External Recruitment

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The benefits, costs and risks of an external hire-i.e., recruiting staff from outside the organization-are fairly obvious. The benefits of "fresh blood", new ideas and approaches, less resentment from other in-house employees passed over during the hiring and maximization of the candidate pool size have to be weighed against advertising, interviewing, orientation and training costs calculated in terms of time and money, to which must be added the risk of antagonizing an existing employee who expected to get the job.

When time, money and other resources are scarce, or when not hiring in-house may prompt a key employee to quit, it may make more sense to hire internally. On the other hand, when in-house staff are up to the job, but not ideally so, looking outside for the best of the best will make more sense. Otherwise, an organizational culture that promotes expectations of internal hiring may make external hiring problematic, by triggering resentment, if not protests.

While external recruitment can be more costly and time-consuming than hiring within, the benefits can be substantial. By adding new employees to your company you have a unique opportunity to bring in fresh ideas and concepts to your business and to select from a wider range of potential employees with a greater and more varied degree of experiences.

There are multiple methods to external recruitment, such as finding an agency to suggest employees, free or paid online advertising, the use of your company website to promote employment opportunities, and using recruiters to find emerging talents.

It is often easier for outside hires to establish themselves as an authority figure to their subordinates. When hiring internally there can be considerable upset when a worker finds themselves in a position of authority over other individuals with whom they once had more egalitarian relationships. By being hired externally, these new supervisors will be able to express their expectations to workers that they will be responsible of overseeing without as much concern that there will be discomfort, resentment or resistance.

With a larger pool of applicants, it is easier to find the most qualified candidates for the position. These employees can bring skills and experience acquired and exercised in previous employment that may prove to be beneficial to your business. They may also establish new connections for your company that they cultivated during past employment.

These benefits can more than offset the time and capital costs of interviewing, orienting and training an external hire. On the other hand, being an unproven organizational, job and work-culture fit with only external references and track record means that in some instances external recruitment may be riskier than appointment from within the organization.

When the choice is available, both recruitment options-internal or external hiring-should be considered and weighed to ensure the better method is adopted in any specific instance.
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