What Is a Hiring Manager and Why Are They Important?

Hiring the right people can make or break a company. Finding, evaluating, and selecting the right talent is a delicate process. That’s where hiring managers come in. They don’t just fill vacancies—they build teams, define company culture, and drive business growth. In today’s global and remote-first market, their role has never been more crucial.

According to the 2023 Employ Recruiter Nation Report, 53% of talent acquisition professionals feel their job is more stressful today than it was a year ago due to challenges like a lack of qualified candidates and increased competition among employers. This rising pressure highlights the importance of hiring managers in ensuring recruitment efficiency and talent retention.

Yet, many businesses struggle to balance hiring efficiency with cost-effectiveness. This is where offshore staffing solutions like Penbrothers help companies scale without compromise.

What is a Hiring Manager?

A hiring manager is responsible for selecting and hiring candidates within their specific department or team. Unlike recruiters and HR professionals, they don’t just shortlist candidates—they make the final hiring decisions.

• Recruiters source and screen applicants.
• HR Professionals oversee company-wide HR functions.
• Hiring Managers assess role-specific qualifications, make final hiring decisions, and ensure new hires integrate seamlessly.

A hiring manager is the bridge between HR and operational success, ensuring that each new hire aligns with business goals.

Key Responsibilities of a Hiring Manager

1. Defining Job Requirements

Hiring managers work closely with HR and department leads to define job responsibilities and required qualifications. They ensure job descriptions are clear, realistic, and attract the right candidates.

The Talent Insight Group highlights that 65% of candidates have withdrawn from a hiring process due to an unattractive Employee Value Proposition (EVP), underscoring the significance of clear and appealing job roles in recruitment. 

2. Screening & Interviewing Candidates

Hiring managers collaborate with recruiters to review resumes and pre-screen applicants. They conduct structured interviews to evaluate both technical and soft skills, ensuring a comprehensive assessment. Many hiring managers also utilize skills assessments and test projects to make objective, data-driven decisions.

SHRM reports that that 70% of HR professionals have prioritized finding and recruiting talent with the necessary skills for 2024.

3. Making the Final Hiring Decision

Once candidates have gone through the screening process, hiring managers assess their cultural fit, skills, and overall alignment with team and business needs. They also negotiate compensation and job offers in collaboration with HR and leadership to ensure competitive and equitable pay structures.

Deloitte emphasizes the importance of aligning compensation structures with market standards and organizational budgets to attract and retain top talent. For instance, the 2024 Global Human Capital Trends report discusses the need for organizations to adapt their compensation strategies to meet evolving workforce expectations and market dynamics.

4. Supporting Onboarding & Integration

The responsibilities of hiring managers extend beyond hiring decisions. They play a crucial role in onboarding, ensuring that new hires have a smooth transition into the organization. This includes setting clear expectations, facilitating introductions, and providing mentorship opportunities.

Brandon Hall Group report shows that effective onboarding improves new hire retention by 82% and productivity by over 70%, making this a critical responsibility for hiring managers.

Essential Skills of a Hiring Manager

1. Communication & Active Listening

• Clearly define job expectations and provide constructive candidate feedback.
• Build a positive candidate experience that attracts top talent.

2. Adaptability & Problem-Solving

• Stay ahead of industry trends, recruitment challenges, and evolving team needs.
• Address skill gaps, team misalignment, and remote hiring complexities.

3. Tech-Savviness & Data-Driven Decision-Making

• Leverage Applicant Tracking Systems (ATS), virtual hiring platforms, and data analytics.
• Use hiring metrics to refine recruitment strategies and improve retention.

Looking to improve your offshore hiring strategy? Learn about how to build an effective offshore team here.

How Hiring Managers Influence Recruitment Success

A hiring manager’s influence extends beyond hiring. Their decisions affect:

• Company culture

Hiring managers have a significant impact on company culture. Every new hire they bring in alters team dynamics, affecting collaboration, morale, and workplace environment. A well-aligned hire can foster innovation and cohesion, while a poor fit can disrupt workflow and team synergy.

• Retention rates

Retention rates are also closely tied to hiring decisions. A poor hiring choice can result in high turnover, leading to increased recruitment costs, lost productivity, and decreased morale among existing employees. For instance, SHRM emphasizes that “poor hiring choices aren’t just expensive to replace; they’re also expensive during their tenure and can damage the reputation of an entire organization.”

• Business performance

From a business performance standpoint, hiring managers ensure that the right talent is brought in to drive efficiency and innovation. The right employees contribute to business growth by streamlining operations, improving customer experiences, and bringing new perspectives to problem-solving. Research from McKinsey & Company highlights that high-performing talent is 400% more productive than their average counterparts in complex roles.

Without an effective hiring manager, businesses face misalignment, lost productivity, and unnecessary hiring costs. Explore the challenges of talent acquisition and how hiring managers can overcome them here.

Common Hiring Managers and Cost Comparison

In most organizations, hiring managers play a crucial role in identifying and selecting the right talent for their teams. These managers come from various departments, each with unique hiring needs. Below are the most common hiring managers and a general cost comparison of their salaries.

Operations Manager

Oversees daily business activities, optimizes workflows, and ensures efficiency in production, logistics, or service delivery.

Philippines Annual Salary:	USD 16,082
United States Annual Salary:	USD 47,598

HR Manager

Manages recruitment, employee relations, performance management, and compliance to support a productive workforce.

Philippines Annual Salary:	USD 18,687
United States Annual Salary:	USD 64,587

Marketing Manager

Develops and executes marketing strategies, campaigns, and branding efforts to drive business growth and customer engagement.

Philippines Annual Salary:	USD 22,535
United States Annual Salary:	USD 65,638

IT Manager

Leads the IT team, ensuring technology infrastructure, cybersecurity, and system functionality align with business needs.

Philippines Annual Salary:	USD 36,686
United States Annual Salary:	USD 61,283

Finance Manager

Handles budgeting, financial planning, reporting, and risk management to maintain the company’s financial health.

Philippines Annual Salary:	USD 28,967
United States Annual Salary:	USD 76,840

To get a more tailored estimate based on your company’s needs and industry benchmarks, try our Employee Cost Calculator here.

Final Thoughts

A hiring manager is more than just a decision-maker—they are the architects of business success. Companies that invest in strong hiring processes see improved performance, culture, and retention.

For SMEs, startups, and global companies looking to scale efficiently, we provide valuable final interview insights to ensure you hire the right talent. Penbrothers provides the perfect hiring solution. Our offshore staffing expertise ensures you find the right talent at the right time, without the usual hiring bottlenecks.

Looking to build a world-class team? Let Penbrothers help you hire smarter, faster, and more cost-effectively. Learn more today!