Recruitment processes in the field of new technology have changed dramatically due to the world globalisation of the marketplace along with an absence of skilled staff. Considering these facts, human resources departments should think about how they will conduct their future recruitment decisions in order to operate effectively. Often times when a company looks externally to hire, they spend excessive amounts of money on advertising, head hunting etc. Perhaps if the company in question focused more on qualified employees within the company, recruitment might be easier and more effective.
Recruitment could be defined as the "process of seeking and attracting a pool of qualified applicants from which candidates for job vacancies can be selected". (Stone,2002,174). The main purpose being the development of a group formed with potentially qualified people. Recruitment is not just about "hiring" someone; it is about hiring the "right" person. In order to do this, an effective selection procedure should be established in the human resources department that will enable them to select to right candidate and reject the wrong ones. To be successful, vacant positions should be clearly analyzed in order to quantify a detailed job description. From this description, specifications can be done. This will help the employer decide if an internal recruitment could be done, or if they clearly will need someone external. By detailing the job description extensively it allows the candidate to be fully informed about performance expectations, whereas if the candidate receives misleading information he could develop unrealistic expectations which will ensue in job dissatisfaction or lower commitment.
According to Bartol et al Tien Matthews and Martin, 2000, 'Internal recruitment is promoting existing employees in conjunction with internal training and external recruitment involves recruiting suitable candidates with relevant experience and qualifications who have not previously worked within the organisation'.
Promoting an employee internally is good public relations because the organisation will reinforce the point of dedicating itself to its own employees and developing them. It will therefore strengthen the organizational culture, motivate the working force, and above all ameliorate employee productivity. Employees will see room for advancement and in turn hope to be earlier in their career. Furthermore, when recruiting someone internally, the employer is more likely to already understand the current employees formal and informal training, and will exactly know what the worker is capable of. This is information that an employer would have no way of identifying in an external hire situation. Also, an internal clerk would be familiar with the company's policies and procedures, which will save a lot of time because no integration will be needed. Even with all these positive aspects of internal recruitment, the company should be prepared to face some problems because of this art of recruitment. Inevitably there could be drawbacks such as internal infighting due to jealousy or tension that might appear because one colleague was selected over another to climb the corporate ladder. Some workers might believe they didn't have a fair chance if they assume that favouritism was involved during the candidate selection process. There could be suspicions based on the relationship between the candidate and the employer, even nepotism. Likewise, the promoted employee might face some problems in supervising his or her colleagues as it could be possible they are now managing their former peers. Being too close to the staff will make the task harder to impose oneself as a leader, per contra being not close enough could make it difficult for someone to motivate the staff. It also could be the case that there might be no candidate that would apply for the vacant position. This could be because of a corporate image problem that the job has internally. If the reason for resignation is related to issues of poor human relations or problematic responsibilities (too much work or not enough work), the human resources department can be quite sure that the staff will know, therefore resulting in a decidedly more difficult task to find someone who would like to take the place. However, the company can solve this problem when conducting exit interviews and implement changes which can be highlighted in the vacancy description.
Besides these internal problems, a company might notice that there is a restriction of the number of skilled candidates when recruiting internally.
There are benefits to recruiting externally. When using this method of recruiting the company will have to make sure to target the audience in the right markets, whether in newspapers, on radio or on television. Targeted marketing and advertising is crucial in finding the right candidate. There are things to be said though for casting a wide net and reaching a wide range of applicants. This could be considered "thinking outside the box" and will increase the chances to find "THE" person who is best suited for the job, might bring an outside perspective that would be beneficial to the company. At certain levels of employment it might be very beneficial to bring someone in who does not have internal ties and can bring new ideas to the table. It also might lead to less time that workers will need in order to develop new innovations and new perspectives. A new perspective could break internal bad habits and make the other workers function more efficiently. Hiring externally also might result in finding a competitor's employee which might help provide insight into the competition's workplace.
However, if the organisation focuses too much on external recruitment, some disadvantages may appear. A freshly promoted person will probably have a lack of knowledge concerning inner policy, as they have not previously been working within the organisation. To this point, if the selected candidate doesn't fit the job, it could slow down the existing progress which would amplify the mismatches between the candidate and the company's expectations. In order to get used to the new work culture, time that wouldn't be needed with an internal candidate will be needed here. The learning curve will also be slowed down for the external recruit, compared to internal recruits concerning the comprehension of the culture and the request of the new position as well as the working procedures of the whole organisation.
This leads to the point that internal recruitment is far more cost effective than external recruitment. Training costs are often less with internal candidates than external ones. Also an internal promotion will increase an employee's salary by ten or fifteen percent, where external recruits will expect a far higher salary especially if they are in an advanced stage of their career with lots of experience. Without forgetting the whole external recruitment process's costs that will raise the final costs which include advertising expenses, or all the interviews that will have to be done to find some potential co-workers.
Most people are capable of climbing the corporate ladder with proper training, direction and encouragement (wayne parks 1985). A lot of huge companies advertise their job vacancies internally before handing them out to the external world. In fact, it is customary to let the staff know about the free vacancy, and if in case of equal candidature, the already enrolled collaborator should be hired (Jean-Jacques Meyer). However the company should keep in mind that some constraints may appear. If the company has a poor image, some candidates may not even apply. Moreover, as said before, if the job is not attractive because it is viewed as boring or because it isn't well paid the result will be the same, the number of applicants will be reduced.
Referring to the workers' improvement, it should be judicious to mention the term "Kaizen". Kaizen is a Japanese term meaning "continuous improvement" and by extension it means "analysis to make better". In other words, it is a simple and inexpensive process of improvement performed in a very short period of time. But above all it is a mindset that requires the involvement of the entire working pool. This Japanese approach is based on daily small improvements made constantly. It aims to encourage each worker to think about his work environment and to make some improvement suggestion. Therefore it requires a strong motivation from the employees. It is important to note that this mentality should be outstretched on each hierarchical level.
In order to succeed, this principle involves the development of different tools and concepts as for example the Deming cycle, or as it is called the PDCA (plan-do-check-act). This process will help the company during their approach to a quality management (Kaizen). To describe it shortly, the method involves four stages, each leading to another and aims to establish a circle.
- Plan (prepare what we will achieve)
- Do (develop, implement)
- Check (verify, analyze)
- Act (adjust, respond)
It's implementation should continuously improve the quality of a product, or for the human resources department's point of view, a department within the company. Again, we have here the "what is the best for me" problem. Because, the company should, as mention before, clearly analyze the situation and clearly distinct what their needs are. Developing tools like the PCDA is a costly initiative and the company will have to decide if it is worth or not. Because, in some cases recruiting externally is the best option as it might be for a short period of time where developing such concepts within the organization would be nonsense.
So now, what initiative should the company take? The company should, as mentioned in the text, clearly sort out the needs they will require, and do a precise job description to attract the most targeted candidates, either internally or externally. Once this is done the company will be able to decide if they need somebody from the outside or not. To reiterate, it would not be worth it to spend a lot of money for external recruitment, if an inner employee matches the required condition perfectly. The organization will save time and money if an internal candidate is qualified. On the other hand, if the human resources department agrees on the fact that they definitely will need new ideas or if they are sure that the required candidate isn't present in the actual worker pool, then they might consider the external recruitment choice. An organization should know how to take advantage of external resources at the right moment. Therefore, injecting new blood on a regular basis and investing in an external profile could be essential to company productivity and growth.