Recruitment is a process of attracting a pool of qualified applicants. Selection is choosing applicants from this pool whose qualifications match the job requirements most closely. Traditionally, there are three types of employees –

●      Parent Country National − The employee’s citizenship is same with the organization.

●      Host Country National − The employee is local for the subsidiary.

●      Third Country National − The employee is from a different country, i.e., not where the organization is registered / based and also where the subsidiary of the organization is not located.

Staffing and managing approaches strongly affect the type of employee the company looks for. In Ethnocentric approach, the parent country nationals are chosen for headquarters and subsidiaries. In polycentric approach, host country nationals work in the subsidiaries, while parent country nationals are chosen for headquarters. An organization with a geocentric approach chooses employees purely based on talent, regardless of their origin type.

A balance between internal organizational consistency and local labor practices policy is a goal during recruitment. People in achievement-oriented nations consider skills, knowledge, and talents while hiring a new employee.