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Advice‐seeking and advice‐utilization for hiring decisions: An investigation of a partially outsourced recruitment process for rank‐and‐file managers

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  • Oliver Fabel
  • Christian Hopp
  • Alexander Speil

Abstract

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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  • Oliver Fabel & Christian Hopp & Alexander Speil, 2020. "Advice‐seeking and advice‐utilization for hiring decisions: An investigation of a partially outsourced recruitment process for rank‐and‐file managers," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(5), pages 784-799, July.
    • Handle: RePEc:wly:mgtdec:v:41:y:2020:i:5:p:784-799
    DOI: 10.1002/mde.3138
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    1. Fabel, Oliver & Mináriková, Dana & Hopp, Christian, 2022. "Differences and similarities in executive hiring decisions of family and non-family firms," Journal of Family Business Strategy, Elsevier, vol. 13(2).

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