What are the advantages and disadvantages of internal and external recruitment?

Question

What will be an ideal response?

Answer 1

Answers will vary. Internal recruitment is the process of seeking employees who are currently within the firm to fill open positions. This approach offers several advantages:Boosts employee morale by reinforcing the value of experience within the firmReduces risk for the firm, since current employees have a proven track recordLowers costs of both recruitment and trainingBut companies often find that they don't have the right person within their organization. The firm may be too small, or perhaps no one has the right set of skills to fill the immediate needs. Or maybe the firm needs the fresh thinking and energy that can come only from outside. When this is the case, companies turn to external recruitment.External recruitment is theprocess of seeking new employees from outside the firm.The possibilities for external recruitment include employment websites, newspaper ads, job fairs, trade associations, college and university employment centers, and employment agencies. But the most promising source of new hires may be referrals from current employees. A growing number of organizations offer their current employees a cash bonus-typically $1,000 to $2,000-for each person they refer to the company who makes it past a probationary period. As an added benefit, employees who come through referrals have an excellent chance at success, since the person who recommended them has a stake in their progress. Employee-referral programs also represent a real bargain for employers, compared to the average cost per new hire of more than $4,000. Not surprisingly, a higher level of employee referrals correlates to a higher level of shareholder returns, although lack of diversity may become a long-term problem with relying on employee referrals.