Internal Recruiting V/s External Recruiting

Internal Recruiting or External Recruiting: which one is better and turns out to be fruitful in terms of required staff? For that, we need to understand both the concept of Internal Recruiting and External Recruiting.

Internal Recruitment means focusing on current employees and others with previous contact with an employing organization. Friends of present employees, former employees, and previous applicants may be sources. Promotions, demotions, and transfers also can provide additional people for an organizational unit, if not for the entire organization.

- Promotion and Transfer
- Current Employee Referrals
- Recruiting Former Employees and Applicants

If internal sources do not produce sufficient acceptable candidates for jobs, many external sources are available. These sources include schools, colleges and universities, employment agencies, labor unions, media sources, and trade and competitive sources.

Internal Recruitment is definitely a priority because current employees have a better understanding of the business, culture, and environment compared to outside candidates. In case the company is moving towards a new project or business outside its expertise, external recruitment would be a choice to invite applications according to expertise requirements.

External candidates can act as change agents for companies whose culture and environment resist change compared to internal employees who are accustomed.

Internal Recruitment helps motivate employees to work hard and perform, which can lead to improved performance and job shifts to avoid monotony and mundane tasks.

In external recruitment, there are more intermediaries like consultancies and consultants, while in internal recruitment, the intermediaries are involved as the candidates applied are their own employees.

By Priti Shah

Laurent & Benon Management Consultants Ltd, a public limited company with its corporate office in Gurgaon and multiple branches. We, as an organization, strive to offer the right Human Resource Solutions at the right time and enable our clients to enhance the net worth of their human resource capital.

For further information, please visit us at http://www.laurentandbenon.co.in/

Hi Folks,

Please tell me the difference between Internal Recruitment and External Recruitment. Also, let me know how you guys will maintain the employees' databases. I mean, what techniques will you use? Please, guys, help me with this.

With Regards,
Nitin
nitin.957@gmail.com

Hi Nitin,

Internal recruitment refers to in-house recruitment, which you will conduct for your company only, i.e., filling up positions within your own company.

External recruitment involves providing candidates to your clients to fill their positions, essentially working for your client.

There are numerous software options available to maintain the database, or alternatively, you can also use an Excel sheet for this purpose.

Thanks & regards,
Kajal Ratnesh

Hi there,

The difference between Internal & External Recruitment:

Internal Recruitment:
Internal recruitment is when you try to fill a position in your organization using internal available resources. This means that there are employees within the organization who are fit to fill the created or required position, as opposed to external recruitment. This method is helpful if you want to hire people in management positions. Usually, the company prefers to recruit people from within the organization because they have been there longer and know the organization very well.

External Recruitment:
External recruitment is when you advertise in local or international papers to find candidates to fill positions in your organization. This method is mostly used and may also include outsourcing recruitment. Sometimes, when organizations fail to find suitable employees within the organization to fill a created position, they use external recruitment methods.

Internal or External Recruitment

Internal recruitment is the most favored source of candidates in stable and developed companies. Internal recruitment requires strong support from other HR processes because an unmanaged internal recruitment process can lead to dissatisfied managers and employees within the organization. Succession planning and consistent performance management are necessary to ensure the success of internal recruitment.

Internal recruitment offers the opportunity to change job positions within the organization, but an efficient internal recruitment process requires support from other processes to provide managers with additional information. Without this additional information, the internal recruitment process may not add much value. Internal job candidates should be familiar to the organization, and the HR function should provide the hiring manager with background information.

The internal recruitment process must be guided by strict and agreed-upon HR rules and policies, as unclear rules can create tension within the organization, leading to top employees being easily poached by different units or managers. While the issue may seem simple to resolve, reality can bring challenging conflicts among the management team that significantly impact organizational performance.

Internal Recruitment Pros and Cons

Internal recruitment can foster strong loyalty within the organization as employees have the opportunity to change positions over time, reducing the need to seek external opportunities. It can also be cost-effective for the organization, saving on training and induction costs for new employees. Additionally, since candidates are familiar with the organization, the risk of failure is minimized.

However, internal recruitment requires strong management from the HR function and may lead to conflicts that HR must adeptly resolve. Internal recruitment can also pose challenges when candidates come from a single department, as managers must balance their interests in maintaining operational smoothness. Overreliance on internal recruitment may hinder the introduction of new skills and competencies.

External Recruitment Pros and Cons

External recruitment introduces new talent to the organization, providing significant benefits. It allows organizations to define specific requirements and select candidates that best fit their needs. External recruitment can often be a quicker solution, especially in saturated job markets, and can enhance the organization's reputation, aiding in future expansion.

On the downside, external recruitment is costly and demands substantial effort from the HR function to manage the selection process effectively.

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Dear Peer,

In both internal and external recruitment, there are advantages and disadvantages.

In internal recruitment, the person requires less training about the organization and process; the person will start the work from the next moment once he/she is appointed. This will motivate other employees to perform well to gain the promotion. However, disadvantages may include ego clashes among colleagues and the potential for partiality or favoritism.

On the other hand, in external recruitment, the advantages include the newly appointed person bringing in new ideas and strategies learned from their previous employer. Ego clashes are less likely to occur. Nonetheless, in external recruitment, the disadvantages may involve senior staff members not readily obeying the new hire's commands and the new employee taking more time to learn and adapt to processes.

In any case, if the person is suitable for the vacancy, kindly proceed after proper counseling.

Regards,
Nelson
Chennai

Internal recruitment involves promotion, internal department change, demotion, or transfer within the organization.

External recruitment, on the other hand, refers to hiring a new individual for a specific position in a company either directly or through external agencies.