Organizational structures require precise terminology for roles and resource management. Employees, managers, and finance teams frequently use terms like “position” and “requisition” when discussing hiring needs. Although these terms often appear together in human resources discussions, they represent fundamentally different concepts in organizational and financial management. Understanding this difference is paramount for anyone involved in workforce planning, budget allocation, or the recruitment process.
Defining the Position
A position represents a static, permanent element within an organization’s formal structure, similar to a labeled slot on the official organizational chart. It is defined by a specific set of responsibilities, a job title, and a predetermined place in the reporting hierarchy. The position carries a detailed job description, outlining the necessary skills, experience, and duties required for the role.
Every position is aligned with a designated salary band and tied to a specific cost center for financial tracking and budgeting. The organization has formally allocated funds for this role to exist, even if it is currently vacant. A position remains a continuous part of the company’s structure until leadership formally decides to eliminate the role.
This structural element exists independently of the hiring process; it is a fixed container for work that needs to be performed. The authorized number of positions dictates the total, planned size of the workforce. The existence of a position confirms that the work function is authorized and funded as an ongoing operational need.
Defining the Requisition
A requisition, by contrast, is a dynamic and procedural document that marks a formal request to fill a specific vacant position. It is not a permanent part of the organizational structure but rather a temporary, transactional authorization required to initiate the recruitment process. The requisition is typically assigned a unique tracking number, allowing it to be followed through various stages of internal review and approval.
The primary function of the requisition is to trigger the financial approval workflow necessary to spend money on recruiting and hiring. The requisition must move through multiple layers of management and finance sign-off before a recruiter can post a job advertisement. This process ensures the budget associated with filling that vacant position is formally released and tracked against the current fiscal plan.
Unlike the position, the requisition is transient; it is opened when the need to hire arises and closed when the position is successfully filled or the request is canceled. If a new employee leaves, a new requisition must be created and approved to authorize filling the exact same position again. This procedural document acts as the formal authorization for the talent acquisition team.
The Essential Differences
The difference between the two terms lies in their permanence and function. The position is a permanent fixture of the organizational chart, representing a structural, authorized slot for work that exists until formally deleted. Conversely, the requisition is a temporary, transactional request that exists only to authorize the act of filling that position at a specific point in time.
A position is fundamentally related to organizational structure, defining the hierarchy and reporting lines. The requisition, however, is related to financial approval, serving as the necessary trigger to access the funds already budgeted for that slot. The position represents the long-term financial commitment, while the requisition is the mechanism used to release initial funds for hiring activities.
The position is static, defining the role’s parameters, salary range, and cost center allocation, regardless of its status. The requisition is dynamic, moving through an approval pipeline and acting as the authorization for a specific expenditure against the existing budget.
The Role of the Requisition in the Hiring Lifecycle
The sequential relationship between these two terms governs the entire hiring lifecycle within a structured organization. The process begins with a vacant position, which must already be an approved part of the organizational chart and budget. When a manager determines the work assigned to that position must be performed, a requisition is formally initiated.
The creation of the requisition is the first procedural step in seeking permission to hire, translating the structural need into an actionable request. This document enters the internal review process, where it is scrutinized by various stakeholders, including departmental heads and finance officers, to confirm budgetary justification. Only after the requisition receives all necessary management and financial sign-offs is the recruitment process allowed to proceed.
Once fully approved, the requisition transforms into a formal authorization for the talent acquisition team. The approved requisition provides the specific details of the position—the job description, salary range, and cost center—used to create and post the public job advertisement. The recruitment team uses the requisition number to track all associated hiring expenses and candidate activities until a successful hire is made.
Why This Distinction Matters for Business Strategy
Adhering to the precise definitions of position and requisition is important for effective business and financial strategy. The distinction is necessary for accurate headcount management, which dictates the total authorized size of the workforce. Positions represent the maximum authorized capacity of the organization, providing a long-term view of the company’s structure and financial commitments.
Requisitions provide a real-time view of current hiring activity and the immediate financial impact of recruitment efforts. Tracking requisitions allows organizations to monitor the speed and efficiency of the talent acquisition pipeline. This ensures that hiring aligns with short-term operational needs and budget constraints, maintaining financial governance.
Maintaining this clarity prevents administrative errors and ensures compliance with internal budgeting rules. If a manager attempts to hire without a formally approved requisition, they risk bypassing necessary financial controls, leading to unapproved expenses. Using the terms correctly allows finance and HR to communicate precisely about long-term structural authorization versus immediate spending approval.