Free External Vs Internal Recruitment Essay Sample
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The increasing shortage of skilled labor with an ever increasing globalization and technology advancement has resulted in great changes to recruitment practices all over the world. Recruitment is the process of actively seeking potential applicants to fill the actual or anticipated vacancies within an organization. The main objectives of recruitment are: increasing the pool of applicants at reduced cost, ensuring that the organization complies with legal requirements and improving the selection process. (Dessler 24).
For effective recruitment, the human resources department has to evaluate the vacant position to enable the creation of both job descriptions and job specifications. Recruitment can either be external or internal. External recruitment involves recruiting suitable candidates with relevant experience and qualifications who have not worked within the organization previously. Internal recruitment is a process designed to create sufficient interest among current employees in a given position. (Bartol 102).
Very many vacancies are filled from external sources even in circumstances where an internal candidate is promoted or transferred. Several methods are used in external recruitment:
a) Advertisement in the press
This is a very popular and common method of recruiting where adverts are availed in the press with an aim of attracting a small number of qualified candidates. It is mainly done in the newspapers, internet and specialist magazines. An advert which produces hundreds of candidates is termed as a bad advert. The employer is faced with an expensive and lengthy task of selecting a few candidates for interview. A good job description and qualifications requirements will encourage the right candidates to apply and deter the border line candidates. This will reduce time spent on selection process by the HR department. This method has the advantage of reaching a wider population, portrays transparency on the part of the organization and the best candidate is always found. It is however expensive time consuming and may lead to a pool of applicants if not well designed.
b) Government Funded Training Schemes
Government agency registers job seekers and have information of which jobs are available, qualifications required and where the jobs are located. The choices offered by this method are limited because most employees prefer to use other methods and thus never register with the government agencies. This method is cost effective because the government tries to lower the costs. The company also gets to know the employee before committing to accept him/her.
c) Private recruitment agencies
These are organizations which run business enterprises for supplying candidates to employers. This can either be 'office staff employment agencies' which deals with clerical, office machine operator or typing vacancies. The agency is informed by the employer on the available vacancies and then the agency submits only the suitable candidates for the job. (Billsberry 43). The second method is 'Selection Service for Senior Staff' which undertakes the complete recruitment the first stages of selection of managerial and professional vacancies. The agency analyses the job, prepares job descriptions and specifications, advertises, conducts interviews and submits the shortlisted candidates for the HR to make the final choice. This method is useful in reducing management burden on the process of recruitment and provides competent individuals already gone through the screening process. (Story 65).
d) Recommendation by present employees
Employees of the company introduce successful candidates and this gives a limited field of choice, provides good quality candidates and costs very little.
e) College recruitment
A large number of employers maintain connection with schools colleges and universities where they get fresh graduates, train them and orient them to the job. This method is most effective for companies that prefer fresh or green minds and also provides diversity in skills and talents.
This is an executive search. High profile managers are identified in their successful carriers from a competitors company, membership list of professional bodies or through confidential head network. This method mostly provides the best candidate since these individuals are successful in their current and previous positions.
g) Walk- in recruitment
This is one of the cheapest methods of recruitment. Organizations maintain a waiting room where individuals seeking job vacancies ask for application forms and seek an employment interview. This method is more effective for filling lower level positions such as factory and clerical levels.
h) Friends and relatives of current employees.
A number of people have relatives and friends who are either interested in changing their current jobs or are either unemployed. An organization benefits from employees who are fit for the job and who might like the job since they are known by the current employees.
Internal sources of recruitment are designed to create sufficient interest among current employees to cause them formally indicate their interest in a given position. The position may represent a promotion, transfer and in certain occasions demotion. Below are some of the widely internal recruitment techniques used:
a) Staff notice boards
The hiring management posts the job openings in the company's notice boards or eithr circulates the lists. These listings will have a comprehensive job description, job specifications and the compensation. Employees indicate their interest to their immediate supervisors or the HR department. This method encourages staff morale and reduces staff turnover rates.
This is a situation where the company advertises in its private network. This is only visible to the employees within the enterprise. It is cost effective, does not take lengthy process to attract a candidate and encourages fairness since all employees get to know about the position.
c) Informal methods
A good example is the grape vine where by a company has no formalized job posting technique. An employee showing interest may secure the position. Unfortunately, such informal processes can be influenced by organization politics and other issues other than the candidate's competence.
d) In-house newsletters and magazines
For example, Emap, a major publishing business has a weekly staff magazine devoted solely to advertising jobs within the organisation. Fairness is promoted since all employees have access to the job listing.
From the above discussion on both external and internal recruitment, several similarities and differences can be drawn:
Differences Between External And Internal Recruitment
Internal hiring is much quicker because the candidates are already within the company. In contrast, external sources have to go through processes like advertisements, agency screening, interviews and at times selection. Internal applicants often need not to adhere to a fixed notice period before they start their job. External ones have to report at the exact fixed date.
When a third party is used to recruit candidates in external recruitment, it becomes almost impossible for an outside body to understand in a short time the kind of person to fit in the present management of the company. It is also very difficult for the agency to validate its recommendations. In internal recruitment, the Human Resources Department is well conversant with the ability, qualifications and behavior of the employee in question. (Stephen 167).
External methods of recruitment are generally expensive. These include advertisement costs and agency fees which are paid whether or not a suitable candidate was found. Internal sources of recruitment are cost effective because adverts are made within the organization where the expenses are just materials e.g. papers and pins or glue. External recruitment may discourage the right candidate from applying especially if the applicant has little or no knowledge about the company. On the other hand, applicants in internal recruitment have more if not all information concerning the employer.
Unlike internal recruitment, external recruitment reaches a wider population. Chances of getting the best candidate are thus high for the external sources. On the other hand, external recruitment may bring in a huge number of applicants leading to consuming more time to filter the long list. Yielding large volumes of applicants in external hiring especially for unskilled labor would be gross inefficient. Internal recruitment requires a short induction training period as is opposed to external technique. This is because the employees are already conversant with the company's culture and will easily fit in.
Internal recruitment may help retain employees who wanted to leave while external method may discourage current employees who may have wanted to advance career wise in their current employer's company. Thus, inside source promotes high employee morale, promotes employee commitment and provides a career path for the employees.
When recruitment is done from within the company, the business may become resistant to change. Outside recruitment brings in new blood, new attitudes and perspectives. Sometimes a company needs to acquire a particular competence or skill which is not already available in the organization so hiring an individual from outside with that competence is the fastest way to get started.External sources of recruitment and appropriate campaign increase the company's popularity on the job market which increases chances for further expansion. This is not so in internal hiring where the advert is only available to the company's fraternity.
Similarities Between External And Internal Recruitment
Legal constrain and Government influence: In most countries, one has to be a citizen or have a work permit to be allowed to fill a vacant position.
Union requirement: Some unions emphasize on recruitment to members of the union. Whether internal or external methods are used, the applicant has to be a registered member of the union. This restricts the supply of skilled staff to the management. (Williams 205).
Organization policy: When an organization decides to use external recruitment, there are always laid down rules stating how the process will be carried out. For example, certain organizations strictly recruit fresh graduates while others state that certain positions must be filled through promotions within the company.
Both methods require that training be done to the successful candidates. This familiarizes the candidate with the organization and the position being filled.
Financial Constraints: Both external and internal recruitment are faced by the problem of financial constraints and requires the human resources department to operate within a limited budget. Training and advertisements are needed for both methods though the cost is higher in external recruitment.
Political influence: During internal hiring, some management persons may recommend a certain candidate who is not even qualified for the position. This is usually due to relation ties or any other reason other than competence. In external hiring, some companies advertise positions and yet they have already decided on the person to hire. This is so especially if the hiring officer has outside influential people.
Both hiring methods are widely used and effective. The choice of the method highly depends on the prevailing situation. For example when a company wants to fill a very senior position, internal sources may not work. (Plumbley 1991). Head hunting would be applicable here. On the other hand, an organization may need to feel a position and decide to promote an employee. It all depends with the management decision or a company's culture on the method to use. Internal recruiting though it needs strong support from the Human Resources processes. This is because unmanaged recruitment process may lead to disappointed employees and managers in the organization. External recruitment may be a quicker solution where the job market is full of potential candidates. It however takes a lot of energy from the HR function and is expensive.