Link Between Recruitment and Selection Practices and Business Success Research Paper

Excerpt from Research Paper :

Recruitment and Selection Techniques contribute to the Success of an Organization

Recruitment is a form of business contest and it is fiercely competitive. Organizations have to be strategic in order to attract and retain top talent to positions in the company. Competition between companies have become even more fierce and companies are doing all that they can to get the best talent for their organizations. Hence, it is important to have a well-defined recruitment policy in place, which can be executed effectively to get the best fits for the vacant positions. Selecting the wrong candidate or rejecting the right candidate could turn out to be costly mistakes for the organization. Companies understand that having the right people will definitely be difference between success and failure. Recruitment and selection is an ongoing process (Wilson, 2013). Businesses determine the present and future requirement of the organization and increase the success rate of the process by reducing the number of unqualified candidates.

Regardless of the size of a firm or what industry it is in, recruitment and selection of people with strategically relevant abilities is more important than ever. Companies are trying to recruit top talent while keeping the costs of recruiting at a minimum. Recruiting techniques have evolved over the years with social media being one of top methods of attracting talent. A diversifying enterprise necessitates recruiting and selecting right kind of candidates for employment (Dwoskin, Squire, & Patullo, 2014). Recruitment and Selection are often used interchangeably, however, recruitment refers to the process of identifying prospective candidates for the job, while selection refers to picking the right candidate for the job.

Recruitment and selection is an important process in every company or organization. It provides the crucial human resources for every company. It allows the company to attract and retain the best talent for them to gain competitive advantage. The process of scrutinizing candidates to choose the best candidate, commonly referred to as the selection process, is of extreme important to the company (Buse, 2009). If the company does not choose the right candidate, they lose competitive edge as a result of a weakness in their human resources. Recruitment, which involves identifying the right talent, attracting the right talent and providing them with the best global opportunities, is also essential for the company since they are able to analyze the talent market and take the right steps towards ensuring they attract the best talent and are able to retain employees.

For many companies, the human resources are of extreme important in ensuring the success of the organization (Sawa & Swift, 2013). This has been widely studied. This review aims at presenting the literature of how recruitment and selection processes help companies to succeed. Their contribution of essential skills, values, and other attributes will be looked into at great depth to understand the important of accurate and effective recruitment and selection processes to the company's success.

Many scholars have studied the factors that bring business success. These have majorly focused on functional business areas such as finance, marketing, and production where it is easiest to institute these measures. Though human resource has been long embraced as critical to business success, there has been little focus on how human resources are important in business success (Iles, 2007). It is important to examine the link or relationship between human resource recruiting and selection and the key success factors of companies.

Literature review

Link between human resources and company success

Bowen, Ledford, and Nathan (1991) defined the essential function of human resources as the factor that makes businesses tangible. Human resources enable the company to find the best facilities, equipment, financial support, and legal framework to operate successfully. They also enable the company to manage other resources effectively and efficiently. In terms of advice and support, human resources enable the company develop and refine their business plan towards business success.

Buse (2009) studied the role of the company's entrepreneur and other managers in the success of the company and found that the goals of the management, founding process that includes crucial decisions made, and firm characteristics including their risk taking nature are most important for business success. Other scholars also looked at the link between the company's management to key strategic factors. They found that where the manager or owner gave high levels of commitment including financial support, new ventures were more likely to succeed (Sawa & Swift, 2013). The people who the company hires from the onset also influence the success of the company greatly since they are the most important in selling the product or service and ensuring the venture is successful. The human resources of a company, according to Holehonnur and Pollock (2012), are essential in ensuring the practicality and feasibility of the business venture, providing competitive advantage, influencing pricing, marketing, and production strategies towards efficiency of the company. Staffing decisions also influence the financing of the company since some financiers provide finance based on the ability of the management team to succeed. Therefore, the right mix of employees is important to ensure the company succeeds (Makraiova, Woolliscroft, Caganova, & Cambal, 2013).

Studies that have focused on reasons why companies or organizations fail have also cited poor human resources as a major reason. Holehonnur and Pollock (2012) found that the lack of objective evaluation of employees when recruiting them would eventually lead to lack of financial soundness of the company's plan, ignorance of legal issues surrounding the business, lack of competitive advantage and business uniqueness, and poor understanding of the technical requirement of the company.

Other factors that lead to failure of companies as a result of having poor human resources is poor timing, problems in the design of their products and services, inappropriate strategies for distributing their products and services, having unclear business objectives and goals, assuming too much debt or assuming debt too early, and failure to collaborate as an effective team. Bowen et al. (1991) also supports this and states that where the company's human resources are ineffective, there is often lack of management skills, poor management direction, lack of a sound direction or plan for the company, and lack of capitalization. These often lead to failure of the business.

Johnson and Guetal (2013) also argue for the extreme importance in the human resource of a company as a factor for its future success or failure. The authors state that human resources are extremely important for business survival since the management practices are important in defining the company's products and services and offering competitive advantage that helps the company succeed. From the onset of recruiting and selection, it is important for the company to use effective strategies to ensure they pick the right talent for their growth vision, and that the persons hired are in line with the business direction.

Fathi, Wilson, and Cheokas (2011) argues that there is a significant difference between how large companies and small companies use their human resources towards business success. The authors argue that small firms are more reliant on the vision of their employees and their ability to attract and retain employees at all levels. Large organizations, on the other hand, consider the managerial levels of employees as most important. The management, in this case, are the most important in focusing the business direction, while in small organizations, with much fewer number of employees, attracting retaining employees is important at all levels since they give the picture of the organization and often define their growth.

However, Dwoskin et al. (2014) states that there is little difference between large and small companies. Independent on size of the company, they all benefit from attracting and increasing employees skills and their motivation. The capability of employees at all levels in both large and small organizations determines the organization's success.

Wilson (2013) states that several human resource studies show the cost of hiring a replacement employee is almost 1.5 times to twice the cost of the employee's salary. In this competitive business environment where companies are striving to achieve cost leadership through cost-cutting strategies, hiring replacements is an unpopular choice. The author also points at the damage to goodwill that the company's engagement of a new employee may bring. When companies hire replacements, gaining the trust of customers has to start afresh, a situation that growth-oriented companies should try to avoid since it slows down growth.

Research also provides evidence of the importance of effective hiring practices in ensuring the company remains competitive in this highly dynamic technology environment (Walker et al., 2013). Since the first technology waves, companies that have failed to ride the wave have failed. Therefore, there is a direct link between the company's IT investment and its success. Comprehensive studies show that there are greater links between the use of IT in hiring and the inclination of the employees hired towards better IT growth of the business. Revels and Morris (2012) also presents a strong case for the inclusion of IT in hiring practices in ensuring the company's human resource needs…

Cite This Research Paper:

"Link Between Recruitment And Selection Practices And Business Success" (2014, April 18) Retrieved August 23, 2017, from

"Link Between Recruitment And Selection Practices And Business Success" 18 April 2014. Web.23 August. 2017. <>

"Link Between Recruitment And Selection Practices And Business Success", 18 April 2014, Accessed.23 August. 2017,