- Whether they are hired to fill new or expanded positions or replace existing employees who have changed employers or retired.
- Employers are faced with the decision of whether to promote an employee internally or to seek out new candidates from outside the company.
- As such, organizations need to strike the right balance between internal and external recruitment.
- Companies need to evolve alongside the changing business landscape and at the same time sustain their work culture, retain experienced staff, and attract new talent.
- There are pros and cons to each of these choices, and in this week’s blog post, we aim to highlight these from both the organization’s and the candidate’s point of view.
Recruitment is just one of the many challenges that organizations face. It’s also something that requires careful thought, strategy, investment, and skill.
If done well, recruitment often serves as the pillar that shapes the workplace and ensures that the company stays on track with its goals.
In the aftermath of the Great Resignation, it’s imperative that organizations understand how to recruit employees in ways that are highly beneficial to the company.
With employee turnover rising at an alarming rate, most employees are now more inclined to search for a workplace that values work-life balance.
Combine these circumstances with the Gen Z entering the workforce; it’s evident that companies need to take a look at how they hire new staff to fill their vacancies.
Related: How to Future-Proof Your Organization Through Leadership and Mentorship
The Basics of Recruitment
Employees are hired with one sole purpose – to benefit the company’s goals and make them the most professional and competitive in its industry.
Whether they are hired to fill new or expanded positions or replace existing employees who have changed employers or retired. Employers are faced with the decision of whether to promote an employee internally or to seek out new candidates from outside the company.
As such, organizations need to strike the right balance between internal and external recruitment. Companies need to evolve alongside the changing business landscape and at the same time sustain their work culture, retain experienced staff, and attract new talent.
There are pros and cons to each of these choices, and in this week’s blog post, we aim to highlight these from both the organization’s and the candidate’s point of view.
Internal Promotions vs External Recruitment
Advantages and disadvantages of promoting from within
- A position can potentially be filled much quicker – The recruiting company can reduce the cost and time in advertising the job vacancy and training new individuals for the job as the promoted employee is already familiar with organization policies, culture, etc.
- The organization knows employees and has detailed records from previous supervisors – You already know what you are getting. You already know the person you are dealing with, so you can easily judge their performance, character, skills, etc.
- Narrowing of thinking and stale ideas – “inbreeding”
- Creating a vacancy that will need to be replaced. Unless the existing employee’s position is eliminated when he/she takes over the new assignment, there will be a vacancy left behind, which will also need to be filled. So, eventually, the company or business might still find itself looking for someone from the outside to fill this.
Advantages and disadvantages of hiring externally
- A wider choice of candidates – a bigger talent pool; could attract skilled applicants and put the organization in a better position.
- Provide new ideas and fresh perspectives – “fresh blood”; new insights from other industries
- Search can take longer and cost more
- Less information available on applicants – A company only has a resume and possibly a few examples of work to initially judge the candidate on.
Related: 10 Strategies to Attract Top Tech Talent
Thinking from the candidate’s point of view
A hard-working employee has been tracking their accomplishments and staying on track with their goals for their career and personal brand within their current organization. They’ve made all the right moves to ensure they could be a front-runner to obtain a promotion at the company they currently work at. However, they’ve also been seen in a similar position at another company. What job should they go for? Let’s think from their perspective.
Changing jobs can be a less than comfortable experience, especially if there is nothing wrong with the one they already have; they may also be in a position of responsibility, supporting a family, paying off that mortgage, and other bills.
However, it can be tempting to take a job in another company or “job hop” as it’s sometimes called when it could potentially be more suitable or offer higher pay.
If a candidate wants to go for an internal promotion, they may have an edge over other external candidates – knowing that most companies prefer to promote from within rather than go outside to fill positions. However, if they go for the job outside, they can also be looked at favorably because of their unique set of skills and new ways of thinking that the other company may not have.
Candidates may look at moving to another company as an opportunity to gain more varied experience, however many are aware that people may question their staying power. Potential employers are likely to question “If I invest time and money in training this person, will they stick around long enough for me to reap the benefits?” Job hoppers know that they will have to prove themselves all over again when they start a new job.
The Bottom Line
Deciding whether to hire internally or externally is based on many considerations; understanding the motivations of both the candidate and the organization itself can help make these hiring decisions. While it is often more cost-effective to hire an existing employee, there are also often good reasons to consider an external candidate. Does the role you are trying to fill require a fresh perspective for the position? Maybe the organization requires stability and a smooth transition.
Ultimately, the employer must weigh these pros and cons for the particular position to be filled, the company itself, and the industry it is in.
CDA is here to help you get top-notch talent for your organization!
Curran Daly & Associates is a specialized executive search firm that values the skills of top-notch talent. We have dedicated recruiters who are subject matter experts in their respective fields.
Our holistic and targeted approach to executive search and recruitment will help top talent find the right role for the right organization. Contact us to learn more.
Internal vs. external recruitment: pros, cons, and methods. (2022). Retrieved 9 September 2022, from https://www.wework.com/ideas/professional-development/management-leadership/internal-vs-external-recruitment-pros-cons-and-methods