Empirical Research into the Relationship Between the Employment Process and Business Performance
Employment process is one of the main components of human resource management. Employment process is implemented through two related practices, and these are recruitment and selection. Efficient recruitment program is a prerequisite for high quality screening, and selection of candidates who best ft with the position requirements. In addition to consideration of the significance of adequate implementation of the employment process, and summary of the recruitment and selection methods which are available to the employers, through this paper and empirical research, we analyzed the relationship between the employment process and business performance in large business organizations in the Republic of Srpska. The hypothesized relationships between observed variables were tested by using several statistical methods. Research results suggest that between quality of the staffing process and the observed indicators of business success there is a statistically significant correlation, indicating that the improvement of the quality of this human resource management practices tend to increase business performance. Furthermore, results show that there are statistically significant diﬀerences in indicators of business performance among groups of organizations that have a diﬀerent level of quality of the employment process. Specifically, operating results per employee, as well as the result of ordinary activities per employee, were significantly higher in organizations which systematically and adequately carry out the employment process. Results of this research provides contribution to the empirical findings in this field and stress the unsuitable staffing policies, which is, unfortunately, represented in a number of domestic business organizations, and which is generator of the broader social problems.
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