- 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