Which Is Better: Internal Or External Recruiting?
Which Is Better: Internal Or External Recruiting?
If you have a vacant or new position to fill in your company, then you are faced with the question of whether you should do this via internal or external recruitment. Both instruments have their advantages and disadvantages. This article gives tips with the help of a comparison.
Internal Or External Recruiting: The Difference In Brief
Internal recruitment refers to filling a vacant position from among the company’s own employees. The position is advertised on the bulletin board or intranet, for example. Ultimately, an employee is transferred from his or her old position to the position to be filled. However, internal recruitment is also understood to mean when employees are “built up” over the medium or long term. This means that they are actively promoted and given further training in order to be able to fill a specific position at a later date.
External recruitment, on the other hand, looks for new employees on the open labor market. The tools used in external recruitment are many and varied. They include job advertisements (print and online), the use of employment agencies and headhunters, AI-supported recruiting software or advertising at job fairs. Maintaining a talent pool from incoming unsolicited applications is also part of external recruitment.
What Are The Advantages And Disadvantages Of Internal Or External Recruiting?
When it comes to the advantages or disadvantages of internal or external recruitment, as an entrepreneur you usually ask about costs and efficiency. However, these questions are not only aimed at whether the hiring itself is handled via internal or external recruitment, but also how the training and onboarding process works after internal or external recruitment. The following criteria are important:
The costs of an external tender are higher. The advertising expenses and the reimbursement of travel expenses for applicants and, subsequently, the participation in relocation costs are not incurred with internal advertisements. In a comparison of internal and external recruiting, internal is clearly ahead here. But you can effectively counter this aspect if you use AI-supported recruiting software. Matchmaking is greatly simplified here due to the high level of data. 90% of the costs of a conventional recruiting process can be saved.
Internally, it is up to you how quickly a suitable employee can be transferred. Externally, a lot depends on the market, how quickly a suitable candidate is found and then available. The keyword here is the notice period. In a comparison of internal or external recruitment, internal is more advantageous here. However, AI-supported recruiting software also offers opportunities here to at least limit the search time. Within minutes, suitable candidates are identified from a large pool.
An employee who already knows your company, the colleagues and the internal processes will be able to familiarize himself much faster, even if he is placed in a new field of work. Advantage for internal procurement.
Because candidates with the appropriate skills can be searched for externally, an external recruitment expands the know-how and sets new impulses. In a direct comparison, external recruitment proves to be better than internal recruitment.
For the same reason, training costs can be minimized. Again advantage for the external staffing.
Risk of miscasting
Since the new employee is already known, it is easier to assess whether he or she fits the position and the team professionally and personally. A clear point victory for internal recruitment.
A fresh-eye has an unbiased view of internal processes and reduces operational blindness. Advantage for external recruiting.
Burden Pay Structure
A talented external candidate runs the risk of exhausting or overstimulating your operational pay structure. The likelihood is less with internal staffing. Comparing an internal or external recruitment, the internal is slightly ahead here.
With internal staffing, which usually also represents a promotion, your employees see that there are opportunities for advancement with you. This increases motivation. Again, an advantage for internal recruitment.
Internal Vs. External Recruiting
It can be seen that the question “Internal or external recruitment” is in favor of internal staffing with regard to most criteria. Nevertheless, a combination is often used instead of making a strict distinction between internal or external recruitment. In many companies – especially those covered by collective bargaining agreements – internal job postings are mandatory. And only if no one can be found may external postings be made. Moreover, if a position has been filled internally, then the problem arises of filling the vacated position again. Such a chain cannot be carried out forever with internal resources. At some point, external recruitment must come into play, especially in small companies with already thin staffing levels.
How to find the right job offers
How To Find The Right Job OffersHow To Find The Right Job OffersWhen you're looking for a new job, it can be a stressful and time-consuming task. However, there are several ways you can simplify and speed up your search for the perfect job. In this article, we'll give...
Can a talent scout work remotely?
Can A Talent Scout Work Remotely? Can A Talent Scout Work Remotely? What would it look like if a talent scout worked remotely? You, too, will have noticed during your time at Corona that many jobs can be done without having to be present at the company. Talent scouts...
Cost per Hire: What are the average cost of recruiting?
Cost Per Hire: What Are The Average Costs Of Recruiting?Cost Per Hire: What Are The Average Costs Of Recruiting?The average cost of recruiting, also known as cost-per-hire, is a KPI (key performance indicator) from recruiting. The KPI is calculated from the total...