External Recruiting vs. Internal Promotions
It is an organization that looks to fill vacancies from applicants external to their organization or those employed by other organizations. An internal recruiter, on the other hand, is an individual who performs recruitment duties in-house. They are not used by the organization and may be called upon when external recruiting is impossible. External recruiting allows for more options in terms of job postings and expands the possibility of finding qualified candidates. Internal promotions allow for greater control over who is hired but may be less fruitful when looking for a more significant number of candidates.
1. Employee Morale
Employee morale is affected by external recruitment because employees may feel they are not as done being employed by the organization, and this could affect their work performance. Suppose a good employee is promoted to a management position. In that case, it raises the question of why they are deemed a suitable candidate for this position when other non-management employees may be more fitting to fill it. Organizations may need help to supply the correct job positions to accommodate their workforce, resulting in a lack of expansion.
2. Recruitment Cost
External recruitment is usually cheaper than internal promotions due to not having additional hiring costs, such as advertising and salary increases. Outsourcing recruitment allows companies to get the job done cheaply while focusing on other business areas. Recruiting agents may also be less trustworthy and must follow the right procedures when obtaining applicants. These factors will affect the recruitment process and result in a lower hiring cost than internal promotions. According to Raphael Avraham Sternberg, the cost of recruiting is a significant concern to anyone in business. The cost of hiring someone new can be upwards of $4,000. This doesn’t include the cost of training or severance if the person doesn’t work out.
3. Employee Motivation
Since employees can apply for external positions, they tend to feel more motivated to perform at their best, as they want to gain the promotion. They may become frustrated with their current position, enjoying the better job available externally. This is a problem for the organization, as employees may need to perform better to gain a more attractive career. With internal promotions, employees are motivated to work on their most challenging tasks because they know that is how they will get promoted. If employees feel they are ready to advance in position, will they be passed over because they are not prepared?
4. Organizational Structure
External recruiting can affect organizational structure by altering organizational communication channels and power structures. If employees are often recruited externally, this can cause a confusing chain of command and problems with communication which can lead to dysfunctional organizations. External recruitment can be used to avoid internal promotions within an organization. This creates more competition among peers, lowering morale and the quality of work, ultimately affecting the bottom line.
According to a study conducted by Raphael Avraham Sternberg, employees were found to be more productive when internal promotions were implemented. The primary reason for this finding was their rising confidence levels because they knew their performance would not be affected by external people hiring them.