Recruitment and Selection Process » Internal and External Recruitment

Introduction to Recruitment and Selection

When businesses need new employees, they must decide how to find the best people for the job. This process is called recruitment and selection. Think of it like choosing players for a football team - you can either promote someone from your youth academy (internal) or buy a player from another club (external).

Recruitment is the process of finding and attracting suitable candidates for job vacancies. Selection is choosing the best candidate from those who apply. Today we'll focus on the two main approaches to recruitment.

Key Definitions:

• Internal Recruitment: Filling job vacancies with existing employees from within the business.
• External Recruitment: Filling job vacancies with people from outside the business.
• Job Vacancy: An available position that needs to be filled within a business.
• Human Resources (HR): The department responsible for managing employees and recruitment.

Internal Recruitment Methods

Internal recruitment can happen in several ways. Businesses often start here because they already know their employees' skills and abilities.

Types of Internal Recruitment

There are three main ways businesses can recruit internally:

⬆ Promotion

Moving an employee to a higher position with more responsibility and usually better pay. Like a shop assistant becoming a supervisor.

↔ Transfer

Moving an employee to a different department or location at the same level. Like moving from the marketing team to the sales team.

🔧 Retraining

Teaching existing employees new skills so they can do different jobs. Like training a receptionist to use new computer software.

External Recruitment Methods

When businesses look outside for new employees, they have many options. Each method reaches different types of candidates and costs different amounts of money.

Common External Recruitment Sources

Businesses can advertise job vacancies through various channels to reach potential candidates:

📰 Traditional Media

• Newspapers (local and national)
• Magazines (especially trade publications)
• Radio advertisements
• Job centres

💻 Digital Platforms

• Company websites
• Job websites (Indeed, Reed, LinkedIn)
• Social media platforms
• Professional networks

Advantages and Disadvantages

Both internal and external recruitment have their pros and cons. Smart businesses consider these carefully before deciding which approach to use.

Internal Recruitment: The Good and Bad

✅ Advantages

• Cheaper: No advertising costs or recruitment agency fees
• Faster: Employees already know the business
• Motivating: Shows career progression is possible
• Lower risk: You know the person's abilities and character
• Better culture fit: Employee already understands company values

❌ Disadvantages

• Limited choice: Fewer candidates to choose from
• No fresh ideas: Same people, same thinking
• Jealousy: Other employees might feel overlooked
• Skills gaps: Internal candidates might lack required skills
• Chain reaction: Promoting one person creates another vacancy

External Recruitment: The Good and Bad

✅ Advantages

• More choice: Larger pool of candidates
• Fresh ideas: New perspectives and approaches
• New skills: Candidates bring experience from other companies
• No internal politics: Avoids workplace jealousy
• Best person: More likely to find the perfect candidate

❌ Disadvantages

• Expensive: Advertising and agency costs
• Time-consuming: Longer process to find and assess candidates
• Risky: Don't know if the person will fit in
• Demotivating: Internal staff might feel undervalued
• Induction needed: New employees need training about the business

Choosing the Right Approach

Successful businesses don't always use the same recruitment method. They consider various factors to decide whether to look inside or outside the company.

Factors Influencing Recruitment Choice

Several key factors help businesses decide between internal and external recruitment:

💰 Budget

How much money is available for recruitment? Internal recruitment is usually cheaper, making it attractive for businesses with tight budgets.

⏱ Time Pressure

How quickly does the position need to be filled? Internal recruitment is typically faster as there's less advertising and interviewing involved.

🎓 Skills Required

Does anyone inside the business have the necessary skills? If not, external recruitment might be the only option.

When to Use Each Method

Here's a practical guide for when businesses typically choose each approach:

🏠 Choose Internal When:

• Budget is limited
• Time is short
• Company culture is very important
• Suitable internal candidates exist
• You want to motivate existing staff

🌐 Choose External When:

• New skills or ideas are needed
• No suitable internal candidates exist
• The business is expanding rapidly
• Senior management positions need filling
• You want to avoid internal conflicts

Modern Recruitment Trends

The way businesses recruit is changing rapidly, especially with new technology and changing work patterns.

Digital Revolution in Recruitment

Technology has transformed how businesses find and select employees. Social media, video interviews and AI screening are becoming common tools.

📱 Social Media Recruitment

Many businesses now use LinkedIn, Facebook and Twitter to find candidates. This is especially effective for reaching younger workers who spend lots of time online.

📺 Video Interviews

Online video interviews save time and money, especially for external recruitment. Candidates don't need to travel and businesses can interview more people quickly.

Summary

Understanding internal and external recruitment is crucial for business success. Both methods have their place and the best businesses use a combination of both depending on their specific needs. Remember that recruitment is about finding the right person for the right job at the right time - whether they're already working for you or need to be found elsewhere.

The key is to consider factors like cost, time, skills needed and company culture when making recruitment decisions. As technology continues to evolve, recruitment methods will keep changing, but the basic choice between internal and external recruitment will remain fundamental to business strategy.