Study notes

Recruitment: Internal v External Recruitment

A business can recruit in two different ways:

  • Internal recruitment is when the business looks to fill the vacancy from within its existing workforce
  • External recruitment is when the business looks to fill the vacancy from any suitable applicant outside the business

Of course, the option to use BOTH internal and external recruitment can be used. This is often the case for senior management appointments.

Internal recruitment


  • Cheaper and quicker to recruit
  • People already familiar with the business and how it operates
  • Provides opportunities for promotion with in the business – can be motivating
  • Business already knows the strengths and weaknesses of candidates


  • Limits the number of potential applicants
  • No new ideas can be introduced from outside
  • May cause resentment amongst candidates not appointed
  • Creates another vacancy which needs to be filled

External recruitment


  • Outside people bring in new ideas
  • Larger pool of workers from which to find the best candidate
  • People have a wider range of experience


  • Longer process
  • More expensive process due to advertising and interviews required
  • Selection process may not be effective enough to reveal the best candidate

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