The Case for Recruitment and Selection

There are several reasons that a company might choose to delegate financial resources towards marketing and product design instead of recruitment and selection. I was able to learn these through the Harvard Business Article, “Your Approach to Hiring Is All Wrong,” which goes over why businesses are sinking their money into hr and hiring, and still not able to keep or find good employees. One of the points this article brings into play, is that most large corporations outsource their hiring needs to recruitment agencies. These third-party companies don’t personally care how good of candidates they can find, as long as they get the position filled. They also tend to get paid extra if they are able to negotiate salaries lower than initially offered, which can lead to a company candidates who are not qualified for their work. In turn, the hiring agency still gets paid and their work is over. As using third-party hiring companies is a relatively new process, the data has yet to prove if it really is effective or saving corporations money. So, the uncertainty of knowing if spending a large portion of money on hiring is really effective can push companies to put the money towards other aspects of the business.

On the other hand, if a corporation decides to spend their money on product development or design, they are likely to see improvements that are visible within the company. By choosing to put the money towards improving the product being sold, they can upgrade their product to be the best on the market, which will lead to an increase in demand and sales. This can be easier for high-level employees to justify, as it feels as though they are investing money into the company itself, instead of elsewhere. A significant weakness of this strategy, is that by not spending money towards hiring exceptional employees, the product development process will not be fruitful. It takes hiring great employees to be able to design and produce an item that will sell across the market well.

https://hbr.org/2019/05/your-approach-to-hiring-is-all-wrong