Internal vs External Recruitment: Types, Modes and Sources in HRM

Recruiting the right talent is a critical function of Human Resource Management (HRM). But what do you mean by recruitment? Simply put, it is the process of identifying, attracting, evaluating and onboarding suitable candidates to fill job vacancies within an organization. Recruitment is a deliberate endeavor that aims to match the most qualified candidates with the changing needs of the business not merely a routine HR task.

The future of a business is shaped by recruitment, whether it is for a new post or the replacement of a critical person. It comprises market research, workforce planning and developing an employer brand that attracts top talent. It goes beyond simply gathering resumes and also conducting interviews.

In this article, we’ll dive deep into the types of recruitment, particularly focusing on Internal Recruitment and External Recruitment their modes of recruitment, sources of recruitment and how they fit within the overall recruitment and selection process.

Understanding Recruitment in HRM

Before diving into the categories, it’s crucial to understand what do you mean by recruitment in the HRM context. Finding and employing the most competent applicants for a position is the strategic goal of recruitment in human resource management. It is the first and one of the most important steps in the recruitment and selection process. It ensures that the organization has the right talent to meet its goals.

There are two main types of recruitment in HRM:

• Internal Recruitment
• External Recruitment

Each of these has its own modes of recruitment and types of recruitment that HR professionals utilize based on the organization’s needs.

Internal Recruitment: Meaning, Modes, and Sources

Internal Recruitment refers to the procedure of using current personnel from within the company to fill job gaps. It is regarded as a time and money-saving technique.

Modes of Internal Recruitment

• Promotions: Moving a worker up the corporate ladder.
• Transfers: Placing a worker in a new department in a comparable position.
• Internal Job Postings: Postings on bulletin boards or the intranet.

Sources of Internal Recruitment

• Employee Referrals: Recommendations from current staff.
• Succession Planning: Identifying and developing future leaders from within.

Advantages of Internal Recruitment

• Reduces training time and costs also.
• Boosts employee morale and motivation.
• Encourages employee loyalty.

Disadvantages of Internal Recruitment

• Limits the pool of applicants.
• Can create internal conflict.

Example 1: Promotion-Based Hiring

A junior developer is promoted to team lead by a software corporation following a performance review. By doing this, you can avoid paying for an outside hire and make sure the worker already fits in with the company's culture and types of recruitment.

Example 2: Transfer for Efficiency

An experienced sales executive is transferred from a saturated market to a new region with higher potential. This internal move increases overall sales efficiency without recruiting externally.

External Recruitment: Meaning, Modes, and Sources

External Recruitment is the procedure for employing applicants from outside the company. When a job role's unique criteria are not met by the internal talent pool it is imperative.

Modes of External Recruitment

• Online Job Portals
• Campus Recruitment
• Job Fairs
• Social Media Recruitment

Sources of External Recruitment

• Employment Agencies: Third-party recruitment firms and types of recruitment.
• Walk-in Interviews: Candidates come directly for interviews.
• Advertisements: Posted in newspapers or online.

Advantages of External Recruitment

• Brings in fresh ideas and perspectives.
• Increases diversity in the workplace.

Disadvantages of External Recruitment

• Time-consuming and costly.
• Risk of cultural mismatch.

Example 1: Campus Placement

A tech startup visits a local university to hire graduates for its development team. This type of recruitment allows access to fresh talent with up-to-date skills.

Example 2: Job Portal Hiring

An HR manager posts a vacancy on LinkedIn and selects the best-suited applicant from hundreds of resumes. This source of recruitment provides a broader candidate pool.

Step-by-Step Guide: The Recruitment and Selection Process

The recruitment and selection process is a structured pathway followed by HR professionals to bring in the right talent. By fully comprehending each step organizations can ensure that their hiring processes are efficient and consistent. A thorough summary is provided below:

1. Finding a Vacancy: Examine whether a new employment is necessary. Determine whether the vacancy resulted from internal transfers, resignations, retirements or organizational development.
2. Choosing the Type of Recruitment: Decide between Internal Recruitment and External Recruitment. This choice is based on the position's urgency, financial constraints and internal applicant availability.
3. Selecting Mode and Source of Recruitment: Choose the best mode of recruitment and types of recruitment according to the urgency and nature of the role. For example, campus drives can be used for entry-level jobs, whereas headhunting or specialized job sites may be used for technical positions.
4. Drawing in Candidates: Post jobs using certain channels. Social media, corporate websites, internal memoranda and job boards may all fall under this category. Here, a strong job description is essential.
5. Screening and Shortlisting: Filter candidates using resumes, tests or AI screening technologies. Make a shortlist of candidates based on their credentials, background and complementary skills also.
6. Interviewing: To further evaluate applicants, conduct in-person, virtual or telephone interviews. To guarantee objectivity, use behavioral evaluations or structured interviews.
7. Selection and Offer: Determine the greatest fit based on organizational fit and interview performance. Discuss the terms of employment and send out the job offer.
8. Onboarding: Use mentorship, training, and orientation to help the new hire become a part of the team. Better retention and a seamless transfer are thus guaranteed.

Conclusion

So, what do you mean by recruitment again? Assuring that appropriate individuals are in the proper roles is an essential component of organizational improvements. Choosing between Internal Recruitment and External Recruitment depends on the job role, urgency, and long-term strategy.

Understanding the types of recruitment, including their modes of recruitment and sources of recruitment, helps HR professionals streamline the recruitment and selection process. By leveraging the appropriate types of recruitment in HRM, In the talent-driven world of today, firms may maximize performance, save expenses and maintain their competitiveness.

Use this comprehensive guide to make smarter, more informed hiring decisions after all, your team is your greatest asset.

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