An issue in the economic of human capital - Essay Example

It is important to measure individuals and specific countries on their abilities to deploy educated and healthy and even able workers based on different pillars including favorable working environment. Economics of human capital recognizes that not all labor is equal and it is important to invest on the employees to improve on their productivity. One important issue in economics of human capital is hiring and recruitment. The quality of employees hired will determine the success of the company in question.

Hiring and recruitment involves advertising for specific job and attracting qualified candidates, interviewing them and then hiring the most suitable for the job (Brown 2). It is important for the HR to advertise for jobs candidly in a manner all the interested candidates will understand. It is also important to develop a computerized hiring system to ensure that there is no bias in the hiring of qualified candidates. It should also conduct surveys on regular basis to gauge the level of productivity of the applicants and the hiring managers.

In recruitment, the size and the specific practices of the organization determines whether it is conducted internally or externally. Use of internet in all aspects of the recruitment process also makes the process efficient and effective. It enables the process to be unbiased. The members of the recruitment process are able to seek for potential candidates via various forms of social media including their website. Internal recruitment is the process of selecting candidates for a specific job in the same organization.

The employee is mostly from the same workforce but is recruited for another role in the company. This is often the case in promotions or to be in a position to meet other urgent needs in the company (Murphy 3). The company may lack enough time to seek for other