External Recruitment: Advantages, Disadvantages & Methods

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  • 0:01 What Is External Recruitment?
  • 0:22 Advantages
  • 1:28 Potential Disadvantages
  • 2:14 Recruitment Methods
  • 3:00 Lesson Summary
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Lesson Transcript
Instructor
Molly Gigli

Molly has an MBA in HR and a BA in Organizational Leadership and Supervision.

Expert Contributor
Steven Scalia

Steven completed a Graduate Degree is Chartered Accountancy at Concordia University. He has performed as Teacher's Assistant and Assistant Lecturer in University.

Do you have a job vacancy and want to learn more about external recruiting? Read on to find out the advantages and disadvantages of this type of recruiting process, as well as the different methods that are used to find potential employees outside of an organization.

What Is External Recruitment?

External recruitment is the assessment of an available pool of job candidates, other than existing staff, to see if there are any sufficiently skilled or qualified to fill and perform existing job vacancies. It is the process of searching outside of the current employee pool to fill open positions in an organization.

Job vacancy

Advantages of Recruiting Externally

As with any recruiting method, hiring from outside an organization instead of promoting from within the company carries both advantages and disadvantages. Let's explore some of the advantages:

  • When an organization recruits externally, it opens the organization up to a larger pool of applicants, which increases its chance of finding the right person for the job.
  • External recruitment provides an opportunity for a fresh outlook on the industry that a company may need to stay competitive.
  • Bringing in fresh talent from the outside can help motivate the current employees to produce and achieve more in hopes of obtaining the next promotional opportunity.
  • Looking outside the organization also allows a company to target the key players that may make its competition successful. Hiring a candidate with a proven track record for the competition allows the company to get an insider's view as to what the competition is doing to be successful. This gives the organization a chance to stay a step ahead of the competition.
  • Hiring an external candidate also opens up many opportunities to find experienced and highly-qualified and skilled candidates who will help a company meet its diversity requirements.

Disadvantages of External Recruiting

There are some potential disadvantages of hiring an external candidate:

  • It can take longer and cost more than hiring from within the organization.
  • It can also damage employee morale because current employees may feel this lessens their chances for promotion. When employee morale decreases, productivity can also decrease.
  • It also takes more time to train an external candidate on the systems the organization uses; therefore, taking the candidate a little longer to get up and running.
  • It can be difficult to tell by a candidate's information whether or not he or she will fit in with the company and its employees. While a new employee may bring fresh outlooks and ideas, this can be considered a disadvantage, because these ideas may produce conflict with current employees.

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Additional Activities

External Recruitment - A Business Case:

The business case below will help you determine whether External Recruitment is advantageous or not for a real-life business based on their organizational needs.

You are a hiring consultant that helps companies determine how to fill their job vacancies. You receive a call from a new client.

"Hello consultant, I need your advice regarding if External Recruitment is a good idea for my organization. We have always filled our job vacancies internally. However, I heard that I might be missing out on some potential advantages by not using External Recruitment techniques."

You take the following notes on the organization:

  • The client explained that, in the past, the company had been forced to assign a job to a less-than qualified individual due to a small number of applicants.
  • The client mentioned that they enjoy filling their vacancies fairly quickly and do not allocate much of their budget to their hiring efforts. " It's so cheap to hire internally. We never have to take out an ad in the paper."
  • The client noticed that employees are less motivated since "everyone eventually gets to move up in the company, no matter how they perform."
  • The client mentioned that they never had issues of employee culture because all internal hires already got along great with everyone.
  • The client mentioned that the company needs new ideas and that "often we end up pursuing the same strategies over and over again because that's all we know."

Required:

Write a brief email of minimum 150 words that outline the advantages and disadvantages that come with the client's decision to recruit externally as opposed to internally. (Hint: Do not provide generic examples. Rather, use the information provided in the case!)

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