Internal vs External Recruitment

Recruiting external personnel

To recruit outsourced personnel, you need to post information on recruitment websites, contact universities, and training centers, or attend job fairs to attract candidates. But that's not enough - you need to understand the pluses and minuses of this form to have better preparation for the recruitment process.

Pros:

• Acquire new ideas and skills that the company does not currently have and needs to grow and change
  
• The training fee will be saved if the candidate already has the necessary experience
• Create a reserve of candidates, not only for the open position but for other positions in the future, creating a brand for employers
• Create a clear, open and fair hiring process

Cons:

• High cost for recruitment advertising and salary for new employees. According to a statistic, employees recruited from outside will have a higher salary from 18% to 20% compared to internal recruitment.
  
• Spending time on recruitment and training so that employees can learn and adapt to the environment, and the specific skills of each industry and each company.
• The job hopping rate is higher than the internal recruitment.
• Internal conflicts when the old person does not like working with the new person and vice versa.

Internal recruitment

Similar to external recruitment, you also need to attract candidates by making the recruitment announcement to the entire company. Besides, you can also find candidates by reviewing resumes and employee evaluation sheets.

The selected person can be an employee who is promoted from within the department with the position to be recruited or transferred from other branches or departments. And like external recruitment, internal recruitment also has advantages and disadvantages you need to be aware of.

Pros:

• Employees are familiar with the working environment and company culture. They will have relationships inside and outside the company to serve their work, and understand the company's problems and business activities.
  
• Employers know the employee's personality and abilities.
• Reduce costs, time to post recruitment ads, select and train new employees.
• Motivate employees to give a long-term commitment, strive for career development in the company, and not lose brainpower for other companies.

Cons:

• Create factions to promote a certain candidate and compete with the remaining candidates
  
• Create conflicts and grievances among employees if the selection process is not clear and unconvincing
• Create another vacancy in the company and it may be even more difficult to fill that position

See also: What is manpower supply (manpower-人力)

Common mistakes when recruiting internally and recruiting externally

Even if you are in urgent need of a replacement, don't make decisions too hastily and try to speed up the process. External recruiting will take time to attract candidates, screen, interview, train, and adapt. Meanwhile, internal recruitment also takes time to screen, interview according to the process, discuss details about promotion such as benefits, power, and responsibilities, announce decisions, and try jobs. , and additional training if needed.

For long-time employees, showing progress is an excellent employee that should be rewarded and considered if you plan to promote to replace an internal position. But make sure they are qualified to work and the position you are applying for is in line with their career direction. Otherwise, you will have to spend extra training and cause internal conflicts, or they will resign themselves. Don't see it as a motivating bonus either, as promotions should be based on the actual needs and budgets of the company.

You also should not choose employees that are bored with their current job and plan to leave. You can't be sure that the new position and new benefits are enough to excite and convince them to stay, or whether these employees are qualified to take on the position.

When to hire externally and when to hire internally?

Recruit personnel from outside when:

• The company is making big changes in strategy.
  
• The company needs people with new experiences and skills, which current employees are unable to do.
• Company culture is diverse, accepting different views and methods of working
• The company has a plan to train and create conditions for new members to integrate.
• Performance appraisals in the company are not effective and the takeover is not prepared in advance or clearly planned.

Recruit personnel from within the company when:

• The company is on a steady growth track.
• There are enough talents in the company with the necessary skills or positions that require a specialized skill specific to the industry or company.
• Effective performance appraisals and well-planned, well-planned takeovers
• Unique company culture, it takes time for newcomers to integrate.
• There is no training program, creating conditions for new employees to integrate.

Recruiting outside personnel and expanding the scope to looking for the best talent for the company is what every business should do, but don't forget another source of potential candidates, that is human resources inside the company. After analyzing the advantages and disadvantages of the two forms of recruitment above, promotion, job rotation or external recruitment will not be a problem if the person being recruited has the knowledge and experience to take on the job. 

If your business is looking for talent from outside the company, please contact Finetech 4.0 VN, one of the leading recruitment consulting companies in Vietnam specializing in Manpower supply services (manpower-人力), visual inspection service (sorting inspection-外观检查)! With a pool of candidates available to introduce to you immediately, Finetech 4.0 VN's experienced team of consultants will help you find the right talent for the company.

For more information please contact:

Finetech4.0 VN Limited

•  Hotline: 0368590176
•  CS1: Yen Binh Industrial Park, Pho Yen District, Thai Nguyen Province.
•  CS2: Bich Dong Town, Viet Yen District , Bac Giang Province.
•  peter.nguyen@fntvina.com