Internal and External Recruitment: Advantages, Disadvantages & Process

Posted on Oct 26, 2024 in Economy

Internal and External Recruitment

Internal Recruitment

Disadvantages:

  1. Potential Tension: Tensions may arise between eligible partners if the selection process is not handled properly. This can demotivate employees and reduce their confidence in management.
  2. Limited Candidate Pool: The recruitment procedure significantly reduces the number of candidates as it’s limited to the company’s existing workforce. This can lead to missed opportunities to access a wider talent pool.

External Recruitment

In this mode, employers seek candidates from outside the organization. The recruitment procedure varies depending on the level of the position:

  • Senior Management: Executive search firms, universities, and professional associations are common sources.
  • Intermediate Levels: Advertisements in journals and online platforms are frequently used.
  • Low-Skilled Jobs: Public employment offices, employee referrals, and networking are common methods.

Important External Sources and Methods:

  • Press Advertisements: Placing job ads in newspapers and magazines, particularly in employment or industry-specific publications.
  • Spontaneous Applications: Companies may create an application or database for potential candidates to submit their resumes, even when there are no immediate openings.
  • Employment Agencies: Public and private agencies act as intermediaries between job seekers and employers. Temporary Employment Agencies (ETT) hire workers directly and assign them to companies on a temporary basis.
  • Universities: University career centers assist graduates in finding their first jobs.
  • Professional Associations: These associations play a significant role in connecting newly qualified graduates with potential employers.
  • Employment Databases: Agencies maintain databases of individuals’ resumes, often focusing on specific industries or professions.
  • Competitors: While ethically questionable, some companies may try to recruit employees from competitors by offering financial incentives and career advancement opportunities. This can lead to a counterproductive cycle of employee poaching.
  • Recommendations: Employee referrals can be an effective and efficient recruitment method. However, it’s important to maintain objectivity and avoid favoritism.
  • Public Employment Services: Government agencies that manage employment policies, promote job training, and connect job seekers with employers.
  • Specialized External Companies: Human resource consultants that provide various recruitment services.
  • Training Centers: These centers can be valuable resources for finding trainees or individuals with specific qualifications or expertise.

Advantages of External Recruitment:

  1. Fresh Perspectives: New hires can bring in new ideas and contribute to innovation.
  2. Reduced Internal Conflict: Avoids potential conflicts that can arise from internal promotions.
  3. Supports Growth: Essential for companies undergoing expansion to avoid limiting growth potential.

Disadvantages of External Recruitment:

  1. Cost and Time: Using specialized recruitment firms can be expensive and time-consuming.
  2. Demotivation: Existing employees may feel demotivated if they are not considered for promotions.
  3. Training and Adaptation Costs: New hires may require training and time to adapt to the company culture.
  4. Culture Clash: The new hire’s work style or values may not align with the company’s culture.

The Selection Process

After gathering a pool of applicants, managers must determine if they are qualified for the open positions. If multiple applicants meet the requirements, managers should select the most suitable candidate based on their skills, experience, and potential to excel in the role.