Does Employment Security Influence Organizational Hiring Success?
Cynthia L. Gramm, John F. Schnell
Even with the economy’s sluggish state, firms, particularly in manufacturing, may have difficulty hiring qualified workers. To identify one part of this problem, we first present hypotheses connecting a firm’s employment security practices and hiring success. We then use a small but richly-detailed survey data set containing information on human resource management practices and hiring success in U.S. manufacturing firms. Using estimators appropriate to the complex survey design we employ, we find, principally, that a firm’s explicit long-term employment commitments and its use of temporary workers to buffer regular employees against layoffs are consistently and positively related to the percent of employment offers made to external applicants for regular core jobs that were accepted.
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