Internal vs External Recruitment - Which one is better?

This article is part of the Internal Recruiting Process Guide. Read our related articles on Internal Recruitiment Methods, and Advantages of Internal Recruiting.

Have you seen our latest blog post?

We covered some interesting internal recruitment aspects and methods you can use within your company.

If you are from the HR industry, you already know that two of the most well-known types of recruitment are internal and external.

This article will discuss both and help you choose the right combo for your company.

Internal & External Recruitment Overview

What is internal recruitment?

Internal recruitment is the process through which you fill the open roles by hiring your current employees.

Benefits and Limitations of Internal Recruitment

One of the biggest benefits of internal recruitment is saving time and money. When you hire internally, your employee already knows your company, so there is no need for a time-consuming onboarding process or budget for promo ads.

Moreover, internal recruitment is well-known for boosting the team’s energy. Companies that use this type of recruitment often mention that their engagement rates also grew.

However, there are some limitations as well. When you hire internally, there is still a vacant position of the person doing the role exchange. Plus, if your company doesn’t have a diverse workforce, this type of recruitment will accentuate the discrepancy even more.

What is external recruiting?

External recruitment is when you feel your open roles from outside your organization.

Benefits and Limitations of External Recruitment

The main advantage of external recruitment is that you have an almost limitless pool of candidates. This also helps you attract fresh perspectives and new skills within the company. External recruitment is also a great way to promote your employer brand and ensure you are constantly present in your candidate’s mind as an employer of choice.

One limitation of external recruitment is that the new employee’s learning curve might last longer than the one you hire internally. Plus, the hire usually takes 4-12 weeks, and you also spend more money advertising the open role.

5 Key Differences between Internal and External Recruiting

Now that we have a clear picture of internal and external recruitment, let’s discuss their five key differences.

Target

The key difference is that internal recruitment refers to recruiting from existing employees, while external recruitment focuses on attracting an external pool of talent.

Onboarding

Internal recruitment doesn’t require an extensive onboarding process. Since your employee already knows your company and its procedures, you can skip a big part of the process. External recruitment, on the other hand, needs a complex onboarding to make sure your new employee understands the organization.

Time

Internal recruitment is faster because you don’t need to follow all the advertising-interviewing-onboarding phases as in the case of external recruitment.

Money

External recruitment is more expensive than internal recruitment because you need a budget for advertising the vacant roles.

Choice

In internal recruitment, you are limited to the talent you already have. External recruitment allows you to choose from a broader set of skills and a pool of potential employees.

What do you think?

What is the best type of recruitment for your company?

Internal vs. External Recruiting FAQ

What are the 2 main types of recruitment?

The 2 main types of recruitment are internal and external recruitment.

Which is best? Internal or external recruitment?

It depends on your company’s needs, timeline and budget. Plus, you have to consider if your current employees have the skills you need for the vacant roles.