soon are you looking to start? • What do you know about our company? • What do you know about our company and products? • How did you hear of our organization? ERC Hiring & Selection Practices Survey Type of question
Specific questions asked by respondents
• How can you contribute to the growth of our company? • What kind of company are they looking to work for? • Why have you left previous places of employment? • Why did you leave your previous employment, or why are you looking? • Why are you looking to leave your current position? • What was your reason for leaving your last two positions? • What was your reason for leaving previous jobs? • Why did your employment end? • What was your reason for leaving prior positions/current? • Are you currently working? If not, why did you leave your last job? • Why are you looking for a new position? • Why are you currently looking for a new job? • What is your reason for applying with our company? • Why do you want to work for us? • What is the reason for your job search? • Why you seeking a new employment opportunity? • What is your desired salary range? • What are your estimated salary goals? • What are your compensation requirements? • What is your compensation history? • What is your expected compensation? • What have you been paid in the past? • Are you willing to work for our pay rate? • Why are you interested in this particular opportunity? • What interested you about this position, why did you apply? • What interested you about the job? • Why does this position interest you? • Why are you interested in working at our organization? • What caught your interest in our position? • Why did you apply for this position? • Provide some specific examples of how your skills were applied to produce exceptional results. • What qualities do you possess that would make you a valuable employee? • What do you consider to be your best work quality? • How do you stay up on current trends in your field? Career goals, management, and motivation • What are your career goals for today and in 5 years? • What are your goals? • What type of manager do you work best with? • Tell me about the best relationship you've had with a manager; what are you looking for in your next manager? ERC Hiring & Selection Practices Survey Type of question
Specific questions asked by respondents
• Which job did you like the best and why that you have listed on your application? Effectiveness of employment advertising and marketing • What appealed to you about our ad? • How did you hear about our job opening? • What are you looking for in a new position and in the future? • What is your overall professional background and expertise? ERC Hiring & Selection Practices Survey Hiring Decisions
Percent of employers that communicate if testing or screening results adversely affected their decision to not select a
candidate for a position

Industry
Number of Employees
All Employers
Employment tests (ability, aptitude, or knowledge) Pre-employment testing (personality or style)
Percent of employers that indicate the following as reasons that they would not hire a candidate

Industry
Number of Employees
All Employers
Job candidate is a smoker; our organization has a no smoker hiring policy
Job candidate's current or previous salary (as reported on
application)
Job candidate's indication or request to not call a past or current
ERC Hiring & Selection Practices Survey Sign-On & Employee Referral Bonuses
Percent of employers who provide sign-on bonuses

Industry
Number of Employees
All Employers

Types of jobs for which sign-on bonuses are provided and the average amount of the bonus offered

• Commercial Sales Manager and QC Lab Manager (no average amount) • Decided upon on a case-by-case basis (job-specific; candidate specific) • Die Setter, Die Maker (Range: $250 - $1000 depending on skill level and shift desired) • Engineering • Engineering (Range: $2500-$10,000 with average around $3500) • Extra time-off if new employee will be having a vacation soon after hire • Hard-to-fill positions (Director role) • Management (Range: $1,000 to $5,000) • Middle and upper management jobs (Average: $10,000) • Professional ($2,000), Managerial ($2,500), Executive ($15,000) • Sparingly but for insurance coverage/COBRA if an issue. • Upper management. Extra vacation time and/or a monetary amount that varies. • Very limited on position difficult to fill and candidate may incur other expenses by accepting position. (relocation, loss bonus) • Would consider in rare situations for management positions (e.g., to 'buy someone out of' a bonus they would receive shortly if they remained with their current employer)
Percent of employers who provide employee referral bonuses

Industry
Number of Employees
All Employers
ERC Hiring & Selection Practices Survey Maximum amounts of employee referral bonuses offered
Maximum bonus amount awarded
Description of policy and amount of employee referral bonus
• $50 after 6 months of employment • $50 after 90 days in position • $50 at 90 days and a second $50 at 6 months • $25 upon hire and $75 after 90 days. We have a raffle for an iPod as well during our busy hiring season • $100 for referral who remain employed past probation period • $100 recruitment bonus to members of one of our unions if referred new hire works at least 90 calendar days. • $100; Application must have referring employee's name written on it. Applicant must earn direct hire and maintain employment for at least 90 days. • Employee who refers a candidate who we hire can earn bonus over the 1st yr of new hire's employment. Referring employee gets $25 after 90 days / another $50 after 6 months / and $75 if new hire stays 1 yr = total of $150 Bonus is paid thru payroll to referring employee. • $200 bonus if referred employee completes 90 days. Employee must be proactive in providing referral(provide HR info) prior to application, applicant must put employee's name on referred by section of application • $200 for referral when new hire reaches 90 days of employment. • $200 if the referred is here after 1 year employment. The payments are broken down: $25 after 90 days; $75 • $200 to employee after referral successfully employed for 3 months • $250 after 90 days • $250 after one year • $250 if employee hired stays with company 500 hours • $100-$250 after the hire celebrates their first anniversary with us • Applicant indicates employee’s name on Employment Application. Ask during the interview if anyone who is currently working at XXX referred them. If hired, employee receives $250 (taxable) after new hire completes their Introductory Employment Period (usually 90 days; longer if IEP is extended). • $300 paid after 90 days; $100 paid if new employee still employed after 1 year • $500 for clerical/administrative positions filled • $500 if employee stays working for us for 90 days • $250 net upon hire and $250 net after 6 months • $500 only for RPh • $500; $100 is paid on referrals hire date, then balance of $400 is paid when new employees completes 6 • Generally $500 for referred candidate hired paid after 90 days of continuous employment. • If a referred candidate is hired, $500 bonus is paid to referring employee once new hire completes 90 days of satisfactory employment and both parties are still employed in good standing at company. • A recruiting award of $500.00 will be paid to a current, regular full-time or part-time Company employee whose ERC Hiring & Selection Practices Survey Maximum bonus amount awarded
Description of policy and amount of employee referral bonus
recommendation of another person for employment leads to the hiring and continued employment of that person. Paid out in three installments. 100.00 immediately, $200 after 3 months, $200 after 6 months. • $250 when person is hired, $250 after 90 days and the final $250 after 6 months; total of $750 • $1000 for technical, management, sales positions filled. In all cases, employee must be employed for 90 days • Can range up to $1,000 - $5,000 for difficult to fill positions • $1,000 if employee stays for 3 months • $1,000 to the referring employee once the new employee has been on payroll for six months • For qualified candidates that reach the face to face portion, a $25 gift card, for placement and successful completion of 90 days of employment, $1000 paid to current employee • $1,500 if referral hired; $750 on hire; $750 after 90 days • $2,500 for a referral. Paid out after the candidate has been employed for 90 days. • Typically $2000 to the referring employee after the new hire is employed 90 days; but $5000 after 90 days and another $5000 after 12 months is the role is deemed 'critical' to fill Introductory Periods
Percent of employers that have a probationary or introductory period in place for new-hires

Industry
Number of Employees
All Employers

Percent of employers that have a probationary or introductory period of a certain number of days in place for new-hires

Industry
Number of Employees
All Employers
ERC Hiring & Selection Practices Survey Hiring Metrics
Average time to fill (average # of calendar days from the date a job requisition is approved to the date an offer is accepted by
a hire)

Industry
Number of Employees
All Employers
Professional (HR, Accounting, Marketing, etc.)
Average percent of offers extended to candidates that were accepted in 2010

Industry
Number of Employees
All Employers
Accepted offers extended to candidates that were accepted
Average time to start (# of days)

Industry
Number of Employees
All Employers
ERC Hiring & Selection Practices Survey Average vacancy rate (average # of vacant positions divided by total # of positions)

Industry
Number of Employees
All Employers
Average cost of hire

Industry
Number of Employees
All Employers
Average cost of hire (all costs involved with a new hire) Average cost of vacancy (costs of having work completed in
Hiring Projections
Percent of employers planning to hire in 2011

Industry
Number of Employees
All Employers
ERC Hiring & Selection Practices Survey Respondent Demographics
Below is a breakdown of the industries and sizes that respondents represent.
Industry
Organizational Size
ERC Hiring & Selection Practices Survey ERC Hiring & Selection Practices Survey Conducted by ERC 6700 Beta Drive, Suite 300, Mayfield Village, OH 44143 440/684-9700 | 440/684-9760 (fax) www.ercnet.org Be sure to follow us online for the latest survey information from ERC:

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