Theoretical and Empirical approaches in Internal & External recruitment :

 

Irrespective of the type of the Organization ,  mode of operation and position of the vacancy created ,any company faces the challenge whether the vacancies are to be filled through internal OR external sources

Management of recruitment serves as a main tool in shaping the way of the organization and taking it to greater heights

Recruitment is a basic requirement of any company , despite their size (large OR small ) OR whether the business is profitable OR making losses

The cycle of any company is that the Employees get promoted ,resign and assigned with higher responsibilities which will in turn create vacancies which has to be filled for the continuity of the business

Approaches taken for recruitment differs from company to company based on their requirements and specifications

However, no matter the type of approach of each organization towards recruitment ,the fundamentals remain same

Internal recruitment is the process of filling the vacancies created at any given time through the existing resources , may be through promotions or mutual transfers from the current pool of employees

In comparison to that , external recruitment is the process of filling the vacant positions through looking for Candidates outside of the organization

Internal Recruitment methods 

Promotions :

 

·    Junior Employees who are competent to take higher responsibilities and proven their skills can apply for a vacant senior Role  

·    Companies with large scale operations built up a succession plan to hand over higher responsibilities to the junior level staff when requirements arise

·    Identified candidates can be groomed to the next level which ensures smooth transition

 

 

Internal Transfers :   

 

·   The Employee will be transferred from one section of the company to the section /unit where the vacancy has been created

·   The responsibilities entrusted to the Employee will differ based on the requirements of the organization

·    This can be used as a tool to manage the overstaffed units and understaffed units

·   This can be used as tool to provide solutions to transfer requirements of the Employees based on geographical needs  

 

 

Internal Recruitment :

Pros	Cons
The process is less time consuming	Possibility of internal favourations and Politics
The Candidates are already familiar with the culture of the organization and the policies and procedures	Availability of talented ,experienced and qualified employees to fill the necessary positions
Lesser expensive and cost effective given the availability of Candidates within the same organization	New ideas will not flow in the organization
Morale of the Employees will be increased as they will be able to achieve career goals and better employment benefits . This demonstrates the opportunity and ability for growth within the organization	There can be gaps in skills
Internal Applicants are already familiar with the Organizational culture and they will fit better to the available structure without much difficulty
As the internal Applicants are already used to the systems of the organization ,Vacancies can be filled within a shorter time period

 External Recruitment : 

Pros	Cons
The organization will get access to a wider range of talent pool and new ideas will flow in	Time taken for on boarding / recruitment is comparatively high as some of the Employees have to provide prior notices to their existing work places
Diverse skills / expertise ,knowledge will add value to the organization	Cost will be higher as the outside candidates will require higher salaries , better remuneration packages and other welfare benefits as oppose to the internal candidates
There will be probability to explore diversity which could positively contribute towards the growth and profitability of the organization	As the company does not have 100% visibility /understanding on the skills and abilities of the Recruited person ,there can be instances where wrong candidates get selected for the positions

 

 

 

How does it happen in real World ( Real World hiring approaches adopted by some Internationally and locally recognized Brands / Corporates )

Infosys :

Infosys is one of the top IT solutions & consulting company known for its unique hiring practices . Being a tech giant it has mastered balancing internal hiring with external talent acquisition for specific roles

Whilst most of the companies look for outside options to fill new ,specialized roles ,the company has introduced an internal digital platform named as ‘’ Compass’’ which has helped their own employees to grow their careers

by improving their skills and assuming advanced responsibilities in higher positions within the company

 

Recruitment process followed by ‘Infosys’’ ;

 

·   Initially online assessment tests are conducted to evaluate logical , analytical and reasoning skills

·   A technical interview follows which involves questions related to the expertise disclosed in the applicant’s resume

·    In certain instances ,candidates can be asked to solve puzzles and quizzes

·   Final step of the process will be an interview to determine the culture fit ,which could be considered as a main selection point  

The company is always committed to fair , merit –based talent acquisition, hiring and diversity

 

 

Netflix :

 

 

Different to the other organizations ,Netflix provides their applicants with a transcript of the company’s core values and culture at the very beginning of the hiring process .

As the first step of the process ,the Recruiter contacts the applicant through a phone call and initially try to identify how good and a potential fit to the company the applicant is .

If the recruiter is satisfied with the initial screening , the next authority ( Hiring Manager ) contact the applicant whose evaluation might lead to on site and off site interviews  

When hiring from outside , Netflix usually targets Engineering personnel having more than 3 years of experience

One of their main strategy is to hire applicants with previous experience ,rather than hiring fresh graduates .

The interviews might involve face to face discussions with different members of the Netflix Team where the applicants will be assessed through detailed questions on their knowledge ,qualifications on the job

Further, the applicants might be asked to solve problems on site while they might also be given take home tests as well

Applicants who gets through these criterions will face evaluation sessions with the Human Resources , Hiring and Engineering Team Manager and will be evaluated on the aspect of culture fit as well

 

Unilever 

 

Unilever has a unique and creative hiring and recruiting process which is specifically designed to select applicants who fits in to the company’s values and has the capacity and potential to drive growth and innovation

The company adopts an AI – based candidate sorting and evaluation approach . The first step of the process being using the LinkedIn profile which replaces the resume and then the AI based application is used to select the best prospect

Next step would be series of online games which is followed by assessing recorded video interviews to monitor and asses through facial expressions  

Only upon passing the above selection criterions ,the applicants will be called for in-person interviews with the Line Management for a deeper assessment and understanding on their role and expectations of the company  

 

L'Oreal

L'Oreal's recruitment process emphasizes digital and social media engagement. The company uses virtual experiences and games to assess candidates' creativity and innovation. L’Oréal values diversity and encourages unconventional thinking. The company even experimented with an innovative recruitment method , accepting applications written in emojis. This approach aimed to resonate with younger generations and showcase the company’s openness to creativity.

The company’s selection process takes few steps :

• Online Application: Candidates fill out an application on L’Oréal’s careers website, detailing their qualifications, experience, and training.
• Assessment Tests: Depending on the role, candidates may undergo aptitude tests.
• Interviews: Candidates participate in interviews, which may include recruiter interviews and business interviews.
• Technical Assessment: For certain positions, technical assessments are conducted.
• Final Decision: Based on the overall evaluation, L’Oréal makes its hiring decision.

 

 

 

Key references

·         

·    DeVaro, J., Kauhanen, A. and Valmari, N., 2019. Internal and external hiring. Industrial and  Labor Relations Review, 72(4), pp. 981–1008.

     DeVaro, J. and Morita, H., 2013. Internal promotion and external recruitment: A theoretical and empirical analysis. Journal of Labor Economics, 31(2), pp. 227–269.

https://www.wecreateproblems.com/blog/20-companies-that-have-a-unique-hiring-process#heading-12

 

https://news.cornell.edu/stories/2021/01/ilr-study-tests-why-internal-hires-outperform-external-hires?utm_source=chatgpt.com

 

https://www.wework.com/ideas/professional-development/management-leadership/internal-vs-external-recruitment-pros-cons-and-methods#the-basics-of-recruitment