{"id":8073,"date":"2019-07-31T10:00:08","date_gmt":"2019-07-31T08:00:08","guid":{"rendered":"https:\/\/factorialhr.com\/blog\/?p=8073"},"modified":"2025-04-09T01:20:12","modified_gmt":"2025-04-08T23:20:12","slug":"recruitment-process-internal-external","status":"publish","type":"post","link":"https:\/\/factorialhr.com\/blog\/recruitment-process-internal-external\/","title":{"rendered":"Recruitment Process: Internal Vs External Recruitment"},"content":{"rendered":"<p>In this article, we&#8217;ll explore the recruitment process when it comes to both internal and external recruitment.<\/p>\n<p style=\"text-align: justify;\">With today\u2019s rapid expansion and market growth, many new positions and opportunities are appearing. This past year has seen a boom in jobs, <a href=\"https:\/\/www.politico.com\/news\/2021\/06\/08\/april-record-job-openings-worker-shortage-492144\" target=\"_blank\" rel=\"noopener\">leading to a labor shortage<\/a>. If companies want to successfully thrive and compete in this ever-expanding environment, they will have to <strong>pay careful attention to improving their recruitment process<\/strong>.<\/p>\n<p style=\"text-align: justify;\">Sooner or later, managers will need to consider their <a href=\"https:\/\/factorialhr.com\/blog\/recruitment-strategies-human-design\/\" target=\"_blank\" rel=\"noopener noreferrer\">recruitment strategies<\/a> to fill up the needed positions. When facing this challenge, <strong>managers typically encounter a trade-off between promoting from within or to externally hire new employees<\/strong> to fill up the needed positions. Let\u2019s examine both options and see which decision you should make to successfully thrive with today\u2019s fierce market competition.<\/p>\n<p style=\"text-align: justify;\"><div class=\"js-toc toc\">\n<p class=\"js-toc-title toc__title\">Table of Contents<\/p>\n<nav id=\"fac_toc_nav\" class=\"js-toc-nav toc__nav\" aria-label=\"Table of Contents\"><ol class=\"toc__list toc__list--level-1\"><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-1\" href=\"https:\/\/factorialhr.com\/blog\/recruitment-process-internal-external\/#the-internal-recruitment-process-benefits-and-limitations\" title=\"The Internal Recruitment Process: Benefits and Limitations\" data-target-id=\"the-internal-recruitment-process-benefits-and-limitations\">The Internal Recruitment Process: Benefits and Limitations<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-2\" href=\"https:\/\/factorialhr.com\/blog\/recruitment-process-internal-external\/#external-recruitment-process-outsourcing-benefits-and-limitations\" title=\"External Recruitment Process Outsourcing: Benefits and Limitations\" data-target-id=\"external-recruitment-process-outsourcing-benefits-and-limitations\">External Recruitment Process Outsourcing: Benefits and Limitations<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-3\" href=\"https:\/\/factorialhr.com\/blog\/recruitment-process-internal-external\/#steps-to-recruitment-process\" title=\"Steps to Recruitment Process\" data-target-id=\"steps-to-recruitment-process\">Steps to Recruitment Process<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-4\" href=\"https:\/\/factorialhr.com\/blog\/recruitment-process-internal-external\/#types-of-recruiting-internal-vs-external--conclusion\" title=\"Types of Recruiting: Internal vs. External - Conclusion\" data-target-id=\"types-of-recruiting-internal-vs-external--conclusion\">Types of Recruiting: Internal vs. External - Conclusion<\/a><\/li><\/ol><\/nav><\/div><\/p>\n<h2><a name=\"(001)\"><\/a><strong>The Internal Recruitment Process: Benefits and Limitations<\/strong><\/h2>\n<p style=\"text-align: justify;\">What is internal recruitment? The internal recruitment process refers to<strong> promoting employees from within the same organization<\/strong> to higher positions rather than bringing in new talent.<\/p>\n<h3><a name=\"(002)\"><\/a><strong>Pros of Internal Recruitment<\/strong><\/h3>\n<ul>\n<li style=\"text-align: justify;\"><strong>Saving money and time:<\/strong> One of the most notable advantages of this recruitment process is the lower costs. By promoting your pre-existing employees, you save all the money and time attached to searching, interviewing, and selecting suitable new candidates.<\/li>\n<li style=\"text-align: justify;\"><strong>Better fit to the organizational culture:<\/strong> One of the crucial aspects when hiring new employees is to see if they are a good fit for the organizational culture. However, when you promote employees from your company, they will be familiar with the culture and work environment. This makes them better equipped for an easier and smoother transition to their new positions.<\/li>\n<li style=\"text-align: justify;\"><strong>Less uncertainty:<\/strong> Another thing that you should consider when planning your recruitment process is the level of uncertainty attached to the whole process. The reason lies in the fact that there is a consistent fear of making a bad hiring decision. However, when you internally recruit, you will only promote skilled employees who showed considerable success in their old positions. This will substantially eliminate this uncertainty.<\/li>\n<li style=\"text-align: justify;\"><strong>Motivation:<\/strong> If you adopt a policy of promoting your employees based on their performance, many of them will be eager to work hard to win the promotion. This will increase the levels of motivation amongst your employees as they realize the space of career development within the organization. All in all, you will have highly motivated employees who are constantly improving their performance and more likely to stay longer in the organization.<\/li>\n<\/ul>\n<h3><a name=\"(003)\"><\/a><strong>Cons of Internal Recruitment<\/strong><\/h3>\n<ul>\n<li style=\"text-align: justify;\"><strong>Limited recruiting options:<\/strong> Promoting from within only considers your current employees. This will minimize the pool of applicants from which you can select a suitable employee, limiting your hiring options. As a result, you would face difficulty in finding the right applicant for the needed position.<\/li>\n<li style=\"text-align: justify;\"><strong>Need more training to fit their new positions:<\/strong> Your current employees might be very experienced in their current jobs. However, if you are planning to promote them, they will need further training to obtain the needed skills for their new tasks. Moreover, promoted employees leave vacancies in their old positions. So, you will need to hire external employees to fill these positions. This process might cost a tremendous amount of resources and time.<\/li>\n<li style=\"text-align: justify;\"><strong>Resentment and demotivation for unpromoted employees:<\/strong> Yes, promoting your employees improves their motivational levels. Still, this only affects the promoted employees. Those who see themselves worthy of promotions but were not favorable will get demotivated. This could lead to undesired group dynamics and an unsettling work environment that encourages jealousy and unhealthy competition among workers.<\/li>\n<\/ul>\n<p data-wp-editing=\"1\">\n<div class=\"wistia_responsive_padding fac-wistia\">\n  <div class=\" wistia_responsive_wrapper\" >\n    <div class=\"wistia_embed wistia_async_2br6x0p1lz  autoPlay=false videoFoam=true seo=true\"><\/div>\n  <\/div>\n<\/div>\n\n<script type=\"text\/javascript\">\nif (!window.hbspt) {\n    Defer.js(\n      'https:\/\/js-eu1.hs-scripts.com\/4960096.js',\n      'hubspot',\n      0\n    );\n}\n\nif (!window.Wistia) {\n  Defer.js(\n    'https:\/\/fast.wistia.com\/embed\/medias\/2br6x0p1lz.jsonp',\n    'wistiaMedia',\n    0\n  );\n  Defer.js(\n    'https:\/\/fast.wistia.com\/assets\/external\/E-v1.js',\n    'wistiaPlayer',\n    0\n  );\n}\n\n  \n<\/script><\/p>\n<h2><a name=\"(004)\"><\/a><strong>External Recruitment Process Outsourcing: Benefits and Limitations<\/strong><\/h2>\n<p>So, what about the recruitment process outsourcing? The external recruitment process refers to the process of filling up vacancies in the organization by<strong> hiring new employees from the external labor market<\/strong>.<\/p>\n<h3><a name=\"(005)\"><\/a><strong>Pros of external recruitment<\/strong><\/h3>\n<ul>\n<li style=\"text-align: justify;\"><strong>New innovative ideas:<\/strong> As people stay longer in an organization, they begin adapting to each other\u2019s ideas. Whereas this is very good for the group dynamics, as they tend to have fewer disputes and disagreements, it becomes difficult for such an echo chamber to generate unique ideas. Therefore, external recruitment gives you access to new fresh minds that will bring about innovative ideas from outside the organization. This will help freshen up your business in today\u2019s competitive environment.<\/li>\n<li style=\"text-align: justify;\"><strong>More options for recruitment:<\/strong> As discussed earlier, one of the main disadvantages of the internal recruitment process is the limited number of candidates to new positions. External hiring, on the other hand, overcomes this issue as it introduces managers to a wider pool of applicants with a variety of skills from which they can choose. With exposure to many candidates, you can easily compare and select the best fit for the needed position.<\/li>\n<li style=\"text-align: justify;\"><strong>Better chance of hiring more experienced and skilled staff:<\/strong> Promoted employees usually need extensive training to be suitable for their new responsibilities. External recruitment process, on the contrary, ensures selecting those candidates who are more experienced, highly skilled, and generally a good fit for the needed positions. Nevertheless, they might require some orientation and basic training programs to introduce them to the work environment.<\/li>\n<\/ul>\n<h3><a name=\"(006)\"><\/a><strong>Cons of External Recruitment<\/strong><\/h3>\n<ul>\n<li style=\"text-align: justify;\"><strong>Higher costs:<\/strong> The external recruitment process involves a series of procedures to ensure the right selection of candidates. Often, this process consists of three main steps, which are searching, evaluating, and selecting. First, external hiring might involve job posting or reaching to third party agents to find potential applicants for the job. The second step involves background checks, interviewing, etc. the final step involves determining successful applicants and job offers. All of these steps require allocating a significant amount of the company\u2019s resources, money, and time.<\/li>\n<li style=\"text-align: justify;\"><strong>Risk of bad hiring decision:<\/strong> As a recruiter, you will have to come up with the right recruitment process that ensures fairness and objectivity in evaluating every applicant. However, designing a 100% bias-free recruitment strategy is almost impossible. Hence, you will always be in danger of making bad hiring decisions.<\/li>\n<\/ul>\n<h2><strong>Steps to Recruitment Process<\/strong><\/h2>\n<p>Once you determine whether you will be following the phases in a recruitment process for internal recruitment or external, you can then move forward. Although internal recruitment may have fewer recruitment process steps, that doesn&#8217;t mean less attention should be placed towards candidate <a href=\"https:\/\/factorialhr.com\/blog\/recruitment-and-selection\/\" target=\"_blank\" rel=\"noopener noreferrer\">recruitment and selection<\/a> and hiring. Here are <strong>5 recruitment steps to get you started<\/strong>:<\/p>\n<ol>\n<li>Pay attention to, and <strong>identify the needs of the company<\/strong> and what you are looking for out of the process.<\/li>\n<li>Ensure you <strong>have a\u00a0 team of recruiters ready to rock and roll<\/strong>. They should be trained, briefed, and prepared to jump into the hiring process.<\/li>\n<li><strong>Set the table<\/strong>. This means, preparing and putting out the job description on your site, and various hiring platforms.<\/li>\n<li><strong>Screen the candidates<\/strong>. Using an <a href=\"https:\/\/factorialhr.com\/blog\/applicant-tracking-system\/\" target=\"_blank\" rel=\"noopener noreferrer\">applicant tracking system<\/a> will save you a massive headache.<\/li>\n<li>Get ready to <strong>conduct the interviews<\/strong>. Make sure you know <a href=\"https:\/\/factorialhr.com\/blog\/how-to-conduct-an-interview\/\" target=\"_blank\" rel=\"noopener noreferrer\">how to conduct an interview<\/a>\u00a0for the position you are hiring.<\/li>\n<\/ol>\n<p>For more information, you&#8217;ll want to explore the full process of recruitment and selection.<\/p>\n<p><!--HubSpot Call-to-Action Code --><span id=\"hs-cta-wrapper-29df4b36-4624-4dea-afca-948e15862b68\" class=\"hs-cta-wrapper\"><span id=\"hs-cta-29df4b36-4624-4dea-afca-948e15862b68\" class=\"hs-cta-node hs-cta-29df4b36-4624-4dea-afca-948e15862b68\"><!-- [if lte IE 8]>\n\n\n<div id=\"hs-cta-ie-element\"><\/div>\n\n\n<![endif]--><a href=\"https:\/\/cta-redirect.hubspot.com\/cta\/redirect\/4960096\/29df4b36-4624-4dea-afca-948e15862b68\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" id=\"hs-cta-img-29df4b36-4624-4dea-afca-948e15862b68\" class=\"hs-cta-img\" style=\"border-width: 0px;\" src=\"https:\/\/no-cache.hubspot.com\/cta\/default\/4960096\/29df4b36-4624-4dea-afca-948e15862b68.png\" alt=\"New call-to-action\" width=\"900\" height=\"308\" \/><\/a><\/span><script charset=\"utf-8\" src=\"https:\/\/js.hscta.net\/cta\/current.js\"><\/script><script type=\"text\/javascript\"> hbspt.cta.load(4960096, '29df4b36-4624-4dea-afca-948e15862b68', {\"region\":\"na1\"}); <\/script><\/span><!-- end HubSpot Call-to-Action Code --><\/p>\n<h2><strong>Types of Recruiting: Internal vs. External &#8211; Conclusion<\/strong><\/h2>\n<p>In the business world, recruitment processes are very challenging yet unavoidable. When making these choices, managers will face a trade-off between internal and external recruitment. On one hand, internal recruitment offers fewer costs, more stability, and safer transitions. External recruitment strategies, on the other hand, offer a wider selection pool.<\/p>\n<p>Also, you get to choose from more innovative and experienced workers who will freshen up your business. In order to determine the best strategy for your business, you must first understand your organization\u2019s type. Companies have different circumstances, needs, and problems and the best is to have a good balance that matches your organization\u2019s demands.<\/p>\n<p><strong>Find out how <a href=\"https:\/\/factorialhr.com\/hr-software\" target=\"_blank\" rel=\"noopener noreferrer\">HS software<\/a> can improve your recruitment process. An <a href=\"https:\/\/factorialhr.com\/applicant-tracking-system\" target=\"_blank\" rel=\"noopener\">applicant tracking system<\/a> can streamline your hiring process from start to finish. Try a <a href=\"https:\/\/factorialhr.com\/get-started\">14-day free trial<\/a> of our recruitment software.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In this article, we&#8217;ll explore the recruitment process when it comes to both internal and external recruitment. With today\u2019s rapid expansion and market growth, many new positions and opportunities are appearing. This past year has seen a boom in jobs, leading to a labor shortage. If companies want to successfully thrive and compete in this<a href=\"https:\/\/factorialhr.com\/blog\/recruitment-process-internal-external\/\" class=\"read-more\"> [&#8230;]<\/a><\/p>\n","protected":false},"author":136,"featured_media":21007,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[347],"tags":[],"class_list":["post-8073","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-people-management"],"acf":{"topics":"recruitment"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.5 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Recruitment Process: Internal Vs External Recruitment | Factorial<\/title>\n<meta name=\"description\" content=\"During the recruitment process, managers must choose between promoting from within or externally hiring new employees.\" \/>\n<meta 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