Employees are considered as the most valuable asset of the organization. It is tough to find out the right employees and to put them at the right job. The process of recruitment helps to hunt the best employee from the slate of candidates. There are two sources of supply of manpower; they are internal and external recruitment. Internal Recruitment is a process whereby the employees are recruited from within the organization. External Recruitment, on the other hand, is a process in which the recruitment is done using outside sources.
So, if you are in search of the differences between internal and external recruitment, then this article might help you.
Content: Internal Recruitment Vs External Recruitment
|Basis for Comparison||Internal Recruitment||External Recruitment|
|Meaning||Internal Recruitment involves recruiting candidates from those who are already in employment within the organization.||When the recruitment of candidates is done externally, then this type of recruitment is known as external recruitment.|
|Basis||Merit cum seniority||Merit cum qualification|
|Time taken||Less||Comparatively more|
|Induction training||Not required||Must|
|Cost||It is a cost effective process.||It is a costly process.|
Definition of Internal Recruitment
Internal Recruitment is a recruitment in which the supply of manpower is done internally, i.e. within the organization. The candidate is selected among the employees who are already in employment with the organization, i.e. present employees or from those who were in employment with the organization in the past i.e. former employees who left the job voluntarily but they plan to return. These also include the ex-employees, whom the company wants to rehire.
In this process, the hiring of employees is done by transferring the employees from one department to another department or by promoting the employee from one level to another higher level. The following are the most common methods of internal recruitment:
- Internal advertisement
- Reemployment of former employees
- Employees hired earlier on the contract basis or for part-time work.
- Retired employees
Internal Recruitment boosts the morale of the employees that they get a chance to prove their abilities and efficiencies. Furthermore, no induction training is required, as the employees are already familiar with the organization and the job as well. However, this process stops new talent from entering the organization. In addition to this, there are possibilities of partiality among employees.
Definition of External Recruitment
External Recruitment refers to recruitment in which the candidates are selected from outside the organization. Keeping aside, the talent existing within the organization, this source involves employing such methods that will help to find out the best employees which are outside the organization. However, it is a tough task, but it has a very positive impact as compared to internal recruitment.
The process is quite time-consuming as well as slow because of a number of steps involved in it, but it helps the organization to hunt the best candidate among the long list of candidates. Moreover, in this source of recruitment makes the concern, openly choose the top talent considering various parameters like skills, abilities, qualification, experience, etc. In addition to this, it brings new ideas to the organization. But there is one drawback that the organization has to invest a huge amount in advertising, training, and induction of the employee. Some examples of such recruitment are:
- Campus Recruitment
- Job Portals
- Job fairs and seminars
- Waiting lists
- Employment Exchanges
- Job consultancies
- References and recommendations
- Direct Walk-ins
- Ads on newspaper, magazines, and website, etc
Key Differences Between Internal and External Recruitment
The following are the major differences between internal and external recruitment:
- Internal Recruitment refers to a source of recruiting manpower which is already existing within the organization. External Recruitment is a little different as it involves the hunting of prospective employees from outside the organization.
- Internal recruitment does not require induction training, whereas, in external recruitment, induction training is a must.
- Internal Recruitment is faster than external recruitment because external recruitment involves stages like advertising and inviting applications, screening of applications, short listing, conducting an examination and interview, selection, placement, training, testing, induction, etc.
- The basis for internal recruitment is merit cum seniority, but the basis of external recruitment is merit cum qualification.
- Internal Recruitment is a cost effective process. However, External Recruitment requires a large amount of investment.
- In internal recruitment, the choice is very limited which is not in the case of external recruitment.
Behind the success or failure of any organization, there is only one factor, and that is the employees of that organization. If they work with their full efforts, then the organization is going to rise. Finding out the best employees is a very tough task. We cannot say that which method is good, but it depends on the circumstances. If an organization has a good employee base, then it can choose an employee for the vacant position from within the organization, however, if no employee suits best on that position, then it can employ external sources of supplying personnel.