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?

Every company certainly has different views on how to allocate resources. Organizations devote more resources to marketing or product design because it can improve product differentiation and gain competitive advantages in the market. In some companies whose core competitiveness is product quality and marketing strategy, allocating more resources to product design and marketing can expand the competitive advantage. Also, the results of employee recruitment and selection are more potential and long-term. We cannot measure the employee’s ethics and skills of new employees in the short term. The revenue and resources generated by product design and marketing are more closely linked.

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?

Potential strengths: When an organization prioritizes other businesses, it is easier to build competitive advantages in marketing strategies and products and build closer relationships with customers. Besides, it helps the organization to reduce labor costs and make the annual report look better.

Potential weaknesses: A disadvantage that organizations do not prioritize recruitment and selection is that due to insufficient allocation of resources, there may be loopholes in the selection system for employees, and the training of employees may be affected, thus affecting the quality of work.

Another disadvantage is that organizations may lose some opportunities to recruit good employees. If the overall quality of competitors’ employees is higher, the company may be at a disadvantage in product development and marketing strategy in the future, which will have a long-term negative impact.