This article would look at the advantages and disadvantages of internal and exterior recruitment and how each strategy is utilized at different times. In order to explore the problems surrounding this essay it is important to define a few of the key terms.
Barber (1998) described recruitment as methods and activities completed by the company with the primary purpose of figuring out and bringing in potential employees. The recruitment level is the main human resource function that determines organizations success or persisted existence. This is because the more effective the recruitment program the easier and more successful the selection level (Redman and Wilkinson, 2009).
Hackett (1991) defined Selection as "predicting which prospects will make the most appropriate contribution to the company - now and in the foreseeable future". The selection procedure entails the mixture of accurate psychometric lab tests, performance centered or work simulation methods, and the use of various ways of assessment to measure the precisely the applicant knowledge, skills, capabilities and other characteristics (KSAO). A systematic selection procedure has become one of major criteria's for a high-commitment or powerful management way (Redman and Wilkinson, 2009).
The switch from the commercial to service sector has already established a great impact on the development of the recruitment and selection process. Recruitment now depends heavily on the sociable competence of the employee. The sociable skills or soft HRM skills places focus on the the way the employee would connect to the customer because their permanent goal is client satisfaction. Therefore careers are described in terms of the responsibilities it entails and the type of the job candidate who be able to carry out their responsibilities. For example Callaghan and Thompson (2002) carried out a study on call centres and found that these organisations relied closely on the examination of good dynamics. So they recruited based on personality of the applicant as opposed to technological skills (Bach, 2005). The selection process involves weighing the variations between the people in order to pick the individuals whose account best suits the person specification as suggested by the work profile detailed (Bach, 2005).
Barber (1998) believed that it was important to have the recruitment technique right because these would determine the success of the company in the long run. The organisation is constantly faced with your choice of whether to recruit internally or externally. Lepak and Snell (2002) argued that the decision of what recruitment strategy to take was reliant on the amount of human capital the job requires. Careers which required high skills and knowledge (which constitute the individuals capital advantage of the business) are better managed internally through deals and transfers which donate to creating a committed workforce. However, lower level careers which do not require intensive training can be outsourced as a result of short term career relationship required. An example of this is in large companies who have an enthusiastic recruitment programmes administered by in-house personnel for high level graduate positions Whilst those of short term relevance are externalised or are given out for short term deals (Redman and Wilkinson, 2009).
Internal recruitment is a common feature of companies that are dedication focused because they support their workers and present them necessary trained in a bid to develop their own internal talent. This practices the tenets of delicate human source management. Internal recruitment has many aspects that are advertising, upsizing and downsizing in a organisation. The sources of internal recruitment will be the use of bulletin which is usually strategically positioned in the HR area of the business. Another method is the intranet through In-house blogs and Inter emailing system. Internal recruitment can even be done by keeping skills inventory which is updated after training, studies for future research in order to spot who would best suit an available position (Davies, 2008).
Employers have tendencies to complete vacancies within its internal structure before trying to find exterior candidates. Internal recruitment is a cost cutting strategy because it would help to eliminate the price of advertising or the recruitment organization fees by recruiting internally. To do this, the business requires stamping out the vacancy in the newsletter or on staff notice panel or have a more sophisticated approach by using intranet (Torrington et al, 2008). Another advantage is that it could help reduce the price tag on training because it is a lot easier for internal recruits to modify to new assignments compared to a person who was helped bring from outdoors.
Furthermore, Advertising is another feature of inside recruitment. They have a very positive impact on the existing staff because it would help to boost the self confidence and moral of the staff member. This would help bring about dedication and loyalty since it gives the worker a sense of value and makes them feel they are important property to the organisation. It offers them the opportunity to progress the ladder and they have a tendency to give their best to the organisation hereby adding to the organisations goals (Torrington et al, 2008). However, inner recruitment has its many disadvantages; it includes tendencies to be discriminatory. It is because to retain the same employees which would create an obstacle for the organisations development and discourage the diversity of talents. Another effect of this is the fact that it may continue steadily to promote organisational inequalities (Bach, 2005). Potentially organisations are limited by the abilities of the prevailing staff in comparison to what they might have achieved if interior recruits was required to compete with exterior candidates for a job position.
External recruitment is a recruitment method adopted by the company which involves the organisation going outside to search for its labor force after it's been established that there is no qualified prospect available inside the organisation. In order words the job specification of the work position available and the KSAO (Knowledge, skills, abilities and other characteristics) do not match among the employees within an organisation the company would then have to outsource the correct candidate for the job (Ployhart and Schiender, 2006). Sources of external recruitment range from the traditional advertising of jobs on the newspaper publishers to website advertising which can be obtained 24 hours a day for entitled job job seekers, it also entails the use of employee recommendations, professional recruiters also referred to as headhunters, walk-ins and also by heading direct to educational organizations through presentations of job fairs (Davies, 2008)
The various downsides of interior recruitment constitute the good thing about external recruitment. External recruitment brings in 'new blood vessels' into the organisation. Contemporary businesses seek to entice applicants that are fresh out of college or university in order to bring the latest principles and know-how. These new entrants have possibility to provide the system and process of the organisation a fresh prospect which would help the organisation to adapt to the changing business environment. Another strategy found in external recruitment to professionalise their businesses and organisational culture is by outsourcing their staff from reputable business institutions. Another good thing about external recruitment is the fact it would lead to competition within the company because the insiders commence to see an increasing need to upgrade their current skills and educational qualification to meet with the contemporaries appointed from outside. Over time this would produce a dynamic workforce and it could also ensures changes in the cooperate culture of the company (Compton and Nankervis, 2009).
Furthermore, Exterior recruits usually do not show favouritism for the already existing employees herby supporting them to have a neutral position in the middle of crises. They might not likely belong to any band of political followers in the organisation and would therefore not be involved with the politics squabbling for promotion which is common to internally recruited employees. An clear disadvantage External recruitment is that there surely is bound to be discord between new recruits and existing staff as the latter would soon commence to feel insecure and discouraged from working hard especially where external applicant has bought out them for a position they were absolute to get through advertising which can make the behavior of the prevailing workers would influence the overall production and efficiency of the company. For example, the Institute of Job Studies (2002) witnessed from other research discovered that when external recruits were decided on over existing workers after having a recruitment and selection process, employees portrayed bitterness and low morale; in addition they discovered that this would lead to the employees pursuing cases of unfair discrimination carrying out a selection process (as observed in Torrington et al, 2008).
Another downside of exterior recruitment is the fact that the procedure can be frustrating because it requires the new recruits some time to orientate themselves and adjust to the culture of the organisation. Also, the organisation would incur an extremely high cost in training the new staff than what it could have typically cost if it promotes staffs that are already familiar with the organisation. External recruitment is also prone to risk because there is a opportunity that the individuals may not surpass the expectations of the high potential shown through the selection process.
In final result, this article has looked at the various downsides and benefits produced from using the inner and external ways of recruitment. However it is important for the Organisations to get recruitment right & most Organisations should use the internal and external recruitment simultaneously in order to increase output and efficiency of the company through a stimulated workforce
In addition, the rapidly changing competitive environment have made some employers to carefully turn their concentration to the external labour market in addition to the developing inside source but However management need to be careful about how they make decisions as to which strategy to use by carefully weighing the permanent implications of the method because all organisations are out to maximise costs.
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