Differences between internal and external recruitment

The recruitment and selection processes are often seen as one single action. However, two processes are involved. Recruitment is the overall process whereby companies employ staff to fill available or new positions whereas the selection process includes a series of actions to best identify the most suitable candidate for the specific vacant post. Some of the main goals and objectives of the recruitment and selection process are to ensure that all recruitment and selection procedures meet the terms of the equal opportunities policies. If the selection process is used inappropriately it may have the potential to discriminate against certain groups such as young/old, gender, people with disabilities, etc. The process should also ensure that appointments are made on merit and that the candidate has the skills, qualities, and abilities and experience necessary to do the job successfully.

The recruitment and selection process consists of: Job requisition, Analysis, Attracting Candidates, and selection. Stage one in the recruitment and selection process is the job requisition. During this stage, Human Resources should consider if the post is actually needed as in some cases a new employee is not always the answer, For instance, some tasks may not be necessary, some tasks could be incorporated into another post while others could be completed in different ways, for example, by machine or computer. The work could be done on a part-time basis, flexi-time or job share basis or even be contracted out. To distinguish the tasks required to make up the job, it is wise to invest some time in clearly defining the role and expected outputs of the post and after that try to establish the range of skills and qualities candidates will have to possess. You may want to list the most important job tasks required of the post holder, the capabilities required to do the tasks and then rank them in terms of how important they are for completing the tasks. You may even consider speaking to the existing post holder because he or she should have the most practical view of the job. If you fail to do this preliminary stage thoroughly can lead to a huge number of inappropriate candidates applying, and if the wrong candidate is chosen serious difficulties can come up later in the relationship.

A Job Analysis is a very important part of the recruitment process as it provides a framework to base your decisions on. For instance, if you decide that a third level qualification is required for a particular job then you can dismiss all application forms from candidates who are below this level. Be specific in this way means you do not fall foul of equal opportunities policies. When you have decided that you require another employee it is important to get the right person for the job. Writing a job description will help the company define exactly what you want your new employee to do, and it will also help the applicants understand what they are applying for. A good job description will set out the boundaries within which a person is to work along with the tasks and responsibilities to be undertaken, so that is gives both the employer and employee an understanding of what is excepted from both of them. It should also include the main purpose of the job and the results the person should achieve.

The employee specification should identify the qualities required by the successful candidate in order to fulfill the requirements of the job efficiently and to achieve the business objectives. These can include experience, qualifications, training, general knowledge, also skills and personal attributes. This specification can be used as one element in the short-listing process but it can also provide help with areas such as performance appraisal reviews, establishing training and development needs and also job evaluation. Once the company has decided on the position it wants to fill and the type of candidate, there is a range of options for finding suitable applicants. Different methods will be appropriate for different jobs. There is a combination of methods, which can give you the best choice of candidate.

Internal recruitment can be cost effective as it makes the most of existing talent who have had first hand experience within the companies systems and procedures. In addition, it could raise staff moral. Although there can also be disadvantages if the company has a limited number of potential candidates as it does not allow you the opportunity to bring in new people with new skills. Moreover if an internal employee is the choice the company will still have to recruit a replacement.

Press advertising can create quick responses and it also reaches a wide range of possible applicants actively looking for a new job. However this method can be expensive and it may attract too many candidates who are not in your chosen division.

Using recruitment agencies can save a lot of time and money, as they will advertise shortlist and interview. This method can also be quicker than others as the company has access to the agency’s database of potential candidates. On the other hand, recruitment agencies can be very expensive, they may not understand exactly what the company requires and they may use limited selection methods as recruitment consultants’ skills can vary.

Using the Internet can shorten the recruitment cycle and can also be cheap depending on the site the company chooses, some companies list vacancies for posts on their own websites. The Internet can reach a wide range of applicants 24 hours per day.

The job center can be a low cost method of advertising a job vacancy, as their services are free of charge. It can produce groups of candidates looking for work within 7-10 days and give advice in government assistance. The downside is that the candidates may not be highly qualified and can waste a lot of time by not turning up for interviews.

Selection is the process of choosing the most appropriate candidate from those who apply to fill the post. The selection process should be based on the agreed job description and person specifications that have been created. The selection process must be conducted as an evidence based process and candidates should be assessed against the agreed selection criteria based on relevant knowledge, skills, competencies, experience and qualifications to perform the roles as outlined in the person specification. Selection can be done through interviews, which are the most widely used technique selection tests that involve written assignments or assessment centers, which are sometimes used for selecting managers.

External Selection refers to the assessment and evaluation of external job applicants for positions within the organization. Initial assessment methods are used to screen out external applicants who do not meet the minimum qualifications needed to become a candidate for a position

Resumes and cover letters

Level of education

Application blanks

Training and experience

Licensing and certification

Biographical information

Reference checks

Initial interview

Substantive assessment methods are used to reduce the qualified candidate pool to finalists for the job. Some Substantive methods are:

Personality tests

Ability tests

Job knowledge tests

Performance Tests

Work samples

Integrity Tests

Interest, Values, and Preference inventories

Structured interviews

Unstructured interviews

Discretionary Assessment methods are used to separate those who receive job offers from the list of finalists and are typically very subjective and rely heavily on the intuition of the decision maker

Contingent Assessment methods vary depending on the nature of the job and legal requirements. This may include drug testing which is used to assess those who abuse alcohol and drugs. Smoking is also included because some states have passed laws prohibiting discrimination against off-the job smoking. Medical exams are often used to identify potential health risks to job candidates.

Some legal issues involved in the selection process are UGESP, which is Uniform Guidelines on Employee Selection Procedures, and this governs selection procedures. Their primary focus is to eliminate all forms of discrimination in hiring practices. Employers are required to take reasonable actions necessary to avoid discriminatory practices. This may include: using validated processes and procedures, training, record keeping, evaluating selection rates for adverse impact using the 4/5ths rule, and meeting minimum technical standards required by UGESP. Another law that must be followed I the ADA, which is the American with disabilities act. The purpose is that all accommodation must be accessible to individuals with disabilities.

The organization may use any kind of test to assess job applicants provided they are administered consistently to all job applicants for a particular job. However, reasonable accommodation is not required for a person with an impaired skill if the purpose of that test is to measure that skill. It is unlawful to screen out individuals with disabilities unless the selection procedure is job related and a business necessity. The organization may not make medical inquiries or require medical exams. Although, they may make disability-related inquiries and require medical exams only if they’re related to the job-business necessity. Drug testing is permitted only to detect the use of illegal drugs.

Three major external influences on HR and staffing planning are economic conditions, Labor markets, and labor unions. Experts recommend using the “rule of three” when gathering selection information: 1/3 from job applicant’s credentials, 1/3 from interview and reference checks, and 1/3 from assessments. External selection is based on the logic of prediction; a person’s degree of success in the past is generally predictive on how they will be in the future. The nature of predictors includes a wide variety of different types and may be used, which can be differentiated in terms of content and form. Content is what is being assessed with a predictor which may range from a sign (e.g. predisposition that is thought to relate to performance on the job.) to a sample. (E.g. closer to actual on the job results.) Another predictor is Form, which is the design of the predictor. Speed is how many can you do in specified time and power, which is used when correctness of a response is essential. Other forms of predictors are Paper&Pencil, which is when you write answer, and complete multiple choices. Performance is also another predictor, which is used for assessing physical and social skills. Objective, which is used to measure specific knowledge and also Essay, which is used to assess written communication, problem solving, and analytical skills.

Internal selection refers to the assessment and evaluation of employees from within the organization as they move from job to job via transfer and promotion systems. Internal is the promoting, or advancing of employees within the organization, which focuses on hiring individuals within the organization. Job posting is an important way to inform the internal employees of any job openings. Substantive methods are used to select internal finalist from internal candidates. Some advantages of internal recruiting are: recruiting costs-since the recruiting machinery is focused on an already existing pool of employees to fill a vacant position, and therefore selection and socializing processes are less time and dollar consuming, internal tends to be less expensive.

Motivation is also another advantage because the prospect of potential promotion or transfers provides a clear sign to the current work force that the organization offers room for advancement. And also familiarity of the employee has a two-side effect. On one hand the employee is familiar with the organizations policies, procedures, and customs. At the same time, the organization has established an employment history showing the workers formal and informal skills and abilities. Some disadvantages are inbreeding which results in the reduced likelihood of innovation and new perspectives. EEO criteria can also be a disadvantage because a use of he internal pool for the consideration of vacant positions can lead to conflict with the EEO commission. And also internal recruiting demands a higher degree of employee training.

Internal selection uses the same “logic of prediction” approach as for external selection. Some advantages of internal logic of perdition is that data collected on internal applicants in their previous jobs often provide greater depth, relevance, and verifiability than data collected on external applicants. Reliable data on external applicants may be difficult to obtain because of privacy/legal issues and may not always present the whole picture or an accurate picture of their past experiences. Types of predictors used are similar to the predictors used for external selection, but differ in terms of content. The selection plan needs to be used for internal selection to minimize subjectivity. Usually subjective opinions from manager are used to make decision, which can cause errors in selection decisions.

Internal recruitment process may generate a large number of applicants for vacant positions, especially when an open rather than a closed recruitment system is used. Initial assessment methods are used to screen out internal applicants who do not meet the minimum qualifications needed to become a candidate for a position. Types of Initial assessment methods are skills inventory, which uses existing data on employee skills that may be found in organizational files. Peer assessments, which are used to evaluate the promotabilitiy of an internal applicant. Self-assessment is when job incumbents can be asked to evaluate their own skills as the basis for determining promo ability. Managerial sponsorship involves senior management identifying and developing the KSAOs of those individuals at lower levels in the organization. The last type of initial assessment is informal discussion/recommendations, which is when not all promotion decisions are made on the basis of formal HR policy, and procedures, which can be questioned in terms of their relevance to actual job performance.

Substantive assessments are used to narrow the internal applicant pool down to finalists. Some types of substantive methods include, seniority and experience, which are among the most prevalent methods of internal selection. Job knowledge tests which measure one’s mastery of the concepts needed to perform certain work which is usually measured with a paper and pencil test that is based on the job content. Performance appraisals, which capture both ability and motivation, which offers a complete, look at a person’s job qualifications. Promotiablity Ratings may be done at the same time as performance appraisals are useful for both recruiting and selection activities discussing what is needed to be promoted during performance appraisals can encourage employee development of new skills. Assessment Centers, which is a collection of predictors, used to forecast success. Interview Simulations, which is used to simulate the oral communication required on the job. Last of the Substantive methods is the promotion panels and review boards which involves using a panel or board of people to review applicant qualifications.

Discretionary Assessment Methods are used to narrow down the list of finalist to those who will receive job offers, since internal applicants who do not receive job offers remain with the organization, must be concerned with applicant reactions. The legal issues and processes should be handled in the same manner as external selection.

Hiring Standards and cut scores are important because it makes the decision process easier because only one score is used. The employer may not feel comfortable making a decision based on one score. Also, the validity and utility of decisions using one predictor is lower. Hiring standards are the minimum requirements, or cut scores, an applicant must meet for a particular predictor in order to be considered a “qualified” candidate for a position. Those who meet the minimum score advance in the selection process while those who do not are eliminated from consideration. These are important because they have implications for both the organization and the applicant. Well-developed hiring standards enable organizations to attract applicants with the appropriate qualifications and provide employees involved in the selection process with a uniform and consistent method for assessing applicants.

Methods to determine cut scores are minimum competency which is when cut score is set on the basis of the minimum qualifications deemed necessary to perform the job. Top Down, which involves examining the distribution of predictor scores for applicants and setting the cut score at the level that best, meets the demands of the organization. The process typically includes determining the number of applicants that need to be hired and then selecting applicants based on the order of their scores until the desired number is reached. This process is easy to administer. Banding is also another method, which refers to the procedure whereby applicants who score within a certain range or band are considered to have scored equivalently. This can help to minimize the potential for adverse impact found with the “top down” method but may require drastic modifications to achieve.

In complying with legal requirements it used UGESP which permits employees to make selection decisions in its best interest provided discrimination does not occur as a result of the decision making process. Even with valid predictors, employers should take reasonable actions necessary to ensure its hiring standards are not so high that they create needless adverse impact. Where more than one finalist of a position exists, a decision must be made as to which one will receive a job offer. There is little legal influence on this decision, provided steps in the selection process leading up to this point have been within legal bounds.

In the last phase of the recruitment and selection process is known as the final match. First step in completing the last phase is three requirements that must be met for a contract to be legally binging and enforceable. After you have found the best individual for the job, you make the offer to the individual and then wait if individual accepts or rejects the offer, then come consideration, which entails the exchange of something of value between the parties to the contract.

This course has been very important and useful towards the future of my employment. When the course had first started I thought I knew it all, but as the course continued I learned a lot about organizations and how they work. I realized there is a lot of things involved when recruiting and selecting job applicants. I also learned how they choose their employees and what steps are taken in doing so. Ten things I learned during this course is that number one you should always get things in writing for example when you are receiving a job offer to get it in writing. I also learned how to get through and interview and what the interviewer may or may not do. Dressing appropriately and acting in a professional manner has also taught me not to be nervous during an interview. Another thing I learned is to ask questions about the organization I am applying for. I also found out the type of job best suitable for me for instance the traditional job. The most important aspect I learned was to look at the whole job offer not just the base pay.

For example if the job offers 25, 000 but no benefits you should probably think that job over before taking it. Also, I learned how to write a job description, certain laws that protect me as an individual while employed by an organization. During an interview I now know the questions that should or shouldn’t be asked, which can result in whether or not I get the job. If I become a manger/HR I know the steps needed to be taken during the recruitment and hiring process. I’m not sure what I want to do with my life or where I would like to work, but I now have a resume which I hadn’t done prior to this class, I feel as if I am ready to go out in the working world and be interviewed by anyone without any hesitation or the sense of nervousness.