What happens when organizations do not prioritize recruitment and selection?

Organizations, and leaders of these organizations, are in the business of making money. For this reason, some leaders believe that it is more important to spend money on those functions that make money. There is a common belief that better products and flashy marketing campaigns make a company great. Spending money on employee recruitment and selection will cause the company to spend money instead of making money. It is cheaper to spend money once instead of twice and invest in Marketing and Product development. Some believe that focusing on the process of recruiting and selection will not immediately if ever, impact the company’s bottom line.

Organizational strengths of focusing on marketing and products could result in brand recognition and high-quality products. Brand recognition and high-quality products are essential to strengthen an organization’s bottom line. Market competition can prevent success depending on the organization’s size and reputation. An organization that does not prioritize recruitment and selection has higher employment and training costs attributed to its turnover rate. Poor employee hiring practices are seen most often in customer sales and services, impacting the bottom line with higher and event lost employment costs. Training and retraining costs are high when employees are not the right fit for a position.