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- MemberNovember 14, 2021 at 9:21 pm
Business strategy that requires new networks, new channels, or new customer base, is the best supported by recruiting externally. The existing employees might have depleted sources of new leads and do not have many new repeat sales from their current customer base, it would be wise to conduct external recruitment because the new pool of external candidates would bring new customer base, establish new sales channels, and expand new networks which could increase the company sales revenue.
Business strategy that focusses on reducing employee turnover is the best supported by recruiting internally. Internal recruitment improves employee morale because it rewards promotion to the existing employee. Internal recruitment also promotes employee loyalty, motivate employee to work hard and stay longer in the company.
One of the factors might lead a firm to decide to switch from internal to external recruitment is when the firm has new direction or business strategy in expansion into new region or market. The firm understand that in order to enter the targeted market, local expertise and network are crucial in building the firm brand and survive competing with existing competitors. So it is important to recruit external candidates with specific set of requirements for that particular business strategy to succeed. On this particular firm, recruiting someone local from the targeted country would be invaluable asset. Or someone non-local with extensive experiences working or doing business in that targeted country.
One of the factors might lead to a firm to decide to switch from external to internal recruitment is when the firm has a plan to launch a new product that synchronize or related to their current business. The firm is basically looking for someone internally that has the firm ‘DNA’, skillsets, and deep understanding of their business. This recruitment would practically benefit the firm and the employee in many ways. The firm saves money and time in recruiting someone who already acquired necessary knowledges to design and launch new product based on their existing business. The employee is highly motivated to contribute more knowing there is opportunity to get promoted or lead a new product development.