Types of recruitment: Understanding the pros and cons

When there is the need to fill a vacant position, the first action any recruiters usually make is identifying the type of recruitment that will meet the requirements of the position. Selecting the right alternative can speed up a lot the recruitment process and find the ideal candidate. At T2W we have extensive experience in recruitment and selection, so we can help you. Here we will take a look at the different types of recruitment. 

There are 3 main types of recruitment in HR: internal recruitment, external recruitment and mixed recruitment. Let’s delve into these alternatives, their differences, pros and cons. 

1. Internal recruitment 

Internal recruitment meets the talent needs by looking inside the company. In other words, recruiters will look for candidates among the employees who are already in the organization until they find the person that can successfully fit the position. In theory, this should be the first alternative for businesses. If they can’t find candidates internally, external recruitment is the necessary option. 

Some of the most common methods of internal recruitment are promotions of team members to positions where they will have more responsibility. Another frequent method are transfers to different areas within the organization. Another useful alternative is re-hiring, since this focuses on professionals the company already know, which simplifies the process. 

With the internal recruitment, you already know the strengths and weaknesses of each candidate. In fact, that has been observed through regular performance inside the organization. On the other hand, since all candidates are part of the company, they are familiar with its organizational culture: its values policies and working style. 

Advantages of internal recruitment 

A short recruitment process 

One of the main characteristics of internal recruitment is that the process gets a lot faster and easier. While it’s necessary to evaluate the suitability of each candidate for the vacant position, these are professionals who have already passed the company’s filters. Additionally, as we already mentioned, the candidates are used to the company’s culture. 

Less recruitment cost 

By choosing candidates that are already inside the company, it’s no longer necessary to invest in job adds in social networks, job search platforms, etc. When the process is done internally, all those costs are saved, which makes it a more cost-effective alternative. 

Disadvantages of internal recruitment 

New vacant positions 

Since the company is looking for candidates internally, once the ideal professional is identified and selected, that person will leave the position, which will be vacant. As a result, the organization will have to look for a new person for that position. That’s when it’s necessary to hire externally. 

A limited talent pool 

Internal recruitment ignores completely the work market to focus only in the people inside the company. If the organization don’t have many employees, the talent pool will be very limited. In this case, you will have to look for candidates and recruit them externally. 

2. External recruitment 

External recruitment focuses on finding candidates outside the organization. Recruiters begin searching the work market to find the professional who can meet the requirements of a specific position. This is the most common recruitment alternative among companies and talent acquisition agencies. 

One of the main characteristics of the external recruitment is the long and detailed recruitment process. This entails making job ads, collecting resumes, analyzing candidates, interviewing them and finally hiring the best one. Additionally, if you search outside the company, the number of candidates is always larger and evaluating them takes more time. 

Additionally, unlike internal recruitment, here candidates are new to the organizational culture. As a consequence, recruiters not only check skills, knowledge and experience, but also if the candidate would be a good fit for the company. It turns out to be a more comprehensive process. 

Advantages of external recruitment 

Candidates bring new ideas 

An employee who has just arrived has a fresh perspective about the company. As a result, that person can offer new ideas that an employee already used to the company would not have. Also, professionals that come from other organizations can offer new knowledge and skills. That is good for the company’s performance. 

You can fill specific positions 

More often than not, company growth requires people with a specific set of skills. In this case, it would be difficult to find such person inside the organization. External recruitment helps you identify and hire professionals that are hard to find such as IT professionals. 

Disadvantages of external recruitment 

The process may take time 

Since it’s necessary to evaluate and interview many candidates, external recruitment process usually takes some time. It’s not uncommon for the process to take several months until the right candidate can be identified. The long waiting time can be a disadvantage for the company’s performance. 

Candidates have to adapt to the company 

On the other hand, it’s not common for a person to arrive to a new company and start working as normal from the first day. There usually needs to be time to adapt. The way of working, the coworkers and the new rules are elements any professional has to familiarize with. That takes additional time outside the recruitment process. 

3. Mixed recruitment 

Finally, it’s important mentioning the mixed recruitment. This is a combination of internal and external recruitment. Through the mixed recruitment you find candidates inside and outside the organization. To achieve that, there usually need to be quotas for internal and external applicants. That is the best way to ensure a fair process for everyone. 

Now you know the different types of recruitment, their differences and the different elements they bring to the recruitment process. 

At Talent2Win, we strive to align your company’s business objectives with the best Talent Acquisition strategies available. If you want to learn more about the services we offer, do not hesitate to contact us.