Advice‐seeking and advice‐utilization for hiring decisions: An investigation of a partially outsourced recruitment process for rank‐and‐file managers
Oliver Fabel (),
Christian Hopp and
Managerial and Decision Economics, 2020, vol. 41, issue 5, 784-799
We study a large‐scale, partially outsourced recruitment process. A specialized consultancy assesses applicants' soft‐skills on behalf of a client firm, who retains agency over the hiring decision. We conceptualize this collaboration as an advice‐seeking, advice‐utilization process and analyze the effectiveness of hiring recommendations provided in influencing the client's hiring decisions. Two external HR specialists not only differ in their soft skill ratings, but also differ in their aggregation of these ratings into their hiring recommendations. The consultants' recommendations are particularly helpful in separating very suitable from clearly unsuitable candidates but are less effective in the mid‐tier of the skill distribution.
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Persistent link: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:41:y:2020:i:5:p:784-799
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