You are currently viewing Advantages and Disadvantages of external recruitment
  • Reading time:9 mins read
  • Post category:Recruitment
  • Post published:February 15, 2023

Employees are the backbone of an organization. So, hiring a skilled candidate is essential to take the company to the height of success. Many times the company feels the need for fresh talents for specific positions.

Recruiting a newly qualified employee involves external and internal recruitment processes. But how beneficial is external recruitment?

Know the advantages and disadvantages of external recruitment so the company can hire new talents without a second thought.

What is external recruitment?

When a company hires candidates who are not already parts of the organization is called external recruitment.

To fill a vacancy: an organization opts for external recruitment. External recruitment refers to hiring new talents who are best for the required position of an organization. It is generally done when someone suitable is not available inside the organization.

However, the employer ensures the candidates hired must work with the organization’s vision, mission, and values.

Shaping the best strategies to search for the candidates who best fit the organization is essential for hiring and external recruitment expertise in it.

Hiring methods of external recruitment includes advertisement, employee referrals, job search sites, job fair, social media, networking events, company website, professional publication, and college and university career centers.

advantages of hiring external employees
Advantages and disadvantages of external recruitment

Advantages of External Recruitment

Here are the 7 benefits of external recruitment:

1. A large pool of candidates

External recruitment increases the chances of appointing the right candidate for the company. It provides the company with a pool of skilled candidates; suitable for the post. This availability helps the company to explore each potential and be selective while choosing them.

2. Fresh ideas and perspectives

Hiring a new employee brings a bunch of fresh ideas and perspectives. New employees attempt methods and approach different from those of the existing employees. These new ideas and suggestions; bring a positive change in the department and the company. The company identifies the areas of improvement and takes steps for the company’s overall growth.

3. Qualified and experience candidates

Qualification, skill, and experience are the core of recruitment. It boosts performance and saves the costs spent on training the internal candidates for the post. External recruitment presents the company with suitable candidates, qualified and experienced in the field. Eventually, the company selects and appoints the best.

4. Stay Competitive

A new employee means new ideas and strategies, and insights. These ideas, strategies, and experiences of the newly-hired is a blessing in disguise. They provide the trends and insights of other companies that the company can utilize. In simple words, the company keeps up with trends and stays competitive.

5. Diversity Enhancement

External recruitment aids in making the company more diverse. The more diverse workforce, the more empowering the company becomes. After all, the wide range of perspectives leads to more effective and innovative practices.

6. Lessen in-house tension

External recruitment, especially for higher positions, lessens the tension among employees, who may compete for it. Hiring a new professional for the positions makes it easy to set up a leadership role that otherwise would have been a challenge for an existing employee.

7. Growth for all

By recruiting new and fresh talent, the company initiates not only the candidate’s growth but itself too. When a new employee joins to match his skill and ideas: the existing employees broaden their performance. They become more competitive and productive. This overall growth adds to the company’s growth quotient.

External recruitment is beneficial for quick talent acquisition
External recruitment is beneficial for quick talent acquisition

Disadvantages of External Recruitment

Merits and demerits are the two sides of a coin. While external recruitment has so many advantages, it also has some disadvantages. This disadvantage gives a clear idea about the techniques of the external recruitment process.

Longer transition period

When a candidate joins a company as a newly hired, his transition to the new place takes time. He needs a vivid knowledge of the company’s vision, mission, and ethics and has to adapt to the office environment. The entire process requires an investment of time and cooperation.

Cost increases

External recruitment is costlier than internal recruitment. An organization has to pay recruiting firms, buy memberships on job search portals, and advertise the vacancy. Additional payment is also made to the HR team for putting their efforts and time into the recruitment process, interviews, and documentation to bring the new employee into the house.

Additional training process

Newly hired, though skilled, requires more training on company policies and procedures than internal employees. It needs more investment of money and time. Training of external employees can also reduce productivity during the session as new employees need to get acquainted with the responsibilities.


External recruitment consumes time—from advertising, selection, and interview to recruitment. Moreover, the more potential candidates come up; the more selective the hiring process becomes, thereby consuming more time.

Effects on employee morale

External recruitment may affect the morale of the existing employee, especially if they are expecting progress in the same position. They may feel their progress is hindered. They may feel the external hiring to be a missed opportunity. However, with career goals initiative, the company can ensure they have the scope of progress.

Employees need time

Not only the externally recruited but the working employees also need time. The employees already working has to adjust to the new member and his leadership role if hired in a higher position. And it takes time, thereby initially affecting productivity during the period.

Related: Benefits of hiring an HR consultants

Measure to tackle the disadvantages of external recruitment

The negative points of external recruitment can be turned positive by taking a few steps and working on them.

  • During the transition of the new employee to encourage unity, the company can organize lunches, team activities, and collaborative projects. The company can also assign a “buddy” to the newly hired to help introduce him to the existing employees and initiate communication with them.
  • Cost reduction of external recruitment is possible through automated recruitment procedures, like resume scanning technology and screening techniques. The company can also seek complete personality tests of candidates before interviewing to find a suitable match to the company culture. Peer interviews can be initiated to get detailed insights on candidates.
  • To lessen the time and cost of training new employees: go for a streamlined process. It includes technological implementation, checking-ins, and initiating short training sessions for some weeks.
  • An organization must discuss the reasons for recruiting new employees with the existing ones to ease employees’ concerns. The company can re-assess its career goals and ensure they are still on a path of progress.

The Final Word: Advantages and disadvantages of external recruitment

There is no single organization that never opts for external recruitment. There is not a single employee who was never externally recruited. External recruitment is very much needed. It has merits and demerits and also ways to tackle them. So, employers opt for external recruitment, and the employees welcome them into the family.

This article will help to have a broad idea about the concept, and PITCS will help to recruit the best talent for the company.