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Publications

Discretion in Hiring

By: Mitchell Hoffman, Lisa B. Kahn and Danielle Li
  • Format:Print
  • | Language:English
  • | Pages:58
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Abstract

Who should make hiring decisions? We propose an empirical test for assessing whether firms should rely on hard metrics such as job test scores or grant managers discretion in making hiring decisions. We implement our test in the context of the introduction of a valuable job test across 15 firms employing low-skill service sector workers. Our results suggest that firms can improve worker quality by limiting managerial discretion. This is because, when faced with similar applicant pools, managers who exercise more discretion (as measured by their likelihood of overruling job test recommendations) systematically end up with worse hires.

Keywords

Selection and Staffing; Management Practices and Processes

Citation

Hoffman, Mitchell, Lisa B. Kahn, and Danielle Li. "Discretion in Hiring." Harvard Business School Working Paper, No. 16-055, October 2015.

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