importance of recruitment and selection in hrm

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12 Major Importance of Recruitment and Selection in HRM

Employees have the potential to make or break a business. They are responsible for carrying out your business processes, influencing customers and driving revenue. Here comes the importance of recruitment and selection in HRM (Human Resource Management), which identifies your company’s needs and matches candidates accordingly. An inadequate recruitment and selection strategy can cost your organisation in numerous ways. More than losing profits due to a lack of productivity, having the wrong people in your business can affect various aspects of your daily business operations.


Therefore, to ensure you put better recruitment strategies into place, we have shared the purpose, steps, and importance of recruitment and selection in HRM. This guide will help you deal with the hurdle of recruiting the best and the right fit for your company.

What is Recruitment and Selection in HRM?

Research says nearly 76% of recruiters think attracting quality candidates is the biggest hurdle, and 41% say filling entry-level positions is the hardest. All these speak about the importance of recruitment and selection in HRM and its potential to scale your business effectively and profitably.


Objectives of recruitment in HRM is the process of attracting candidates with appropriate qualifications and experience to apply for your job vacancy. Recruitment aims to attain the number and quality of candidates to be chosen to help your business achieve its objectives and goals. It creates a pool of potential talents for the management to proceed with the selection process.


Now, the selection process in HRM refers to choosing candidates or a group of applicants best suited for the position and company requirements. HR managers can determine effective selection methods with proper job analysis to select talents and reduce the cost of training. 

The Stages of Recruitment in HRM

Recruitment is a multi-stage process that starts with identifying the recruitment needs in your company, like company expansion and post-vacancy.

  • Job analysis: Recruiters identify the job requirements and duties and prepare job descriptions and applicant specifications.
  • Job advertisement: They then use the appropriate channels for a job advertisement to ensure more candidates can view and apply for the position.
  • Creation of talent pool: When candidates apply for the post via advertisement to the application deadline, HR creates a pool of applicants.

The Stages of the Selection Process in HRM

The selection comes next to creating a talent pool and choosing candidates that suit your company’s needs. Any company’s entire hiring process depends on its selection process’s effectiveness. 

  • Interview: A panel is usually formed to interview selected candidates and ask technical and non-technical questions to ensure they are a good fit.
  • Psychometric test: The recruiter conducts this test to determine the personality and psychic of an applicant.
  • Assessment test: It helps the recruiter to get a comprehensive look at the candidate’s expertise and personality for the job.


Following the recruitment and selection process comes the remaining hiring process, where finally, the candidates accept the job offer. 

12 Major Importance of Recruitment and Selection in HRM 

Recruitment and selection of employees are essential in HR management for numerous reasons. We have discussed a few of them below.

Recruit Skilled Employees

The importance of recruitment and selection in HRM is to acquire skilled employees for business. These potential employees have the necessary skills to fit in the role or can have trending skills that your business is missing right now. By recruiting top talents in the market, your teams can aim for high productivity levels and meet desired outcomes.

Prevents Disruptions in Business Activity

Business needs to keep changing with market trends. Here comes the importance of recruitment in HRM, where the HR team selects candidates from different backgrounds and domains to fulfil organisational needs without disrupting its operations. Ultimately, you can stay assured that all your daily business activities will be performed smoothly.

Improve Morale in the Business

When your company focuses on a strong recruitment process, you improve morale within the workplace by finding individuals who fit perfectly with your company culture. The recruiter can stay assured that the company is growing sustainably due to the chosen candidate understanding their company’s culture and actively participating in every task.

Assists in Business Growth

When you bring new skilled team members on board, your business will increase productivity and better serve your customers. The importance of employee selection in HRM comes into action when you aim to improve the business bottom line and add value to your company.

Fill up Vacant Positions

When a position is left vacant for an extended period, business productivity reduces, and additional responsibilities harm your existing employees. The purpose and importance of recruitment are to fill these vacancies thoughtfully and not by making any haste decisions. 

Improve Employee Retention Rates

Employee retention in organisations is a daunting task today. However, you can reduce employee turnover with effective recruitment strategies. As an employer, you need to mention as many details as required about the job, benefits, and other expectations to reduce employee turnover. 


Contrarily, encourage questions from the applicants. This two-way communication can help candidates to understand what they can expect after accepting your job offer and prevent them from seeking other employment.

Develop a Good Workplace Culture

An organisation’s workplace culture includes its values, beliefs, and behaviours shared among the employees. Here’s the importance of selection in human resource management, where the recruiters use the best strategy to identify the right fit. 

These candidates can adjust to your work smoothly and promote a better environment, leading to high productivity, employee satisfaction, and retention.

Improve Your Brand’s Perception

You can usually hire one applicant for a vacancy, but conducting interviews with dozens of candidates improves your brand perception. Even when you don’t hire them, they remember the experience with you. If you leave a positive mark on these talents, chances are they can apply for other roles in your company or the next time when there is a vacancy. 

Increase in Productivity

When a company hires skilled and experienced employees, it can experience increased productivity as these employees can produce more in less time. It means your production cost decreases as your production becomes efficient.

Producing Quality Products

By using effective recruitment and selection strategies, you find employees that are best suited for the role. It means they have the right expertise and knowledge to produce quality products, thus reducing the possibility of a lapse in the production process. 

Better Customer Service 

Customer service for any business plays an essential role in their success. A highly skilled employee better understands how to value customers and can assist them better. It results in higher customer satisfaction, customer loyalty, better sales, improved profits, and faster business growth.

Set up a Successful Business

When using effective recruitment and hiring strategies, the HR team can bring the best talents to your table. These high-calibre people have suitable qualifications and experience and match the company’s work culture. When your employees understand their roles in your company and perform them accordingly, your success is guaranteed.


Also Read: Activation Agent Job Description

How Does 6 Pence Help?

Recruitment and selection in HRM is about finding the right talent for the right position at the right time. Though it is a cost and time-intensive process, if done correctly will save you time and money, foster business growth, improve your reputation, and increase productivity. Through this blog, we have tried to illustrate the importance of recruitment and selection in HRM.


Are you looking to streamline your recruitment process and find top talents who can help scale your business effectively-then? Get in touch with 6 Pence. Our team of experienced recruiters and intensive candidate data pool help you get the right candidate. 


At the same time, our thorough process of background checks, paperwork for international employees, and legal compliance with labour laws allow us to serve our business partners with 360-degree, customised staffing solutions.


We are one of the top staffing and recruitment outsourcing companies. We can help GCC companies in Iraq, Bahrain, Oman, and Dubai to survive the recruitment hassles and set up a successful business. 

Frequently Asked Questions

What is recruitment and selection in HRM?

Recruitment is the process of attracting applicants with suitable qualifications and experience for a job. And the selection is the process of filtering the best-fit applicants with proper skills and knowledge.

What are the methods for recruitment? 

The recruitment methods include identifying needs, job analysis, job advertisement, and pool creation. 

What is the difference between recruitment and selection? 

Recruitment refers to the process of actively searching and hiring candidates for a job. On the contrary, selection refers to selecting suitable candidates from the shortlisted applicants.

What is the recruitment process?

The recruitment process starts with job analysis and advertisement and encourages applicants with suitable qualifications to apply for the post, thus creating a talent pool.


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