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It depends on the co. policy. If it to recruit from inside first which means promote or transfer and this should be the same same as recruiting from out site (ad, interview). Then move to outside if there is no one suituable for the position.
I prefer this method because it creates some motivation and succession planning for position and make employee expect to advance in the company and at the same time work hard to get future promotion instead of getting someone from outside.
I will prefer to recruit from inside the organization for suitable candidate otherwise search from outside the organization.
We prefer both inside and outside of recruitment on the basis of job requirements. If we find the potential candidates inside of the organization, we circulate internal job advertisement and we invite them in interview. After consequent interview, we offer job for potential candidate. On the other hand, if we find that there has no potential candidate inside of the organization then we circulate advertisement for external advertisement. After interviewing assessment, we officer job for the potential external candidate.
Within is first preference if there is someone with suitable skills or who can easily be developed. If you have a good learning and development program and quality leadership then you would already have people with some readiness to step into any role. By using inside first it means that you have developed your staff well and also that you value your staff. Of course if you need to increase numbers then someone will have to be brought in from outside for one of the vacancies. In the end it depends on finding the right character and skills. Depending on the type of work and environment there are often bigger benefits from bringing in someone new and innovative with a fresh perspective.
To limit attrition and to save cost the1st option should be an insider.
The advantages are.
A newcomer has to be hired at a much higher rate. He has to get accustomed to the co work culture.
It is a good practice to let thenew entrant work in the same level as the people he would lead which would give an oppertunity to him to proove his credentials. Would give him a feel of the work. There is a practice in many marketing and customer service depts that a new entrant has to face the customer for at least a few weeks. His/her performance is closely monitored during the period.
Professional wise and as an encouraging way for the employees you should try to recruit from inside the company first then from outside it. You should announce and evaluate the people from insider the company so that they will feel more secured and satisfied about their company. If the qualifications needed is not available within the company then start asking the employees to refer to people from the outside. The last thing to do is recruiting directly from outside the company.
First Choice is definitely within organization
Its totally depend on availbility of the resource and the time needed to fill in the position. We do promote internal candidate and sometime go for external hiring also.