Should You Go Internal or External When Hiring?

should you go internal or external when hiring?Few people enjoy hiring. While it’s exciting the first time, the tenth, the twentieth, and the hundredth time can be more of a burden than a blessing. One of the biggest issues employers face when hiring is whether they should search for internal or external candidates. There are distinct benefits and drawbacks to each tactic. So for your next hire, consider which strategy would work best for the position based on its unique requirements.
 

Choosing Internal Candidates

Successful businesses promote from within because they realize dedicated workers who already believe in their mission statement are working for their company. Hiring from within captures those employees who already enjoy working at the organization and gives them more satisfaction and responsibility in a position they are better suited for. In large scale companies, it’s practically expected for employees to start in entry-level positions and work their way to the job of their dreams. This gives employees a career rather than a job, which increases overall company morale. 

Hiring internally doesn’t just increase morale and job satisfaction. It also reduces hiring costs. Rather than going through recruiters and job boards, companies can easily transition employees from one position to another. Since that employee now has experience in two positions, they can provide on-the-job training for the employee that takes over their previous position and potentially act as a back-up to the new employee. When time is of the essence, an internal hire is a great choice not only because it adds depth to the company but it also provides a path for employees to expand their education and experience. 

Choosing External Candidates 

Reaching outside your company for the next hire isn’t a bad thing. External hires bring new lifeblood and ideas into companies that would otherwise go stagnant. Hiring a job applicant who worked for a competitor can yield process improvements that can significantly increase productivity as well as help your company learn from your competitors’ mistakes. When companies focus solely on internal hires, they miss the opportunity to gain more knowledge about their competition and their industry. 

External hiring is also ideal when your company is branching into something new. If a small business had previously outsourced HR services, hiring an HR position within the company is going to require someone with a unique skill set that most likely isn’t available with current staff. When expanding, hiring the best candidate possible is essential to building a strong department. Employers need to ensure that they hire someone with a proven track record of success and that often requires reaching outside their current workforce. While internal hires are preferred in many situations, getting new ideas and a bigger well of experience requires external hires to add more value to the organization. 

There isn't necessarily a right or wrong strategy for hiring. Hiring managers need to assess the needs for the position and the current experience of their workforce before making the decision to focus on internal or external hires. Regardless, keeping an open mind can help hiring managers identify "diamond in the rough" candidates, both internally and externally. 


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