Recruitment is the process of finding and hiring the right people to fill roles in your company. It is simply assembling a team based on skill, experience, cultural fit, and other factors. Internal recruitment (promoting or moving existing employees) and external recruitment (hiring outsiders) are two main ways to do this. Both have unique perks and pitfalls.
Let’s dive in!
Internal Recruitment.
I would use the phrase ‘growing your talent from within‘ to describe this. It is like nurturing a garden, you invest in the seeds you’ve planted. It involves filling vacancies by promoting, transferring, or rehiring current employees.
How It Works.
- Promotions: Moving high-performing employees to higher roles (e.g., Team Lead → Manager).
- Transfers: Shifting employees to different departments (e.g., Marketing → Sales).
- Referrals: Ask employees to recommend peers for open roles.
- Rehiring: Bringing back former employees (boomerang hires). Internal Job Boards: Posting vacancies internally first.
Pros of Internal Recruitment.
- Faster Hiring: There is no need to start training or onboarding new staff from scratch—existing employees already know your company.
- Cost-Effective: It saves costs on job ads, agency fees, and onboarding.
- Boosts Morale: This serves as the biggest motivation for all employees to work hard in the organization. It shows employees there’s room to grow, increasing loyalty.
- Lower Risk: Internal recruitment reduces the risk of hiring the wrong person as you already know their skills and work ethic.
Cons of Internal Recruitment.
- Limited Pool: You might miss out on fresh perspectives.
- Office Politics: Jealousy or resentment among employees may occur if promotions aren’t transparent.
- Skill Gaps: Existing employees may lack niche expertise.
When to Use Internal Recruitment.
Use internal recruitment for;
- Leadership roles.
- Urgent hiring needs.
- To keep top performers motivated.
It allows you to fill roles quickly and leverage the skills of current employees.
RELATED: Human Resource Planning 101: Steps, Tools, and Tips for HR Success.
External Recruitment.
I would use the phrase ‘casting a wider net‘ to describe this. External recruitment means looking for candidates outside your company. This method offers a larger pool of applicants but requires effective strategies to attract the right talent.
How It Works.
- Job Postings: Share job openings on online job boards like LinkedIn and Naukri.com.
- Recruitment Agencies: Work with agencies like Uplers to find qualified candidates.
- Campus Drives: Recruit fresh graduates directly from universities.
- Social Media: Use platforms like Instagram and Facebook to reach potential candidates.
- Freelance Platforms: Hire skilled professionals for short-term projects using platforms like Upwork or Toptal.
Pros of External Recruitment.
- Fresh Ideas: New hires can bring innovative ideas to your team.
- Larger Talent Pool: You can find specialized skills that may not be available within your current staff.
- Diversity: External hires can enhance your team’s diversity.
Cons of External Recruitment.
- Costly: Hiring externally can lead to high costs, including job ads and agency fees.
- Longer Process: Filling a position can take 49 to 60 days, compared to 1 or 2 weeks for internal hires.
- Cultural Mismatch: New employees might struggle to fit into your company culture.
When to Use External Recruitment.
Consider external recruitment when:
- You need niche technical roles.
- Want to diversify your team?
- When internal candidates lack the required skills.
RELATED: What is E-Recruitment? Definition, History, and Advantages.
Internal vs. External Recruitment: Head-to-Head Comparison
| Factor | Internal | External |
|---|---|---|
| Cost | Low (no ads/agency fees) | High (job boards, vetting tools) |
| Time | 1–2 weeks | 49–60 days |
| Employee Morale | Boosts loyalty & Motivation | May cause insecurity |
| Skill Availability | Limited to current employees | Access to global talent |
| Risk | Low (known performers) | Higher (unknown candidates) |
Best Practices for Internal Recruitment.
- Build a Talent Database: Maintain a comprehensive database that tracks employee skills, certifications, experiences, and career aspirations. This not only helps identify potential candidates for new roles but also promotes a culture of continuous learning and development. Regularly updating this database can assist in aligning employee interests with organizational needs.
- Transparent Promotions: Establish and communicate clear criteria for promotions to ensure that all employees understand what is required to advance. This transparency fosters a sense of trust and fairness within the organization. Consider implementing a structured performance evaluation system that ties directly into promotion criteria to make the process equitable.
- Cross-Training: Encourage and facilitate cross-training opportunities for employees to broaden their skill sets. This approach prepares them for various roles within the organization, increases versatility, and enhances team collaboration. Cross-training programs should be tailored to align with both individual employee career goals and the strategic needs of the organization.
- Internal Job Boards: Create dedicated platforms for internal job postings that are easily accessible to all employees. This encourages staff to explore new opportunities within the organization before external recruitment begins. Regular updates and employee notifications about these openings can enhance engagement and show that the company values its current workforce.
Best Practices for External Recruitment.
- Write Clear Job Descriptions: Develop engaging and informative job descriptions that accurately represent the roles and responsibilities while incorporating relevant keywords for search optimization. Utilize job listing platforms such as Rytt or Jobsoid to help craft clear, concise, and appealing postings that attract the right candidates.
- Leverage Niche Platforms: Identify and utilize specialized job sites tailored to specific industries or job functions. For example, tech roles can be effectively advertised on platforms like Hirist.com, while creative positions may be best targeted through platforms like Behance. Using niche platforms helps reach a more relevant audience, increasing the chances of finding suitable candidates.
- Partner with Agencies: Establish partnerships with reputable recruitment agencies, such as Uplers, that have a proven track record in sourcing and vetting candidates thoroughly. Agencies can offer expertise in the recruitment process and connect you with high-quality candidates who may not be actively seeking new opportunities.
- Streamline Vetting: Employ reliable tools like TestGorilla for administering skills assessments and OnGrid for conducting background checks. Streamlining the vetting process through these technologies can help ensure that candidates meet the specific requirements of the role and align with the company culture, ultimately leading to better hiring decisions.
Challenges in Recruitment (And How to Solve Them).
- Attracting Talent: Many hiring managers have trouble finding the right fit. This can be solved by improving your employer brand through positive Glassdoor reviews and social media presence.
- High Costs: Hiring externally can strain your budget. Start with free job boards like Lucres to cut costs. Lucres allows you to post as many jobs as you want for free.
- Bad Hires: About 30% of new hires fail due to poor vetting. You can solve this by conducting thorough skill assessments, such as using Codility for tech roles.
The Role of Technology in Modern Recruitment.
Recruitment is no longer just about resumes and interviews. Technology is changing how we hire. Here’s how it works:
- AI-Powered Screening: AI tools like TestGorilla and Codility help companies assess job candidates automatically. These tools can quickly sort through thousands of applications. For example, Uplers uses AI to narrow down over 50,000 candidates to the best 3.5%. This technology saves time and helps employers choose the right candidates without bias.
- Job Description Optimizers: Writing a good job description is key to attracting the right people. Tools like Rytt and Jobsoid help create job postings that are easy to find online. A bad job description can waste up to 20% of your time and money. Using these tools ensures job postings reach more qualified candidates.
- Background Verification: Checking a candidate’s background is important for safe hiring. Services like OnGrid make it easier to verify criminal records, education, and work history. This is especially important for new hires. Background checks help employers feel confident about their choices and protect the company.
In summary, technology makes hiring faster and more effective. From AI screening to writing better job descriptions and verifying backgrounds, technology plays a crucial role in modern recruitment.
Whether you promote from within or hire externally, your goal is to build a successful team. Internal recruitment can save time and money, while external recruitment can bring new energy. Combine both methods and use efficient tools to help your company grow.
FAQs.
1. Which is better: internal or external recruitment?
It depends on your needs. Internal recruitment is faster and usually cheaper since it involves current employees. External recruitment can bring in new skills and fresh ideas.
2. How do I decide between promoting or hiring externally?
Check your team’s skills first. If you find any gaps that your current employees can’t fill, it’s better to hire from outside.
3. What’s the biggest mistake in recruitment?
The biggest mistake is rushing the hiring process. Take your time to carefully evaluate candidates to find the best fit.
4. How can I retain internal hires after promotion?
Give promoted employees training and clear career paths to help them grow in their roles.
5. What’s a boomerang hire?
A boomerang hire is when you bring back a former employee. They already know the company culture, making it easier for them to fit back in.
6. How can I reduce external hiring costs?
Work with recruitment agencies that offer discounts for bulk hiring to save money while finding good candidates.
7. What tools can help screen external candidates?
Use tools like TestGorilla for general skills, Codility for technical skills, and Versant for language proficiency tests.
8. Can internal recruitment cause burnout?
Yes, it can lead to burnout if employees feel too much pressure to take on additional work. Manage workloads carefully to avoid this.
9. How should I handle the onboarding process for external hires?
Assign a buddy to help new hires and use tools like Slack for their orientation to make them feel welcome.
10. What’s the future of recruitment?
The recruitment process will likely use more technology. AI tools and remote hiring platforms like Uplers will play a big role in how companies find new talent.