Economics Analysis of Avoiding the Risks of Employee Recruitment

摘要

Asymmetric information about understanding applicants' ability between enterprises and applicants leads to two kinds of risks of adverse selection that the enterprise has to face. Both risks bring the remarkable increased expenses and the opportunity loss to the enterprise. From the view of economics and applying relevant mathematical model, three concrete measures of avoiding the recruitment risks are discussed, those are to raising the symmetrical degree of messages, to determine the reasonable hiring criterion and take the relevant measures to improve capability distribution of applicants. At the same time, the effectiveness of different measures is evaluated. Every enterprise to recruit employees hopes to have the best cost - benefit result, increase the proportion of appropriate applicants as far as possible, and decrease the selecting cost to the full extent. It is required that the enterprise take above measures to avoid risks of recruiting employees, and decrease the harmful influence from asymmetric information. Thus, the enterprises can obtain advantages in the intense market competition.