Internal VS External Recruitment: Benefits and Disadvantages

Recruitment simply means, the action of ‘enlisting new people’. This can apply to anything, a job, a church or the army.

In terms of recruiting for jobs, the nature of recruitment has always remained the same, but the methods of recruitment have changed so much over the years.

It is important to review your recruitment practices ever so often.

This article is going to be taking a look at internal and external recruitment process, including some of the advantages and disadvantages of both.

What is internal and external recruitment?

Internal recruiting is when a business or organisation intends to fill a vacancy from within its existing workforce.

External recruitment on the other hand is when an organisation looks to fill vacancies from applicants outside of the company.

There are advantages and disadvantages of both methods of recruitment, it’s worth noting that both methods are not mutually exclusive and could be used at the same time.

Internal Recruitment

Benefits

It’s cheaper and faster to recruit staff internally than it is externally as it leverages employees that you already have.

Internal recruitment promotes loyalty and can even improve employee morale as it serves as a reward for existing employees.

Also, it saves time and money on training as the internal applicant will have more knowledge of the organisation and culture.

It also contributes to reducing employee turnover.

Matching internal candidates with the roles that fit the personality and skills means that they stay longer at the company and increases employee retention.

Disadvantages

Recruiting from within limits the chances of new innovations and ideas as existing employees are more comfortable with the processes and not looking to change.

Plus, you’ll be leaving a gap in the workforce.

Even if you’ve recruited for a position internally, you’ll still have a gap in the workforce as you’ll need to find a replacement for the vacant position.

Constant internal recruitment can result in a stagnant culture.

Employees can get too comfortable whereby an external recruit may come in and shake things up.

External Recruitment

Benefits

Having someone from the outside brings in new ideas and new ways of doing things.

This can shake up the business.

You can cast a wider net to recruit the best workers with the most suitable skills.

Relying solely on internal hiring means you could miss the chance to hire people with new skills and ideas.

Therefore with external recruitment you can increase your chances of recruiting experienced and qualified candidates.

Disadvantages

New recruits will have a limited understanding of the company and company culture.

External recruits will have less of an understanding when it comes to the environment of the company.

Plus, there’s a greater risk involved with filling a position externally.

The new recruit might not be worth the position and can even take advantage of the employer or company.

Not to mention. internal disputes are bound to arise if existing employees feel that they were more suited for the position.

Summary

Thanks for your insight Alan!

Truly there are benefits to both internal and external recruitment, but at the end of the day it’s down to what suits you.

Some businesses will find different recruitment techniques that work, so it’s good to try out different routes before deciding on putting all of your eggs in one basket.

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