Question

16.Should a company always hire the cheapest workers? Should it always hire the most productive workers? Why or why not?

Answer 1

A company should always go for the productive candidates and not cheaper candidates.

Cheaper candidates may definitely save you money at the beginning and in the short run but it will also increase the probability of firing, rehiring and retraining a person. That is, if your cheaper candidates prove to be exceedingly incompetent, then you will fire them. Again you will have to hire someone in their place and again give them the training. So, its loss of time, energy and resources. What one productive worker will contribute may not be made up by 10 unproductive cheaper workers. The productive workers are good learners. So, they will understand their job profile quickly without much hassle and will also keep on learning new techniques over the years which will be fruitful to the company as well. Thus, in the long run, selecting productive candidates over cheaper ones is beneficial.

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