Heidi SafianHeidi.Safian358@myci.csuci.edu

4/15/14

Internal vs. External Recruitment

Internal Recruitment

• The assessment of an employer’s current staff to ascertain if any current employees are sufficiently skilled or qualified to perform required job vacancies.

• When a business engages in internal recruitment, a current employee might be reassigned to the new position by giving them either a promotion or an internal transfer.

- BusinessDictionary.com

Internal Recruitment Process

Manager notifies HR of vacancy

HR posts job opening

HR receives applications from interested employees

HR screens candidates

HR gives list of candidates to managers

Manager interviews candidate

Manager fills position

McDonald’s & Internal Recruitment

Hamburger UniversityOak Brook, Illinois• Founded in 1961• Since its opening more

than 80,000 restaurant managers, mid-managers and owner/operators have graduated from this facility.

Jim Skinner, former CEO

Restaurant Manager Trainee

Charlie Bell, former CEO

Entry Level Crew Member

Fred Turner, former CEOGrill Operator

DonThompson, CEORobotics Engineer

External Recruitment

• External recruitment is a type of recruitment where organizations rely on suitable applicants from outside the organization to fill a vacancy. Methods of external recruitment include headhunting, advertisements, data base search on job sites and contract staffing.

- Ask.com

Employment

Agency

Campus Recruitment

Advertisement Walk-In Intervi

ew

Sources of External

Recruitment

Headhunters

A corporation or individual that provides employment recruiting services. A headhunter is hired by firms to find talent, and to locate individuals who meet specific job requirements

Pros and ConsInternal Recruitment

Pros• Easier to assess

applicants since more information is available

• Less costly and quicker than an external search

• Promoted employee is already familiar with organization policies, culture, etc.

• Improve employee morale and organization loyalty

Cons• Narrowing of thinking

and stale ideas• Internal politics

(discontent of rejected workers, employees discount new boss’ knowledge)

• Smaller talent pool / fewer applicants

Pros and ConsExternal Recruitment

Pros• Provides new ideas / fresh

perspectives• Could initiate a turnaround• Hiring experienced

employees can reduce training needed

• Internal politics may be avoided

• Bigger talent pool / more applicants

Cons• Less information available

on applicants• Search takes longer and

costs more• Outsider takes a longer

time to become familiar with current systems and organization culture

• Destroys incentive of present employees to strive for promotion

• Can hurt employee morale and loyalty

Multiple Choice

1.) What is one advantage of external recruiting?

a.) Less costly than internal recruitingb.) Provides new ideas and fresh perspectivesc.) Easier to access employee informationd.) Employee is familiar with company’s culture

What definition best describes a headhunter?

a.) A corporation or individual that provides employment recruiting services

b.) A person who oversees which employees to layoff

c.) A person that oversees management

References

Randell,Laura, "External vs. Internal Recruitment“,

ERE.net, June 13, 2007  

http://www.ere.net/2007/06/13/external-vs-internal-recruiting-who-does-it-better/

William, Dr. Chan, "External Recruitment versus

Internal Promotion", The HKU Scholars Club, 1996

http://hub.hku.hk/bitstream/10722/43534/1/27161.pdf