Typically startup businesses have very limited options when recruiting employees as compared to already operational ones. Such enterprises are therefore forced to outsource employees or recruit employees from outside. Existing firms or businesses advertise posts intestinally and allow room for interested employees to apply for the advertised positions. Notwithstanding the kind of business recruiters must consider the pros and cons of internal and external recruitment (“SHRM: Recruiting internally and Externally”, 2020)
According to the article, Internal hiring or external recruitment ?, the author maintains that recruitment is one of the most critical decisions for an organization. Recruiting from inside the company means forgoing the opportunity using an outside hire. Despite both being hiring methods, organizations always have a bias preferring insiders. It is the differences that exist between external and internal hires that assist employers in designing and managing hiring policies concerning what the organizations deem appropriate for them.
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Internal recruitment reduces the time involved in the tedious process of attracting, identifying, and engaging new candidates. In internal recruitment, the company has instant access to candidates with their track records and pre-screened resume for the relevant vacant post (DeVaro, 2016). Additionally, internal recruitment helps the company to save on the time required for new employees to get acquainted with new people, the policies of the company as well as its practices since such candidates’ only need to know about their new roles and responsibilities. Internal recruitment is relatively cost-effective because recruiting processes such as; job screening resume screening and filtering, short-listing, and communicating with such candidates as well as conducting interviews, are not involved. Moreover, internal recruitment boosts employee morale and motivates current employees to work towards achieving their full potential and accomplishing their career objectives
Internal recruitment is disadvantageous because it may cause conflict between the hired candidate and employees with similar interest in the vacant post. Internal recruitment blocks the company from securing new skills, ideas, and insights that may positively improve the company’s operations. Internal recruitment limits the company’s options for competent outsourcing candidates for a vacant post. All candidates recruited must undergo training before taking up their new roles, unlike external recruitment, where candidates are considered based on their skills, experience, and attribute relevant to the vacant post thus do not require much training.
External recruitment attracts candidates with varied skill sets, capabilities, and ideas, thus increases the chances of hiring a more competent and suitable candidate (DeVaro, 2016). This process of recruitment brings onboard candidates with varied work experiences and knowledge, thereby may help the company gain insights into new and innovative business practices. External recruitment promotes healthy workplace competition, therefore improving performance and enhancing productivity. However, external recruitment may increase the risk of hiring a misfit or irrelevant candidates. Additionally, external recruitment is tedious, time-consuming, and costly since it involves job screening resume screening and filtering, short-listing, and communicating with such candidates as well as conducting interviews.
I agree with the author that while both methods of hiring are used, promoting employees internally is a more prevalent practice than hiring externally. The practice is more intensified at the top job hierarchies’. This can be related to the lesser uncertainty regarding the productivity of the internal candidate as compared to the external. As suggested by the article, it is advisable to hire candidates internally or externally based on their competency. If there are any doubts about the suitability of an internal candidate, then the recruiter may seek external recruitment. In my view, it is essential to incorporate both internal and external recruitment.
References
Internal hiring or external recruitment?. IZA World of Labor .
Recruiting Internally and Externally. (2020). Retrieved 8 January 2020, from
https://www.shrm.org/resourcesandtools/tools-and- samples/toolkits/pages/recruitinginternallyandexternally.aspx