The Effect of Human Resource Competitiveness on Job Creation: Focusing on Recruiting Methods, Compensation Practices, and Employee Development

Human resources (HR) are increasingly seen as an essential determinant of sustainable business growth, making hiring the right people, and creating employment opportunities more strategically crucial for firms than ever. However, research on the relationships between recruiting methods, compensation practices, employee development, and job creation within firms remains lacking. To fill this gap in the literature, this study explores factors with a positive impact on HR capability and the impact of improved HR competitiveness on job creation, by investigating the mechanism of interaction between these variables through empirical analysis. This study uses data from the Human Capital Corporate Panel survey conducted by the Korean Corporate Investment in Training and Development and yielded the following findings. First, compensation practices and employee development programs positively improved HR competitiveness, while the use of diversified recruiting methods aimed at attracting top talent appears to have no significant effect. Second, when HR competitiveness is improved, firms are more motivated to create new employment opportunities in an attempt to attract the best people. That is, there is a positive correlation between HR competitiveness and jobs created in the private sector. The evidence has important theoretical and practical implications for jobseekers, governments, and companies, and will help in job creation and improving HR capability