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Home » HR Processes » Recruitment and Selection » Internal or External Recruitment

Internal or External Recruitment

The Internal Recruitment is the most favorite source of candidates in the stable and developed companies. The Internal Recruitment needs a strong support from other HR Processes, because the unmanaged internal recruitment process can lead to disappointed managers and employees in the organization. The Succession Planning and strong and consistent Performance Management are needed to ensure the success of the internal recruitment.

The internal recruitment can offer the chance to change the job position to anyone in the organization, but the efficient internal recruitment process needs a strong help from other processes to provide managers with the additional information to work with. In case of the unknown additional information, the internal recruitment process can not offer much of the value added. The internal job candidate should be known to the organization and the HRM Function should provide the hiring manager with the information about the background information.

The internal recruitment process has to be driven by strict and agreed HR Rules and HR Policies as the unclear rules for the process can bring a lot of tension inside the organization as the best employees can be easily stolen among different units and different managers. This issue looks pretty simple to solve, but the reality can bring difficult issues and conflicts among the management team and can affect the performance of the organization hardly. 

Internal Recruitment Pros and Cons

The Internal Recruitment can build a strong loyalty with the organization as the employees have a chance to change their position after a period of time. The employees are not pressed to look for opportunities on the external job market.

The Internal Recruitment can be cheaper for the organization and can save the costs dedicated to the training and induction of new employees. Also, as the candidate knows the organization, the possibility of the failure is not a significant issue to the organization.

The Internal Recruitment needs strong management from the HRM Function, which can lead to the conflicts and the HRM Function has to have a position to be able to act as a strong facilitator in the conflict resolution.

The Internal Recruitment can lead to huge issues when the candidates come from one department. The managers have to have the right to protect their own interests in the organization as they are responsible for the smooth operation.

The Internal Recruitment does not bring new skills and competencies to the organization and organization with an intensive usage of the internal recruitment can suffer from the fresh blood.

External Recruitment Pros and Cons

The External Recruitment brings new people to the organization, which can be a huge benefit for the organization. The External Recruitment allows the organization to define the right requirements and the organization can select the candidate, which suits the organization best. The external recruitment can be in many situations quicker solutions, mainly in the situation, when the job market is full of potential job candidates.

The external recruitment and proper campaign increase the popularity of the organization on the job market, which helps to improve the position for further expansion.
On the other hand, the external recruitment is expensive and takes a lot of energy from the HRM Function to handle all the job candidates in the selection process.