Finance_Graduates_Selection

Finance Limited: Graduate Placement Programme (GPP) Selection Process A Competency Profile describes the competencies required to perform effectively in a particular role. These competencies can be used to select new staff, develop staff and evaluate the performance of staff in this role. Behavioural Indicators are, according to McKay, “behaviours that would be observed when someone demonstrates competence”; and a Competency is “a set of behaviours, which demonstrates that a person has the abilities, knowledge, skills and personal attributes to do the job competently”. The Competency Profile of the position of a Junior Financial Analyst is displayed below. Number | Competency | Behavioural Indicators | 1 | Teamwork | Collaborates with others to cooperatively achieve objectives | 2 | Client Service | Ability and motivation to analyse, understand and resolve client issues | 3 | Best Practice | Displays knowledge of best practice in various finance environments | 4 | Presentation | Ability to make a well researched and influential presentation | The above competencies are included in the profile because they are the most important skills, knowledge and abilities necessary for the successful candidates to perform the job of Junior Financial Analyst efficiently and effectively. The specific aspects of the job description that require the relevant competency are provided in the schedule below. Number | Justification | 1 | Organisation core competence. Work closely with other professionals and managers | 2 | Promptly resolve client issues. Become familiar with clients business processes and environments | 3 | Advise on best practices in various finance and technological environments | 4 | Formal presentations to clients | Traditionally Finance Limited has used only unstructured interviews as the selection method for the GPP. While no selection method is perfect, there is a need to ensure selection methods are as valid and reliable as possible given the cost and legal implications of selection decisions. According to Beardwell as referred to in People Management, Chapter 4, the unstructured interview has one of the lowest predicative validity scores of all established selection methods i.e. it is one of the least effective methods of predicting effective job performance. While unstructured interviews are relatively inexpensive, not time consuming, and do not require any special training of interviewers; given the above implications of poor selection processes it is recommended that Finance Limited management strengthen the reliability and validity of their interviewing by implementing a structured interview approach. In comparison to unstructured interviews which received a predictive validity score of 0.31, Beardwell scores structured interviews twice as effective on 0.62. Structured interviews are also only slightly more expensive and time consuming than unstructured interviews. Structured interviews will still allow Finance Limited to give candidates the interviews they expect, and can still support the “two-way” nature of selection and enable the company to provide the candidate with necessary information and commence the “formation of the “psychological contract”. In order to further improve the GPP selection process it is recommended that Finance Limited implement an assessment centre. According to People Management, assessment centers incorporate multiple selection techniques, including interviews, group methods and work simulation; and are used to assess “in depth, a group of broadly similar applicants” – as is the case for the GPP. Assessment centers use a set of competencies required for the position. Preferably each competency should be assessed by more than one task. It is recommended that the assessment centre incorporate the following different selection methods: i. A group exercise to assess the teamwork and client service competencies. This would be a group selection method and would demonstrate the candidates’ ability to get on with and influence others, and specifically the required abilities to work closely with other professionals and mangers and to promptly resolve client issues and become familiar with clients’ business process and environments. This activity will involve role plays and all the candidates as a group organising themselves to solve client problems; ii. A structured interview to assess the teamwork, best practice and client service competencies. The advantages of structured interviews has been explained in Question 1 (b) above; and iii. A work simulation to assess the presentation and best practice competencies. The individual presentations will provide evidence of each candidate’s ability to make formal presentations to clients, and advise on best practice in various finance and technological environments. In order to effectively operate the assessment center sufficient trained assessors who understand the position and competencies and assessment plan need to be made available. The assessment procedure is conducted as a whole rather than as separate activities. Candidates must be well briefed before the procedure starts. While an assessment centre is an administrative burden, costly and time consuming for both the company and the candidates, it improves the effectiveness of the selection process. Beardwell scores assessment centers predictive validity the highest of all selection methods at 0.68. In addition it is perceived by candidates to be fair and comprehensive. Reference List: McKay, R. Competency Modelling - A Common Language For Aligning HR Processes [Online] Available: http://ezinearticles.com/'Competency-Modelling---A-Common-Language-For-Aligning-HR-Processes&id=751531 CIPD. June 2010. Competency and competency frameworks. [Online] Available: http://www.cipd.co.uk/subjects/perfmangmt/competnces/comptfrmwk.htm CIPD Annual Survey Report 2007, Learning and Development. [Online] Available: http://www.cipd.co.uk/NR/rdonlyres/EB18FA28-BD40-4D47-81B9-660034D280C1/0/learndevsr.pdf