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Learn about the key differences between internal recruitment and external recruitment.
Internal recruitment refers to the promotion or relocation of existing employees to fill up specific personnel requirements.
External recruitment refers to hiring of new employees from outside the organization.
Difference between Internal Recruitment and External Recruitment
Difference between Internal Recruitment and External Recruitment – 5 Key Differences
Difference # Internal Sources:
1. Meaning – It involves search of candidates from within the organisation.
2. Economy – This process is cheaper. It does not involve any cost of contracting the external sources.
3. Motivation – The existing staff members are motivated to improve their performance.
4. Choice – Choice of candidates is limited. The scope of fresh talent is diminished.
5. Time – Internal recruitment is a quick process. Internal sources help in saving time of officials responsible for recruitment.
Difference # External Sources:
1. Meaning – It involves finding candidates from outside the organisation.
2. Economy – This process is costly as vacancies have to be notified in newspapers, etc.
3. Motivation – The workers feel dissatisfied if external sources are used.
4. Choice – The business can hope for talented candidates from outside. This means infusion of new blood and new ideas into the enterprise.
5. Time – External recruitment is a lengthy process. External sources of recruitment are time-consuming.
Difference between Internal Recruitment and External Recruitment – 8 Key Points
Difference # Internal Sources:
1. Meaning – Recruitment is made from within the organisation.
2. Motivation – Increases the motivation of existing employees.
3. Time – It is less time-consuming.
4. Choice – It provides a limited choice.
5. Cost – It is less costly.
6. Quality – Quality of recruitment is not as superior as in external sources.
7. Reference – No reference is required because the enterprise already knows the employee.
8. Basis – Based on both seniority and merit.
Difference # External Sources:
1. Meaning – Recruitment is made from outside the organisation.
2. Motivation – Decreases the motivation of existing employees.
3. Time – It is more time-consuming.
4. Choice – It provides wider choice.
5. Cost – It is more costly.
6. Quality – Quality of recruitment is more superior.
7. Reference – Reference is required because the enterprise did not know the candidate.
8. Basis – Based only on merit.
Difference between Internal Recruitment and External Recruitment – Explained!
Difference # Internal Sources:
1. Meaning – Recruitment is from within an organisation.
2. Basis – Based on seniority and merit.
3. Time Involved – Less time consuming.
4. Cost – Relatively cheaper source of recruitment than external sources.
5. References – No references required as candidate’s performance is always monitored.
6. Choice Availability – Choices of potential candidates are limited.
7. Induction – No induction required.
8. Motivation – Can create motivational value among existing employees.
Difference # External Sources:
1. Meaning – Recruitment is from outside the organisation.
2. Basis – Based on merit and qualifications.
3. Time Involved – A very time consuming exercise.
4. Cost – An expensive source of recruitment due to the time consuming process.
5. References – References are required to assure previous work, conduct and character.
6. Choice Availability – There is a wide choice of potential
7. Induction – Induction is required.
8. Motivation – Creates frustration among existing employees.
Difference between Internal Recruitment and External Recruitment – 12 Major Points of Difference
Both internal and external sources of recruitment have merits and demerits. The following comparative statement will enable the reader to understand them better.
Comparative Statement of Internal and External Recruitment:
Difference # Internal Recruitment:
1. Economy – It is inexpensive
2. Reliability – It is more reliable
3. Time – It takes lesser time
4. Induction – It leads to easy induction
5. Process – It is a closed process
6. Impact – It enables career growth
7. Talents – It is closed, limited and stagnated
8. Utility – It leads to optimal utilization of talents
9. Familiarity – It assures familiarity with workforce
10. Loyalty – It promotes loyalty among employees
11. Morale – It enhances employee morale
12. Competition – It discourages competition
Difference # External Recruitment:
1. Economy – It is inexpensive
2. Reliability – It is not that reliable
3. Time – It is time consuming
4. Induction – It is a bit difficult
5. Process – It is an open process
6. Impact – It facilities new addition
7. Talents – It is open and unlimited
8. Utility – It depends on HRP
9. Familiarity – It is unfamiliar
10. Loyalty – It is not guaranteed
11. Morale – It depends on the individual
12. Competition – It mounts to healthy competition
Difference between Internal Recruitment and External Recruitment
Difference # Internal Recruitment:
Internal recruitment refers to the promotion or relocation of existing employees to fill up specific personnel requirements. It also refers to upgrading the skills of people and then redeploying them as per changed requirements. A major advantage of internal recruitment is that employers know the employees and vice versa. The challenges related to adaptation that arise when external candidates are inducted get minimized.
Further, providing opportunities to employees within the organization encourages employees across the board to stick to the organization, work hard, and give their best.
On the other hand, according to Bateman and Snell (2004), the major drawback of internal staffing, particularly when existing employees lack the requisite knowledge and skills required for the job, is limiting the pool of candidates for the selection process. This leads to poor selection decisions.
Difference # External Recruitment:
External recruitment refers to hiring of new employees from outside the organization. It infuses new talent, skill, and thinking into the organization that, in turn, leads to innovations. External recruitment can be done through advertisements, employee referrals, professional recruiting organizations, and campus placement selection process.
Advertisements are the most popular way of recruiting people, as they are relatively less expensive and help in generating a large number of responses. In case requirements are limited and the staff dealing with the recruitment process is small in numbers, organizations assign the job of preliminary selection or, even, final recruitment to outside professional recruiting organizations.
As per Morehart (2001), employee referral is another frequently used source of applicants. Some companies actively encourage employees to refer their friends by offering cash rewards. According to Talbott (1996), the advantage of campus recruiting is that there is a large pool of people from which the company can draw out applicants with up-to-date training and innovative ideas.
There are certain organizations that have started advertising for the vacancies available in their company on their websites or on specially-designed websites or job sites. The major advantage of external recruitment is that it brings in new thinking and ideas into the organization.
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