Advancing selection in an SME: Is best practice methodology applicable?

Abstract

Effective selection tools are important for identifying high caliber employees in SMEs, yet few SMEs use tools created using ‘best practice’ methodology. Selection literature tends to focus on large organizations and is conceptual rather than empirical; which may make it difficult for SMEs to use a best practice approach. This article addresses this by providing an empirical account of the design and validation of two selection tools in a medium-sized recruitment consultancy using a best practice selection methodology. Two work sample tests were developed using critical incident technique interviews, and validated using a concurrent design with existing recruitment consultants who were ‘high’ or ‘low’ performers according to sales output. Results indicated that the tools significantly differentiated between high and low performers, and there was a significant correlation between test performance and individual sales output. Findings are discussed in relation to implications for research and practice in SMEs and selection.