Question

The HR department is instructed to fill a critical management position as quickly as possible. Using multiple agencies will produce more candidates more quickly but will increase the cost by several times. Which critical input should HR seek before deciding how to proceed?

Job description for the ideal candidate
Risk tolerance of the organization
Networking connections and employee referrals
Desired applicant-to-hire ratio to indicate success

Answer 1

HR should consider the organization's risk tolerance and the desired applicant-to-hire ratio before using multiple agencies to fill a critical management position. Striking a balance between speed and cost is crucial, with a focus on the ideal candidate profile and measures to mitigate the risk of asymmetric information in the labor market.

Step-by-step explanation:

Before the HR department decides on using multiple agencies to fill a critical management position, they need to consider the organization's risk tolerance. This involves understanding how quickly the position needs to be filled and the potential cost implications. Networking connections and employee referrals can be valuable but may not provide the immediate results that hiring through agencies could achieve. Considering the desired applicant-to-hire ratio is important to ensure efficiency in the hiring process while maintaining the quality of candidates.

In practice, HR must strike a balance between speed and cost, and this often requires careful analysis of the job description and the ideal candidate profile. Employers seeking to mitigate the risk of asymmetric information in the labor market, where key employee attributes may be unknown until after hiring, often rely on pre-screening by schools, viewing qualifications such as degrees from specific institutions, and demanding personal references for further insights into candidates' work ethic and energy levels.