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. 

Pros

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.

Cons

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.

Pros

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.

Cons

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.

As every business owner or investor knows, innovation is essential for growth on every level, micro and macro. For business owners, innovation can drive the creation of new and improved products and processes that increase their profits. 

On a larger scale, innovations that affect a whole sector, such as new or more cost-effective ways to create energy, play a key role in economic growth and development. 

When it comes to innovation, an often overlooked area of the world is Africa. However, many African countries are getting serious about creating policies that will support business innovation and spur economic growth. 

In a recent interview, financial adviser Christopher Roy Garland noted how Botswana continues to be a shining light in the development of the African continent as a whole. However, South Africa leads the continent in innovation, ranking as the most innovative country in Africa in a 2020 study. 

In March 2022, the Human Sciences Research Council’s (HSRC) Centre for Science, Technology, and Innovation Indicators (CeSTII) began the latest round of South Africa’s official Business Innovation Survey for the Department of Science and Innovation (DSI). 

They have conducted this survey at different intervals beginning in 1992, with this being the fifth survey since 2005.

The Business Innovation survey is an important tool that helps South African lawmakers draft effective policies that support innovation and productivity while furthering the overall goal of continued development in Africa.  

What Does the Business Innovation Survey Measure?

This Business Innovation Survey is meant to measure recent innovations in South African businesses across several sectors, including manufacturing, architecture, electricity, transport, gas, agriculture, communications, water supply, and more. 

The HSRC has teamed up with GeoScope to reach out to 5,500 businesses in South Africa between March and September 2022 to complete the survey. Their survey can be completed online or via phone interview.

This round of the Business Innovation Survey focuses on the time period of 2019 to 2021, which was a unique time for every country in the world. 

With this survey, leaders hope to gain insight into how the COVID-19 pandemic affected innovation in South Africa. In these precarious times, it’s more important than ever to have clear and accurate data on the current state of innovation.

How Will the Results Be Used?

The results of the South African Business Innovation Survey are used by policy analysts and policymakers to make informed decisions and create effective policies that help businesses and promote economic growth. 

These results are also used to assess current policies and government incentives and their effectiveness. For example, the 2014-2016 Business Innovation Survey found that:

• More than two-thirds of South African businesses were innovation-active 
• The engineering, tech, manufacturing, and trade sectors experienced the most innovation 
• Innovation-active businesses were more likely to access national and global markets 
• Most innovation-active businesses did not report collaboration as a main component of developing new innovations 

However, it is not fair to assume these findings still hold true today. It is important to have up-to-date information to create policies that reflect the current and economic needs of South Africa. The importance of this information is why this survey is conducted every few years. 

The Business Innovation Survey results help inform policymakers on the state of innovation in specific sectors and what kind of support each sector needs from the government. 

For example, guided by the Business Innovation Survey, the South African government provides the agriculture sector with support to develop new agricultural technology and improve access for small-scale and fledgling farmers. 

As you can see, this survey has a direct impact on the policies that are created in South Africa, which is why the HSRC strongly encourages participation. 

When Will the Results Be Available? 

As of now, the HSRC expects to analyze the survey results at the end of 2022 and the beginning of 2023. Once the results are finalized, they will be published in 2023 on the HSRC’s official website.