Friday, December 14, 2018

Internal recruitment is more effective than external recruitment




What is Recruitment?

Recruitment is the process establishing the best & most qualified a suitable pool of candidates from which final selection is made. It is one function whole Human Resources function and which is a continuous process in an organization. Because of,
1)      Staff Departures,
              Eg:- Employee’s retirements/Sacking/ Employee’s Resignation
2)      Change in business Location (A relocation often triggers the need for substantial recruitment)
3)      Change in Business requirements
Eg:- New products/Markets/Expanded operations
4)      Promotions

Barber (1998) defines Employee recruitment as “practices and activities carried on by an organization for the purpose of identifying and attracting potential employees”. Many large corporations have employee recruitment plans that are designed to attract potential employees that are not only capable of filling vacant positions but also add to the organization’s culture.

According to Costello (2006) recruitment is described as the set of activities and processes used to legally obtain a sufficient number of qualified people at the right place and time so that the people and the organization can select each other in their own best short and long term interests.

Jovanovic (2004) said recruitment is a process of attracting a pool of high quality applicants so as to select the best among them. For this reason, top performing companies devoted considerable resources and energy to creating high quality selection systems. Due to the fact that organizations are always fortified by information technology to be more competitive, it is natural to also consider utilizing this technology to re-organize the traditional recruitment and selection process through proper decision techniques, with that both the effectiveness and the efficiency of the processes can be increased and the quality of the recruitment and selection decision improved.

Recruitment is becoming more & more important in business.it should be done very carefully. Because, always suitable people should be recruited for the company when fulfill the vacancy. Though right peoples cannot be recruited, Organization’s goal & objective will not be able to achieve as expected.  

Recruitment Methods

In an Organization, can be applied mainly two method for recruitment process. With new technology and the rise of social media new ways to recruit have emerged. Mainly, focused methods are;

Ø  Internal recruitment
Ø  External recruitment

Internal Recruitment

This refers to the filling of job vacancies form within the business-where existing employees are selected rather than employing someone from outside. A business might decide that it already has the right people with the right skills to do the job, particularly if its training and development program has been effective. Source of internal recruitment as below;

                                I.            Promotions
                             II.            Department internal exam
                           III.            Intranets
                          IV.            Employees recommendation
                             V.            Transfer
                          VI.            Internal advertisements
                        VII.            Staff meetings

External recruitment

The other way organizations often recruit is external. When a company is recruiting externally, they will often post their open job positions through several ways to outside. Nowadays social media also plays an important role in external recruitment. Another way to recruit externally is through referral of current employees. When recruiting externally, third parties may be used to outsource the recruitment process. Source of internal recruitment as below;

                                I.            Employment Agencies
                             II.            Job Centre
                           III.            Management consultant
                          IV.            Campus recruitment
                             V.            Advertising
                          VI.            Government funded training scheme
                        VII.            Walk in interviews

Why is internal recruitment more effective than external recruitment?

Source of Internal recruitment further explanation
Companies can give promotion to existing employees. This   method of recruitment saves a lot of time, money and efforts   because the company does not have to train the existing employee. Since the employee has already worked with the company. He is familiar with the working culture and working style. It is a method of encouraging efficient workers.
Internal advertisement :-
In this method vacancies in a particular branch are advertised   in the notice board. People who are interested are asked to apply for the job. The method helps in obtaining people who are ready to shift to another branch of the same company and it is also    beneficial to people who want to shift to another branch.

Employee recommendation:-
In this method employees are asked to recommend people for jobs. Since the employee is aware of the working conditions inside the company he will suggest people who can adjust to the    situation. The company is benefited because it will obtain.
Transfer:-
Many companies adopt transfer as a method of recruitment. The idea is to select talented personnel from other branches of the company and transfer them to branches where there is shortage of   people.
Staff Meetings:-
If there are vacancies to fulfill in the company, which is informed through the staff meeting. So that, if someone is interesting that position, who can apply and He/she has a good understanding about that position already.

Advantages of internal recruitment:

1.      Gives existing employees greater opportunity to advance their career in the business. It will be motivation factor not only opportunity taken employee, but also other employees. They will keep expectation to take somehow, suitable opportunity for them.
2.      May help to retain staff who might otherwise leave.
3.      Employee should know more about the internal candidate’s ability. A little competition will build up between internal candidates and company can select more efficient and most suitable candidate for the position.
4.      Requires a short introduction training period. If can be deployed an internal employee who knows about company’s nature and other persons behaviors and company vision & mission. No need to get extra effort for introduction about the organization to recruited persons.
5.      Usually, quicker & less expensive than recruiting from outside. When the company goes towards profitability should be considered about the cost also. If doing the external recruitment, an additional cost will have to be spent for the recruitment. To advertise about vacancies through several ways (Papers advertisement/Job bank/ Employment Agencies/ etc) and when candidates come to the interview at couple of days hidden cost will be seen at external recruitment. But if it is followed internal recruitment method relevant vacancies can fulfill from less expensive.
6.      Most important thing is time saving which can be seen at the internal recruitment. Because, If have any vacancy in the company, Suitable candidate can be deployed for the vacancy within short period. Right person already is in the company and no need take more time to be finalized about the relevant position & candidate. Already the company knows about him or her.



Disadvantages of external recruitment:

1.      The method is costly because it involves recruitment cost, selection, training cost.
2.      The method reduces loyalty to the company
3.      Some internal employee can be demotivate and it might be a reason of some employee’s responsibilities abandon.
4.      After the recruitment from outside, training programs have to be conducted for the new comers. It’s also additional cost and wasting the time.
5.      Without proper study about the candidate, though wrong person is selected for the vacancy, it will be directly effect to productivity. And also, if the company do not know about candidate’s bad behaviors and attitudes, its may be spread in other employee’s mind also. Ultimately it will be a disaster in the organization.

Above mentioned arguments show that internal recruitment is more effective than external recruitment.

References


4 comments:

  1. Could get a clear view on recruitment process

    ReplyDelete
  2. Shows that you have a clear idea about the topic. Good piece of writing Thanuj. Keep it up

    ReplyDelete
  3. It is very informative and interesting for those who are interested in blogging field.

    ReplyDelete

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