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Difference Between Internal and External Recruitment

  • Post last modified:April 5, 2023
  • Reading time:8 mins read
  • Post category:Business
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Explanation of Recruitment

Recruitment refers to the process of identifying, attracting, and hiring suitable candidates to fill job vacancies within an organization. It is a critical function of human resource management that involves reaching out to potential candidates and encouraging them to apply for available job positions. The recruitment process is designed to ensure that the organization has the right people with the necessary skills, knowledge, and experience to achieve its goals and objectives. It involves various activities, including job analysis, sourcing, screening, interviewing, selection, and onboarding. Effective recruitment requires careful planning, coordination, and communication to ensure that the organization attracts and hires the best candidates available.

Purpose of Recruitment

The purpose of recruitment is to identify, attract, and hire qualified candidates who have the necessary skills, knowledge, and experience to fill job vacancies within an organization. The recruitment process aims to ensure that the organization has the right people in the right positions to achieve its goals and objectives. The primary purpose of recruitment is to meet the human resource needs of the organization and to create a pool of candidates for current and future job openings. Effective recruitment helps the organization to maintain a competitive edge by attracting top talent and retaining existing employees. Additionally, recruitment plays a crucial role in enhancing diversity and inclusion within the workplace by providing equal opportunities for all candidates to apply for available job positions. Ultimately, the purpose of recruitment is to ensure that the organization has a talented and diverse workforce that can drive growth and success.

Types of Recruitment

There are two main types of recruitment: internal and external recruitment.

Internal Recruitment: Internal recruitment refers to the process of filling job vacancies within the organization by promoting or transferring existing employees to new positions. This type of recruitment may involve posting job openings on internal notice boards or intranet, conducting internal job fairs or talent assessments, or encouraging employees to apply for available positions. Internal recruitment is an effective way of motivating and retaining existing employees, promoting career development opportunities, and ensuring that the organization has the right people in the right positions.

External Recruitment: External recruitment refers to the process of filling job vacancies within the organization by attracting and hiring candidates from outside the organization. This type of recruitment may involve posting job openings on external job boards or social media, conducting job fairs, leveraging recruitment agencies or headhunters, or using employee referrals. External recruitment is an effective way of expanding the pool of candidates, bringing in fresh ideas and perspectives, and filling positions that require specialized skills or experience that may not be available within the organization.

Internal Recruitment

Internal recruitment is the process of filling job vacancies within an organization by promoting or transferring existing employees to new positions. This type of recruitment relies on the organization’s current pool of talent and involves identifying and selecting candidates from within the organization.

Advantages of Internal Recruitment:

Cost-Effective: Internal recruitment is often more cost-effective than external recruitment as it eliminates the need for extensive advertising or recruitment fees.
Time-Saving: Internal recruitment is typically faster than external recruitment as existing employees are already familiar with the organization and its culture.
Improved Employee Retention: Internal recruitment can improve employee retention by providing career development opportunities and promoting employee loyalty.
Improved Employee Morale: Internal recruitment can boost employee morale by showing that the organization values its employees and recognizes their potential.
Improved Employee Performance: Internal recruitment can improve employee performance as existing employees are already familiar with the organization’s culture, policies, and procedures.

Disadvantages of Internal Recruitment:

Limited Candidate Pool: Internal recruitment can be limited to the organization’s current pool of talent, which may not include the necessary skills or experience for the position.
Internal Politics: Internal recruitment can sometimes be influenced by internal politics or personal relationships, which may not result in the best candidate being selected.
Limited Diversity: Internal recruitment can limit diversity within the organization, which can impact innovation and creativity.

Internal recruitment can be an effective way of promoting employee development and improving employee retention. However, it should be used in conjunction with external recruitment to ensure that the organization has access to a diverse pool of candidates with the necessary skills and experience.

External Recruitment

External recruitment refers to the process of filling job vacancies within an organization by attracting and hiring candidates from outside the organization. This type of recruitment relies on the organization’s ability to attract candidates through various means, such as job postings, recruitment agencies, headhunters, employee referrals, and social media.

Advantages of External Recruitment:

Wider Candidate Pool: External recruitment provides access to a wider pool of candidates who may have the necessary skills, experience, and qualifications for the position.
Brings in Fresh Talent: External recruitment can bring in fresh ideas, perspectives, and experiences that may not be available within the organization.
Increases Diversity: External recruitment can increase diversity within the organization, which can lead to a more innovative and creative workplace.
Creates Competition: External recruitment can create competition among candidates, resulting in the selection of the best candidate for the position.

Disadvantages of External Recruitment:

Time-Consuming: External recruitment can be time-consuming as it involves advertising the job, screening resumes, and conducting interviews.
Expensive: External recruitment can be more expensive than internal recruitment as it involves advertising, recruitment fees, and relocation expenses.
Risk of Hiring the Wrong Person: External recruitment can be risky as candidates may not be familiar with the organization’s culture, policies, and procedures, resulting in a higher risk of turnover or poor performance.

External recruitment can be an effective way of accessing a wider pool of candidates and bringing in fresh talent and ideas. However, it should be used in conjunction with internal recruitment to ensure that the organization is able to retain and promote its existing talent.

Differences Between Internal and External Recruitment

There are several key differences between internal and external recruitment:

Source of Candidates: Internal recruitment sources candidates from within the organization, while external recruitment sources candidates from outside the organization.
Familiarity with the

Organization: Internal candidates are already familiar with the organization’s culture, policies, and procedures, while external candidates may need time to acclimate.

Cost: Internal recruitment is typically less expensive than external recruitment, as it eliminates the need for extensive advertising or recruitment fees.

Diversity: External recruitment can increase diversity within the organization, while internal recruitment may be limited to the organization’s current pool of talent.

Competition: External recruitment can create competition among candidates, resulting in the selection of the best candidate for the position.

Employee Morale: Internal recruitment can boost employee morale by showing that the organization values its employees and recognizes their potential.

Risk: External recruitment can be riskier than internal recruitment, as external candidates may not be familiar with the organization’s culture, policies, and procedures.

Both internal and external recruitment have their advantages and disadvantages. Organizations should consider their specific needs and goals when deciding which method to use. Often, a combination of both methods is used to ensure a diverse and talented workforce while also promoting employee development and retention.

Conclusion

Recruitment is a crucial process for organizations to attract, select, and hire the best candidates for job vacancies. There are two main types of recruitment: internal and external. Internal recruitment involves promoting or transferring existing employees to new positions, while external recruitment involves hiring candidates from outside the organization.

Both internal and external recruitment have their advantages and disadvantages, and organizations should carefully consider their specific needs and goals when deciding which method to use. Internal recruitment can be more cost-effective and time-efficient, while external recruitment can provide access to a wider pool of candidates and increase diversity within the organization.

In conclusion, recruitment plays a vital role in the success of organizations, and it is essential to have a well-planned recruitment strategy in place to ensure the selection of the best candidates for job vacancies.

Reference website

Some examples include:

Society for Human Resource Management (SHRM) website: https://www.shrm.org/
Human Resources Today website: https://www.humanresourcestoday.com/
Forbes HR Council website: https://www.forbes.com/human-resources/
HRZone website: https://www.hrzone.com/
These websites provide a wealth of information and resources related to recruitment, HR management, and other related topics that may be useful for further research on the topic.