Nick Emmert – 4/1/22
There are many reasons why a company may decide to allocate more resources to marketing or product design rather than recruiting. It all comes down to what management deams to be more important at specific times. As well, the current market conditions play a huge role in how to allocate funds. If a company has low turnover, they are able to not worry as much about new hires and recruiting and can focus more on capturing market share. Focusing more on increasing profits can lead to an increase in allocations for employee recruitment later on down the line. If you have good loyal employees who can be trained into other lines then there is no need for large amounts of funds and more money can be allocated to marketing and product redesign.
One potential strength that could be beneficial from not prioritizing recruitment is extra funds to allocate elsewhere. A company can save a lot of money which can be spent on employee retention, which in the long run is more valuable. Another strength is that the money saved can be used to improve other business functions or even expand their brand or products.
A weakness of not spending the money on finding good employees is that your turnover might be high which can cost a company a lot of money. When you don’t hire good employees, the good employees start feeling the stress of the employees who are slacking. This can lead to decreased productivity and lower morale, and ultimately lead to high turnover.
3 responses to “Week 1 – The Case For Recruitment And Selection”
Hi Nicholas. I thought you did a nice job of presenting a balanced view on the strengths and weakness of prioritizing staffing as a function. Your insight on the need for an organization to prioritize other functions, such as marketing or product design, to generate the profits that could then be reinvested into the staffing function was good.
Hi Nicholas –
Great post! I also considered that a company with low turnover and good employees could potentially spend less money on employee recruitment as it would not be necessary. This is assuming that they have already put effort and energy into hiring the right people, effective training, and employee retention. This is a great position for a company to be in, however the company should not become complacent and should continue to make sure that the good employees they have are happy and treated well, and should be prepared to shift funding into employee selection and recruitment as soon as anyone leaves or additional personnel are needed.
Hi Nicholas,
I can agree with you that more times than not a company makes a decision based on current factors. Like you said, they might only consider investing into recruitment and selection if they are experiencing problems with their current employees or they are experiencing high turnover. But, a company with this mindset might neglect to focus on the company’s long term growth.
Good employees are oftentimes an investment that doesn’t pay off for months to years, but their impact is much greater than short term investments.
I can also agree that it is important for a company to find a balance between allocating funds on employees and business growth. Both sides need to be adequately funded or they both will fail.