The hunt to find that purple squirrel aka the candidate that exceeds your expectations is constant. The battle is forever but the battlefield is not limited.
A valuable and worthy talent pool can be formed in two ways, through external sources which is the most opted one and other is through internal sources. At times, HR finds it extremely arduous to count on the pros and cons of each of these.
To give a quick fix for this confusion, this blog presents the ultimate internal recruitment vs external recruitment difference.
In the blog,
Internal recruitment vs External recruitment: The ultimate showdown.
In the quest to find a perfect candidate, you need to understand the basics of different recruitment channels and their working.
To find out the best recruitment source for you, let’s differentiate them:
| Basis | Internal Recruitment | External Recruitment |
|---|
| Candidate pool | The candidate pool in internal recruitment consists of the existing employees of the company. | The candidate pool in external recruitment consists of the individuals outside the organization. |
| Time-to-hire | The time-to-hire is faster in internal recruitment as compared to external recruitment since the candidate is already familiar with company culture and interview process. | The time-to-hire in external recruitment is slower since the process requires sourcing the candidates, screening the resumes, and onboarding. |
| Cost-per-hire | Internal recruitment costs less than external recruitment with respect to the interview costing and advertising. | The recruiter bears a higher cost in external recruitment as the process involves sourcing the talent, interview scheduling, screening resumes, and onboarding. |
| Company culture and values | The candidates hired through internal recruitment have a stronger understanding of the company culture since they are already working in the company. | Candidates hired through external recruitment require an in-depth understanding of the company culture and values at the time of onboarding. |
| Approach | In internal recruitment the approach to a great talent pool is limited since the hires are existing employees. | In external recruitment, a wider talent pool is available with the recruiter to fill the open positions. |
| Skill set | Due to limited approach, the availability of the skill set is limited. | Since a wider talent pool is approachable, varied skill set and qualification can be available with you. |
| Risk | Internal recruitment lowers the risk since the candidate performance is already familiar with the recruiter and they already fill the cultural fit checkbox. | External recruitment elevates the risk because the new hire is unfamiliar with the company and its culture. |
| Employer branding | Internal recruitment doesn’t require much employer branding. But since it’s a part of the hiring process you can show the career development opportunities to the employee. | Employer branding in case external recruitment needs higher attention since it attracts new talent to the organization. |
| Legal considerations | Legal considerations are simplified as they require only internal recruitment policies and just clear communication. | Legal considerations in external recruitment are essential since a new employee is hired. You must adhere to the proper regulations that are to be applied by the government and labor laws. |
| Training and development | The hires employed through internal recruitment require less training since they know the work culture already. | Training in external recruitment is significant as the new hire is not familiar with the workplace. |
Key considerations while making a choice
Internal recruitment and external recruitment are like two sides of a coin, but you are the one who needs to decide which side will benefit you more than the other.
Even when employees want to pursue a new role, they often feel unsupported. According to Gartner research, only 17% of candidates say their manager facilitates the process of applying for internal jobs, and only 20% feel supported by their peers and team.
Well, this table might not be able to help you make the judgement completely about which recruitment source is an ideal one for you but here are some key considerations that can add value to your decision:
- Job nature:
The very initial step, even before selecting the recruitment channel, is you need to understand the nature of the job. Once you are thorough with the skills and qualifications needed, you can start your search. If you are looking for a specialized skill set which is not available in your organization, you must opt for conducting an external recruitment drive. In case you find it within your organization, look, analyze and make an offer to the existing employee.
- Urgency for need:
Suppose you are required to turn in the open position within 3 days and the clock is ticking, what would you do? Since external recruitment takes longer to hire an employee than internal recruitment, the best choice would be to go for an internal recruitment drive. Look out for the most suitable employee that can be trained and put in the open position in the given timeline.
- Diversity and inclusivity:
Diversity and inclusivity are currently a hot topic in the talent acquisition market. To encourage a diverse workforce in your company, you can’t rely on the existing employees. If you are looking to enhance the diverse culture of your company and set a good employer branding in the market, external recruitment drive can be a great choice for you. You can acquire a wider talent pool while maintaining your diverse and inclusive goal.
Managing external and internal recruitment can be a tedious task. What if the management and maintenance of both the recruitment types can be done under one roof? Sounds impossible maybe, but we love technological aid today.
HR software like HROne is equipped with features where you can manage internal and external recruitment seamlessly without going an extra mile. You can post the internal recruitment job opening on the enterprise wall and parallelly manage to run the external recruitment drive through various recruitment channels such as job boards and media platforms.
When you oversee recruitment duties, your sole purpose should be to keep up with the existing employees and conduct smooth hiring for the candidates willing to join. In today’s competitive environment, you must retain the employees working for you and be open to new talent in the market waiting for an opportunity.