Business: Internal and External recruitment

Internal recruitment
is when a vacancy is filled by someone who is an existing employee of the business.

Advantages

·         Quicker and cheaper than external recruitment – reduces advertising costs.

·         Person is known by the business
reliability – ability – potential is known.

·         Person also knows/is familiar with business operations  - reduces need for induction training

·         Form of motivation  - increasing productivity of employees in hopes of also being promoted.

Disadvantages

·         No new ideas

·         Employees may become jealous of each other – creating a toxic work environment.

·         Quality of internal candidates might be low.

External recruitment
Is when a vacancy is filled by someone who is not an existing employee.

advantages

·         New ideas could be brought into the business.

·         The specific employees can be recruited based on the business’s needs.

disadvantages

·         Expensive advertising costs

·         Induction training is needed – time consuming