Internal Vs External Recruitment: Which is Better for Your Company?

When it comes to filling job positions, companies can either recruit from outside or within their organisation. This is the internal vs external recruitment dilemma many recruiters are faced with today. Most Recruitment and Talent Acquisition teams have been taking the external route to fill job openings with new talent. However, with the advancements in the modern workforce, the internal recruitment process has become an attractive option as well. From company culture to the speed of the process, there are a lot of variables to consider. In this article, we will dive into the topic of internal vs external recruitment, and which one could be the best option for your company.

Internal Recruitment: What Industries Are Using This Process?

Internal recruitment is when companies look for qualified talent within the organisation to fill job positions. This can be achieved via promotion, transfer or secondment. Internal recruitment is gaining popularity in several industries lately, especially in academic-based professions. This is because employee retention is beneficial to an organisation. Internal recruitment can not only save the organisation money (advertising, interviews, and onboarding), but it also enhances company culture by promoting, motivating, and acknowledging the skills, experience, and talent of its existing employees. This system of recruiting is also popular in the public sector, civil service, uniformed services and manufacturing and professional services industries. 

External Recruitment: What Industries Are Using This Process?

External recruitment is when companies look outside their organisation to fill job openings. This can include advertising roles externally or using recruitment agencies. The process involves advertising the vacancy, reviewing applications, conducting interviews and onboarding new hires into the company. This process can bring fresh ideas, new perspectives, and relevant knowledge into the company. This process is commonly used in both small and large businesses to recruit as companies look to fill vacancies for new roles and replacement roles. Examples of industries that typically use external recruitment include digital marketing, hospitality, healthcare, and finance.

Which Process Takes Less Time, Internal or External Recruitment?

When it comes to filling job positions and the time frame involved, it is hard to say which method takes more time. The time frame involved is dependent on many variables such as the industry, job requirements, qualifications, a company's recruitment process, the job market and the number of applicants.

External recruitment may take longer due to having multiple applications to review, interviews conducted, checks carried out and onboarding of new hires. Internal recruitment can be faster as the company is already familiar with the potential hire/s and their abilities which may bypass part of the typical recruitment process for external hires. 

Which is the most cost effective method? 

In terms of cost-effectiveness, internal recruitment is often a more cost effective route. It eliminates the cost of advertising the job opening, screening applications, conducting interviews, and onboarding. However, if recruiting from within this then often leaves a vacant position to fill elsewhere so factor this in!

In conclusion, internal and external recruitment methods both have their advantages and disadvantages. Internal recruitment can save money and promote company culture and career paths to motivate existing employees. External recruitment brings fresh ideas and new skills into an organisation. In real-world situations, a more strategic approach is needed and the chosen method depends on the variables unique to the company and industry needs. 

Contact Eploy for Applicant Tracking Systems (ATS) Expertise 

At Eploy, we offer a highly configurable Applicant Tracking System designed to help you attract, hire, and speed up the process of recruitment. Get in touch with our specialist team at Eploy to find out how we can help you meet your recruitment goals or schedule a personalised demo. No hard sell, no strings attached. Just some winning ideas to help you with your recruitment process.