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Recruitment 101: The pros and cons of recruiting internally and externally

by , 07 October 2014
When you need to fill a vacancy, you can either recruit internally (applicants who are already employees in your company) or externally (applicants from outside your business.)

But, as with everything else, these two methods have their advantages and disadvantages. And you need to know what they are so you can choose the recruitment method that best suits your needs.

Continue reading to find out the pros and cons of recruiting internally and externally.


Here are the pros and cons of recruiting internally and externally

 
Here are the advantages of recruiting internally:
 
  • It increases employee morale;
  • It increases knowledge of the employee and his performance;
  • It's usually faster and less expensive; and
  • Can help you unearth talent that may not have been previously revealed.
 
According to the Labour Law for Managers Loose Leaf Service, recruiting internally has these disadvantages:
 
  • It could lead to unhealthy competition amongst employees;
  • 'Inbreeding' could result to a lack of new ideas; and
  • Morale could take a knock when employees apply and aren't successful.
 
Now that you know about pros and cons of recruiting internally, let's look at external recruitment…

 
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Here are the pros and cons of recruiting externally

 
Recruiting externally has these advantages:
 
  • The pool of applicants is greater; and
  • You'll get new ideas and contacts.
 
The disadvantages of recruiting externally are that:
 
  • It destroys incentive of employees for promotion; and
  • You'll have to spend more time training and inducting new employees.
 
Now that you know about the pros and cons of recruiting internally and externally, choose the method of recruitment that best suits your needs.
 
PS: If you need more information on recruitment, check out Recruitment: The Complete Guide and you won't go wrong.
 


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