Final answer:
To create a program for hiring stock traders that weeds out unsuitable candidates, use psychometric tests,
add ethical dilemma questions to the application, thoroughly check candidates' backgrounds, ask pointed questions to previous employers, and possibly institute a probationary period to assess performance.
Step-by-step explanation:
To design an employment selection program for hiring stock traders that screens out potential bad apples, several strategies can be employed.
First, consider incorporating psychometric tests that can assess traits like honesty, integrity, and risk aversion. Also, adding questions to the application form that prompt candidates to describe ethical dilemmas they've faced and how they resolved them can provide valuable insight.
When checking candidates' backgrounds, it's crucial to thoroughly verify educational qualifications and past employment.
This may include contacting the issuing institutions and previous employers directly. Questions for previous employers and references should focus on the candidate's past work ethic, performance under pressure, and any incidents of non-compliance or unethical behavior.
Additionally, reviewing candidates' credit history and criminal records can be insightful.
Beyond these checks, using structured interviews with behavioral and situational questions can mitigate bias and evaluate competencies related to the trading position.
It may also be beneficial to consider implementing a probationary period where the candidate's performance is closely monitored to further reduce the risk of hiring a poor-quality employee.