Internal Recruitment Versus External Recruitment

Internal vs External Recruiting

It is often said that people are essential to business success. Well, that’s almost right. More accurately, the right people are essential to business success. Finding the right people for the right roles is paramount. It is a risk that all business owners must take to optimise performance and profits.

However, many employers are too lenient, giving candidates the benefit of the doubt to work for them. And that usual spells trouble. Candidates should be made to impress, to jump through figurative hoops, in order to secure a role. New employees need to seamlessly fit into a team that is driven by its own internal volition to succeed.

Instead of searching for the best, business owners and recruitment managers are invariably sidetracked by other things, such as considering internal applicants, often due to some internal progression policy. This is counterproductive; all options should always be on the table. Other detractions include an unwillingness to collect applicant data because of time constraints. We hate to break the news, but good recruitment takes time. Hasty or lazy hiring processes will take time to recover from. Recruitment requires a certain amount of investment, both in time and money. In most cases, it is the keystone of business success.

So, where do you find your potential employees?

Many companies use internal recruitment, where candidates are fished from an existing pool of talent, as opposed to an external pool of talent. As with anything, there are pros and cons to this process. In its favour, internal recruitment creates a defined career structure for existing employees, which helps with motivation and retention. This prospect also strengthens your employer brand. Next, knowing more about your applicants means you can instantly recognise the efforts, strengths and weaknesses of those who want the role. And of course, internal recruitment requires less time and money than external recruitment.

There is one major problem with internal recruitment, however: the aforementioned talent pool is very restricted. Why limit yourself to five or so people, when you could have unrestrained access to a national marketplace? Searching internally may also lead to complacency; tolerating candidates that are good enough, but not outstanding. Quite simply, when it comes to running a company, there is no room for complacency. Unsuitable people will often apply for the role, which means they will probably have to be interviewed too, wasting valuable time.

And what about breaking the bad news? Rejected employees may feel unmotivated, even embarrassed, when going back to their normal roles. In some cases, employees could be so disgruntled that they make life hard for successful candidates.

These are just a few of the reasons why trawling a fresh talent pool is the best recruitment practice. At the very least, allow both internal and external candidates to apply – a mixed strategy creates opportunities for everyone, including the business owner. If you’re worried about the cost of outsourcing recruitment, try working with a fixed fee recruitment agency. By paying a low-cost flat fee, you can keep track of your costs, ensuring there is no overspend. What’s more, a flat fee recruitment agency will deliver the entire recruitment service, giving you more time to spend on other areas of your business.