Internal vs. External Recruiting
The difference between internal and external recruiting
Internal recruiting entails the selection of different candidates among the existing personnel within departments or organizational settings (Farndale, Nikandrou, & Panayotopoulou, 2018). Alternatively, external recruitment refers to the selection of qualified personnel from external sources such as referrals and advertisement in print and online (Farndale, Nikandrou, & Panayotopoulou, 2018). The table below shows the explicit differences between the two important human resource concepts.
| Internal recruitment | External recruitment |
| Involves quick processes in the search of competent candidates among the existing employees | Involves lengthier processes of locating potential employees outside the entity |
| Comparatively cheap with limited bureaucratic processes such as contracting outsourcing firms | A costly process bearing numerous extra costs in the searching of qualified recruits |
| The HRM bases merit on seniority of the existing employees | Merit based on the individual qualifications of the potential candidates |
| The company has limited choices for competent candidates for the specified position | The company has extensive or unlimited choices for candidates from various external sources |
| Motivates the existing employees to enhance their respective performances | Discourages the present employees who may feel unappreciated or dissatisfied with their work performances and conditions |
| Limits the infusion of fresh talent in the organization resulting in stagnated ideas | Promotes the infusion of new talents resulting the development of innovative ideas |
| The processes includes transfers and promotions among the present employees | The company advertises the vacant position through employment agencies, consultants, and other forms of advertisement |
Source: Trusted Employees (2017)
Possible outcomes if a company focuses only on internal recruiting or external recruiting exclusively
Behind the perceived success or failure of any organizational setup, human resources plays significant roles in organizing and promoting relevant or related activities. While finding the best candidates is inherently challenging, effective utilization of various internal and external mechanisms can supply an organization with competent personnel (Trusted Employees, 2017). Some possible outcomes if a company focuses only on internal recruiting exclusively include the opportunity to hire familiar employees with acceptable work ethics and relevant approaches to important organizational functions. Additionally, internal recruitment can enhance the level of moral among the employees and sustain retention of competent individuals. In particular, promotions and transfers can serve as forms of reward and appreciation of well-executed functions. Notably, reduced turnover rates imply continuity of operations and long-term organizational successes (Trusted Employees, 2017). Another viable outcome is the increase in specialization among the personnel and brand awareness. The last possible outcome is the increase in organizational loyalty and employee engagement.
Alternatively, some possible outcomes if a company focuses only on external recruiting exclusively include an expanded pool of talents capable of implementing multifaceted organizational processes. The fresh breathe of life can increase innovation and opportunities for more exciting approaches to business processes. Additionally new employs can push the present personnel to improve their respective performance levels further complementing the overall group and development of entities. The increase in competition among the personnel will promote risk-taking abilities among other important characteristics. Another immediate outcome is the development of greater workforce diversity from different socio-economic and cultural backgrounds (Trusted Employees, 2017). Correspondingly, employees recruited externally may bring vital ideas or special insights concerning the operations or performances of close competitors operating in the industry. Bottom line, companies can use both internal and external recruitment processes to identify, select, hire, and retain competent personnel.
References
Farndale, E., Nikandrou, I., & Panayotopoulou, L. (2018). Recruitment and selection in context. In Handbook of Research on Comparative Human Resource Management. Edward Elgar Publishing.
Trusted Employees (2017). The Difference Between Internal & External Recruiting. Retrieved from https://www.trustedemployees.com/learning-center/articles-news/the-difference-between-internal-and-external-recruiting/