Today, most organizations are moving away from the traditional hiring process where outsourcing of workforce was entirely internal. Companies understand that they may lack all the necessary resources within the organization. Therefore outsourcing externally helps in solving the problem. Outsourcing externally also allows the company to successfully thrive and compete with other expanding companies in the region. Managers are faced with a challenge when recruiting both internally and externally, and there is a need to balance between internal and external workers. This paper seeks to discuss the best strategies a manager can use to balance the external and internal workforce, and the best situations companies should consider hiring internally or externally.
Balancing Between Internal and External Recruitment .
The best method to consider when balancing internal and external workforce is considering knowledge investment. Companies need to measure the knowledge-based investment they make into a resource since such investments as training and leadership development may be quite expensive (Barry, 2020). If an employee is reassigned or moves out, the company may suffer in terms of cost, especially if the company and highly invested in the individual. Most companies would consider retaining the employee. When higher administrative roles require less knowledge, the manager may prefer outsourcing the workforce.
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A manager can also offer equal opportunities among the outsourced and internal employees. Internal employees may sometimes lack motivation, especially when they feel that the new employees are taking their roles. The manager should be in a position to educate the retained employees on the benefits of outsourcing externally. As a manager, tell the employees that outsourcing externally helps to have innovative ideas that will transform the organization. The manager should engage both internal and external workers when reassigning roles to share knowledge among the employees. Such moves motivate the employees, and they willingly accept to learn from each other. As a manager, it is also essential to offer an equal level of respect without looking down upon other individuals.
Best Situations to Hire Internally
A company may consider hiring employees internally when there is a small budget. Externally hiring employees is expensive due to the process involved, such as searching, interviewing, and selecting new candidates (Abdou, 2021). The company may face a challenge when a low budget can not cater to all the requirements. To save all the expensive costs, the company can promote individuals within the organization. When a company hires employees internally, they do not consider posting ads on boards and subscribing to resumes databases. It is easier to inform employees about internal hiring through the companies newsletter, thus saving money for job adverts.
Another situation a company can consider when internally hiring employees is when there is a need to strengthen employee engagement. Employees get motivated when working together with shared common goals and values for a company to thrive. Promoting within the organization shows how a company values its employees (Abdou, 2021). Most employees are interested when a company gives them a chance to advance their careers by moving to another position that interests them. Employees who change roles within an organization develop professionally. Companies that engage in strengthening employees help to build trust among individuals.
When there is a need to reduce hiring time, a company can consider recruiting employees within the organization. When recruiting externally in an organization, Hiring teams find candidates either by outsourcing or through job posts that require evaluation and persuasion to join the company, and the process takes a lot of time. It becomes easier to engage candidates within the organization since their track record is easily accessible, and they do not always need interviews.
Best Situations to Hire Externally
A company can consider recruiting outside the organization when there is a need to bring new innovative ideas. Sometimes when people stay so much longer in an organization, they adapt to each other individuals ideas (Abdou, 2021). A company can also lack enough workforce and skills. Therefore outsourcing new ideas help the company to have a steady growth. When the company needs to hire more experienced workers, they consider outsourcing jobs outside the company. Promoting employees to new positions calls for extensive training to fit the new role. Hiring employees outside the company will help bring highly experienced and skilled individuals who can work the new role.
Implications for Hiring Internally and Externally
Internal recruitment motivates and increases employee’s effort to perform their tasks. Companies that recognize employee engagement help boost their morale. Hiring outside the company makes employees feel undervalued and that their roles are being replaced, which lowers the performance level.
Internal recruitment helps develop and upskill the workforce, which later translates to better performance and maximum effort. Most employees need to learn new skills, and the lack of such an opportunity makes them leave the company. Promoting within the organization shows how much a company value and trusts its employees. Employees will commit to an organization that values employee service. Commitment means that a company can retain employees by upgrading their skills and expertise to a new level.
Most organizations have individuals with multiple talents and skills. Therefore external recruitment can limit such employees from showcasing their talents. Failure to give the employees a chance to showcase their talents makes them lose their morale to work with the organization. Instead of focusing on one strict profile for employees, companies should consider multiple profiles that show diverse talents and skills. This will help employees to share knowledge among themselves. Employee’s morale increases when they work together as a team while sharing knowledge amongst themselves.
References
Abdou, Y. (2021, January 29). Recruitment Process: Internal Vs External Recruitment . Factorialblog. https://factorialhr.com/blog/recruitment-process-internal-external/
Barry, J. (2020, September 22). How to Balance Internal and External Staff Within Outsourcing Models . CONTRACT PHARMA. https://www.contractpharma.com/contents/view_experts-opinion/2020-09-22/how-to-balance-internal-and-external-staff-within-outsourcing-models/
