Internal and External Recruitment
Recruitment is the process of finding and hiring suitable candidates ( from within internal or external of an organization ) to fill the positions. The process involves searching, sourcing, and selecting the right candidates for the roles to the organization. What is Recruitment?
What are the different sources of recruitment?
The different sources of Recruitment are classified into two categories.
- Internal Sources
- External Sources
What is Internal Sources?
This involves recruiting candidates within an organization to fill the vacancy. Unlike external sources, companies fill the positions through references of internal employees or current employees’ promotions to higher positions.
Methods of Internal Recruitment
- Internal Advertisements ( emails, newsletters, forms )
- Word of Mouth
- Internal Employee Referrals
- Retired Employees for temporary or contract positions.
- Present temporary/contract employees to permanent positions
- Former employees for part-time/freelancer/work at home.
Advantages of Internal Recruitment
- No cost and less time consuming
- No need for training
- Builds strong relationships with employees.
- Motivates others of hard work to get high positions.
- Easy to pick the best talents within an organization very quickly
- Long stay with the company when promoted to high position. Advantages of Internal Recruitment
Disadvantages of Internal Recruitment
- The positions of the persons who are promoted will be vacant.
- There may be partiality in promoting employees.3. No new opportunities for external candidates.
- Dissatisfied employees may quit if their co-worker is promoted to high positions.
What are External Sources?
This involves recruiting a candidate through references, networks, job portals or they may approach recruitment agencies. In order to compete with other companies &increase their standard, employers hunt for the best talents working for other top companies.
Methods of External Recruitment
- Job Portals
- Internal and External Employee Referrals
- Recruitment/Headhunting agencies4. Job ads on Newspapers/Websites
- Campus Recruitment
Advantages of External Recruitment
- Create new opportunities for external employees.
- Best candidates can be placed for the roles3. Cost of employees can be minimized4. Increase in the selection ratio.
- There are fewer chances of partiality
- Uniqueness in employees worked for different companies can take the current company to extra mile
- Able to recruit the skills it needs.
Disadvantages of External Recruitment
- The cost to hire is high.
- The external process is more time-consuming as compared to the internal process.
- Sourcing quality candidates becomes difficult for the companies.
- Internal recruiters lack headhunting skills (Fewer references & networks ). They may have to approach Recruitment agencies to hire the people.
Internal Recruitment vs. External Recruitment
With a lot of competitors and rapid changes in technology, companies look for candidates working in similar domains of different skills and uniqueness to build their business. Employees within a company lack modern technology process that cannot compete with other companies, can bring the company to a low level. Unlike Internalemployees, external passive candidates can bring a lot of changes to the companies with innovative ideas and creative skills to improve business-standard. As technology moves to an advanced level, customers begin to use the latest technologies. In order to compete with other companies, external employees with latest skills and thorough knowledge of business economy and competitive place are responsible for better business growth.
When internal employees fail to do so, employers go searching for external candidates with rich sources of latest skills to fill the positions. These external candidates are not so easily available on job boards. They are happy working in their current organization and do not look for a career change. Contacting these successful candidates requires great sensitivity to convince them to take up the new opportunities. These hidden talents can be found only through references and a wide network. When internal recruiters of the organization fail to recruit such candidates, they go for headhunting agencies. Thus, to hire quality candidates external recruitment becomes necessary for companies.
Though external recruitment is costly, it is far better than internal recruitment. Various recruitment and headhunting agencies are modernized to hunt candidates through various techniques. They research the marketplace; know the competitors and source the best talents for the positions.