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Job Bidding as a Recruitment Method

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  • 0:01 Internal v. External…
  • 0:47 Job Posting & Bidding
  • 1:35 Advantages
  • 2:11 Disadvantages
  • 2:43 Lesson Summary
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Lesson Transcript
Instructor: Shawn Grimsley
Sometimes the best prospects for recruitment can be found already inside the organization. In this lesson, you'll learn about job bidding and how it is used for internal recruitment. You'll also have a chance to take a short quiz after the lesson.

Internal vs. External Recruiting

Calvin is a human resource specialist at a tech company in California. The director of the company's research and development department suffered a heart attack. Although he recovered, he has decided to retire. Consequently, a key management position in the company has opened up with no real warning. Calvin has been tasked with filling the vacancy. He does this through the recruitment process.

Recruitment is the process of attracting and selecting qualified applicants to fill vacant positions in an organization. Calvin can attempt to find suitable candidates outside of his company, called external recruitment, and within his company, called internal recruitment. Calvin decides to use job bidding as a recruitment strategy.

Job Posting & Bidding

Job bidding is an internal recruitment method that allows people already employed by the company to apply for a vacant position so long as they have the requisite knowledge, skills and abilities. Calvin kicks off job bidding with a job posting, which is the formal procedure a company uses to notify employees inside the company of a vacant position.

The posting typically includes the job title, the job responsibilities, the job qualifications and the procedure for applying. The posting may be made on the company's internal computer network, the Internet, emails, company newsletters or even posted in the company's break room. Employees who believe they are qualified for the position will follow the procedures outlined in the posting to apply, such as submitting an internal application.

Advantages

Calvin intends to give internal candidates priority over external candidates because of the advantages internal recruitment and job bidding offers the company. Current employees already know and understand the company's goals, mission, values and culture. Additionally, the company already has some firsthand knowledge of the employee's skills and performance. Calvin can assess an employee's previous performance appraisals to predict future success in the position. Hiring internally also increases morale and loyalty as employees see they can work their way up the corporate ladder.

Disadvantages

Calvin does have to keep in mind that internal recruitment has some disadvantages. The most obvious downside is the fact that sometimes the best possible applicant may be from outside the organization. And sometimes, it's better to have new blood and a fresh perspective. Additionally, filling one vacancy with an internal hire simply opens up another vacancy. Calvin knows that the most efficient staffing and recruitment strategies involve a healthy mix of both internal and external recruiting.

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