Internal and External Recruitment

1. Business and Management HL: Human Resources Internal and External Recruitment

2. What is Internal Recruitment? • When a business hires people who already work within the company to fill a vacant spot. • Happens when: • Business is trying to restructure organization. • Internal candidates apply for a promotional post in the firm.

3. Advantages of Internal Recruitment • More Cost Effective • Recruitment costs cheaper • Recruiting from within the company is faster • Less Down-Time • Internal People already familiar with how business operates. • Resources needed for induction and training are reduced

4. Advantages of Internal Recruitment • Motivational • By providing promotional opportunities, staff feel more valued. • Staff work harder to get the vacant position they are working on. • Less Risk • Organization is more familiar with strengths and weaknesses of internal candidates therefore would know exactly who would best fit vacant position. • External candidate’s abilities and skills may be overestimated.

5. Disadvantagesof Internal Recruitment • Fewer Applicants • Limited number of potential applicants. • External Applicants may be of better quality than internal candidates • Time Consuming • When internal candidate is relocated or promoted, there would be another vacant spot which needs to be filled. • Overall, company takes a longer time filling in subsequent vacant spots than if it recruited externally.

6. Disadvantages of Internal Recruitment • “Dead Wood” (When a business has stale and outdated working practices) • If company does not recruit externally, it will be difficult to get new ideas from outside organization. • Internal Politics • Resentment and conflict may occur amongst fellow workers who failed to gain the promotion. • Creates an uncomfortable working environment.

7. What is External Recruitment? • The process where a business hires from outside the organization.

8. Methods of External Recruitment • Newspaper Advertising • Specialist Trade Publications(when business advertises job through a specific target audience magazine. Ex. Ad’s for teaching jobs are published in Times Educational Supplement) • Internet Advertising • Commercial Employment Agencies(when E.A. is paid to advertise and interview suitable applicants for a job. They make recommendations for selection. Saves a lot of time) • Job Centers • Headhunting (Refers to poaching of a person from current employer, due to person’s experience and expertise. Person is usually offered a contract with a pay deal that is too good to resist.) • University Visits • Direct Contacts (Personal recommendations made by a current employee who is in contact with a person with the necessary skills and qualities to fit vacancy.)

9. Advantages of External Recruitment • New Blood. • Bringing in of new ideas from outside of organization. • Can contribute to sharing of good practices and may give information on how rival firm may have done things. • Wider range of experiences • Recruits may have experiences and skills that is suitable for business but are not possessed by internal candidates

10. Advantages of External Recruitment • Larger Pool of Applicants • There’s a wider range and larger number of people to choose from for the job. • Increases chances of finding and selecting the most ideal candidate for the job

11. Disadvantages of External Recruitment • Time Consuming • Process is very long and includes: External advertising, screening of applications, short-listing suitable candidates, interviewing and taking up references. • Expensive • Advertisements such as in newspapers, can be very expensive. • Businesses may also need to reimburse short-listed candidates for travel expenses.

12. Disadvantages of External Recruitment • Great Degree of Uncertainty • When hiring external recruits, management do not really know external candidates, therefore take the risk that candidates can perform well on the job or not.