Internal and External Recruitment
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Transcript of Internal and External Recruitment
Internal and External Recruitment – Q.2.
Online Recriutment:
In the fast changing and competitive business environment, where employees
are considered as the main source of competitive advantage it is very essential
for the company to recruit the best people in the business. And hence,
Recruitment and selection is now considered as very important process of
human resource management. Recruitment is the process of attracting a pool of
qualified job candidates from which the organisation can select the appropriate
candidate to fulfil job requirement (Maxwell.G, 2002). There are three main
issues that have increased the importance of the selection decision of the
organisation. They are: demographic trends and changes, desire for multi-skilled,
flexible workforce and increased emphasis on team-working and the emphasis
between corporate strategy and people management. It is very necessary to
consider various sources in the process of recruitment (Beardwell.J, 2007). There
are two main sources of online recruitment. 1. Internal and External.
Internal recruitment
Internal recruitment can be conducted in several ways:
Employee database: Every company has a database of their employees, which is
maintained by human resource department. The company can use this data to
fill the job requirement.
Job posting: In this system the employer provide notices to the existing
employees about the job openings within the organisation. And the employees
respond it according to their needs.
Promotions and Transfers: Promotion and transfer is another way of internal
recruitment. In this process the employee gets rewarded in the form of
promotion to the next level of the job. Employees feel motivated through
promotions. Transfers are normally given to the employees who want to shift
from one place to another and there are vacancies in that place.
Current employee referrals: Referral from an existing employee is another major
source of internal recruitment. In this system, friends, family members,
acquaintances of existing employees are considered as the reliable source of
recruitment.
External Recruitment
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Internal and External Recruitment – Q.2.
External recruitment is another way of recruiting people for the job. Let us study
in detail what are the different sources of external recruitment.
Labour unions: Labour unions are the good source of recruiting labours in the
factory. Unions have traditionally supplied workers to the employers. A labour
pool is generally available through Unions.
Recruitment agencies: These are the most common source of external
recruitment. There are certain HR agencies works for recruitment purpose. There
are both private and government recruitment agencies. The companies
outsource their personnel management needs to these companies and then
these agencies find out the right candidate for the respective jobs.
Media: Media is the most popular source of external recruitment. This includes
advertisement in newspaper, business magazines, radio, TV channels etc. This
source is comparatively costlier than other sources.
Job fairs & events: The Company organise job fairs events at different locations
to attract the pool of candidates for the respective jobs. This method is used
when the company needs immediate employees.
E-recruitment: This is considered as the modern way of recruitment. As
technology is improving, most of the companies have their own “Career“website
through which they recruit people. This is known as E-recruitment. Company
update their websites from time to time according to the personnel needs of the
company.
Internal Recruitment
1. Advantages
Better assessment of abilities
Lower cost for some jobs
Motivator for good performance
Lower costs
2. Disadvantages
Danger of inbreeding
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Internal and External Recruitment – Q.2.
Possible morale problems of those not promoted
‘Political’ infighting for promotions
Need strong management development programs.
External Recruitment
1. Advantages
‘New blood’, new perspectives and fresh ideas to problems
Fast way of changing tired or outdated culture
Cheaper than training a professional
May bring industry insights
More dynamic workforce
2. Disadvantages
May not select someone who will ‘fit’ in culturally
Longer ‘adjustment’ or orientation time
More education and development required
Can be expensive
(Robert L. Mathis, John H. Jackson) and (Robert Compton, William Morrissey,
Alan, Nankervis).
The choice of internal and external recruitment is usually based on:
Organisational strategies – such as cultural or structural change, customer
or product diversification.
Human resource policies – head count freeze or staff development.
Employee morale or financial reasons – cost reductions or redployment.
External recruitment would be appropriate in situations when an organisation
reviews all its internal candidates and no one is found suitable. Also, it is used in
situations when the organisation decides that fresh blood is required from
outside. Internal recruitment would be appropriate when cost is a major issue for
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