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Deciding Between Internal vs. External Recruitment

There has been an opening, but the dilemma of how to go about hiring a new employee has presented itself; luckily, internal and external recruitment options each offer different benefits and drawbacks. Once these are understood, it should be easier to consider which is the perfect fit for the job role. There will be a path that is, without a doubt, able to solve your current hiring quandary, so do not fear.

Internal Recruitment

Internal recruitment is focused on hiring an already existing employee within the workforce who has been identified as being suitable for the new opening.


Cost & Time Effective: Money and time will not have to be spent on listing and promoting open vacancies, nor organizing interviews and other steps in the hiring process. It is likely that by hiring internally, the employee will require less training, which further saves the business money. This is because the employee would have been working within the workforce for a significant amount of time and need less introductory formalities when taking on the new role.

Reliable: Hiring internally is anticipated to be reliable as the recruiters will already be aware of how the employee works in their current role, having worked together for some time. There is no need to risk a candidate not living up to claims in a resume, as the employee’s record can speak for itself.

Reputation: The employer’s brand will be improved amongst current and potential future employees based on seeing evidence of career progression within the workforce. Employees are more likely to want to stay and candidates to join if room for growth within the business is possible.


Conflict: Having to choose between employees will not be a simple task, and it is possible that the choice will face a backlash from those that feel unappreciated. Any indication of what employees may perceive as favoritism could bring down the workforce morale and impact productivity.

Lack of Inspiration: Hiring internally can cause the workforce to become stagnant, missing the opportunity for a fresh perspective and motivation to boost productivity.

Double Efforts: Although the new internal hire can be time and cost-effective, the role left behind could end up needing to be filled. If this is the case, double the efforts of external recruitment would be required to complete the recruitment process.

External Recruitment

External recruitment is defined by filling a vacancy from a suitable applicant outside of the business to find candidates that can bring new talent to the workforce.


More Candidates: A search within a limited number of employees and all potential candidates outside of the workforce is not comparable. External recruitment widens the pool of talent by far, making it likely that specialized professionals with desired qualifications will be interested in the role. These applicants can be easily tracked and filtered by experience using recruitment ATS software.

Diversity: It is important to invite a wide range of perspectives into the workforce. Alongside promoting inclusion and empowerment, hiring employees with a fresh outlook can be hugely beneficial to the improvement of innovation within a business and provide a competitive edge.

Referrals: Build a positive relationship with current employees through referral schemes that benefit all parties involved. Incentives for loyal employees can bring recommendations for ideal candidates who will be an asset to the business.


More Expenses: External recruitment costs can add up for a recruitment service, job site memberships, travel, interview organization, and potentially training if needed. Hiring out of the workforce is an investment.

Disruption: While a new employee settles in, they often require extra assistance and guidance from colleagues. It should be considered when hiring externally that a transition phase for all involved in helping the new hire will potentially cause some disruption to productivity.

Morale: There is a chance that employees wishing to progress into a new stage of their career could hold some animosity toward the decision to recruit externally. This could impact the motivation of the workforce due to concerns regarding the opportunity to grow within the business.

Internal and external recruitment offer benefits and drawbacks that should be considered before deciding which is most suitable to fill your vacancy. Internal recruitment would most suit scenarios where an employee has proven themselves to offer the skills needed for the new role. Alternatively, external recruitment can bring a brand-new attitude into the business.

Denis Ava
Denis Avahttps://bizgrows.com/
Denis Ava is mainly a business blogger who writes for Biz Grows. Rather than business blogs he loves to write and explore his talents in other niches such as fashion, technology, travelling,finance,etc.

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