July 1, 2023

Internal and external recruitment


Let us talk about recruitment. The recruiter is not a new profession, like, for example, a cybersecurity engineer or “white hacker”. But, due to its specificity, it is related to both the engineering profession and the work of a hacker. How? The recruiter looks for and hires these professionals for employers, the same as many other representatives of old and recently emerged jobs.


Anyway, there are plenty of nuances in the job of a recruiter. And even though the nature of hiring people has always remained the same, the methods and resources of recruiting have changed a lot. Such recruitment forms have appeared as internal and external recruitment, remote recruitment, or international recruitment. Now, I offer to look at internal and external recruitment features in detail.

What is internal and external recruitment?

Internal recruiting is hiring a new employee from the company’s current staff.


External recruiting is hiring a new employee from outside the company.


To understand the similarities and differences between these types of recruitment more in detail, we should look at internal vs external recruitment and compare the specifics of their processes based on the main criteria:


  1. Clients and the order for recruitment.

In internal recruitment, the client is the head of a structural department of the same company.


Whereas in external recruitment, the client is a client company.


  1. Search and selection.

In internal recruitment, the search occurs by collecting recommendations and analyzing resumes and personal files of full-time employees.


On the other hand, in external recruitment, the search takes place using all sorts of outside recruitment tools, sources, and resources, such as social media, job boards and job platforms, etc.


  1. Interviewing and closing the vacancy.

There is practically no difference between the two types of hire at this stage. In both cases, candidates go through several interviews with different company representatives and a test task. And the eventually selected candidate, who has successfully passed all stages of the recruitment process, moves on to the onboarding stage.


Naturally, onboarding is faster and easier if the candidate has been selected through internal recruiting because they are familiar with the company, its working conditions, policies and culture, and most, if not all, of its employees.


However, it is not always possible to find and hire the right candidate in the company itself, even if it has a large staff. Then the companies resort to the services of international recruitment agencies like OnHires.


  1. Failure to pass the probation.

In external recruitment, if the selected candidate does not pass the probationary period or leaves without passing it, the recruiting agency undertakes to find a free replacement as soon as possible.

As for internal recruitment, such a way out of the situation is impossible, since the best candidate from the company’s internal resources has already been chosen and has not fit. Then the solution may be only one: to turn to external recruitment.

The advantages of internal recruitment

I would highlight the advantages of internal recruitment as follows:


  • Saving money.

When a company hires its own employee for a new position in the company, there is no need to spend money on paying for a recruiting agency’s services.


  • Saving time.

Closing a vacancy with the candidacy of the company’s own employee takes a minimum of time, much less than if you had to turn to external recruiting for help with finding an employee.


  • Faster and easier onboarding.

Since the employee comes to the new position from their own company, they are already familiar with the policy and culture of the company, working conditions, and personnel. These facts will greatly facilitate and accelerate their adaptation to their new position.


  • Increasing employees’ respect for their company.

When a worker from the team is promoted to a new role in the company, the leadership thereby demonstrates to its staff that it appreciates them and does not want to exchange for outsiders. This can significantly increase employee morale and loyalty to the company.

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The disadvantages of internal recruitment

On the other hand, internal recruiting also has several obvious disadvantages:


  • Gap in the workforce.

By hiring employees within the company, you transfer them from one position to another. As a result, the former position from which the worker has been transferred remains vacant. And now you have to look for a candidate for a new vacancy.


  • Lack of new ideas and absence of a fresh look at the workflow.

Because recruitment occurs within one and the same company, there is no influx of new people and new ideas.


  • Deterioration of the working atmosphere and relations within the team.

Because one company employee has been promoted and the other has not, some employees may feel undervalued or unfairly valued, which may affect their work productivity. Plus, they may develop a negative attitude towards the promoted employee, negatively influencing overall productivity. Or they may leave the company for its competitor.


  • Limited quality of the candidates.

Due to the limited choice of the company’s staff, it is rarely possible to choose among the current staff of the company the candidate that perfectly matches the demands of the position.

The advantages of external recruitment

As for external recruitment, I would recommend considering these priorities:


  • Virtually unlimited range of candidates.

Today, external sources of finding candidates are incredibly extensive and diverse, despite the fierce competition among employers in acquiring talent. External recruiting allows you to find and hire candidates that almost perfectly meet the employer’s requirements.

  • Better candidates’ quality.

Due to the large range of candidates to choose from, the quality of the selected candidates is much higher than in the case of internal recruitment.


  • Influx of new ideas and potential in business promotion.

New people with new skills and experience may bring new ideas and new approaches to the processes that have already become routine, which has a beneficial effect on the business as a whole and contributes to its expansion and greater efficiency.

The disadvantages of external recruitment

External recruitment also possesses some weaknesses:


  • Risk of hiring the wrong candidate.

Since no matter how careful the selection of candidates is, they are always, to some extent, “dark horses”.


  • Higher cost.

Finding and hiring new employees through a recruiting agency always costs more than internal hiring.

  • Risk of the new employee’s quick leaving.

There is always a risk that the new employee may not stay in the new place for long. They may not fit into the team, or the volume of work tasks might appear to be too large or complicated for them.

The final words

Which recruitment method you choose is up to you. I have offered the objective pros and cons of both approaches. As for me, I make my choice in favor of external recruitment. I am for the infusion of new ideas, practices, and talent in the business.