How does the cost of each step in the selection process for hiring determine when those steps are taken?

Expert Answers
litteacher8 eNotes educator| Certified Educator

It makes sense to take cheaper steps earlier in the hiring process and more expensive steps later to prevent wasting money on people you aren’t likely to hire.

The search and selection process for new employees can be very costly.  Some steps cost more than others.  Therefore an employer has to be careful which steps are taken when.  The first and cheapest step is to collect resumes.  This requires less time and money.  You just need an email address or a submission procedure and an employee to keep track of the applications.

The most important step actually takes place before anyone applies.  The company needs to create an accurate job description and salary prospectus, so that it is clear who is going to be drawn to the job.

Interviews can be costly because they require employee time to interview people and take away from other work.  Sometimes you also have to literally spend money, such as flying someone to your office and paying for a hotel.  If you did this for every applicant it would be very expensive.  Therefore applicants will need to be screened first so that only the most likely candidates are considered.  Screening might involve reading resumes, calling references, or reading cover letters.

Other expenses include background checks, physicals, fingerprinting, uniforms, pre-employment training and reimbursement for relocation expenses.  Before a company puts out any of these expenses it should be sure that the person is a good fit so that time, money, and valuable resources are not wasted.