Back to blogs

Internal vs. External Recruiting: Which is best for your company?

W1siziisimnvbxbpbgvkx3rozw1lx2fzc2v0cy9lbndvcmxklwphcgful3n2zy91c2vylnn2zyjdxq

Posted by Iris Data Driven Agency

about 1 year ago

Business's employment strategy and its internal talented pool take important roles in keeping your company’s development and achievement. There are pros and cons to hiring both external candidates and looking inside your company’s existing talent. In this article, Navigos Search will help you understand the benefits and challenges of both internal and external recruitment and provide some best practices.

1. Introduce about HR services

Human resources services can reduce businesses’ administrative workload and free up their time so they can feel free to focus on other business objectives. Outsourcing services can help the business to offload the range of tasks that might surprise you.

Partnering with the HR service providers to help manage a whole range of human resources functions includes everything from payroll processing and benefit plan management and administration to recruiting, training, and more. Besides that, using HR services provider to take responsibility for a range of HR functions, your company not only spend less time on administration but also have more time to manage vendor relationships as well.

Partnering with the HR service providers to help manage a whole range of human resources functions includes everything from payroll processing and benefit plan management

The most common HR services usually offered:

  • Payroll services

  • PAYE & Employees benefits (health insurance, life insurance, etc.)

  • Human resources management (recruiting, hiring, firing, exit interviews, annual reviews)

  • Risk management (employee safety, compensation, conflict resolution, etc.)

2. When a business needs to use Internal and/or External Recruitment

It always takes less time and money to hire someone internal when compared to external recruitment. So how do you know if your outsourcing is right or not? Pleases see some note down below:

Best situations to hire internally:

  • Lower company’s budget in hiring, onboarding, and training new talent

  • A position which requires significant company knowledge

  • You have high potentials eager and ready to take the next step

  • The skills needed are already available within your talent pool

  • When you’re in a time crunch to fill an important position

It always takes less time and money to hire someone internal when compared to external recruitment

Best situations for external recruitment

  • When you need to grow the business

  • To bring in fresh, new perspectives and improve diversity

  • When a change in direction or mentality is needed

  • To acquire new skills and expertise within your organization

Remember, whenever you hire someone internally you’ll always have another vacancy to fill or redistribute. Alternatively, external recruitment closes a vacancy gap and increase your numbers.

3. Benefits of an Internal Hire and External Hire

Internal recruitment has its advantages. It takes less time and money to hire someone internal than external recruitment, especially when your company chooses to cooperate with some famous HR services provider.

Benefits of Internal recruitment

  • Lower cost and help businesses to save money and time attached to searching, interviewing, and selecting suitable new candidates.

  • An internal team will have more time to develop HR strategies with a deep understanding of the business environment and strength.

  • When you internally recruit, you will only promote skilled employees who showed considerable success in their old positions. This will substantially eliminate this uncertainty.

  • Internal recruitment will increase the levels of motivation of the company’s employees as they realize the space of career development within the organization.

Internal recruitment has its advantages. It takes less time and money to hire someone internal than external recruitment, especially when your company chooses to cooperate with some famous HR services provider.

Overall benefits when using External recruitment 

HR service is not a new concept in Vietnam, but the use of external recruiting services is still unpopular as businesses do not understand about these kinds of services as well as their advantages. So let’s see how and what benefits the business can get from using an HR services provider:

  • HR services usually have a professional and effective hiring process

  • Owning rich and quality data in many fields and industries, managed on professional human resources software to give your business the best candidates.

  • Outsourcing an executive search firm, such as Navigos Search, your business will have a chance to work with our consultant team who have experience for multinational corporations.

4. Disadvantages of an Internal Hire/External Hire

Disadvantages of Internal Recruitment

Depending on the size of the company, there may be restrictions on internal hiring. In general, the number of candidates that a business needs to recruit in annual is small, especially the right and qualified candidates. For example, if your company has only 10 employees, setting up an HR department is sometimes really unnecessary.

In addition, the biggest drawback of internal hiring is the lack of cultural diversity and new ideas compared to outside hiring methods.

Disadvantages of External Recruitment

  • Businesses must be at risk of bad hiring decisions: As a recruiter, you will have to come up with the right recruitment process that ensures fairness and objectivity in evaluating every applicant. 

  • Reduced flexibility - When HR becomes automated and/or outsourced, these types of accommodations for loyal workers can be difficult if not impossible.

5. The bottom line

While outsourcing HR services can help businesses in saving time and money, keep in mind that it might be wise to keep an HR advisor or HR department to make sure everything in business is a smooth operation.

In Navigos Search, we offer businesses specialized recruitment services that can help you find top-level candidates for senior, executive, or other highly specialized positions to improve your talent pool. In case you need help in finding candidates immediately or any recruitment services consulting, please contact the Navigos Search consultant team by filling the form below. We always here to support your business growth.

Please check out the executive search services for further information.

Download & Information