Internal or External Recruitment – Differences, Disadvantages, Advantages
Employers have two options for acquiring employees. The first one – internal recruitment – involves using their own resources by promoting employees vertically or horizontally, while the second one uses external channels. What are the advantages and disadvantages of both solutions? Which one to choose?
Internal Recruitment – Utilize the Potential of Your Own Employees
Internal recruitment is conducted within the company. The approach involves searching for ideal candidates for specific positions within the company’s own structure. The success of internal recruitment depends on several factors. First and foremost, a transparent recruitment process should be designed, and then it should be clearly communicated to employees. Information about open recruitment should be accessible to all employees in the company. It can be posted in the company’s newsletter, on bulletin boards, in the employee bulletin, or through the internal computer communication system.
Sometimes, especially in large companies, the target audience for the announcement is narrowed down to reach individuals who would truly meet the requirements for the position. In this case, the job offer is sent exclusively to a specific department or selected individuals who, according to the HR department, show the greatest potential.
Internal recruitment can be successful – advantages
One undeniable advantage of internal recruitment is the excellent knowledge of the candidates, which in turn translates into the opportunity to maximize the team’s potential. This, in turn, can lead to a significant growth of the company in a specific area. Internal recruitment builds morale among employees – they receive a clear message that they are valuable and important to the company, that the employer appreciates their work and competencies, and wants them to develop. Such an employer’s approach to employees strengthens internal employer branding and improves the attachment of employees to the company, thereby reducing employee turnover.
Internal recruitment also has the advantage of low candidate acquisition costs – there is no need to advertise on paid job portals and launch extensive campaigns promoting work at the company. Moreover, we also save onboarding costs because the candidate already knows the company well. Introducing an employee to a new position takes less time and can yield better results.
Internal recruitment can fuel competition
Unfortunately, there is another side to the coin. Internal recruitments sometimes fuel competition among employees, which often leads to many problems and conflicts. Internal recruitment can spoil the atmosphere in the company and demotivate some employees. This, in turn, can lead to a deterioration in team efficiency.
By conducting recruitment within the company’s structure, we expose ourselves to stagnation. New employees bring a breath of fresh air to the company – they bring new ideas, offer a different perspective on certain issues, and thus enable the company to develop in multiple aspects.
It is also essential not to forget about the possible weakening of the team or department in which the person worked until now. Internal recruitment can significantly disrupt the smooth operation of the company, exposing it to problems.
External Recruitment – Infusion of Fresh Blood from the Outside
External recruitment is nothing more than searching for employees outside of a company’s boundaries. Depending on the position, different methods and channels for reaching candidates are required. For lower and middle-level positions, the following methods are most commonly used:
- Advertisements on dedicated job portals – both paid and free (e.g., pracuj.pl, olx.pl, rocketjobs.pl).
- Social media – posting job advertisements on social media profiles and promoting job openings.
- Employee referrals – allowing employees (as well as non-employees) to recommend candidates for specific positions.
- Public employment agencies – publishing job postings through government-run employment offices.
- Employment agencies – utilizing the services of external organizations specializing in employee recruitment.
For recruiting candidates for specialized positions, methods such as direct search (reaching out directly to individuals who are not actively job hunting) and executive search (directly approaching candidates, often used for positions with high candidate expectations) are employed.
A Way to Reach a Diverse Pool of Candidates
The most significant advantage of external recruitment is the opportunity to reach a diverse pool of candidates, often highly talented individuals with unique qualifications, substantial knowledge, and desired experience. Hiring from outside brings a breath of fresh air to the company (as mentioned earlier). New ideas, different perspectives on challenging issues, and new potential can aid the company’s development, strengthen it, and facilitate the achievement of its business goals.
Through external recruitment, a company can strengthen its position in the job market and build the image of a strong and reputable employer. However, it’s essential to have a clear recruitment process in place. A company striving for success must prepare an attractive job posting with a precise job description, choose appropriate channels to reach potential candidates, and meticulously plan the subsequent stages of recruitment.
External Recruitment Can Be Time-Consuming
The recruitment process, especially multi-stage processes for high-level positions, can be incredibly time-consuming. Simply going through dozens of CVs, preparing for qualification meetings, and conducting interviews with candidates can seem endless. Additionally, there is the need to create an effective recruitment campaign, select the ideal candidate, and onboard the new employee. All of this also generates high costs, especially in the case of a wrong decision that necessitates a new selection process.
Other disadvantages of external recruitment include the risk of dissatisfaction and conflicts among current employees, challenges with integrating the new person, and a potential lack of acceptance of the new team member, which can lead to decreased group productivity.
Internal or External Recruitment – Which to Choose?
It depends. The choice of recruitment method should be tailored to the company’s profile, the nature of the specific position, and the available resources. Internal recruitment allows for the full utilization of existing employees’ potential, effectively motivates current employees, and doesn’t expose the employer to additional costs. On the other hand, external recruitment offers the opportunity to acquire exceptional talent and mitigate the risk of company stagnation. Choose what matters most to you!
