Recruitment – Internal or External, General or Specific Skills

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Internal Recruitment: when existing employees within the business fill the position.

Benefit of internal recruitment:

  • Incentive for staff to improve their performance
  • Promotions as seen as a reward.

Disadvantages of internal recruitment:

  • Staff overlooked for the position may lose motivation
  • The business may be denying itself new ideas by recruiting internally

External Recruitment: when an individual who has not yet worked for the business fills the position:

Benefits of external recruitment

  • Business is encouraging new ideas

  • New employee is not aware of existing issues within the business

Disadvantages of external recruitment

  • May take time for the new employee to settle into the organisation

  • Resentment from existing staff

General skills

  • Such as flexibility, motivation, positive attitude, ability to work under pressure, team work, willingness to learn, problem solving.
  • Important as many jobs today require working independently and undertaking many different tasks

Specific skills

  • Acquired through specialist training, usually leading to a qualification e.g. carpentry, electrician, nursing, HR manager
  • Many businesses recruiting overseas or outsourcing to overcome their skill gaps

Extract from Business Studies Stage 6 Syllabus. © 2010 Board of Studies NSW.