Which of the following is an advantage of using external sources for recruiting personnel as opposed to hiring internally?

1. Career development
2. The Advantages and Disadvantages of External Recruitment

By Indeed Editorial Team

Updated June 2, 2022 | Published April 13, 2021

Updated June 2, 2022

Published April 13, 2021

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Finding the right candidates to work in your organization is a crucial part of ensuring your company's success. Effective hiring practices can save your company time, money and other resources. Determining the best strategies for recruitment is an important part of locating the most qualified candidates who will fit well within your organization.

In this article, we discuss what external recruitment is and the advantages and disadvantages of this approach to recruiting.

What is external recruitment?

External recruitment refers to an organization seeking to fill an open position with someone who does not work at the company. Recruiters or hiring managers use external sources to find available candidates, such as:

• Job search sites: These may be free or paid services that allow you to post your open jobs and review candidates' resumes in one location.

• Social media: You can advertise an open position on your company's social media accounts.

• Industry organizations: Consider posting job openings on industry websites and in professional publications.

• Networking events: You can request to advertise your job opening at industry networking events by giving a short presentation or handing out flyers.

• Company websites: Add a careers section to your website with current available positions.

• Referrals from employees: Ask employees to reach out to qualified friends and family members.

• Job fairs: Attend job fairs at colleges and community centers to search for job candidates.

• College career centers: Develop relationships with your area's universities, and alert them when you have open positions.

• Advertisements: Consider advertising in local newspapers or through targeted online campaigns.

External recruitment is the opposite of internal recruitment, which means filling available positions with people who already work at your company.

Read more: Guide To the Recruitment Process

Advantages of external recruitment

Here are some of the benefits of external recruitment:

Selecting from more candidates

When you look outside your own company, you can explore a much larger pool of candidates for your position. This can increase your chances of finding a qualified, successful applicant. Having more potential hires can allow you to be more selective and find candidates with the right education and experience for the job.

Read more: 13 Recruiting Strategies To Help You Find the Best Candidates

Adding fresh perspectives

Bringing in outside hires can add a new perspective to your organization. A new viewpoint can help identify areas of improvement and make recommendations. New employees approach the company differently than those who already work there, and this can lead to positive changes in their department and in the company.

Enhancing diversity

External recruitment can help increase diversity in your organization. Incorporating a variety of perspectives can lead to innovation and more effective practices. Creating a diverse workforce in your organization and giving a platform to a range of voices helps promote inclusion and empowerment.

Finding a specialized candidate

Searching outside your organization can allow you to find a candidate who has more relevant experience and training for the job you need to fill. Using only internal candidates can limit your options for qualified professionals who specialize in a particular area, which can lead to increased training costs. When you look externally, you can focus your search on applicants who already have the specialized training and experience the position requires.

Encouraging referrals from current employees

Using external recruitment strategies can allow you to solicit referrals from current employees. This can help save you time by applying an extra layer of vetting to candidates. You can encourage high-quality referrals by offering incentives to employees that refer candidates who get hired.

Read more: Employee Referral Programs: Components and Benefits

Staying competitive

New employees can bring in ideas and strategies from their previous experience that can help improve your organization's practices. They can provide insights from other companies or industries that can apply to your company. Keeping up with current trends can keep your company competitive.

Reducing employee tension

When hiring for management or other supervisory roles, it may be preferable to hire an outside candidate to reduce tension among current employees who might be competing for the position.

Establishing authority

It may be challenging for current employees to view one of their peers as an authority figure after working at the same level. Hiring a manager from outside the company can make it easier for them to establish their leadership role than it would be for an internal candidate.

Disadvantages of external recruitment

Some of the disadvantages of external recruitment include:

Increased costs

External recruitment typically costs more than internal recruitment. Organizations may pay for a recruiting service, memberships for job search sites and travel for long-distance candidates. Additionally, your company's HR team spends more time on recruitment efforts, interviews and paperwork for bringing on new employees.

You can reduce the costs recruiting new employees by:

• Automating recruitment tasks with resume scanning technology and other screening techniques

• Asking candidates to complete personality tests before interviewing to help find a good match for your company's culture

• Using peer interviews to get more insights on candidates

Read more: What’s Included in the Cost of Recruiting a New Employee

Additional training

Outside hires require more training than internal employees on general company policies and procedures. This can cost the company additional time and money. Training for external employees can also result in reduced productivity during the training period and as new employees get familiar with their responsibilities.

You can minimize the time and expense of new hire training by streamlining the process. Incorporate strategies for efficient employee onboarding, such as:

• Implementing technology

• Checking in often

• Spreading general training out over several weeks with short sessions

Related: The 8 Best Types of Training Methods for Your Employees

Adds a transition period for all employees

When new employees start at a company, there is usually a transition period for the people they're working with. It can take a few weeks for employees to adjust to a new member of the department, especially if the new hire is in a leadership position. A new employee needs time to learn common company practices, get to know their colleagues and develop strategies. This may lead to a dip in productivity during this period.

During this transition, you can encourage unity by organizing team activities, lunches and collaborative projects. You can also consider assigning a "buddy" to new hires that can help introduce them to other employees and answer their questions.

Affects on employee morale

When companies recruit externally, it may affect employee morale, especially if employees expect to progress at the company. The outside hire can feel like a missed opportunity. It's important to discuss the organization's reasons for external recruitment to help ease employees' concerns. You can also review employees' career goals with them to ensure them there is still a path for them to move forward.

Related: Online Job Applications: What Happens After You Submit Your Resume

Learn how keyword technology impacts hiring, what recruiters look for, what it takes to get to the interview, and tips for what to do while you wait.

Which of the following is an advantage of external recruiting?

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Which one is not the advantage of external source of recruitment process?

Which of the following is an advantage of internal recruiting?