internal and external recruitment

2.1 HRM – Recruitment and Selection

🔍 Internal Recruitment

Internal recruitment means hiring from within the company. Think of it like a school where a student can apply for a new club position. It’s quick, cost‑effective, and boosts morale.

  1. Identify vacancy.
  2. Advertise internally (notice board, email).
  3. Shortlist candidates.
  4. Interview & selection.
  5. Offer & onboarding.

Pros:

  • Fast
  • Lower cost
  • Motivation boost

Cons:

  • Limited talent pool
  • Potential for bias

🌍 External Recruitment

External recruitment brings in fresh talent from outside. It’s like inviting new students to join your school. It expands skills and ideas but can be pricier.

  1. Define role & requirements.
  2. Choose recruitment channels (job boards, agencies, social media).
  3. Collect & screen applications.
  4. Conduct interviews.
  5. Make offer & hire.

Pros:

  • Broader talent pool
  • New perspectives

Cons:

  • Higher cost
  • Longer time frame

Example cost calculation:
\$\text{Total cost} = C{\text{rec}} + C{\text{train}}\$

📊 Comparison Table

FeatureInternalExternal
SpeedFastSlower
CostLowHigh
Talent DiversityLimitedHigh
Employee MoraleBoostedNeutral

📝 Exam Tips

  • Remember the 4 main stages of recruitment: Planning, Sourcing, Selecting, Hiring.
  • Use the acronym ABC to recall Advertise, Brief, Choose for internal recruitment.
  • For external, note the Cost‑Benefit trade‑off.
  • Practice comparing internal vs. external using a table.
  • Answer exam questions with clear examples (e.g., a school club vs. a new student).