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(When) Is Hiring Strategic? Human Capital Management as a Design Decision in Organizations

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  • Elfenbein, Daniel W.

    (Washington University in St. Louis)

  • Sterling, Adina

    (Stanford University)

Abstract

This paper examines when and under what conditions whom to hire is a strategic decision. We identify four mechanisms involved in hiring that add to the “strategicness†of human capital decisions. We posit that, to the degree that human capital outcomes are influenced by these mechanisms, hiring cannot be effectively delegated or treated independently from a firm’s other strategic decisions, nor will a “best athlete†approach to hiring lead to optimal results. We outline the shifts in scholarly attention required for scholars to conceptualize hiring as a strategic process, and we argue that this conceptualization is critical given the increasing use of data science tools by industry to support and automate hiring decisions. By delving into the mechanisms and conditions that make hiring strategic, we contribute to a broader understanding of how and why firms acquire human capital and highlight gaps and opportunities for future research.

Suggested Citation

  • Elfenbein, Daniel W. & Sterling, Adina, 2018. "(When) Is Hiring Strategic? Human Capital Management as a Design Decision in Organizations," Research Papers 3755, Stanford University, Graduate School of Business.
    • Handle: RePEc:ecl:stabus:3755
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    Cited by:

    1. Thomas A. Fackler & Oliver Falck & Moritz Goldbeck & Fabian Hans & Annina T. Hering, 2024. "The Slow End of the ICE Age in Germany: Insights from Job Postings on the Automotive Industry’s Trajectory," EconPol Forum, CESifo, vol. 25(06), pages 46-56, November.
    2. Ines Black & Sharique Hasan & Rembrand Koning, 2024. "Hunting for talent: Firm‐driven labor market search in the United States," Strategic Management Journal, Wiley Blackwell, vol. 45(3), pages 429-462, March.

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