Internal vs External Recruitment – Term Paper

Job Seeking

Career builder turned out to be the most relevant site for my job search. I found four locations and used two of them. I settled for Walmart. 

Both internal and external recruitment processes are employed by Walmart in its hiring tendencies. The company may opt for either of them depending on urgency, nature of the job, cost, culture fit, and quality of hire among others. At times, there may be a simultaneous combination of the two methods. For instance, an external recruiter may be requested by a firm to present the names of the suitable candidates who are then assessed by the company’s hiring team before a final decision is made. Internal hiring is usually common during promotions where the employees’ efforts are being appreciated following a vacancy in a higher position (DeVaro & Morita, 2013). It may also involve temporary positions where an employee is requested to perform certain functions for some time.  Information on such vacancies may be availed through internal emails, intranet and job posting boards. As for the external recruitment, advertisements are common through electronic, print or broadcast media. There are several merits and demerits associated with internal and external hiring methods employed by Walmart. 

Advantages of Internal Recruitment

One of the benefits is that it saves time due to a faster-hiring process. There is no cost of attracting potential employees to the firm. Advertising costs can be very high in some cases discouraging firms from looking outside for new recruits. The hired staff can begin work almost immediately they are hired. The problem of having to go through numerous applications does not arise since only a few qualified employees from within the organization will apply (DeVaro & Morita, 2013).  Another advantage is that a person hired from within has full knowledge of the firm and most of its processes. They may probably be familiar with their new team. In addition, an internal hire is familiar with the firm’s culture and embraces it. A case involving a promotion will motivate other employees to work harder in the hope that their efforts will also get recognition. Such staff can look to the company for opportunities to grow and develop their careers. This can serve to inculcate a culture of employee loyalty. 

Disadvantages of Internal Recruitment

The number of potential applicants is significantly reduced. This limits the pool of skill and experience to choose from. A successful internal recruit may find him/herself being resented by some of their fellow unsuccessful employees who applied for the same position, a situation that may make it hard for them to perform to their level best. Internal recruitment also brings about the problem of another vacant position and the problems associated with find a replacement (Roach & Dixon, 2006). When the company makes most of its recruitments internally it sometimes finds itself in a position where it has to hire from outside irrespective of the costs that come about as a result. Another problem that arises with internal hiring is that it makes employees feel like they are most qualified candidates regardless of whether they possess the required skill set and experience.  Where no internal candidate matches the job requirements it may provide a challenge to the hiring team. 

Advantages of External Hiring

External hires usually bring with them new ideas as the employees are yet to be exposed to the culture of the company unlike internal recruits (DeVaro & Morita, 2013). Such a person may bring with them methodologies from their previous firm that can be can be harmonized with those of the company and help ensure better outcomes. The new entrant may offer a fresh outlook that is critical in helping the firm stay competitive in the market. External recruitment also helps in promoting workplace diversity in line with requirements of the Equal Employment Opportunity Commission. Another benefit of hiring externally is that it may ensure the stability of teams as they often tend to remain intact. External candidates also give the company an opportunity to access the best-qualified persons out in the market with the best insights on how things are to be run. 

Disadvantages of External Recruiting

It may be time-consuming due to the processes involved in reaching out to the potential candidates. The process of hiring from outside is usually more expensive compared to internal hires due to the costs involved such as advertising costs (DeVaro & Morita, 2013). Current employees may also become demoralized as the external hires lower the probability of their promotion. The effect will be lower productivity and poor quality. An outside candidate once hired may take long to adapt to the company’s systems and such may take a long time to start performing to the expected levels. Fresh candidates may turn out to be unsuitable for the position offered after they have already been hired since company usually has limited information on them.  

Clearly, both external and internal recruitment by Walmart offer unique experiences for the discount retailer. There are both advantages and shortcomings of approach. Internal recruitment saves time and money. It also boosts employee morale. However, it limits the pool of skill. External recruitment attracts the best talent in the market and brings with it fresh ideas. However, it may prove to be costly and time-consuming. A combination of both approaches helps Walmart find the right balance when hiring. 

References

DeVaro, J., & Morita, H. (2013). Internal Promotion and External Recruitment: A Theoretical and Empirical Analysis. Journal Of Labor Economics, 31(2), 227-269.

Roach, K., & Dixon, M. A. (2006). Hiring Internal Employees: A View from the Field. Journal Of Sport Management, 20(2), 137-158.