Difference between Internal Recruitment and External Recruitment

The main difference between internal recruitment and external recruitment is that internal recruitment is a process of filling open or vacant positions with current employees from within the organization, and external recruitment is a process of filling job vacancies with new candidates from within the organization. outside the organization.

Internal hiring versus external hiring

Internal recruitment is a procedure by which employees are hired or recruited from within the organization while external recruitment is a process where recruitment is done using external sources. Internal recruitment does not promote freshness, new talent and new idea, and external recruitment promotes and attracts freshness, new talent and new idea in the organization. Internal hiring requires less time and costs to recruit candidates internally, while external hiring is a more expensive and time-consuming method of hiring. Internal hiring is a very simple method of filling vacancies and external hiring is a complex method of hiring. Internal recruitment requires no initial training because candidates are already familiar with the organizational environment, and candidates are selected based on seniority and merit; on the other hand, outsourcing requires initial training for new candidates and candidates selected on the basis of merit, experience and qualification. The internal hiring process motivates current employees, which promotes better performance and job satisfaction; on the other hand, the outsourcing process can demotivate existing employees in the organization. In internal hiring, a limited selection of competent human resources is available, and in external hiring, more options of competent human resources are available. that promotes better performance and job satisfaction; on the other hand, the outsourcing process can demotivate existing employees in the organization. In internal hiring, a limited selection of competent human resources is available, and in external hiring, more options of competent human resources are available. that promotes better performance and job satisfaction; on the other hand, the outsourcing process can demotivate existing employees in the organization. In internal hiring, a limited selection of competent human resources is available, and in external hiring, more options of competent human resources are available. In internal hiring, a limited selection of competent human resources is available, and in external hiring, more options of competent human resources are available. that promotes better performance and job satisfaction; on the other hand, the outsourcing process can demotivate existing employees in the organization. In internal hiring, a limited selection of competent human resources is available, and in external hiring, more options of competent human resources are available. In internal hiring, a limited selection of competent human resources is available, and in external hiring, more options of competent human resources are available. that promotes better performance and job satisfaction; on the other hand, the outsourcing process can demotivate existing employees in the organization. In internal hiring, a limited selection of competent human resources is available, and in external hiring, more options of competent human resources are available. the outsourcing process can demotivate existing employees in the organization. In internal hiring, a limited selection of competent human resources is available, and in external hiring, more options of competent human resources are available. the outsourcing process can demotivate existing employees in the organization. In internal hiring, a limited selection of competent human resources is available, and in external hiring, more options of competent human resources are available.

What is internal hiring?

Internal recruitment is the procedure of filling vacant positions in a company by employees under business premises. In short, understood as the method where the company’s existing workforce is derived or taken into consideration for any suitable position available.

Internal hiring methods

• Employee Referral: In companies, there are workers or employees, and then there are supervisors who evaluate their performance. Supervisors keep proper records of each employee. Over time, when the company needs human resources, these records are reviewed and hard-working or potential employees are referred for open positions.
• Promotion: Promotion is the deed or act of promotion of the employee’s position in the company. In some organization, it is mandatory; It means that employees are promoted in a certain interval of the period, while in others, employees are promoted based on their performance.
• Transfer: On a large scale, organizations have multiple branches, the need for human resources from one branch is met by the human resource from another branch. Using this method, the human resource needs at any branch were identified early on. Information about the vacancy was then distributed to all branches, after which interested and suitable candidates were transferred.

Outsourcing is the procedure of filling vacant positions in the company by employees, excluding existing ones. New people with the required skills and qualifications joined the organization and thus new ideas started in the company.

Outsourcing Methods

• Advertising: Advertising is the most widely used method of outsourcing. Companies declare vacancies through electronic and print media such as newspapers, magazines, television, radio and the Internet.
• Walk-ins: Walk- ins are those who come into the organization looking for a job. This method applies to unskilled and semi-skilled positions.
• Private Employment Agencies – Private employment agencies operate or work as intermediaries between prospective employees and companies. They maintain a database of job openings as well as job seekers, and they make a perfect match. These agencies charge a commission for providing their service.
• Educational institutes: These days, most companies have started the trend of doing direct recruitment from colleges and universities. Companies visit educational institutes annually and hire brilliant students, especially at the managerial level. This saves time and money and encourages students to study hard.
• Labor Contractors: Maintain regular contact with workers and industries and provide workers to industries when needed. They also charge a commission for the service provided.

Key differences

1. Internal hiring is related to a source of hiring human resources, which already exist within the organization. Outsourcing is a bit different, as it includes searching for potential employees from outside the organization.
2. Internal Recruitment is faster than External Recruitment because External Recruitment involves stages such as advertising and invitation requests, application selection, pre-selection, conducting an examination and interview, selection, placement, training, testing, induction, etc., which they are not present in internal recruitment. .
3. Internal hiring is a profitable procedure. However, outsourcing needs a large amount of investment.
4. Internal hiring does not require initial training, while in external hiring, initial training is essential.
5. The motive for internal recruitment is merit and seniority, but the motive for external recruitment is merit and qualification.
6. In internal recruiting, the choice is very small or restricted, that is, the scope of new talent restricted. On the other hand, when the company opts for outsourcing, it can expect talented candidates from outside the organization, which means fresh blood and ideas infused into the organization.

If an organization has a good employee base then it can choose an employee for the vacant position within the organization; however, if no employee is a better fit for that position, then you can use outside sources of staffing.