Pros and cons
Internal methods of recruitment
By promoting from within, companies show their commitment to recognising and rewarding employee talent and potential. This incurs loyalty and motivation amongst employees, as they see a clear career path. It encourages them to enhance their skills and performance, increasing job satisfaction and engagement.
Effective recruitment methods can significantly reduce hiring costs and time associated with external recruitment processes. Moreover, the hiring process becomes streamlined as internal candidates undergo initial screening and evaluation.
Hiring internally allows businesses to retain valuable institutional knowledge and experience. Existing employees deeply understand the company culture, operations, systems and procedures, which can contribute to smoother transitions and reduced learning curves.
Internal methods of recruitment also provide employees with opportunities for skills development. By promoting from within, companies invest in the professional development of their employees, encouraging them to expand their skillsets, acquire new competencies, and take on more challenging roles.
External methods of recruitment
In this approach, companies have access to a wider pool of talent with diverse backgrounds, experiences and skillsets. This infusion of fresh perspectives can trigger innovation, creativity and new ideas.
External recruitment promotes diversity and inclusion. Companies can enhance their cultural and cognitive diversity by actively seeking candidates from different demographics and backgrounds. This diversity fosters a more inclusive work environment, encourages collaboration, and leads to a broader range of ideas and perspectives.
Engaging with external candidates expands the talent pool databases and brings fresh perspectives. These interactions allow businesses to build connections, create awareness, and establish relationships with potential candidates outside their immediate network.
An external recruitment strategy helps mitigate internal bias that can sometimes be present in internal promotion processes. By considering external candidates, organisations can ensure a fair and objective evaluation of skills and qualifications without preconceived notions or favouritism.