There are two effective ways to grow your talent pool. These are external and internal recruitment. Which is better between the two? What are its pros and cons? 

External Recruitment – What Is It? 

As the name indicates, external recruitment is the process of searching for new team members to fill in vacant positions instead of existing staff. 


It’s a practice for hiring managers to recruit external candidates over the years. No wonder external recruitment allows businesses to find qualified employees that can bring new ideas, talent, and perspectives to the organization. Other benefits are highlighted below: 

Companies can find the right person for the job from a larger pool of applicants. 

External recruitment provides startups and well-established companies with an opportunity to stay competitive in the industry. 

New talent acquisition teams can encourage existing staff to exert more effort in every task assigned to them. 


There’s no perfect type of hiring procedure. External recruitment, for example, has some drawbacks discussed below: 

Hiring new talents does not happen overnight. Aside from time, it requires more cost. 

It might affect the morale of the business’ existing employees, decreasing efficiency and productivity. 

It takes time to train every external candidate. 

Internal Recruitment – What Is It? 

Internal recruiting, on the other hand, is the process of filling vacancies in a company from its existing internal talent.

Organizations use internal recruitment marketing to encourage loyalty, promote a sense of progress for staff, and increase retention rates. 

Using the culture of internal mobility enables employers to save some cash and time. It is unnecessary to recruit external talents. While training might be necessary, it is not as complicated and expensive as external recruitment. 


It is Fast to fill Open Roles 

Internal recruitment enables organizations to fill open roles quickly as internal candidates have long been aware of the business’ mission, vision, and values. They are accustomed to organizational processes. They are up-to-date on required training. Another thing is that references are built-in. That means the employer has a direct line to the last supervisor or the employee. 

Internal mobility programs mean hiring managers would spend less time ramping up existing staff because of trust and respect between parties. 

Experts believe that internal hires know the ins and outs of a business, which can help avoid months of training. 

That’s not all! Employees who have proven themselves to be top performers highly tend to work hard. This holds true when given a chance to transition to a new team. 

New hires have to prove themselves, on the contrary.

Inspire Employees to Continue to Learn and Grow 

Giving employees the chance to move around in an organization is an encouraging incentive for them to develop their skill gaps, widen their perspective, and learn new skills. 

In an article published in Deloitte Insights, consultants Bill Cleary, Robin Erickson, and Denise Mouton note the advantage of continually teaching and training employees. 

They said a company culture that involves regular employee development and coaching also builds a good rapport within the organization. 

“At high-performing companies, internal mobility and recruitment have been associated with each other,” they say. “These businesses exert effort creating expectations and experiences for employees that encourage good communication, continuous learning, engagement, as well as growth,” they further added. 

Any employment promotion encourages workers to develop their skills and spend time to learn new ones. So, employers have to be transparent when there are open opportunities. But how to let them know if there’s a vacancy? Using internal career sites can be a lifesaver. Qualified candidates will know if there is a new opening right away. More than that, they would determine the required skills for a specific position. 

For example, Cornerstone On Demand’s Recruiting Site not only allows the hiring manager to share open positions with existing employees but also gives them an idea of what they need to handle new roles and responsibilities. Apart from the application requirements, they might take courses, training, and learn other ways to develop professional competencies. 

High Retention Rates 

Let’s be honest! It is difficult to bring the right employees to your company. But keeping experienced and capable staff is even harder.

According to a LinkedIn Talent Solutions report, more than 41% of respondents said they remained in an organization for less than two years. 

Surprisingly, over 42% of respondents said they would have stayed longer if their employer offered them more chances to move within an organization or gain new skills. 

“Employers always want to develop their skill sets,” according to Susan M. Heathfield, a consultant at the Balance Careers. “If they can’t find any opportunity to continually grow as a professional, they have a higher risk of quitting and finding new career paths,” she further added. 

Showing employees the possibility of internal mobility is a motivating incentive for the staff. 


Like external recruitment, internal hiring also has a few disadvantages you should know. Some of them are discussed below:

Lack of New and Fresh Perspectives 

External recruitment enables organizations to gather new ideas, which can lead to quality insights for a company to increase a good return on investment and stand out from the competition. 

But that does not mean existing staff cannot offer an effective and bright idea. What internal staff needs to do is to continue to widen their knowledge as a professional. 

Workplace Jealousy 

Let’s admit it! We’re only humans. Every time a person loses out on a promotion to a colleague, it might lead to jealousy. What companies need to do is to encourage friendly competition and establish a light working environment. 

Bottom Line 

Which is better between external and internal recruitment? If organizations want to avoid expensive and complicated training, internal hiring is a perfect idea. 

If companies like to find the most capable candidate for a position, external recruitment is a good decision hiring managers and employers can ever make. 

Organizations can also integrate internal and external recruitment into their hiring procedures to build a highly competitive and effective team.