Internal vs. external sources of recruitment: finding the right balance

Internal vs. external sources of recruitment: finding the right balance

November 23, 2023
by Talenteer Editorial Team
Talent is a powerful instrument not only to get stable positions for a company but also to catch new business opportunities. Companies discover and apply different tools and approaches to creating effective talent management. Let us focus on the balance in internal and external recruitment and how it influences reaching the goals of the company.

The internal power

It seems the easiest way to select specialists for open positions is to hire internal talent. Why?
Familiarity with the company’s culture
Guys who joined your team one day and stay with you currently grasp the values and culture of the company. It helps in snoozing and quick adaptation and integration into new positions in the team.
Boosts loyalty and morale
Internal talents enhance a feeling of belonging and responsibility, and this is an important aspect of creating an effective work environment.
Onboarding period
Internal talents already know processes and systems and typically they need shorter learning periods.
Cost-effectiveness
In the case of internal hiring, several recruitment stages can be shorter, such as interviews, assessments, reverence checks, and onboarding. It allows to selection of required team members and the optimization of cost.
Motivational impact
Promotions within your company may boost colleagues' motivation to progress and personal development. Knowing the opportunities for growth can increase performance and commitment.
Risk mitigation
Since internal employees understand the company’s culture, processes, and systems, it is a chance to reduce the risk of unexpected performance and their ability to fit into the team.

The external benefits

However, there are several situations when the best solution is looking for external specialists:
To get new skills and expertise
When a company needs to operate new knowledge, but the internal team does not present the required skills. It could be less time-consuming and cost-effective to hire external experts and not lose business opportunities.
To grow business
When there are identified gaps in the organization's structure, leadership, or capabilities. This can involve bringing in executives or leaders with a fresh perspective to drive organizational effectiveness.
To change direction or mindset
External specialists may have different skills in change management, which can be helpful for transitional periods. Specific expertise in similar situations may increase the success and effectiveness of the changes.

Steps to the balanced recruitment

Talent management is about creating a balance between internal and external hiring. Each company is unique and there is no one universal rule. But basic steps could assist in making it smooth and clear:
Strategic workforce planning
Regularly assess the company's plans and requirements and identify areas to grow internally and needs in external expertise.
Monitoring the internal expertise
Applying tools for the accumulation of internal employees to get an actual picture of current talents. Systems like Talenteer could help in searching the candidates that match a specified skillset inside your company, managing internal vacancies, short-term positions, and learning opportunities.
Investing in professional development
Foster guys inside the company, providing training and creating a reserve of talents ready for new projects.
Fostering a culture of collaboration
Involve internal and external hires in cross-functional projects and knowledge sharing.

In conclusion

It is strategically important to harmonize different approaches to recruiting. As a leader, your role is not just to find talents, but to create and develop an environment to thrive in them. When you create an innovative, safe, and dynamic space, the team is ready to meet the challenges. This keeps your company flexible and stays on track for success.
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