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Merits of internal versus external recruiting

1. Discuss the relative merits of internal versus external recruiting.

2. Discuss which method would work best in your organization.

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Let's take a closer look through discussion, example, and an excerpt which expands on the discussion.

RESPONSE:

1. Discuss the relative merits of internal versus external recruiting. Discuss which method would work best in your organization.

This question seems cut and dry but is not. Generally, internal recruiting is cheaper, whereas external recruiting can be costly. Internal hires are most often already socialized into the culture,so training and orientation is not necessary like for external recruitees, which saves time and human resources. Sometimes external recruiting brings in new and fresh ideas, which is innovating, but it can be both time consuming and costly.

However, it has indeed been debated and there is a general consensus that in order for an organization to determine which is better is to do an analysis at the organizational level, based upon a cost-benefit analysis. This analysis needs to consider certain factors and then compare scores for internal versus external recruiting, to see which ones scores higher, such as" quality of hire, time to fill position, culture fit, candidate experience/impact on EVP, and cost. It will then depend on the results of your analysis whether or not you hire internally or externally. In other words, in order to decide the 'better' choice for the organization, a cost benefit analysis helps the process. it needs to be clear what performance criteria to include in the analysis, as well as the other factors (time, cost, etc.). Once the organization has defined the criteria for success and considered the other factors like time and cost, etc, then the organization will be able to make a better choice as to go with the internal or external recruitment (http://www.ere.net/2007/06/13/external-vs-internal-recruiting-who-does-it-better/).

For example, if you had an experienced person that was a perfect fit for the position and culture that already worked in the organization, and the orgnanixzation had few financial resources and a short time for recruiting, then the organization would perhaps opt for internal recruiting, although this analysis is simplified for illustration (http://www.ere.net/2007/06/13/external-vs-internal-recruiting-who-does-it-better/).

For a closer inspection of each of these areas in the cost analysis, see the following excerpt by Randell, 2007, ...

Solution Summary

Discusses the relative merits of internal versus external recruiting, as well as which method would work best in your organization. References are provided.

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