Internal vs. External Sources of Recruitment

The Two Main Avenues for Attracting Talent

Once the job profile is clearly defined, the next strategic phase is to decide where to find the right candidates.

Fundamentally, there are two major pools of talent that an organization can draw from: internal and external sources.

The decision on which to use, or in what proportion to combine the two, will depend largely on the type of position, the level of seniority, the budget available and the time limit for filling the vacancy.

Internal Recruiting: Methods and Advantages

Internal recruiting involves sourcing candidates from within the organization itself.

The most common methods include:

Promotions (Promotions): Moving an employee to a position of greater responsibility.

Transfers (Lateral Moves): Relocating an employee to a similar role in another department or division.

Secondments: Temporary assignments, often used for skill development or to meet specific project needs.

The main advantage of internal recruiting is that candidates already know the culture and workings of the business, and the organization already knows their performance and potential.

This approach can be faster, reduce training costs and act as a powerful motivator for staff, encouraging loyalty and self-development as they see clear career opportunities.

Disadvantages of Internal Recruiting

Despite its benefits, relying exclusively on internal sources has drawbacks.

It can generate demotivation among employees who applied for the position and were not selected.

In addition, each promotion or internal transfer inevitably creates a new vacancy that must be filled.

The most significant risk is that it can foster stagnation, preventing the entry of "new blood" and blocking access to new ideas, perspectives and outside talent.

It can also generate complacency or give rise to favoritism and bias if not handled with objective criteria.

External Recruiting: Channels and Methods

External recruitment seeks talent from outside the organization. The channels are varied and their effectiveness depends on the type of position:

Online Job Portals: Private websites such as LinkedIn, Monster, etc., are very popular, especially for administrative and technology positions.

Social Networking: Platforms such as Facebook can be very effective for operational or high-volume positions through job boards.

Recruitment Agencies: External consultants that manage the search, useful for technical or specialized positions.

Educational Institutions: Establish relationships with universities and colleges for internship programs or recent graduates.

Events and Job Fairs: For mass or niche recruitment.

Government Employment Services: Often effective for operational positions.

Proprietary Databases: Maintain an archive of interesting past candidates or unsolicited applications.

Advantages and Disadvantages of External Recruitment

The great advantage of external search is access to a much broader pool of candidates.

It allows you to attract people with diverse experiences, new ideas and skills that may not exist internally, helping to change or strengthen the composition of the team.

However, this process is often more costly and requires a longer adjustment period for the new employee to adapt to the company's culture.

It can also demoralize internal staff if they perceive that there are no opportunities for growth.

The Hybrid Source: The Referral Program

One of the most effective sources is the referral program, which sits between internal and external.

It consists of asking current employees or even customers to recommend candidates from their networks.

This is often the best source of recruitment, as referrals understand the needs of the position and the culture of the company, and generally recommend people they feel are competent and have the potential for a good fit, generating greater commitment.

Summary

There are two main avenues: internal and external. Internal recruitment, such as promotions or transfers, is fast and motivating, as candidates already know the culture. Its main disadvantage is that it can generate stagnation and prevent the entry of "new blood".

External recruitment (portals, agencies) allows access to a wider pool of candidates with new ideas. However, this process is often more costly and requires a longer cultural adjustment period for the new employee.

The most effective hybrid source is often the referral program. Current employees understand the culture and recommend people they feel are competent and have the potential for a good fit.