The impact of employee selection on organisational performance

The main objective of companies’ human resources policies in a competitive business environment becomes the reduction of risks in recruitment and selection processes at all hierarchical levels. Failure to recruit employees with appropriate competencies will result in business failure or it will, at least, prevent the development of the company. Empirical research conducted among 250 companies carrying on business in Bosnia and Herzegovina has proved a correlation between the selection process and organisational performance. The most significant results are that companies conducting a fair and objective selection process achieve greater overall financial performance, while organisations that are not subject to interventions during selection achieve higher annual sales growth. The important conclusions of this article are that successful selection guarantees greater organisational productivity and that the choice of selection method is not relevant to overall performance as much as the avoidance of the impacts of others taking the final hiring decision.