Hiring Strategies

Abstract

We investigate the hiring problem where a sequence of applicants is sequentially interviewed, and a decision on whether to hire an applicant is immediately made based on the applicant's score. For the maximal and average improvement strategies, the decision depends on the applicant's score and the scores of all employees, i.e., previous successful applicants. For local improvement strategies, an interviewing committee randomly chosen for each applicant makes the decision depending on the score of the applicant and the scores of the members of the committee. These idealized hiring strategies capture the challenges of decision-making under uncertainty. We probe the average score of the best employee, the probability of hiring all first $N$ applicants, the fraction of superior companies in which, throughout the evolution, every hired applicant has a score above expected, etc.