Pros and Cons of Internal and External Recruiting Essay.

Pros and Cons of Internal and External Recruiting Essay.

Pros and Cons of Internal and External Recruiting Essay., ,When openings are created in a company, recruiters generally go about advertising on every possible platform in the pursuit of talent. But before you bombard every medium with your, “We are Hiring” adverts, step back and rethink your recruitment process.,Which are the most lucrative recruiting resources? Should you be looking for talent internally or is external recruitment your preferred approach? This is the biggest dilemma faced by maximum recruiters as there are pros and cons associated with each source. If you don’t want to rely on either source exclusively, weigh your options to ensure that your recruitment process increases your conversion rate.Pros and Cons of Internal and External Recruiting Essay.,What is Internal Recruitment?
Internal recruitment is the process of filling up open positions within the organization from its current workforce. Instead of releasing the positions into the job market, the HR department chooses to advertise the vacancy internally for the current employees to apply for it.,Types/Methods of Internal Recruitment
Temporary to a permanent position
Part-time to a full-time position
Employee referrals
Process of Internal Recruitment
Write a detailed job ad focusing on the job role and its responsibilities, the skills required, and the experience sought.Pros and Cons of Internal and External Recruiting Essay.
Announce the job opportunity as a ‘News’ in an email.
Update the Careers/Jobs section of your company intranet.
If you don’t have an intranet, post the job on your company website.
Put up the job ad on the company noticeboard.
Wherever your job ad is posted, make sure that the ad clearly states whom the employees should contact if they want to apply for the role.
Advantages of Internal Recruitment
Reduced Time to Hire
With internal recruiting, you save all the time you otherwise spend on identifying, attracting and engaging candidates. You have instant access to your candidates and their track records, they are already a culture fit and also pre-screened for the position, and the department is already acquainted with the candidate!Pros and Cons of Internal and External Recruiting Essay.,Shortens the Induction Process
Every new hire takes some time to get acquainted with new people and processes but an internal hire is already familiar with the company’s policies, practices and people. All they need to know about is their new role and its responsibilities.,Cost-effective
Internal recruitment is cost-effective because unlike external recruitment it does not involve job postings, resume screening, filtering relevant resumes, communicating with shortlisted candidates, and conducting interviews. You simply need to narrow down on the most suitable candidates and hire the right fit to fill the open role.,Improved Employee Morale
Internal promotions send out a message that that you value your staff and are willing to invest in their career growth. Giving your current employees more opportunities for career advancement by changing their roles will work to boost their morale and motive them to do better in their new roles.,Disadvantages of Internal Recruitment
May Stagnate the Company‘s Culture
While internal recruitment does save a lot of your time, energy and resources, it is not without drawbacks. It can rust the company’s culture because when employees get too comfortable with the processes and procedures, they are unable to spot operational inefficiencies and struggle to innovate.,Increased Training Costs
Just because a current employee seems like a perfect fit for a new role and has all the desired qualities, does not mean he/she won’t need training. With external recruitment, you get a candidate with all the required skills, experience and attributes that allow him to be productive immediately. But, an in-house recruit is not likely to take on all the responsibilities and perform a role efficiently from day 1.,Limited Choices
Your organization may be having several qualified employees for certain positions, but they may not be a perfect match for an open position. For instance, if a recently created role is fairly innovative and new for your business, then your current employees may not be able to fulfil the responsibilities of this role. For this role, you would need someone with new ideas and skills.,May Lead to Workplace Hostility
Employees who have been considered for a promotion for a certain role could feel resentful if an external candidate or their own colleague is hired for that role eventually. Also, managers are reluctant to give away their star performers as losing them would impact the entire team’s performance. In fact, certain managers would also go the extent of hindering the process of transfer or promotion and this can lead to hostility at work.,What is External Recruitment?
External recruitment is the process of filling open roles of the company with applicants, outside the current employee pool.,Types/Methods of External Recruitment
Top executive search firms
Employment agencies
Event recruiting
Best professional associations
Special career events
Job fairs
Open houses for on the spot job offers
Online recruiting
Process of External Recruitment
Posting the job positions
Closing the posting
Analyzing and then shortlisting the applicant candidates
Scheduling a preliminary test for all shortlisted candidates
Setting up interviews with candidates
Conducting interviews
Selecting candidates and carrying out reference checks
Offering employment to selected candidates
Advantages of External Recruitment
Increased Conversion Rate
External recruitment attracts a variety of candidates with different capabilities and skill sets, thereby increasing your chances of landing maximum suitable candidates.,Better Quality Candidates
A creative external recruitment campaign enables the recruiter to tap top choice candidates. When automated with an applicant tracking system, the external recruitment process expands your reach, attracts the right candidates, keeps them engaged and makes it much easier to bring them onboard.,Attracts New Skills and Inputs
External recruitment greatly increases the possibility of identifying and attracting fresh talent. This talent comes onboard with new skills and business ideas that have the ability to take your business to the next level.,Brings New Business Insights and Ideas to the Table
External recruitment attracts a variety of applications from candidates with varying work experiences. This gives you easy access to candidates who’ve gained knowledge from working for different companies. Hiring these candidates would mean gaining insights into new and innovative business practices and knowing other aspects of your competitor’s businesses.Pros and Cons of Internal and External Recruiting Essay.,Disadvantages of External Recruitment
Higher Risk
The external recruitment process can attract candidates who are not relevant or worthy of the open position. Since maximum candidates are total strangers to the recruiter, the risk of brining a misfit onboard cannot be ruled out completely.Pros and Cons of Internal and External Recruiting Essay.,Greater Cost
The external recruitment process involves posting jobs on different platforms, coming up with compelling JDs, communicating with candidates, screening resumes, conducting interviews and coming up with an irresistible offer. All of these aspects of the recruitment process are time-consuming, tedious, complicated, and costly.,Time Consuming
The biggest downside of an external recruitment drive is the time taken to fill open positions. Recruiters receive hundreds of resumes for every open position and screening them takes up a lot of time. However, using an applicant tracking system can take this entire screening time from hours to minutes and narrow down your talent tool to include only qualified candidates in a jiffy.Pros and Cons of Internal and External Recruiting Essay.,Possibility of Maladjustment
It is possible that your new hires may not be able to adapt to their new working environment and break the ice with their new team members. When recruiters fail to hire a culture fit, new hires often leave the job and need to be replaced, requiring recruiters to hunt for new candidates.,Whether you are recruiting internally or externally, automating your recruitment process will ensure that you bring only the best candidates onboard much faster. Sign up for Jobsoid’s free trial today and save your time, money and resources as you build an effective and efficient hiring process.,Hiring from inside your business makes sense because new hires are already part of your team and know your culture and policies well. But despite the benefits of internal recruitment, relying too much on promotions and lateral job moves might have negative side-effects.,Here are eight advantages and disadvantages of internal recruitment and how to ensure that when you are hiring internally, your process works:,Advantages of internal recruitment
Hiring internal candidates can be more efficient than recruiting externally, because it can:,Reduce time to hire
When recruiting externally, hiring teams find candidates (either through sourcing or job posting), evaluate them and, if all goes well, persuade them to join their company. All of which takes time. Conversely, internal candidates are already part of your workplace, so the time you need to find and engage those candidates is much less. It’s also easier to assess internal candidates because:,They’re prescreened for culture fit.
Their track record is easily accessible.
They may not always need full interviews with managers (for example, if they are moving within their department, the department head already knows the candidate.)
All these reduce the time spent on each hiring stage and your overall time to hire.,The New World of Work
Both entry/mid and senior-level execs admitted that changing business logistics will be a huge challenge in the new post-COVID environment.,Read more in our report,Shorten onboarding times
Everyone needs some time to adjust to a new role, but internal hires are quicker to onboard than external hires. This is because they:,Know how your company operates and most of your policies and practices.
May be familiar with people in their new team, especially in smaller businesses.
May already know the content and context of their new roles if they move within the same team or to a similar one (for example, a sales associate becoming a category manager).
Cost less
Research has shown that external hiring may cost 1.7 times more than internal hiring. This is because when hiring from within, you usually don’t need to:,Post ads on job boards. It’s easy to inform internal candidates about job openings through email or your company’s internal newsletter. You could also place printed job ads on a bulletin board, if all your employees work in one place.
Subscribe to resume databases. Instead of sourcing passive candidates on resume databases, ask managers about their team members or look into your HRIS to find coworkers who might fit in your open roles.
Pay for backgrounds checks. You may already have conducted background checks on internal candidates when you first hired them. And, you know if they’re in good standing based on their manager’s input or employee records.
Strengthen employee engagement
Promoting from within sends a message that you value your employees and want to invest in them. Giving employees more opportunities to advance their careers, or even letting them move to other same-level positions that may interest them, is good for morale: employees who change roles develop professionally and others know they may have similar opportunities in the future. This helps to build a culture of trust that enhances employee engagement and retention.,Disadvantages of internal recruitment
Despite all the merits of internal recruitment, there are some things to keep in mind. Hiring from within can:,Create resentment among employees and managers
Employees who were considered for a role could feel resentful if a colleague or external candidate is eventually hired. Also, managers are often uncomfortable losing good team members and may even go so far as to hinder the transfer or promotion process.,Leave a gap in your existing workforce
When you promote someone to fill an open position, their old position becomes vacant. This means that a series of moves and promotions may ensue that could disrupt your business’ operations. Ultimately you may need to turn to external recruitment in addition to your internal hire.,Limit your pool of applicants
While your company may have a lot of qualified candidates for specific positions, this isn’t necessarily true for every open role. For example, if a role is fairly new to your business, your employees will have other specialties and may not be able to fill this skills gap. Relying solely on internal hiring means you could miss the chance to hire people with new skills and ideas.,Result in inflexible culture
Doing most of your hiring from inside your business may result in a stagnant culture. This is because employees can get too comfortable with the ‘way things are done’ and struggle to spot inefficiencies and experiment with new ways of working. An inflexible culture will be more problematic in leadership positions where employees may need to advocate for change and improvements instead of relying on established, inefficient practices. External hires are essential in shaking up culture and offering a fresh perspective on existing problems.,What could you do to mitigate the disadvantages of internal recruiting?
To avoid resentment, cultivate trust and ensure you hire effectively, you could:,Ensure promotions or job moves aren’t the only ways to recognize employees or help them advance their careers. Consider offering opportunities for training, job shadowing and job rotation. Also, lay the foundation of rewarding employees frequently (for example, encourage supervisors to praise their employees or give out performance-related bonuses.)
Have a transparent process. Ensure internal candidates understand your hiring process and why they weren’t selected. It’d be good to give them interview feedback or pointers on what skills they might need to develop to be successful in the future.Pros and Cons of Internal and External Recruiting Essay.
Train managers to prepare their team members’ career paths. Help managers think of possible career moves for their team members and ask them to take part in formulating your business’ succession plan. That way, if a position opens, you could immediately consult your plan to see which employee may be a good fit.
Avoid communicating an opening if you already have a candidate in mind. Communicating an open role means that you give employees hope that they might be hired for this role. But if hiring teams already prefer a particular candidate, it’s best to reach out to them directly first, instead of encouraging others to apply.
Use a balanced mix of internal and external recruiting. Each time you want to fill a position, decide whether to recruit internally, externally or both. Base this decision on the job requirements and the skills your current employees have as well as your company’s needs for a culture add.
At the end of the day though, whether you’re focused on internal vs external recruitment, it’s important to structure your hiring process to ensure fair and effective recruiting. Use screening tests and structured interviews, which help you assess candidates more objectively, and communicate well with all candidates. These practices will help you make good hiring decisions and will also build trust in your hiring process.Pros and Cons of Internal and External Recruiting Essay.,There are numerous factors hiring managers and other executives must take into account when making decisions for a new position. These include everything from defining a job description to creating a salary range and, of course, whether to bring in an external hire or promote an internal employee. This is typically one of the most difficult decisions, especially within a smaller, tight-knit organization. The choice to hire externally is made 18% more often than promoting an internal employee. Despite this fact, there are pros and cons to both options.,External candidates may offer new ideas that bring about change in an organization, while internal candidates are already up to speed on company policies and procedures. It’s important for the success of the hire and the business that managers make the most informed decision. Here are some of the pros and cons that come with hiring externally and promoting from within.Pros and Cons of Internal and External Recruiting Essay.,Internal Employee Promotion
While statistically, external hires are made more frequently, there are numerous advantages to promoting an employee from within. First, existing employees are already aware of all policies and procedures and have possibly even completed certain similar job tasks in the past. External hires often take longer to get up to speed and may be less successful than internal hires.,In fact, external new hires are 61% more likely to be fired from their jobs than those who were promoted. The slower pace of learning and failure to thrive can be costly to a business. Excess training may be required to ensure effective learning and productivity, and businesses spend anywhere from $1,075 to $1,886 on training per employee.,However, there is one major con to promoting an internal employee. On occasion, employees experience burnout due to stress or other factors, which often leads to lower productivity and lack of creativity.,Searching for an External Hire
Option number two for hiring managers to consider is making an external hire. These candidates often bring with them new ideas and a clean slate filled with creativity and new opportunity for growth and learning, which can be beneficial for teams and the entire business. Often, businesses don’t always recognize their need for change, and external hires can help illuminate the necessity.,On the flip side, external hires can also cause a variety of issues. For example, there may be animosity if an existing employee thought he or she might receive the new position or if the internal team struggles with the new leadership. Either way, these are possibilities that executives must prepare for.,Hiring is always a challenge involving numerous factors and decisions that must be made. When it comes to choosing to hire externally or internally, all the pros and cons must be taken into account in order to make the most informed decision that is best for the business and the overall bottom line. However, if all possibilities are accounted for and the correct choice is made, organizations should find themselves in a successful situation.Pros and Cons of Internal and External Recruiting Essay.

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