Types of recruitment
Firms can recruit from inside or outside the organisation.
- internal recruitmentWhen a vacancy is filled by an employee who is already working for the organisation involves appointing existing staff. A known person is recruited.
- external recruitmentWhen a vacancy if filled by an employee from outside the organisation involves hiring staff from outside the organisation. They will bring fresh ideas with them but they are unknown to the company - will they fit in?
There are advantages and disadvantages to appointing internally or externally.
Internal recruitment
| Advantages | Disadvantages |
| internal candidates abilities are already known | the pool of candidates is limited |
| they know the culture | no new ideas are brought in |
| they need less training | |
| process is quicker and cheaper | creates another vacancy that needs to be filled |
| internal promotion is good for overall staff morale | unsuccessful candidates may be resentful or demotivated |
| Advantages | internal candidates abilities are already known |
|---|---|
| Disadvantages | the pool of candidates is limited |
| Advantages | they know the culture |
|---|---|
| Disadvantages | no new ideas are brought in |
| Advantages | they need less training |
|---|---|
| Disadvantages |
| Advantages | process is quicker and cheaper |
|---|---|
| Disadvantages | creates another vacancy that needs to be filled |
| Advantages | internal promotion is good for overall staff morale |
|---|---|
| Disadvantages | unsuccessful candidates may be resentful or demotivated |
External recruitment
| Advantages | Disadvantages |
| external candidates can bring in new ideas | no prior knowledge of how candidates perform on the job |
| large pool of candidates to choose the best one from | process is expensive as job adverts cost money |
| external candidates may have wider range of experience | process can be slow and lengthy |
| Advantages | external candidates can bring in new ideas |
|---|---|
| Disadvantages | no prior knowledge of how candidates perform on the job |
| Advantages | large pool of candidates to choose the best one from |
|---|---|
| Disadvantages | process is expensive as job adverts cost money |
| Advantages | external candidates may have wider range of experience |
|---|---|
| Disadvantages | process can be slow and lengthy |