When a position becomes available, it always cause a big challenge to the company. The in charge person will need to evaluate each applicant who is willing to contribute himself into the job and makes proper decision to decide mostly suitable person to fill the position. But, what is the best decision means? Who will be the best choice? Should we hire from outside of the company or within? Can new employee lead the company into the new trade? There are many factors need to think deeply when we try to determining whether or not to hire internally or externally. Both one includes many advantages and disadvantages and the ideal candidates are often depends upon to their job attributes, work experience and innovation. In addition, to the company, cost-efficiency, time-efficiency, as well as the integrity ability are all needed for consideration. If the company is looking to hire a long term, all of these conditions should be taken into deliberation and an internally promotion would be the best result (Ref 1) (figure1).
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Furthermore, if the position is requiring to smoothly control day to day's assignment, the manager usually will be anxious to find out the right person to fill up the position as soon as possible. Therefore, when initiating the hiring process, managers will be stressed out of whether to recruit externally or internally in a short period of time. We always said to do a better job; you must broaden your knowledge and sharpen your skills, that is, to save such a dilemma situation, to pick up an internally candidate will ease the situation, save the money, break-in period will be shorter and jobs can be filled faster (Ref 1). As well as an internal placement could result in multiple inside promotions and create a more positive atmosphere to motivate other co-works and deeply believe if you work diligently with loyalty performance will be rewarded with a promotion (Ref 1) .
First of all, recruiting from internally can make the dilemma situation easily. The company can find a perfect candidate in a short time and start to train right away. Current staff can be the best candidates for the position regardless of whether they have the necessary expertise and expertise required for the job (Ref 2).
Secondly, "the Internal recruitment can be cheaper for the organization and can save enormous costs and time" (Ref 3). Due to hiring an externally will cost a lot of money in advising, filing the paper work, spending time in various interviews and finally, when hiring the person, there are more things need to be drawn such as job training and educate company's culture and mission before they start to perform regularly (figure1). Although there are also many good reasons to hire an external candidate, but, an internal candidate absolutely will save a lot of money and time to produce the best benefits to the company. "There is no doubt that recruiting from internal is considerably cheaper than recruiting externally" (Ref 3). Recruiting internally can save a lot of work in preparing because records are already on file and paperwork has primarily been filled out. Company can save a lot of time to research and interview people. There is no need for orientations or educating about company's mission. Due to the person already knows the company's policy and has adequate information about the company culture, therefore, the person will understands how to use the proper skills to process the new assignment smoothly. In reality, it will lower the company's risk and has higher chance to success in the new task. Conversely, fresh blood in the business can facilitate these changes and ease the opposition. But, it does increase the recruitment money and needing longer time to fill the position. Hiring internally can make the manager to perform the duty early and the earliest they to take up the official work, the earliest the team can be on the track. Therefore, the company can achieve goal easily (Ref 5).
Thirdly, hiring from internally can motivate the colleague toward to a positive working attitude because" employees think that working hard and persevering in the organization will be rewarded in the long run" (Ref 2). In general, people consider promote from inside of the company is a great reward because this means someone who has put in time in his career has been notice by the boss. They will get promotion into a higher level position or to get to charge a division of the company when necessary. They also see this is an opportunity for them to self remolding and develop a chance for self promote. As a result, it encourages other employees to stick around and know that they will be taken care of if they work hard enough. It helps retain good talented worker to work harder and pull everybody to work together (Ref 6). If someone is promoted from inside the company, then there is a vacancy for someone to fill in which means there is a person who also will get promoted (figure1).
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On the other hand, an external candidate owns the different knowledge and skills from other companies therefore it can be brought into the business and might also change the view of the company itself. However, "with different experience candidates might spot weaknesses in the job description and can bring more benefits into the business than we expected" (Ref 6). Also, if we hire someone from the outside company, it only bring up a new face or new perspectives to the company but, it may create more difficulty situation due to the different way to achieved goal. Sometimes, it may result people hurting each other and become a bad working environment (Ref 2, 5, 6) (figure1).
Finally, familiar with company's culture. It is particularly important to hire a culture fit candidate for the company because it can lower the company's risk and leave the business running early on the market. The internal person already understands company's function and team member personality as well. When a new policy or product comes out, they will know the processes involve to approaching the destination and how to issue the order smoothly without any complicate situation. They will fully utilize each staff's ability to get the best outcome (Ref 6).
On the contrary, external person usually didn't know the company's culture and mission until they get hired. Again, it takes time to do the orientation and allow the new hire to fully understand the organization. Due to the new hire doesn't know the daily basis and team member's characteristics, when a new concept or product come out, it becomes more difficulty to operate it and usually the outcomes are roughly. So, if new manager does not get well with his members, then, it may induce serious problem when assign each one to perform the new concept. That is, it will cause more pressure and problem to the company and delay the schedule (Ref 5) (figure1).
When a company decides to hire a new person, the advantage and disadvantage terms are need to be weight before the final decision. Overall, an internal candidate will be the best choice because it can save a lot of unnecessary time in research, interview and training. It will shorten the recruitment time and makes the budget wisely in the human resources. It encourage millions of people who already working within are all of one mind and loyal to the company which also can enhance to a higher level and achieve at enterprise peak.
Reference: 1.http://www.ere.net/1999/09/10/the-advantages-and-disadvantages-of-inside- first-hiring-preferences/
3.Dessler , G (2002) . Human Resource Management 9th ed . Prentice Hall
6.http://ezinearticles.com/?Internal-Recruitment---Advantages-And-Disadvantages-ExplainedHYPERLINK "http://ezinearticles.com/?Internal-Recruitment---Advantages-And-Disadvantages-Explained&id=1663907"&HYPERLINK "http://ezinearticles.com/?Internal-Recruitment---Advantages-And-Disadvantages-Explained&id=1663907"id=1663907
8. Blair A. Keagy,Marci S. Thomas. Essentials of physician practice management. Chapter twelve: Human resource management P268-273
9. Internal Promotion versus External Recruitment
http://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1221HYPERLINK "http://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1221&context=ilrreview"&HYPERLINK "http://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1221&context=ilrreview"context=ilrreview