Difference Between Internal and External Recruitment

Edited by Diffzy | Updated on: April 30, 2023


Difference Between Internal and External Recruitment

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Employees are the organization's most valuable asset since they are accountable for the enterprise's success or failure. However, it is difficult for managers to locate the proper personnel and place them in the correct jobs. The recruiting process aids in the selection of the best applicant from a pool of candidates. Internal and external recruiting are the two sources of personnel supply. Internal Recruitment is recruiting individuals from inside the firm, whereas external Recruitment is the process of recruiting employees from outside sources. Internal and external recruiting are two methods by which companies might hire personnel. Internal recruiting is how businesses try to fill positions within their organization. External recruiting is when an employer looks outside the firm for a suitable candidate to fill a position.

An organization can hire people through internal or external recruiting. The process of employing employees from inside a company is known as internal Recruitment. Management is already aware of their abilities and has been working with them. In other words, they are selected from among the current personnel. External Recruitment is the process of finding personnel from outside sources. This may be accomplished through ads, agencies, and so on. This method is used when a company feels its present employees are inadequate and that it requires new talent. External hiring is a more expensive approach. It is also a more time-consuming procedure than internal hiring. Both of these methods of Recruitment have advantages and disadvantages.

 Internal Recruitment Vs. External Recruitment

The primary distinction between internal and external recruiting is that internal Recruitment utilizes current personnel. On the other hand, external recruiting produces a pool of applicants from other sources. This personnel has no connections to the organization. Internal recruiting is less expensive and faster than external Recruitment since it utilizes personnel you already have. Internal recruiting fosters loyalty and can boost employee morale by serving as an incentive for current staff. Because the internal applicant is more familiar with the company and culture, it also saves time and money on training. It also helps to reduce staff turnover.

Internal applicants who are matched with jobs that match their personality and abilities remain longer at the organization, promoting employee retention. Recruiting from inside restricts the possibility of fresh innovations and ideas since existing personnel are more familiar with the procedures and are less likely to seek change.

External Recruitment is beneficial in Having someone from outside the organization bring in new ideas and methods of doing things. However, this has the potential to cause havoc in the business. You may cast a broader net to find the most outstanding workers with the finest talents. You may miss out on hiring people with fresh perspectives and ideas if you employ from within. As a consequence, employing external Recruitment may increase your chances of acquiring experienced and qualified individuals. New hires will have little knowledge of the organization and its culture. External candidates will have a limited grasp of the company's surroundings. Furthermore, there is a higher risk associated with filling a post outside.

Difference Between Internal Recruitment And External Recruitment in Tabular Form

Parameters Of Comparison   Internal Recruitment External Recruitment
Significance This recruitment method focuses on hiring employees who the firm currently employs. This method of recruiting seeks to hire employees from outside the organization.


Duration It takes less time than external recruiting. It is a lengthy procedure.


Cost It is a cost-effective procedure. It is more expensive than internal hiring.

Number of applicants

No. Of Candidates Candidates have fewer options in this form of recruiting. This form of recruiting allows candidates a limitless number of options.
Foundation It is determined by merit or seniority. It is determined by merit or qualification.
References Internal recruiting can be obtained through promotion, transfers, referrals, and other means. External sources of recruiting include employment agencies, cold calling, ads, etc.
Time Spent Quick procedure Protracted procedure
Induction Training Induction training is not required. Induction training is a must.
Operation It is an inexpensive operation. It is a costly treatment.

What Is Internal Recruitment?

Internal recruiting occurs when a corporation seeks to fill positions with current workers by sourcing talent from different teams, departments, and job functions within the company. This method is also known and allows teams to fill talent shortages proactively. As talent shortages are projected to persist, HR services are refocusing their attention on this critical issue. An internal Recruitment is one in which the supply of people is done within the organization. The applicant is chosen from among people the organization now employs, i.e., current workers, or from those previously used by the organization, i.e., former employees who left the job freely but intended to return. These are ex-employees who the corporation wants to rehire.

Employees are hired through this method by moving them from one department to another or by promoting them from one level to another higher level. The most popular ways of internal recruiting are as follows:

  • Internal promotion
  • Promotion
  • Former employees are rehired.
  • Employees have been recruited on a contract basis or for part-time labor in the past.
  • Employees who have retired
  • Transfer

A transfer is a horizontal form of internal recruiting, whereas promotion is a vertical method. A transfer happens when an employee is moved from one department to another due to a necessity. This is also a component of the job enrichment and rotation process.

The process through which an existing employee is given a more significant position, power, or incentive is promoted. This form of hiring is done based on merit and seniority. Internal Recruitment has several advantages. It encourages confidence and loyalty while also assisting the group in maintaining secrecy. Training and orientation expenditures are minimal in this recruiting, and the personnel is also dependable. There are also no advertising fees.

Benefits Of Internal Recruitment

Shorten the hiring process.

When externally recruiting, hiring teams locate individuals (through sourcing or job advertising), assess them, and, if everything goes well, persuade them to join their organization. Everything takes time. On the other hand, internal candidates are already a member of your organization. Therefore the time required to locate and engage them is significantly reduced.

Find and attract more prospects.

Workable assists you in developing and promoting your brand in areas where your future applicants are likely to be found. Whether they're actively seeking, you're constantly on their thoughts.

Reduce onboarding time

Everyone requires time to acclimate to a new position, but internal workers are more quickly onboarded than outsider hires. This is because they: understand how your organization runs and the majority of your policies and processes. People on their new team may be acquainted with them, especially in smaller organizations.

Disadvantages of Internal Recruitment

Regardless of the benefits of internal recruiting, there are a few things to bear in mind. Hiring internally can:

Make employees and supervisors resentful.

Employees considered for a position may feel bitter if a colleague or an outside applicant is ultimately selected. Furthermore, managers are frequently concerned about losing strong team members and may even go so far as to obstruct the transfer or promotion process.

Leave a void in your current staff

When someone is promoted to fill an available post, their previous position becomes vacant. This implies that a succession of movements and promotions may occur, potentially disrupting your company's operations. Finally, in addition to your internal hiring, you may need to look for external Recruitment.

Reduce the number of applications in your pool.

While your organization may have many competent candidates for specific roles, this is not always the case for every available position. For instance, if a job is relatively new to your company, your workers may have different specializations and may be unable to fill this skills gap. You may miss out on hiring people with fresh perspectives and ideas if you employ from within.

What Is External Recruitment?

The external approach to Recruitment involves creating a pool of candidates from outside the organization. These candidates currently have no affiliations with the organization. It is an expensive strategy since there are advertising charges and new personnel requires training and orientation. This recruiting form is particularly time-consuming since the recruiter must go through all of the candidates' profiles and then establish a pool of viable prospects. The possible applicants are then interviewed and tested to determine their suitability. This is followed by an extensive period of training and orientation.

External recruiting can come from a variety of sources

  • .Advertisements,
  • Campus Recruitments,
  • Waiting Lists,
  •  Job Exchanges,
  •  Job Portals,
  • Referrals and References,
  • Job Fairs and Seminars,
  • Job Consultancies and
  •  Agencies, and so on.

Advertisements are the most common way of external recruiting. Job openings are advertised in periodicals, newspapers, and websites, among other places. Campus recruiting is another popular approach to this sort of hiring. This is because employers pick graduating students from universities and colleges for placements every year. External recruiting brings in new talent to the company, bringing innovation and the chance to develop. However, it also provides management with a vast pool of prospects from whom to restrict their potential choices.

The Benefits of External Recruitment

Some of the advantages of recruiting from outside sources are listed below:

Choosing among more candidates

When you look for candidates for your position outside of your company, you have access to a far larger pool of people. This can improve your chances of finding a competent and successful candidate.

Introducing new viewpoints

Bringing in outside workers might provide your firm with a fresh viewpoint. A new perspective can assist in identifying areas for development and making comments.

Increasing diversity

External recruiting can help your business become more diverse. Incorporating several points of view can lead to innovation and more successful procedures. In addition, creating a diverse workforce and providing a platform for various viewpoints promotes inclusion and empowerment.

External recruiting has the following drawbacks:

Cost increases

External recruiting is usually more expensive than internal Recruitment. For example, organizations may pay for a recruitment service, job search site memberships, and long-distance applicant travel. Furthermore, your company's HR personnel devotes more time to recruiting activities, interviews, and paperwork for onboarding new workers.

Additional Education

Outside personnel demand more excellent general corporate policies and procedures training than internal staff. This might cost the organization more time and money. External employee training can also result in decreased production throughout the training time and when new workers become acquainted with their tasks.

Influences Employee Morale

When organizations hire from outside sources, employee morale suffers, especially if employees expect to advance within the company. The outdoor hire may appear to be a squandered opportunity. To alleviate employees' fears, it is critical to communicate the organization's motivations for external recruiting. You may also go through workers' professional aspirations with them to verify they still have a route to follow.

Main Differences Between Internal Recruitment And External Recruitment in Points

Internal and external recruiting differ significantly in the following ways:

  • Internal Recruitment refers to a method of hiring employees who already work for the company. External Recruitment is distinct in that it entails locating potential employees from outside the company.
  • Induction training is not required for internal recruiting, but it is necessary for external Recruitment.
  • Internal Recruitment is faster than external Recruitment because external Recruitment includes stages such as advertising and inviting applications, screening of applications, shortlisting, conducting an examination and interview, selection, placement, training, testing, and induction that are not present in internal Recruitment.
  • Internal recruiting is based on merit plus seniority, whereas external Recruitment is based on price plus qualification.
  • Internal Recruitment is a low-cost option. External Recruitment, on the other hand, necessitates a significant expenditure.
  • Internal recruiting has a limited range of options, limiting the availability of new talent. When a corporation opts for external recruiting, on the other hand, it may hope for excellent applicants from outside the company, which means new blood and ideas are poured into the organization.
  • Unlike external recruiting, internal Recruitment is cost-effective.
  • Internal hiring is rapid since the pool of candidates already works for the company. External recruiting, on the other hand, takes time.
  • Internal hiring might be focused on seniority, whereas external hiring prioritizes qualifications.
  • Internal recruiting sources include transfers, promotions, internal ads, and so forth. Job websites, campus placements, employment exchanges, and other external recruiting sources are examples.


Companies prefer to hire from outside sources, even though it is more expensive and time-demanding since it gives management more alternatives. On the other hand, internal recruiting gives limited but trustworthy potential candidates to management. The type of vacancy and the circumstances affect the company's recruiting style. Internal recruiting may be used if the business wishes to retain confidentiality. It may choose external recruiting if it wishes to bring in new ideas.

Just one aspect determines whether an organization succeeds or fails, and that factor is its workers. If they put in their best efforts, the organization will prosper. However, identifying the best staff is a challenging endeavor. We can't say either way is better; it depends on the situation. If an organization has a solid employee base, it may pick an employee for the empty post from inside. Still, if no internal employee is the most excellent fit for the job, it must turn to external sources for staff.


  • https://www.talentguard.com/blog/internal-recruitment-what-is-it-and-how-do-you-enable-it-in-your-organization


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"Difference Between Internal and External Recruitment." Diffzy.com, 2024. Thu. 16 May. 2024. <https://www.diffzy.com/article/difference-between-internal-and-external-recruitment-397>.

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