PUNEET Kr. SINGH

ELECTRICAL

S.No: 1

Relative advantages and disadvantages of

INTERNAL PROMOTION Vs

EXTERNAL RECRUITNEMT

What is Recruiting?

“Recruiting is the process of generating a pool of qualified candidates for a particular job.”

It is a set of activities an organization uses to attract candidates who have the abilities and the attitudes needed to help the organization achieve its objectives. Some essential groundwork including the internal factors and external factors need to be laid before the recruiting process can begin.

What is internal recruitment?

This refers to the filling of job vacancies from within the business - where existing employees are selected rather than employing someone from outside.

A business might decide that it already has the right people with the right skills to do the job, particularly if its training and development programme has been effective.

How is it done?

Internal vacancies are usually advertised within the business via a variety of media:

- Staff notice boards - Intranets - In-house magazines / newsletters (for example, E-map,

a major publishing business) have a weekly staff magazine devoted solely to advertising jobs within the organization!

- Staff meetings

Internal Recruiting—Advantages

Improves morale of promoted employee Improves morale of other staff members Managers can better assess the abilities of internal recruits Successions help reinforce a company’s internal career ladder Lower costs than external recruiting Reduces training costs Gives existing employees greater opportunity to advance their

careers in the business May help to retain staff who might otherwise leave Requires a short induction training period Employer should know more about the internal candidate's

abilities (= a reduced risk of selecting an inappropriate candidate) Usually quicker and less expensive than recruiting from outside

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Internal Recruiting—Disadvantages

Promotes inbreeding Lower morale for those skipped over for promotions Skipped over staff may feel favoritism exists Filling a gap in one department may create a more critical gap in

another Limits the number of potential applicants for a job External candidates might be better suited / qualified for the

job Another vacancy will be created that has to be filled Existing staff may feel they have the automatic right to be

promoted, whether or not they are competent Business may become resistant to change; by recruiting from

outside, new perspectives and attitudes are brought in

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Implementing Internal Recruiting

Develop a career ladder Inventory employees’ skills Cross train employees Post job openings

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What is external recruitment?

This refers to the filling of job vacancies from outside the business (contrast with internal recruitment).

Most businesses engage in external recruitment fairly frequently, particularly those that are growing strongly, or that operate in industries with high staff turnover.

External Recruiting—Advantages

Brings new talent, new ideas into a company Enables recruiter to find out about competing companies Reinforces positive aspects of a company Avoids “politics” of internal recruiting Serves as a form of advertising These are mainly the opposite of the disadvantages of internal

recruitment. The main one being that a wider audience can be reached which increases the chance that the business will be able to recruit the skills it needs.

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External Recruiting—Disadvantages

Difficult to find a good fit with company’s culture May create morale problems if no opportunities

for current staff Orientation takes longer Lowers productivity in the short run Conflicts with internal and external recruits

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Implementing External Recruiting

Friends/relatives of current employees Educational work-study programs Networking

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How is it done?

There are several ways of looking for staff outside the business: Employment / recruitment agencies These businesses specialize in recruitment and selection. They

often specialize in recruitment for specific sectors (e.g., finance, travel, secretarial). They usually provide a shortlist of candidates based on the people registered with the agency. They also supply temporary or interim employees.

The main advantages with using an agency are the specialist skills they bring and the speed with which they normally provide candidates. They also reduce the administrative burden of recruitment. The cost is the high agency fees charged - often up to 30% of the first year wages of anyone employed.

Contd…

Headhunters / Recruitment Consultancies

"Upmarket" recruitment agents who provide a more specialised approach to the recruitment of key employees and/or senior management. They tend to "approach" individuals with a good reputation rather than rely on long lists of registered applicants - often using privileged industry contacts to draw up a short list. The cost of using a headhunter or recruitment consultant is high.

Contd…

Job centers

Government run agency - good for identifying local candidates for relatively straightforward jobs. The job centre service is free to employers and is most useful for advertising semi-skilled, clerical and manual jobs.

Contd…

Government Funded Training Schemes

There is a variety of government funded schemes that provide potential recruits, including the New Deal and Modern Apprenticeships. The advantage of these schemes is that government funding lowers the cost of employment and the business can get to know the employee before committing for the long-term. However, relatively few employment requirements are covered by these schemes.

Contd…

Advertising Probably the most common method.

Advertising allows the employer to reach a wider audience. The choice of advertising media (e.g. national newspaper, internet, specialist magazine etc) depends on the requirement for the advert to reach a particular audience and, crucially, the advertising budget.

Internal Recruiting External Recruiting Advantages Advantages

Promotes high morale. Brings new ideas and methods . into the workplace. .

Employees are familiar Might facilitate diversity and affirmative with the organization. action initiatives.

Employee's performance and Might bring in expertise not currently skill levels are already available internally

known.

Promotes employee commitment. A lack of knowledge of current . internal processes and procedures . might facilitate innovation.

Provides a career path for Employee starts with a clean employees. slate and has no internal . . political affiliations.

Provides opportunities for the Might reduce training costs and employee to increase his or time if the employee comes to the her salary. organization with skills to do the . . job.

Reduces recruiting costs.

Reduces orientation costs

because the employee already

is familiar with the job and

organizational culture.

Reduces training costs because

the employee likely has already

learned some of the requirements

of the job through exposure to the

job.

Disadvantages Disadvantages

Can negatively affect morale Individual might not be a good and commitment of those fit with the organization and not promoted. organizational culture.

Does not encourage new and Might lower morale and commitment innovative ways of doing things. of current employees that are . deprived of promotion opportunities.

Promotes individual competition Must be oriented into organization for promotion, which can affect potentially resulting in increased cooperation and collaboration. time to adjust and reach full . performance level.