Advantages and Disadvantages of having internal & external recruitment
to an organization
Internal
Recruitment
Internal recruitment is promoting
existing employees in conjunction with internal training. Internal recruitment is a strategy that many organizations
adapt.There are number of reasons as to why organizations prefer internal
recruitment; the most often explanation given is specific human capital
concern. It is an established finding in human capital theory that buildup of
firm-specific human capital usually occupies combined investment by both the
employer and the employee, therefore both parties have the intention of keeping
and maintaining a long term relationship. Thus the longer the occupancy of the
worker the further increase in specific human capital. This would mean that it
would be more costly for the firm to find an external applicant who could do
better than an existing worker within the setting of the organization so the organization
would prefer recruiting internally.
Other advantages of internal
recruitment include: allows organisation to build strong loyalty within the
organization as it gives employees the opportunity to self develop and feel
valued by gaining promotion. Candidate is familiar with the organisation
therefore the possibility of the failure won’t be an issue as well. Internal
recruitment also allows organisation to respond to labour turnover in a quick
efficient manner and also avert a leadership crisis internally. A lot of
organisations prefer internal recruitment but some tend to not as this strategy
has its drawbacks as well: this strategy needs strong management from the HR
department as recruiting internally can lead to the conflicts within the
organisation therefore HR department needs to be able to act as a strong
facilitator. Another disadvantage is internal recruitment can direct a lot of
problems when the candidate comes from another department. Not bringing new
skills and fresh innovative ideas and competencies to the organization is
another downside to this strategyEasier to assess applicants since more
information is available.
ADVANTAGES
Ø Less costly and quicker than an external search
Ø Promoted employee is already familiar with organization
policies, culture, etc.
Ø Signals to employees that career opportunities exist in
organization
Ø Improve employee morale and organization loyalty
Ø Lower costs for some jobs
Ø Less likely to make major changes
DISADVANTAGES
Ø Narrowing of thinking and stale ideas (inbreeding)
Ø May not help turn company around
Ø Training will be needed and learning curve will occur for
the job duties
Ø Internal politics will occur (e.g., possible discontent of
rejected applicants; new subordinates discount new boss’ knowledge and expect
special treatment; etc.)
Ø Difficult to do with rapid growth
Ø Affirmative action goals may be more difficult to achieve
Ø Ripple effect
Ø Smaller talent pool / fewer applicants
3.0
External Recruitment
External recruitment involves
recruiting suitable candidates with relevant experience and qualifications who
have not previously worked within the organisation. External recruitment has
been adapted by many organisations but a major consideration is the type of job
role that needs being undertaken. External recruitment strategies would include
newspapers, magazines advertising, the use of employment agencies and executive
search firms.
External Recruitment brings new
people with fresh and innovative ideas to the organization; they will also
bring experience they have gained from other organisations, which can be a huge
benefit for the organization. An example of a complete changeover was of
Selfridges where they got rid of all the old managers whose management style
was based on old traditional approach, they were replaced by new young
innovative women who changed the traditional approach to a more modern day
approach to business. It has made Selfridges one of the most successful
retailer in the UK today.External Recruitment also allows the organization to
be selective when selecting a candidate and allow them to define the right
requirements, which fits in the organization most effectively.
Other obvious advantages include:
external recruitment can save alot of time in many situations mainly when the
job market is full of prospective job candidates. Reduce training costs; as
staff will bring experience and qualifications from the organisation they’ve
worked at before. Gain expertise from competitors; allow organisation to gain
knowledge of what strategies competitors used in their daily running of the
business. Fill leadership gaps; they might not have anyone suitable enough on
the organisation therefore recruiting externally would straight away fill in
the position. Another advantage of recruiting externally through media and
employment agencies is that the organisation would reach a wider audience and
therefore attract more candidates and have the ability to choose the best
potential candidates.
On the other hand the external
recruitment has its downsides which include it being an expensive process and
takes a lot of energy from the HRM department to handle all the potential
candidates. External recruitment is also very time-consuming as the
organisation works through so many processes that go before selection. Even
then after going through all these processes there is no assurance that the
results will be fitting with the organisation; the organisation may hire a
someone who might show loads of potential in the recruitment process but fails
to live up to the job role once employed.
ADVANTAGES
Ø Provides new ideas / fresh
perspectives
Ø May bring new insights from other
industries
Ø Initiate a turnaround
Ø Hiring experienced employee can
reduce training needed
Ø Internal politics may be avoided
(e.g., less upsetting to present organizational hierarchy)
Ø Allows rapid growth
Ø Increase diversity
Ø Only hire at one level
Ø Bigger talent pool / more applicants
DISADVANTAGES
Ø Less information available on
applicants
Ø Search takes longer and costs more
Ø Outsider takes time to become
familiar with current systems and organization culture
Ø Destroys incentive of present
employees to strive for promotion
Ø Can hurt employee morale and loyalty
Ø May have to pay more for the job
Ø Current organization members may
fight new ideas.
Really nice thing. And actually this will be included with whatever they have to involve in particular actions and all. Nice and also i am expecting much more posts from you.
ReplyDeleteRecruitment Franchise in chennai
Nice blog post. There are lots of things which we have to make assure during the time when we are recruiting internally.
ReplyDelete