Advantages And Disadvantages Of External Recruitment

Advantages Of External Recruitment

Main benefits or advantages of external recruitment method and sources can be expressed as follows:

1. Highly Qualified Candidates

External recruitment increases the chance of finding highly skilled, experienced and qualified personnel because of the large pool of applicants.

2. Wider Choice

It provides wider choice to find a suitable staff because of the large number of candidates. A company can select most talented and capable candidate for its vacant position.

3. Arrival Of Fresh Talent

External recruitment encourages to bring fresh talents with new skills and creative ideas for better performance of the job.

4. Better Competition

Recruiting from outside helps to face the competition because of the capability and risk taking ability of the candidate.

     
Also Read: 

5. Improved Diversity

It hires the people of different race, religion, gender, age etc on the basis of their skills and capabilities. So, it helps to improve diversity requirements.


6. Less Training And Development Cost

Recruiting from outside minimizes the training and development costs because it hires well trained and experienced candidates according to the requirement of the job.

Disadvantages Of External Recruitment

Major drawbacks or disadvantages of external recruitment method and sources can be highlighted as follows:

1. Expensive Process

External recruitment is a costly process of hiring employees. A lot of money is required for vacancy announcement (advertisement), shortlisting, conducting interview and for final selection.

2. Time Consuming

It is time consuming and lengthy process to recruit staff from outside the company. Various steps such as advertising, applications processing, shortlisting, interview, and selection should be performed to complete external recruitment. 

3. Poor Employee Morale

It may decrease the morale of current employees because of highly qualified new candidates which leads to decrease in performance, productivity and quality. 
advantages disadvantages of external recruitment
4. Adaptability Problem

It requires longer adjustment period for new candidates. They may have to face several challenges to adopt themselves in the new environment.

5. Risky

External recruitment is riskier than recruiting from inside the organization because of little information and unknown nature of fresh candidate. 

Pros And Cons Of External Recruitment In Short

Pros:
- It increases the chance of finding skilled and qualified employees
- It encourages fresh talent
- It minimizes training and development costs
- It helps to enhance diversity
- New ideas and skills of new personnel can increase organizational efficiency

Cons:
- It is costly and time consuming
- It may discourage existing employees in the organization
- There may be a adaptability problem for fresh employees

Disadvantages Of Internal Recruitment

Major drawbacks or disadvantages of internal recruitment method or sources can be highlighted as follows:

1. Internal Conflict

There is a high chance of favourism while hiring employees through internal recruitment method. So, it can create conflict among the employees in the organization.

2. Lack Of Fresh Perspective

Internal recruitment hires employees from within the organization. So, it lacks new ideas, talents, values and freshness in the work.
disadvantages internal recruitment
3. Limited Choice

Recruiting internally limits the pool of applicants by avoiding the arrival of skilled and talented candidates outside the organization.

4. Increased Training Costs

Internal recruitment may increase the training and development costs of promoted employees.


5. Overstaffing

There may be a chance of overstaffing because of the tendency of referring friends and relatives in the organization.

   
Also Read: 

6. Lack Of Diversity

Recruiting internally fails to bring new perspective and diversity in the organization.

7. Resentment

Internal recruitment may create resentment among workers who are not recruited or appointed. 

Advantages Of Internal Recruitment

Main benefits or advantages of internal sources and methods can be expressed as follows:

1. Easy And Quick Process

Internal recruitment method is easy and quicker process of hiring employees in the organization. It requires less paper work and less time to recruit the candidate. So, it is a simple and mostly used method of hiring people.

2. Cheaper Method

This is another benefit of internal recruitment. This method avoids advertisement costs and agency fees for hiring employees from outside. So, it is a cheaper process of hiring or selecting employees.
advantage internal recruitment
3. Increased Employee Morale

It helps to maintain high employee morale in the organization because there is a room for reward, promotion and advancement for better performance.

4. Good Labor Relation

It provides opportunity for advancement and progress to the employees. So, it helps to establish better labor relation between management and workers.

     
Also Read: 

5. Better Performance

Internal recruitment helps to motivate employees by rewarding their hard work. So, it helps to boost their performance for better output. 

6. Less Risky

Internal recruitment process minimizes the risk of hiring unsuitable and wrong candidate from outside the organization.

Advantages Of Job Evaluation

Main benefits or advantages of job evaluation can be studied as follows:

1. Rating Of Jobs

Job evaluation helps to determine the worth or value of different types of jobs in the organization. So, it is a scientific technique to rate the jobs according to their importance and nature.

2. Rational Wage Structure

Job evaluation helps to develop sound wage policy in the organization. It helps to establish rational wage policy according to the nature and value of the jobs. 

3. Specialization

Job evaluation promotes division of labor and specialization by defining the job in terms of nature and complexity.

4. Harmonious Relationship

Job evaluation helps to establish harmonious relationship between manager and employees by eliminating wages controversies. It also helps to maintain good labor relation in the organization.

5. Training And Development

Job evaluation helps the management to identify the training and development needs of different jobs by ranking them according to their importance.
advantages job evaluation

6. Cost Minimization

Job evaluation helps to reduce labor turnover rate by fixing proper pay structure and by maintaining good labor relation. It helps to improve production rate which minimizes the cost of production. 

     Also Read: 

7. High Employee Morale

Proper placement, uniform pay structure and job classification is possible because of job evaluation. It helps to motivate and maintain high employee morale in the organization.

Benefits Of Job Analysis

Major  advantages or benefits of job analysis can be highlighted as follows:

1. Manpower Planning

Job analysis provides job-related information to the management which helps to determine the job, prepare human resource information system and human resource inventory. So, it is the foundation of manpower planning in the organization.

2. Recruitment And Selection

Job analysis helps to recruit and select competent manpower for the job according to the job description and job specification. So, it helps to establish effective hiring policy in the organization. 

3. Proper Placement

Job analysis ensures proper placement of employees according to their knowledge, skill and capacity. It helps to improve the performance.

4. Training And Development

Job analysis helps to design effective training and development program by identifying the needs of the jobs and employees. It helps to enhance employee performance.
advantages job analysis

5. Job Evaluation

Job evaluation is conducted with the help of job-related information provided by job analysis.

   
Also Read: 

6. Performance Appraisal

Job analysis helps the management to evaluate employees' performance by comparing their performance with the set standards. It helps to determine the variations and take appropriate steps to improve their performance. 

7. Job Design

Job-related information received from job analysis helps the management in designing or redesigning the jobs.

8. Organizational Structure And Design

Job analysis helps to maintain proper balance between responsibility and authority in the organization. So, it ensures effective organizational design and structure.

9. Safety And Health

Jon analysis always gives emphasis on the safety and health of the employees. It helps to maintain safety and healthy working environment by eliminating unsafe environment at the workplace.

10. Compensation Management

Job analysis helps in designing compensation package for each job. It helps the management to make compensation decisions.

Benefits Of Human Resource Planning

Major benefits or advantages of HR planning can be highlighted as follows:

1. Forecasting Human Resource Need

Human resource planning helps to determine the future needs of human resource in the organization. It helps the organization to fulfill the manpower requirements for smooth operation.

2. Recruitment And Selection

Human resource planning helps to recruit and select the most desirable and competent manpower to fulfill the vacant positions of the organization.

3. Meet Expansion And Diversification

Human resource planning helps the organization to cope with the future changes. It helps to meet future expansion and diversification needs of the company.

4. Training And Development

HR planning helps to enhance the efficiency of the employees by giving suitable training and organizing development campaigns.

5. Formulate Policy

HR planning helps to formulate different policies in the organization. employee transfer policy and promotion policy are designed with the help of HR planning.
benefits of HR planning
6. Optimum Use Of Manpower

Human resource planning ensures optimum use of human resource in the organization. It maintains balance between distribution and allocation of manpower.

    Also Read: 

7. Cost Minimization

HR planning ensures higher productivity through effective use of human resource in the organization. Higher level of productivity reduces the cost of production. So, HR planning is helpful in overall cost minimization.