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Revealed: The pros and cons of recruiting internally and externally

by , 07 April 2014
Recruitment is the process of finding applicants who are available and qualified to fill positions in your company. There are two processes you can use to recruit: You can either recruit internally or externally. Read on to find out about the pros and cons of each one so you can be sure you're making the right decision when it comes to recruiting.

When recruiting, you can find your perfect candidate internally or externally

When you recruit internally, it simply means you're targeting applicants who are already employees in your company. When you recruit externally, on the other hand, you're targeting applicants from outside your business.

So what are the advantages and disadvantages of recruiting internally and externally?


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The pros and cons of recruiting internally are as follows:

The Labour Law for Managers Loose Leaf Service says the advantages of recruiting internally are that:

  • You'll increases employee morale, and
  • You'll have knowledge of the employee and his performance.

Recruiting internally is also:

  • Usually faster;
  • Less expensive; and
  • Can lead to unearthing talent that may not have been previously revealed.

The downside of recruiting internally is that: It could lead to unhealthy competition amongst employees and morale could be affected for employees who aren't successful.

Another disadvantage is that 'inbreeding' could result to a lack of new ideas.

If you want to recruit externally, beware of these pros and cons

The advantages of recruiting externally are as follows:

  • The applicant pool is greater
  • You'll get new ideas and contacts.

Despite this, recruiting externally also comes with the following disadvantages:

  • It destroys the incentive of employees for promotion
  • More training and induction is required.

So should you recruit externally or internally?

Only you can decide what's best for your business. The pros and cons we've provided will guide you on whether or not you should recruit internally or externally.

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