- Employee recruitment and selection can be a very costly business expense. This not only can be a major financial expense to get a good candidate hires, however, money spent on a poor performing employee can be even more detrimental! Another thing to consider is that a company could spend a lot on a great applicant who ends up taking a different position. There is a lot of financial risk involved with employee recruitment and selection! This is why many companies choose to allocate their resources toward things like marketing, product design, or internal improvements. These are areas that a company can have more confidence in when discussing return on their investment. An organization may shy away from budgeting more toward employee recruitment and selection in order to spend this same money in areas like marketing and product design. For many companies this feels like the safer option.
- When a company chooses to allocate costs in areas other than recruitment and selection, there are many different potential effects. For example, the company may be able to see a quick return on investment. Another thing to consider is that the allocated funds could be used to buy something tangible like new equipment. This is something that certain businesses can really benefit from. Oftentimes stakeholders want to see their investment and it is easier to see in physical objects or process improvements than it is to see in recruitment strategies. One major thing to consider though is that employees can be a major asset or liability for a company. Recruiting, maintaining, and training good employees can be expensive. However, this is a crucial element to build your workforce. A company can really benefit from having safe, productive, adaptable employees. These people can help build a great atmosphere for your workplace as well as increase the company profitability. An investment into recruiting is a decision companies need to take seriously.
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