Organizations may decide to allocate more resources toward marketing or product design rather than employee recruitment and selection because of the increasing emphasis on the product and brand over people or individuals. While cynical, many corporations do in fact see employees as easily replaceable and just a cog in their business plan. A good example is the US economy, wherein a large portion of the workforce could see their jobs replaced in the next 5-10 years.
Automation and technology aside, many companies often care more about selling and creating products using a consumer-based view. Apple and Nike can always hire more people because of the brand they’ve built up; everyone wants to work there. They don’t need to focus too much on recruiting the best, because a natural rise to the top will occur for them looking at results and output. Good products need to be communicated to market faster and better because more people will buy than will be hired.
By prioritizing other aspects of business, a company would benefit from better R&D and market share, continual building of their brand, or any number of factors they choose to focus on. There’ll always be bodies to work for them and they can expand and profit more elsewhere.
However, a potential weakness in not prioritizing recruitment and selection is that they do get those bad employees. Dissatisfaction is contagious and it may adversely affect productivity and disrupt other processes.