Human Resources

Pros and Cons of External Recruiting

Leigh Goessl's image for:
"Pros and Cons of External Recruiting"
Image by: 

External recruiting is one way to hire new employees to fill positions. While internal recruiting is always an option, some companies tend to prefer to bring new members into the organization rather than hire and/or promote from within. Others may vary in their hiring practices depending on their current needs.

Fundamentally what it comes down to when selecting hiring practices is for hiring managers to figure out how to fill the demand of a particular need at any given time.

The reasons why some employers may lean towards using external recruiting practices may differ, but ultimately whether or not this way of hiring is preferred boils down to a few factors. The first is the individual current needs of a particular organization and the second is the type of actual job needs to be filled.

When deciding to hire from an external application pool of potential employees, it is always a good idea to weigh out the pros and cons. If the cons turn out to be too extensive, it might be a wiser decision to reconsider and look at the benefits of internal hiring instead.

Here are a few pros and cons of external hiring:

• Pros of external recruitment

Bringing in new members to the organization from the outside often promotes new ideas. Depending on the organizational goals, management may be looking for fresh perspectives. Sometimes when people work in an environment for too long it is harder to see things in different lights, hiring externally can help jump start innovation.

This innovation could be for solutions to existing problems or to share new ideas to foster things such as growth, productivity and profitability. Often when people work together for a long time, groupthink can occur and hiring an external person can help break the negative effects of group think and kick start advancement.

Industry experience, specialized knowledge or skills are other benefits of hiring externally. Sometimes there just isn't a person already in an organization that possesses precisely the right things needed for a particular position, project or other need. Doing a job search for an individual to fill that need is sometimes a necessary move.

• Cons of external recruitment

The downside of hiring externally is cost. It is very expensive to advertise, recruit, interview and hire people who aren't already a part of an organization; it is also very time consuming.

On the other hand, if internal employees are recruited, promoted or laterally moved, this is the far more cost-effective and timely way to hire. Human resource information is all in place, the individual doesn't need organizational training, just needs to learn their new job description.

Employee loyalty is also something to consider. New external hires may not develop the same sense of company loyalty current employees have because of current trends of job hopping to the highest bidder.

In addition, long time employees may begin to feel resentful to not be considered for new positions, which could result in additional potential high turnover

When hiring for newly vacant or created positions, it is important to look at both the pros and cons of external hiring before beginning the recruitment process. If it turns out the benefits of looking through applicants from outside the company look promising, then it is a good idea to consider; especially if the advantages appear to be the right hiring fit for the type of position needing to be filled and meet the needs of the organization at that time.

More about this author: Leigh Goessl

From Around the Web