Should a company recruit internally or externally?

Internal Recruitment

An internal recruitment strategy is characterized by promoting employees from within an organization to fill upcoming positions. Many firms use such devices as job posting boards, email flashes, intranet posts and fliers to advise existing employees of positions they may vie for. This recruitment may be in the form of creating and shuffling temporary teams to fill certain tasks or may be permanent changes. Internal recruitment may be primarily horizontal or it may be for promotions in which the promoted employee's former position may not be filled.

External Recruitment

An external recruitment strategy is one which a human resources department will systematically search the employee pool outside its own employees to fill positions. Many firms will use advertisements in newspapers, job search websites, job fairs and referrals from current employees to fill positions. Some companies will utilize a temporary employee agency to fill positions that can be completed quickly and with less company-specific skill required to complete the desired task. Other firms will use headhunters or hiring consultants to seek, screen and deliver employees for a fee.

Advantages of internal recruitment

Ø  Better business understanding

Ø  Rewarding loyalty

Ø  Cost and time effective

Advantages of external recruitment

Ø  New perspectives and ideas

Ø  A competitive advantage

Ø  Increased diversity

 I advertise both internally and externally, implementing a thorough assessment process for each position. A mix of the two would provide for the most diverse and dynamic team possible.

Initially companies should higher externally but it will be great if you start hiring internally. it will boost the morale and skills of the current employees.