Does Ownership Matter? Employee Selection Practices in Private and Public Sectors

Abstract

The continuous need to adapt to the dynamics of the environment requires employers from both public and private sectors to select qualified human resources. It is people who lead the organization towards performance, and selecting competent employees is critical for competitive success. The paper is focused on the job selection practices implemented by hiring organizations in a developing country. Due to the differences that exist regarding the employee selection policy between public and private organizations, the paper aims to understand the characteristics of the job selection process according to the ownership of the employer agent. Based on a quantitative survey applied on 64 companies, the results analyze the main selection stages implemented in private vs. public sector employers in a developing country. While in private companies the most frequently used selection stages are the job selection interview, CVs screening and trial period, in public institutions the hiring process is based on the job selection interview, written knowledge tests, and practical tests. Compared to private companies, in public institutions the written knowledge tests rank a higher position in the selection stages hierarchy, but the private employers rely more on CVs screening stage than public institutions. Emphasis is laid on understanding the reasons leading to variations in job selection practices according to the ownership of the employing agent. The predictive validity of the job selection stages implemented by the companies is also discussed.