Because compared to recruitment and selection, organizations would spend less money on marketing and product design. The first is that the hiring process is expensive and the organization needs to advertise the position. If HR makes the wrong decision in hiring, the organization will pay to hire again. Moreover, if the opportunity cost is lost due to the wrong recruitment, the organization and the manager must spend extra time to correct the mistake. On top of that, if hiring discrimination occurs, it can be costly. An organization decides not to prioritize hiring and selection, but to focus on other aspects of the business primarily because it is difficult to successfully recruit a good employee, and that employee can be stolen by other companies for a variety of reasons. But if an organization can increase its brand awareness and strategic resources, the company is hard to emulate which can definitely bring more benefits to the organization. However, there are potential downsides to the decision. Employees are the most important organizational function for a successful organization. Hiring the right people is also key to success. If the right people cannot be found, it will be difficult for the organization to promote brand awareness and create the right strategic resources. In other words, it may take several times longer to succeed.
