What’s it: External recruitment is when you fill a vacancy with an applicant from outside your company, perhaps having worked at a competing company. You get fresh resources with new ideas, bringing new perspectives to your company. Although the process is longer than internal recruitment, you have more options. And, if your company is good, more people will be interested in applying.
External recruitment is an alternative to internal recruitment. For the latter, you choose candidates from your internal. In other words, they are your current employees. For example, it could be a promotion and succession program where you appoint an employee to a higher position. Or, you appoint temporary employees and apprentices become permanent employees. Or, it is a job rotation program where you transfer employees from one job to another.
How does external recruitment work?
External recruitment involves several stages. First, you identify the need for new employees through a job analysis. It details which positions are vacant, what qualifications are required, and other aspects such as salary, to whom to report, duties, and responsibilities.
Then, you write down the job description and specify the requirements for the applicant. It informs what positions are vacant and what their duties and responsibilities are. Other content is the requirements for applicants, including the experience, skills, and individual qualities you need. To attract more interest, you might consider implicitly stating the compensation and benefits you offer.
Once done, you then post the vacancy. It can be through local media, internet media such as job search sites, your company’s website, social media, or job fairs.
After several applications are received, you collect application forms and screen those who meet the requirements and are eligible to participate in the next process, selection tests, and interviews.
You might do the selection test internally or outsource it to an external provider. Tests can include aptitude tests, psychometric tests, intelligence tests, and personality tests.
You then conduct interviews and negotiations for the shortlisted candidates. Here, perhaps, you introduce company policies and procedures and the salaries and benefits you offer.
After you determine the shortlisted candidates, you contact them via email or telephone to inform them of their success and when they can be effective. You should also prepare alternatives if they don’t agree because, for example, they have found work elsewhere.
What are the advantages of external recruitment?
External candidates can bring new perspectives and fresh ideas. They may also be more open-minded and have not been influenced by office politics at your company. Recruiting external candidates also provides several other advantages, such as:
More choices. You have more choices. It increases your chances of choosing the best one according to your expectations. The more people apply the more choices. How many apply? It may depend on the position, salary, and benefits you offer. Then, your company’s reputation is also important because it affects their interest.
Innovation. External candidates bring new perspectives. It is useful to help you to improve performance. Diversity of perspectives is important to drive innovation within your company.
New spirit. Hiring employees from outside the company makes the work environment livelier and more flexible. And, it can bring positive changes in the department they work for or in your company as a whole.
More diverse skills. You can bring more new skills into the company by hiring external candidates. As a result, your company may be more flexible in responding to a changing business.
Reduce tension. Hiring internal candidates increases tension between employees as they compete for the position you are offering. Office politics may just get worse. And, external recruitment is the solution for that.
What are the disadvantages of external recruitment?
Recruiting external candidates takes a long time. First, you must write a job description and specification for the position you offer and then advertise it. Then, after several applications come in, you have to screen which ones are eligible and which ones are not. After that, eligible candidates follow the next stages, such as tests, interviews, and negotiations. It’s all time-consuming.
Other disadvantages of external recruitment are:
Expensive. You incur costs to advertise the job. Another expense is paying the recruitment service provider if you rely on the process from an external party. In addition, you will also have to spend money on training new employees, which is often more expensive than training existing employees.
Poor quality. You may choose the wrong one because the candidate’s track record has not been tested. They may show promising potential during the selection process but not when they are already employed.
Incompatibility. For example, a shortlisted candidate may find it difficult to work effectively despite having the skills you need. For example, they may find it difficult to adapt to your company’s workflow and work environment. Or, they may not fit into your company’s culture and decide to leave even if they only worked for a short time.
Upset. Your employees may not like it if you prefer external candidates to fill strategic and higher positions in the company. They may feel underappreciated and uncertain about their career. Ultimately, it demotivates and lowers their productivity.
What to read next
- Job Description: Why It Matters, Examples
- Job Specification: What Is It And Why Is It Important?
- Internal Recruitment: How it Works, Advantages and Disadvantages
- External Recruitment: How it works, Advantages and Disadvantages
- Job Analysis: Its Importance, Methods, and Steps
- Job Advertisement: Contents, How to Create, Factors to Consider
- Recruitment: Its Importance, Types, and Stages