Internal or External Recruitment: How to Choose the Best Option

 In a competitive labour market, companies need to make strategic decisions to attract the best talent. What is the best method to achieve this? Internal Recruitment or External Recruitment? 

Both methods have unique characteristics, with advantages and disadvantages that can directly influence the success of a hire. But what is the difference between these two types of recruitment, and how do you choose the most suitable one for your company? 

In this article, we'll explore in detail the particularities of each approach, offering valuable information to help you choose the best method. 

What is Internal Recruitment? 

Internal recruitment is when a company fills a vacancy using its own employees. In this model, the talents that already exist in the organisation are considered for promotions, transfers or new positions. 

Advantages of Internal Recruitment 

1. Cost savings No need to invest in vacancy adverts, recruitment agencies or other external tools. 

2. Agility in the Selection Process Internal recruitment is usually quicker, as there is no need for CV screening or lengthy initial interviews. 

3. Prior knowledge of the candidate Managers already know the employee's skills, performance and behaviour, reducing the risks of hiring. 

4. Motivation and Talent Retention Offering opportunities for growth within the company can increase employee motivation and reduce turnover. 

Disadvantages of Internal Recruitment 

1. Lack of Diversity of Ideas Promoting only internal employees can limit the entry of new ideas and innovations. 

2. Internal conflicts Employees who are not chosen can feel demotivated, generating tension in teams. 

3. Filling a New Vacancy Although the promoted employee's original position is filled, another vacancy will open up, keeping the hiring cycle going. 

What is External Recruitment? 

External recruitment, on the other hand, is when a company looks for professionals outside its current workforce. This can be done through platforms such as LinkedIn, recruitment companies or adverts on job portals. 

Advantages of External Recruitment 

1. Diversity of talent External recruitment gives you access to a wide range of candidates, bringing new skills, experiences and perspectives to the company. 

2. Increased Competitiveness Hiring experienced professionals from the market can strengthen the company's position in the sector. 

3. Updating Knowledge External professionals can bring insights and innovative practices from other organisations. 

Disadvantages of External Recruitment 

1. High cost Involves advertising costs, specialised consultancies and lengthy screening and selection stages. 

2. Longer Selection Process External recruitment can take longer, as you have to attract candidates, assess CVs and carry out several rounds of interviews. 

3. Risk of adaptation 

There is a possibility that the new professional will not adapt to the organisational culture, which can lead to frustration on both sides. 

How do you choose between internal and external recruitment? 

The choice between internal and external recruitment depends on the company's objectives, the profile of the vacancy and the budget available. Here are some guidelines to help with this decision: 

Prioritise internal recruitment if the vacancy requires in-depth knowledge of the company's culture and processes. This is ideal for promotions or lateral moves. 

Opt for external recruitment when the aim is to bring in skills or perspectives that are not available internally. 

The key is to balance the two methods, using each according to the company's specific needs. 

Tips for Companies: How to Attract and Retain Qualified Candidates 

Attracting the best talent is essential to filling vacancies efficiently and strategically. Here are some best practices: 

1. invest in your LinkedIn presence Having an attractive LinkedIn page, with clear information about the culture and opportunities, is key to connecting with qualified candidates. 

2. Invest in Partnerships with Recruitment Agencies Specialised companies, such as Fed Finance, can help identify the ideal professionals for each vacancy, guaranteeing an agile and effective selection process. 

3. Offer Competitive Benefits In addition to salary, benefits such as flexible working hours, career plans and an inclusive environment are key to attracting talent. 

4. Value the candidate's experience A well-structured and transparent selection process reflects professionalism and attracts the best professionals. 

The Impact of Technology on Recruitment 

Technology is playing an increasingly central role in recruitment. Platforms such as LinkedIn make it possible to identify talent on a global scale, while artificial intelligence software helps to optimise the screening of CVs and the analysis of candidate data. 

In addition, some tools make it possible to manage the selection process efficiently, centralising information and reducing hiring time. 

Companies that invest in technology for their recruitment processes have a competitive advantage because they can identify the best candidates more quickly and assertively. 

Fed Finance: An Ally in Your Recruitment Process 

If you're a company looking for qualified professionals, Fed Finance could be your ideal partner. Specialising in Finance and Accounting recruitment, Fed Finance combines market expertise with innovative tools to connect talent and companies. 

With a personalised approach, Fed Finance helps companies find the right profile for each position and helps candidates take the next step in their careers. 

If you want to optimise your selection process, entrust a recruitment to Fed Finance. 

In conclusion: Choosing between internal and external recruitment is not a simple task, but understanding the differences, advantages and disadvantages of each method is essential for making strategic decisions. 

While internal recruitment values the potential of employees, external recruitment broadens horizons and brings new perspectives to the organisation. The key is to use each approach strategically, ensuring success in filling vacancies and attracting the best professionals to your company.