Question 1: Why do Organizations Allocate More Resources to Aspects Besides Employee Recruitment?
Organizations might decide to allocate more resources to marketing or product design than successful employee recruitment and selection strategies because fundamentally, without a product, there is no business. Additionally, without high-quality marketing, there will be no interest in the product. Both of these components are clearly essential for generating revenue. Knowing the importance of these two components, managers may overlook the merits of employee selection as they relate to overall profitability.
Question 2: What are the Strengths and Weaknesses of Not Prioritizing Recruitment and Selection?
One strength of not prioritizing recruitment and selection is that this approach allows the organization to allocate more of it’s resources to other business functions (such as product design, as mentioned above). Primarily, companies have a fixed amount of time and money to allocate to different aspects of their business and must choose between them carefully. Additionally, allocating resources to systems in place for employees once they have already joined the company may have a powerful impact on company performance. For instance, providing learning opportunities for current employees to gain additional skills and providing mental health programs to help employees avoid burnout could be a valuable use of a company’s focus and increase the effectiveness of existing personnel.
A glaring weakness of not prioritizing recruitment and selection in an organization is the exceptionally high cost of making the wrong hiring decisions. When a mistake is made, not only must organizations repeat the hiring process and find a new potential candidate, but customers may also become frustrated with the unsuccessful hire’s work, and other colleagues may become discouraged. Second, as discussed in the mini lecture, prioritizing recruitment and selection can give organizations a competitive advantage. Companies that have successful employees also prevent their competitors from leveraging those same employees. Good employees can be hard to find and will gain irreplaceable company-specific knowledge after working at a company for several years.