There are two key ways to find new recruits – internally and externally. But, which is best? And what are the benefits and downsides of each? Read more on internal and external hiring pros and cons to find out more.
Internal Hiring
There are a few ways to hire internally. You can use word of mouth, job boards, email campaigns, and any other kind of internal communication to get the word out that there is a job opening. This may be a lateral move for some, while for others it may be a promotion.
The Advantages
The advantages of hiring internally are many.
- The employee already knows your company’s vision, ins-and-outs, and how things are expected
- It minimizes employee turnover rates
- It helps with promoting and training
- Employees know there is room for advancement
- It minimizes training costs and job advertising costs
- Helps promote employee morale
Disadvantages
There are always disadvantages to hiring internally, although not many.
- Some may feel it encourages a sense of favoritism
- New ideas may be fewer with the same employees you already have
- There may be better hires out there – not within the company
- Business growth may grow stale with the same faces at the helm
External Hiring
There are countless ways to hire externally. From job board postings to paid ads and more, the sky’s the limit. Of course, like with internal hiring, there are key benefits and cons to this approach.
The Key Benefits
- A diverse and fresh approach to your business model
- Fresh ideas
- Fewer instances of favoritism
- It helps your talent pipeline grow along with your business
Cons
- Current employees may become disappointed or even jealous of new recruits
- The cost is higher than when you hire internally
- Outside hires may not be in tune with your company’s brand, ideals, or approach
- Training takes longer and is more costly
- New hires are not guaranteed to work out, then you must start over
There Is No Clear Choice or Right Answer
When it comes to hiring internally or externally, there is no right answer. You have to weigh which works best for your brand. For example, you may want to hire internally due to cost but cannot find a clear candidate. Or, you want to hire from outside sources but are finding it difficult to get the right person.
Of course, if you go in with a clear idea of what you want, the answer will come to you and you’ll know which option to go with.
About Synergy
Synergy Solutions is an executive and search firm focused on roles within the technology sector. If you have questions regarding this article or would like to discuss strategy on open roles at your company, please contact us and someone will get back to you within the next 24 hours.