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
- 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
- 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.