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Employee Selection for Stock Traders

The document provides suggestions for designing an employee selection program for hiring stock traders. It recommends using intellectual and situational tests to assess candidates' skills and personality. The application form should include questions about job responsibilities, qualifications, views on the stock market, and how candidates would handle insider trading. Background checks should verify employment history and degrees, search online for discrepancies, and ask references about reliability, accomplishments, suitable work environments, and areas for improvement. Follow-up employee evaluations and fraud prevention are also recommended.

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406 views3 pages

Employee Selection for Stock Traders

The document provides suggestions for designing an employee selection program for hiring stock traders. It recommends using intellectual and situational tests to assess candidates' skills and personality. The application form should include questions about job responsibilities, qualifications, views on the stock market, and how candidates would handle insider trading. Background checks should verify employment history and degrees, search online for discrepancies, and ask references about reliability, accomplishments, suitable work environments, and areas for improvement. Follow-up employee evaluations and fraud prevention are also recommended.

Uploaded by

Uyên Uyên
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

UNIT 6: EMPLOYEE TESTING AND SELECTION

Application case:

6-10. We want you to design an employee selection program for hiring stock
traders. We already know what to look for as far as technical skills are
concerned—accounting courses, economics, and so on. What we want is a
program for screening out potential bad apples. To that end, please let us know
the following: What screening test(s) would you suggest, and why? What
questions should we add to our application form? Specifically how should we
check candidates’ backgrounds, and what questions should we ask previous
employers and references?

6-11. What else (if anything) would you suggest?

 Solutions:

 6-10:

1. What screening test(s) would you suggest, and why?

- Intellectual tests: Test of memory, analysis, problem solving, acumen with


numbers, etc. These will help to consider those candidates who are intelligent
enough to identify those stocks or shares that are profitable in both short and
long run, thus weeding out the “pretenders”.

- Situational tests: This is an important test to assess the ability to handle


situations as well as identify "personality" of candidates. The candidates will be
given a realistic situation and think of how to handle it in the most appropriate
way.

2. What questions should we add to our application form?

Besides the IQ test, the application form should also have questions:

- How do you know about the responsibilities of this job?


- Why are you the best candidate for the job?
- What do you think about the current stock situation? How do you see its
potential?
- What would you do if you discovered an insider trading? Which treatment do
you think is the most reasonable?

- Do you think money is important? Why?

3. Specifically how should we check candidates’ backgrounds, and what


questions should we ask previous employers and references?

a. How should we check candidates’ backgrounds?

- Verify information provided to you: Check every fact provided to you


including:  previous addresses, alias names, degrees obtained, dates of degrees
obtained, majors studied, employment history, exact dates of employment,
direct supervisors’ names, previous job titles, previous job functions, salary
history, and why the candidate left each job. If anything seems suspicious, ask
the candidate for details and verify the stories the candidate tells you. Contact
the candidate referral if necessary.

- Consider online public information searches for discrepancies. Check a


candidate’s publically available online information using Internet search
engines such as Google to see if the applicant’s history online differs, in any
way, from the “facts” the applicant provided in their application materials. If
you find differences, dig deeper, or ask the applicant for an explanation.

b. What questions should we ask previous employers and references?

There are some questions to ask:

- How would you describe the candidate’s reliability and dependability?

- What was one of the candidate’s most memorable accomplishments while


working with you?

- What type of work environment do you think the candidate would be most
likely to thrive in, and why?

- What skills would you have liked to see the candidate develop to reach their
full potential?

 6-11: What else (if anything) would you suggest?


- Employee evaluation events should be organized each year.

- Appropriate measures should be taken for fraudulent acts.

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