Skip to main content

Recruitment vs hiring; need of incentives

Short answer

Recruitment attracts applicants; hiring selects and appoints the best candidate. Incentives, monetary or non-monetary, are needed to motivate employees, increase productivity, reduce turnover, and align individual goals with organizational goals.

What is the difference between recruitment and hiring? Why do we need incentives in an organization?

Recruitment vs hiring

Recruitment is the process of searching for and attracting qualified candidates to apply for jobs. Hiring (selection and appointment) is the process of choosing the best candidate from the applicants and giving the job through an offer.

BasisRecruitmentHiring
MeaningFinding and attracting applicantsChoosing and appointing a candidate
NaturePositive; encourages applicationsNegative; rejects unsuitable people
StageEarly stageFinal stage
Main activitiesAdvertising, campus visits, job portalsTests, interviews, background check, offer, contract
AimCreate a pool of candidatesFill the post with the best person
ResultList of applicantsAppointed employee
ContractNoneAppointment letter, as per Labour Act, 2074

Need for incentives in an organization

Incentives are extra rewards (bonus, commission, recognition, promotion) over regular pay. They are needed because:

  1. Motivation: They encourage employees to work harder and smarter.
  2. Higher productivity and quality: Reward is linked with output.
  3. Attracts and retains good staff, reducing turnover (important in the competitive IT and banking sector of Nepal).
  4. Builds loyalty and team spirit.
  5. Reduces absenteeism and supervision cost.
  6. Fair recognition of better performers.
  7. Aligns employee and organizational goals, for example through profit sharing under the Bonus Act, 2030.
  8. Improves job satisfaction and morale.

✓ Answer checked by Claude Opus 5.5 (high effort)

Related questions

All Organization and Management chapter 7 questions →