- Why might organizations decide to allocate more resources toward marketing or product design rather than using those same resources to do a really good job in employee recruitment and selection?
So, the reason that I believe that organizations allocate more money towards marketing and product design is that is where they will get their greatest ROI. So, when it comes to most industries, the product is the most important thing to a customer or the price focus. In an industry where customer service is the primary focus point, then more money is allocated. A good example of where organizations might allocate more money towards marketing and product vs employee recruitment is the fast food industry. In many people’s eyes they rather see decent quality food with super cheap prices (dollar menu, or 2 for 6 specialty products) then go to a sit-down restaurant where the prices are higher, and the quality is exceptionally better. Customers rather take the lower quality item and worse customer service then paying significantly more. Most of the companies that do allocate resources more towards marketing and product design typically do not make fortune 500 company list.
- What are the potential strengths and weaknesses of an organization’s decision to not prioritize recruitment and selection in favor of a focus on other aspects of the business?
Pros/ strengths:
– reduced time spent looking for high quality candidates
– shortened hiring process
– lower salary costs/ minimum wage rates
– costs can go towards higher prioritized items
Cons/ weaknesses:
- Higher employee turnover
- Possible low customer satisfaction as result of training
- More gaps in organizationally efficiency
- Weak team cohesiveness
- Bad company dynamic/ possible toxic personalities within the company
- Failure to have mentorship between employees
- Lack of future leaders, may possibly result in a downfall of the company
5 replies on “Blog Post: The Case for Recruitment & Selection”
I could not agree more with your opening statement. ROI is extremely important to all companies and would be a huge reason for them to spend more money on marketing than on the selection process. Your example is also very good and demonstrates exactly what you are trying to say. Some of the biggest companies in the world could care less about their hiring process because they are focused on the customers, and how they can draw them in to sell them more products. In order to do this, they must spend more money on research and development, marketing and product design. Your strengths and weaknesses are spot on, and I enjoy the format in which you have organized them. Thanks for sharing!
Kyle,
I definitely agree with your reasoning as to why companies may decide to allocate more resources to marketing or product design rather than employee recruitment and selection. To your point, I think that hiring practices can have just as high of an ROI, but it’s not a tangible whereas with marketing and product design efforts there has more of a tangible outcome.
Your weaknesses that you listed, really highlight the importance of why organizations should place an emphasis on recruitment and hiring practices.
Nice work this week!
Kayla
Great post! I found the focus on the fast food industry and how the approach spending money on product instead of employees to be interesting. I have never thought about their focus on product design before,but you’re right! I personally would rather have food that is well down then the best customer service (although both is preferable). Your strengths and weaknesses section was also fun to read, because I have never made a list for a job like that, but I will think about doing it now!
Thanks!
Kyle,
I completely agree with you about allocating more money towards marketing and product design that can make highly return of intvesment. Also, it is very crucial for the natural growth of a company because spending money on marketing and product design will help the company achiveve their goals. Moreover, I like how you use strength and weakness as bullet point which is easy to understand and get the key points.
Thank you for sharing!
Hi Kyle,
Great point that the difference can be industry driven. To continue to expand on your points, specifically thinking of the fast food industry, the company wouldn’t need to dedicate a lot of resources to employee recruitment and selection when they aren’t looking for highly skilled labor. In addition, they likely have a large applicant pool and wouldn’t need to do much advertising in order to get more applications.
Thanks for sharing your thoughts!