Internal vs External Recruitment
Why a business recruits and how it chooses between promoting from within and hiring from outside: the benefits and drawbacks of internal and external recruitment, and how to weigh the choice against the particular role and business.
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Filling the job
A business needs to recruit when a job becomes empty, whether because someone leaves, the business grows, or new skills are needed. There are two ways to fill the vacancy. Internal recruitment means choosing someone who already works for the business. External recruitment means hiring someone from outside. Each has benefits and drawbacks, and the best choice depends on the particular job and business. This module looks at why businesses recruit and how they weigh internal against external recruitment.
Recruitment words
Learn these four words before you weigh any recruitment choice, and remember that the best route is never fixed: it depends on the particular job, the skills the business already has, and how much time and money it can spend.
Internal against external
The two routes have opposite strengths. A strong answer weighs them against the job in question.
How to weigh the choice
Do not just list the benefits of each route. Start from the job: what does this particular role and business need? If the skills already exist inside and speed and cost matter, favour promoting from within. If the business needs fresh ideas or skills it does not have, favour hiring from outside. Note the drawback each brings, such as a fresh vacancy left behind or a longer and dearer search, and reach a decision that fits the context.
Match the action to the route
- promoting an existing worker to the role
- hiring a stranger with brand new skills
- advertising the post only inside the company
- advertising the post in the national press
- internal recruitment that is cheaper and faster
- external recruitment bringing fresh ideas
- an internal method that motivates current staff
- an external method reaching a wider pool
A benefit of internal recruitment?
Which of these is a benefit of recruiting internally?
- The candidate is already known to the business, which is cheaper and faster.
- It always brings in brand new ideas from outside.
- It reaches the widest possible pool of applicants.
- It never leaves any other job empty.
Benefits of external recruitment
Select the TWO benefits of recruiting externally.
- A wider pool of possible candidates
- Fresh ideas, skills and experience
- It is always the cheapest option
- It motivates existing staff with a promotion
Count the applicants
A business receives 40 applications for a job and shortlists 8 of them for interview. Subtract to find how many applicants are not shortlisted. What is the answer?
Order the recruitment choice
Put the steps of filling a vacancy in order, earliest first.
- A job becomes vacant and needs filling
- The business decides between internal and external recruitment
- The vacancy is advertised to the chosen group
- The best candidate is selected for the job
Complete the facts
A business must recruit when it has a _____ to fill. Choosing someone who already works there is _____ recruitment, which is cheaper and faster. Choosing someone from outside is _____ recruitment, which reaches a wider pool. The best choice depends on the particular job and _____.
Match the case to the best route
- the skills needed already exist inside the firm
- a skill is needed that no current staff have
- the firm wants to reward and keep loyal staff
- a growing firm needs many more workers at once
- internal recruitment, which is quick and known
- external recruitment, to bring the new skill in
- internal recruitment, to motivate through promotion
- external recruitment, to reach enough new people
Spot the true recruitment facts
Tap the TWO statements that are true about recruitment.
- Internal recruitment is usually cheaper and faster
- External recruitment can bring in fresh ideas
- Internal recruitment never leaves another vacancy
- External recruitment is always the cheapest choice
Choose the route
Read each case and choose the best recruitment route, with a reason.
- A shop needs a new supervisor quickly and already has an experienced, trusted assistant who knows the job well. Which route fits best?
- A firm is moving into web design but nobody on the staff can build websites. Which route fits best?
- A manager says external recruitment is always better because it is cheaper. Why is this wrong?
Explain the recruitment choice
Explain why a business recruits and weigh the benefits and drawbacks of internal against external recruitment for a role of your choice.
- Explain two reasons a business needs to recruit
- Explain two benefits of internal recruitment
- Explain two benefits of external recruitment
- Explain one drawback of each route
- Finish with a judgement on which route suits your chosen role and why