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Commerce · Ch 10 — Recruitment Methods

Internal vs External Sources of Recruitment

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Internal vs External Sources of Recruitment

Both internal and external sources have a legitimate place in an organisation's overall recruitment strategy — most organisations use a mix of the two, choosing between them depending on the nature and level of the vacancy to be filled (for example, favouring internal promotion for a senior post while using campus recruitment or media advertisement for entry-level hiring).

BasisInternal SourcesExternal Sources
MeaningFilling vacancies from among the organisation's own existing employees (transfer, promotion, re-employment)Filling vacancies by bringing in candidates from outside the organisation
CostGenerally cheaper — no advertising or agency feesGenerally costlier — advertising, agency fees, and a longer process
Time takenQuicker, since the pool of candidates is already knownSlower, since sourcing and screening outside candidates takes longer
Employee moraleTends to motivate existing employees who see a real chance of advancementCan lower morale of existing employees passed over for an outside hire
Availability of fresh ideas/talentLimited — the same existing pool of people and ideasWider — brings genuinely new skills, experience, and perspectives
Familiarity with the organisationCandidates already know the organisation's culture and proceduresCandidates are unfamiliar and need a longer induction/settling-in period
SuitabilityBest suited for vacancies that can be filled by developing existing employees (e.g. promotions)Best suited when specialised skills are needed, or when the organisation is expanding and needs more people than its existing workforce can supply