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  • Pavala Malar Nadan A/L Mariappan .

    November 3, 2021 at 7:05 pm

    There are quite number of advantages in implementing internal recruitment. For instance, in terms of career opportunity, current employee will be motivated to perform better, knowing they stand a chance to be recognized and able to secure job promotion. Besides that, organization will be able to cut cost and saves money as do not have to engage recruitment agency or post job advertisements in external job board. This also means it saves time as recruitment processing time will be shorter. In addition to that, the employee will be put into production as soon as possible because training time will be shorter as the employee already familiar with organization’s system, tools, and processes.

    On the other hand, external recruitments too possess lots of advantages. For instance, external candidates will bring in fresh new ideas and strategies from another organization. Moreover, by assessing or hiring external candidates, organization will be able to gauge on their competitor’s strategy and insights. Sometimes, current employees do not have the required technical/specialized skillset needed for certain tools or systems, so organization must look for external candidates who have the required skills. Besides that, there is a vast range of selection of candidates externally, compared to limited numbers of internal applicants. Whenever applicable, organization might need to opt for external recruitment to avoid dissatisfaction among co-worker who are at the same level. For instance, co-worker may end up managing or being managed by one another or it may even mean they both apply for the same role and that would in turn means that one employee beats the other.

    As for the business strategy, an organization needs to opt for external recruitment if their current business model is not working and business growth is not expanding or not progressing as targeted. They will need fresh new ideas, new skill sets and an innovative strategy to enable the organization to pull itself back to the correct direction. On the other hand, if the business model is working as expected, the organization has vast pool of resources available and their current employee matched the skills required for the position, then the organization can opt for internal recruiting.

    An organization should strive to strike a balance between promoting internally and hiring externally. The firm need to decide on recruitment source based on several factors such as government policies (especially on diversity), cost effectiveness, business growth and expansion rate (for example if suddenly there is a demand to employ high amount staff for a short period of time, it is practical and save cost to outsource to an external employment agency to employ contingent workers). In addition, other factors such as skillset required for the position (whether it is cost effective to train and develop current employee’s skills or recruit externally) and how much risk the organization able to take, will be deciding factor between hiring internally or externally.