Site-level Hiring Discretion and Speed in Tight Labor Markets

Abstract

This study examines whether site-level hiring discretion helps multi-site firms fill positions faster when labor markets are tight. We argue that local discretion enables site managers to use local labor-market knowledge, a benefit that is especially valuable when competition for workers is high. We develop a novel, scalable proxy for local hiring discretion using job posting data from LinkUp. Relying on a Bartik shift-share measure of local labor-market tightness, we find that tighter labor markets increase job posting duration, but this increase is smaller at sites whose postings diverge more from headquarters postings. The results suggest that local hiring discretion is an organizational capability that helps firms adapt to difficult hiring conditions. Methodologically, the study introduces a scalable approach to measuring within-firm hiring decision structure using publicly available job posting data.