The Pros and Cons of Internal vs External Recruitment
Any company that has to recruit a new member of staff needs to make a decision about whether to recruit internally or externally. It is common practice to advertise a vacancy internally - if there isn’t a suitable candidate or no member of staff applies for the position, it could then be advertised externally to give the business an opportunity to get the best candidate for the position.
However, there are pros and cons for both - we’ve taken a look at internal vs external recruitment to help you decide what’s best for you and your team.
Advantages of Internal Recruitment
Recruiting internally is the quickest way to fill a vacancy - there is generally no need for advertising, sorting through CVs or second interviews.
The candidate will most likely be familiar with your company culture and business model, so that reduces the amount of training required - an internal recruit will adjust far more quickly than an external one would.
There is far less chance that the new recruit won’t be happy in his/her role and leave early on.
Brand new employees take longer to find and train as well as costing more to recruit - and they may not fully integrate after the initial training process.
Recruiting internally can have a positive impact on staff morale and motivation. Existing employees will see that there are prospects for advancement and progression and that the company is willing and able to offer new career opportunities.
Disadvantages of Internal Recruitment
If you recruit internally, a replacement will have to be found for their old position.
Advantages of External Recruitment
An internal recruit may not yet have the experience or required skills for the job, or there may not be a suitable existing employee at all.
External recruits bring knowledge, skills and experience gained in other companies, helping to avoid mistakes made by others in the same industry.
An employee who has not been exposed to your company culture may bring fresh new ideas that an existing employee may not think of.
Constantly recruiting internally may be seen as discriminatory in terms of equal opportunities. You would not be promoting a ‘diverse’ workplace adequately, especially if the existing staff are from a close knit community or the company is a family business.
If any major changes are to be made to the way the business is run, external recruits may be less reluctant than internally-recruited staff - they usually bring “fresh blood” into a company and are happier to facilitate the changes.
Disadvantages of External Recruitment
As mentioned above, the disadvantage of recruiting externally are usually to do with time, money and effort. It takes longer to find and train someone brand new, it can be far more costly to advertise and takes up much of the recruiter's time if CVs have to be sorted and interviews held.