In order to continue being competitive in the marketplace, the companies have to adopt the key approach of effectual recruitment of skilled and competent candidates. Nevertheless, one of the most challenging tasks that companies and business leaders face is the determination of an appropriate recruitment strategy i.e. internal and external recruitment. Internal recruitment is the filling of job openings by selecting the existing employees within the organization. On the other hand, external recruitment refers to the filling of job positions from outside the organization (Croteau, 2012).
In general, the large and established companies apply internal recruitment process as they have a great pool of experienced applicants. Thus, internal promotions are used as an employment and retention tool in this strategy. It is, in fact, an effort for creating employee devotion, dedication and commitment in addition to continuing job satisfaction. On the other hand, the external recruitment practice is adopted by the companies when they know that they do not have good internal candidates within the organization for the vacant position or when the requirement is genuine neutrality (Croteau, 2012).
Both internal and external recruitment strategies have some potential advantages and disadvantages. Therefore, it is indispensable for the businesses and organizations to consider the pros and cons of both before selecting candidates for the vacant positions. As far as internal recruitment is concerned, it is beneficial for companies because it facilitates ease for the recruiters to evaluate candidates as more information is available. Secondly, it is less expensive and faster than going for external hunt. Thirdly, the employee who gets the promotion is already acquainted with the environment and policies of the company. Moreover, it makes the morale and employee satisfaction better. Not only this, internal recruitment lessens the expenditures on a number of jobs. Lastly, the organization doesn’t have to disturb the apple cart as internal recruitment doesn’t require major changes to be made. On the other hand, it may have certain cons including organizational inbreeding, heavy burden o trainers and increase in workplace politics (Aswathappa, 2007).
External recruitment is advantageous because it opens doors for fresh perspectives and ideas from outside. It instigates a turnaround and allows quick development. Not only this, there are less chances of internal politics as the existing organizational hierarchy is not disturbed. Most importantly, it promotes diversity at the workplace and makes the talent pool bigger and better. On the other hand, it may be disadvantageous due to the cost it requires. Moreover, it denies better morale development offered by internal hiring. In addition, the new employee(s) may take a lot of time to adjust at the workplace (Aswathappa, 2007).
A situation in which internal recruitment might be particularly effective is when an employee leaves the company on a short notice and his/her fellow-workers (with the same level of competence and skills) can be promoted to the vacant position. On the other hand, an external search can be significantly useful in a situation when the company has developed a new direction or vision and get new people with the right profile to execute the targeted mission.
References
Aswathappa, K. (2007). Human Resource And Personnel Management. New Delhi: Tata McGraw-Hill Publishing Company Limited. Retrieved January 29, 2013, from http://books.google.com.pk/books?id=-xIWlA_UHnAC&printsec=frontcover&dq=Human+Resource+And+Personnel+Management&hl=en&sa=X&ei=1NoHUfmPCIjktQbH2IHgAw&ved=0CC0Q6AEwAA
Croteau, P. (2012, July 12). Hiring the Best: Internal vs. External Recruiting - Legacy Bowes Group Articles. LEGACY BOWES GROUP | RECRUITERS | HR CONSULTING | WINNIPEG | MANITOBA. Retrieved January 29, 2013, from http://www.legacybowes.com/authors/entry/hiring-the-best-internal-vs-external-recruiting.html
