Recruitment: Internal vs. External Hiring
- Imagine you're the HR manager of a growing tech startup.
- Your team needs a new project manager to lead a critical initiative.
- Should you promote someone internally or hire externally?
- This decision, whether to recruit from within or look outside, can significantly impact your organization's success.
Definition
Recruitment
Recruitment is the process of identifying, attracting, and selecting the best candidates to fill job vacancies.
Step 1: Identifying the Need for Recruitment
- Before hiring, a business must determine why recruitment is necessary. This could be due to:
- Business Growth: Expanding operations require new talent.
- Employee Resignation or Retirement: Vacancies must be filled to maintain productivity.
- New Skills Required: A shift in strategy may demand expertise not currently available in the company.
Job Description & Person Specification
| Process | Purpose |
|---|---|
| Description | Defines the role, responsibilities, and expectations. Includes job title, duties, reporting structure. |
| Person Specification | Outlines the qualifications, skills, and experience needed for the role. |
A well-crafted job description and person specification ensure the recruitment process attracts the right candidates.
Step 2: Choosing Between Internal and External Recruitment
Definition
Internal recruitment
Internal recruitment involves filling job vacancies with existing employees through promotions, transfers, or redeployment.
Methods of Internal Recruitment
- Promotions: Elevating an employee to a higher position.
- Transfers: Moving an employee to a different department or role.
- Job Postings: Advertising vacancies internally through company newsletters or intranets.
Advantages of Internal Recruitment
- Cost-Effective: Saves on advertising and onboarding expenses.
- Faster Process: Reduces time spent on interviews and background checks.
- Boosts Morale: Employees see opportunities for growth, increasing motivation.
- Reduces Risk: Internal candidates already understand company culture and processes.
A retail company promotes a sales associate to a store manager role. The associate already understands the company's products and customer service standards, reducing the need for extensive training.
Limitations of Internal Recruitment
- Limited Pool: Fewer candidates may mean less diversity in skills and ideas.
- Creates Vacancies: Filling one role internally opens another vacancy.
- Potential Resentment: Employees not selected for promotion may feel demotivated.
- A common mistake is assuming internal candidates require no training.
- Even familiar employees may need development to succeed in a new role.
External Recruitment: Bringing in New Talent
Definition
External recruitment
External recruitment involves hiring candidates from outside the organization through job postings, recruitment agencies, or networking.
Methods of External Recruitment
- Job Advertisements: Posting on job boards, social media, or company websites.
- Recruitment Agencies: Using agencies to find specialized or senior-level candidates.
- Networking and Referrals: Leveraging professional networks or employee referrals.
