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Recruitment is a fundamental method of organisation's overall human resource management and planning process. Human resource management processes like job design, performance appraisal and management, career planning, promotion and transfers etc are closely related with recruitment. "Recruitment is the process of attempting to locate and encourage potential applicants to apply for existing or anticipated job openings". (R. L. Compton, Alan R. Nankervis, p-15)
Internal recruitment is the process where an employment opportunity is filled from inside the business. Many organisations before consider their external employment markets they prefer to tempt applications from internal candidates. (D Torrington, L Hall, S Taylor, p-124)
In the organization internal recruitment can offer the chance to change the job position. Organizations give a notice to their employees about their current vacancy. Their present permanent employees, present short-term employees, retired employees, and disabled present employees are main source for internal recruitment. Their strategies are notified their current employees for fast decision making and to reduce their expenses budget. It's also a method to promote your employees and raise there morale support and work efficiency. But to reduce the unmanaged internal recruitment process, its need tough support from other HR Processes. To success in the internal recruitment are needed to ensure the succession planning, strong and consistent performance management. "The internal recruitment process has to be driven by strict and agreed HR Rules and HR Policies as the unclear rules for the process can bring a lot of tension inside the organization as the best employees can be easily stolen among different units and different managers." (http://hrmadvice.com/hrmadvice/hr-processes/recruitment-and-selection/internal-or-external-recruitment.html)
If the potential list of internal applicants is reviewed and appropriate applicants not found, the company advertise externally to recruit. If the company decides to bring fresh blood in company it can be advisable. It must be reliable in its actions whatever the company does. In essence, corporate recruitment policy should be fully aware by employees as it relates to foundation of employees. However there are various methods of external recruitment. For base level or graduate recruitment, high school and universities can provide positive recruitment source. Especially if combined with subsequent education and career management curriculums. External applicants of high quality can be provided professional associations, trade unions and as well as employee referrals services. The labour market also effects how it advertised. (R. L. Compton, Alan R. Nankervis, p-15)
There are various source of way to advertise external recruitment. A widely used source of external recruitment is press advertisement. This method has a wide reach. Many institutions, universities, colleges etc are also a good source of recruiting. They make available interviews and placements facilities for campus. Placement agencies, employment exchanges, labour contractors etc also method of external recruitment. (http://recruitment.naukrihub.com/external-sources.html)
Internal and external method normally used to recruit employees. If there has strengths of this method, then also has weakness as well. The strengths and weakness of internal methods are given below.
Quick decision making is one of the strongest strength of internal recruitment. By direct appointment or giving promotion by management is one of the policies to take quick decision. As it known that internal recruitment recruits employees who is already working on the same business or used to work their. Generally management promote their employees as reward and make more work effectiveness. Sometimes management transfer their employees from one department to another department as part of their job rotation programme. To provide key skills to their employees, they transfer their workers and also to recover their vacancy. Its also simplify of recruitment process too. (R. L. Compton, Alan R. Nankervis. P-49)
Because of internal conscript it's also saved cost of training are the mainly considerable. But it makes help to take fast decision. It also retains precious employees on business, reduce recruitment cost and also ensures a come back investment in training and management. It motivate promote employee and other business employees too. Internal recruitment also helps to reduce cost and time for induction. And it's generally quicker and cheaper than external recruitment. (http://www.dius.gov.uk/higher_education/widening_participation/professional_recruitment_guide/recruitment_step_by_step/attracting_applications/internal_recruitment)
The internal employment can assemble a strong loyalty with the organisation. The employees have a chance to change the position after a period of time. The opportunities on the external job market are not pressed the employees. (http://hrmadvice.com/hrmadvice/hr-processes/recruitment-and-selection/internal-or-external-recruitment.html)
The size of prospective applicants is significantly reduced. Outside recruitments provides broader recruitments and wider experience. New promotion creates new challenges for the employees. As you advertised internal on organisations, so number of applicants will be limited. Sometimes for some positions external applicants might be qualified or better suited. Give promotion also create another vacancy at previous position. For example sometimes we promote employees from different position, but after employee's promotion now that position will be empty and will be another vacancy. (http://www.dius.gov.uk/higher_education/widening_participation/professional_recruitment_guide/recruitment_step_by_step/attracting_applications/internal_recruitment)
Moreover, internal recruitment does not bring any new skills, its reduce broad possibilities of innovative ideas, may causes of resentment amongst applicants not appointed. Sometimes it's also difficult to find the right candidates for right position. Beside that its make upset the other employees who are not get promoted. (http://www.thetimes100.co.uk/theory/theory--recruitment-selection--349.php)
External recruitment brings new blood, new face to the organization. Which means organization will get new ideas from new applicants and also have to be wide benefits. External candidate comes from outside the business, so that candidate or in organizations they don't have any favourite. Beside that, as external recruitment have wide range and its cover a wide area's job demand, so management of the organisations can verify and can decide on which suites best. External recruitment candidates should be more dynamic with workforce. Candidates to keep their place and position safe they will work with more passion. (D Torrington, L Hall, S Taylor)
External recruitment is a long process. It consumes a lot of time and energy from the HRM Function to handle all the job candidates in the selection process. And also wide range of candidates apply for jobs, so management really have to be more conscious about selection and this processing takes longer time than others.
Due to advertisements and interviews required for external recruitment, the process gets more expensive. To find out the best possible candidate, sometimes it takes a lot of searching and screening. To advertise externally about job vacancy, management needs to advertise in every possible sector. Cause of that they have to bear more expenses, manpower etc just to advertise their vacancy. And which brings a huge amount of expenses to the organization.
External recruitment may not be effective enough to reveal the best candidate. Candidate may fake or lie to make him or her look suitable for the job. To find out rights candidate for the jobs, management needs to go throw some selection process. If any candidates lied about their ability they can find out. After go throw all of this and get the right candidate, whole this selection process takes a long time to complete it.
External recruitment may cause problem among the existing employees. They might feel left out or not given the opportunity. Even internal employees sometimes they feel that external manager or team leader create pressure on them and cause of that they suffer in stress and psychological problems. Cause of that it creates problem for managements and employees both. To solve these problems, managements need to take steps and have to follow some procedure. Which not only create harassment but also raise expenses for the organizations.
In the end of the dictation one can say, both internal and external recruitment has pros and cons. Both can be applicable and suitable for the company. It varies for different situations and job requirements. The objective of recruiting the most qualified person can be achieved by both ways. But however I believe the better approach for recruitment is internal recruitment as because of its cost effective approach and its less time consuming.