DIVERGING PATHS: HIRING IN THE PUBLIC AND PRIVATE SECTORS

This study investigates the differences in recruitment and selection practices between public and private sector organizations in Serbia and Bosnia and Herzegovina. The research aims to explore the extent to which sectoral characteristics influence the adoption of traditional and contemporary hiring techniques and the mediating role of formal human resource (HR) departments in these processes. Data were collected through the CRANET survey conducted in 2021–2022, encompassing responses from 151 organizations, including 119 private and 32 public sector entities. The study employs non-parametric statistical methods, including the Mann-Whitney U test, to compare hiring practices and a three-step regression analysis to examine the mediating effect of HR departments. The results reveal significant sectoral differences in recruitment and selection techniques, with public sector organizations demonstrating a greater reliance on traditional methods, while private sector organizations adopt contemporary techniques more frequently. The presence and influence of formal HR departments partially mediate the relationship between sector and hiring practices, particularly in the adoption of structured and innovative hiring methods. These findings align with theoretical frameworks of sectoral differentiation and highlight the critical role of institutional factors in shaping HR practices. Furthermore, findings contribute to the understanding of HR practices in transitional economies and provide a basis for further research into additional mediators, such as organizational culture and leadership, that may influence hiring strategies in public and private sectors.