MGT351

Section: 12
Faculty: Faseeha Zabir
Lecturer

Group Number: 4

SUBMITTED BY
Group Members ID
Kamruzzaman Hasib 1811946630
Rais Uddin Khan Akash 1530107030
Md.Reajul Islam Refat 1513152030

The Topic of The Debate: Internal requirement is more effective than

external recruitment when it comes to filling a vacant position.(For)
Internal recruiting : Internal recruiting is when a business or organisation intends
to fill a vacancy from within its existing workforce. (Response, 2019)

Finding Internal Candidates:

- relies on job postings, skills inventories, and qualifications skills banks
- Job posting- publicizing the open job to employees by positing on
company intranets or bulletin boards; listing the job's attributes,
qualifications, supervisor, work schedule, and pay rate.
External recruitment : External recruitment on the other hand is when an
organisation looks to fill vacancies from applicants outside of the company.
(Response, 2019)
“External Recruitment Definition:
External recruitment is the evaluation of open pool of job candidates, other than
existing staff, to check whether there are any enough talented or able to fill
requirements and perform existing employment opportunities. 
It is the way of looking outside of the existing employee pool to fill job positions in
a company.”(Wisestep, 2016)
“Disadvantages of External Recruitment :
These disadvantages of external recruitment make a clear distinction between its
limitations and it will also provide beneficial knowledge about the techniques of
an external recruitment process.
1. A limited understanding of the company:
When a candidate is selected from an external recruitment process, there is a
possibility that the candidate might have less chance of understanding the
environment of the company. And this lesser understanding can make a big
difference in the future activities of the company.
Therefore, there is some sort of issues with an external process which needs to be
rectified for a better understanding of the company environment.
2. Higher risk:
There is a possibility that the candidate selected for the post is not worthy of the
position offered and he/she can take advantage of their position in the company.
This type of risk is very much common in an external recruitment process as most
of the candidates applied for the job are total strangers to the company. And that
is why it is considered one of the higher risk processes of recruitment.
3. Time-consuming:
The main disadvantages of external recruitment are that it is time-consuming as
most of the companies post an advertisement for their company recruitment
drive.
Then there is a quite possible chance of receiving a higher number of applicants
for the post and the recruiter need to be very careful with their decision of
selecting the best candidate for each round selection process.
These different rounds of selection take a bit longer than the internal recruitment
process as it involves a number of processes.
4. High costs:
As most part of the external recruitment process mainly deals with complete new
candidates then the company needs to come up with a pay scale for that
candidate which should value his/her skill and ability.
This can turn things a bit costly for the company as they are in need of new ideas
and to get such new and creative ideas from the potential candidate. The
company needs to provide him/her with the best possible deal to refuse.
With all these aspects, the company needs to provide intense training for the
candidates. Screening a large number of candidates consumes more money.
5. Internal disputes with existing employees:
When a company considers a fresh candidate for the higher post than the existing
candidates, then there is a higher possibility that the company existing employees
might show some sort of internal dispute among the officials of the company.
This kind of internal dispute can lead things to a completely different level. And
eventually, the company can fall on their back with such differences of opinions.
6. Issues of Maladjustment:
There are a number of possible ways where the new employee recruited may
not adjust to the new environment. They also would not adjust with the new
employees in the organization.
When such scenarios take place, they have to leave the organization or the
management should take initiatives to replace them. By this way, the
management may lose good employees and need to hunt for another.
7. Agencies are not trusted:
By recruiting candidates through external recruitment, recruitment agencies play
a role where they do not have adequate knowledge about the culture of the
organization and their intrinsic qualities. They also do not care much about the
key requirements of the post.
8. Invites unsuitable applicants:
External advertising methods are something that happens in large scale through
print media and hence a large number of applicants who are not fit for the job
post are drawn in. There are a number of unsuitable candidates who line up for
low-level job positions.
9. Legal risks:
There are chances for legal issues when external recruitment is carried on. When
hiring intact teams, top hiring talents are recruited with non-compete recruitment
which may lead to legal issues.
10. Varied category of applicants can be met:
When external recruitment is considered, there is a large pool of applicants who
are met. Applicants with varied experience, background, skills, and abilities are
met.” (Wisestep, 2016)

Internal Sources of Candidates

Rehiring:
• already familiar with how things are done
• may return with negative attitudes
• can reduce the chances of adverse reactions
• credit them with their years of services
• inquire how they feel returning back
Succession Planning:
- the ongoing process of systematically identifying, assessing, & developing the
organizational leadership to enhance performance
- key is to profile the competencies that the firm’s evolving strategy will require
the
new CEO to have
- then using the profile to formulate an integrated development package for
potential candidates
- 3 steps: identify key needs, develop inside candidates, assess & choose
Outside Sources of Candidates
Recruiting via Internet, Advertising, Employment Agencies, Executive
Recruiters, Campus Recruiting, Walk-ins.
The benefits of Internal reqruitement:
• employees’ strengths & weaknesses
known
• more committed employees
• rise of morale
• require less orientation
•”It’s cheaper and faster to recruit staff internally than it is externally as it
leverages employees that you already have.
•It saves time and money on training as the internal applicant will have more
knowledge of the organisation and culture.
•It also contributes to reducing employee turnover.
•Matching internal candidates with the roles that fit the personality and skills
means that they stay longer at the company and increases employee
retention.”(Response, 2019)
“Advantages of internal recruitment
1. Improves employee morale and productivity
2. Carries low risk
3. Cheaper than external recruitment
4. Quick results
Let’s discuss each of the internal recruitment advantages in detail
1. Improves employee morale and productivity
When employees know that they can apply for positions and take control of their
career advancement, it automatically improves productivity fueled by a desire to
perform better on the current job. This motivates them and boosts employee
morale.
On the contrary, positions that are predominantly filled externally send a message
to employees that no matter how hard they work, their credentials and
experience are just not good enough to grow within the company.
Internal recruitment also improves employee productivity.
It’s easier for internal employees to succeed in a new role as they have pre-
established connections and knowledge of how things get done in the company.
They also tend to work harder if they know that the company believes in
promoting from within.
2. Carries low risk
Companies that prefer recruiting internally understand that the risk with internal
hires is lesser compared with ones recruited externally.
They have detailed records of employee performance reviews, compensation,
recognition or awards, along with peer and manager reviews that are reliable
predictors of performance.
Since these jobs are usually filled via self-nomination where candidates express
their interest to move, the risk of turnover is also considerably lower as
employees tend to stay longer.
3. Cheaper than external recruitment
It is common knowledge that hiring is an expensive activity. The cost per hire is
estimated to be around $4000.
This includes external costs such as agency and recruiter fees, job board fees, and
internal expenses like recruiter salaries and the money spent on the referral
program.
When companies hire from within, they skip all the external costs and most of the
internal costs. Internal recruitment is significantly easier in the company’s
pockets.
There is also the cost of a bad hire, the likelihood of which is higher with an
external recruit.
This is because, unlike an internal hire, there isn’t first-hand information on the
employee’s work ethic, critical thinking, leadership abilities, etc., making it
difficult to predict the employee’s performance.
4. Quicker results
Internally hired employees tend to assimilate and deliver results faster.
They are either nominated by the hiring manager or might know someone from
the team, which helps them get comfortable with the team faster.
For projects that have imminent deadlines, hiring someone internally results in
quicker turnaround times as they are already aware of the processes, systems,
and company expectations. Companies also spend less time on-boarding them
which saves a lot of time and associated costs.” (Mishra, 2017)
There are many factors to consider when deciding to hire internally as opposed to
getting external talent.
The first consideration is the cost of a bad hire. If the cost of a wrong hiring
decision is significantly high for the company, it is best to go with an internal hire.
For instance, the cost of hiring the wrong CFO is significantly higher than say, an
inept project coordinator.
This is the reason for many leadership and managerial roles being filled through
lateral moves and promotions. In 2014, the Harvard Business Review published a
list of the world’s 100 best-performing chief executive officers (CEOs).
While both internal and external recruitment has been used to hire the top ten
CEOs on that list, internal promotion is far more prevalent than the latter. Clearly,
internal recruitment is more crucial the higher you go up the corporate ladder.

The second consideration is whether employee productivity in a role depends

highly on specialized knowledge and skills applicable to the company in question.
If that is the case, then it’s best to hire from the experienced pool of workers from
within the company so that companies are not spending a lot of time and money
seeking these skills outside.

It is still recommended first open these positions up for other employees within
the organization to ensure don’t miss out on any talent available within the
company. (Mishra, 2017)

Reference:
•PERSONNEL PLANNING & RECRUITMENT
Chapter 5
•APA is included.