Heidi Safian Heidi.Safian358@myci.csuci.edu 4/15/14 Internal vs. External Recruitment Heidi Safian Heidi.Safian358@myci.csuci.edu 4/15/14.

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Heidi Safian Heidi.Safian358@myci.csuci.edu 4/15/14 Internal vs. External Recruitment Heidi Safian Heidi.Safian358@myci.csuci.edu 4/15/14

Internal Recruitment The assessment of an employer’s current staff to ascertain if any current employees are sufficiently skilled or qualified to perform required job vacancies. When a business engages in internal recruitment, a current employee might be reassigned to the new position by giving them either a promotion or an internal transfer. - BusinessDictionary.com

Internal Recruitment Process Manager notifies HR of vacancy HR posts job opening HR receives applications from interested employees HR screens candidates HR gives list of candidates to managers Manager interviews candidate Manager fills position

McDonald’s & Internal Recruitment Hamburger University Oak Brook, Illinois Founded in 1961 Since its opening more than 80,000 restaurant managers, mid-managers and owner/operators have graduated from this facility.

Charlie Bell, former CEO Jim Skinner, former CEO DonThompson, CEO Robotics Engineer Charlie Bell, former CEO Entry Level Crew Member Jim Skinner, former CEO Restaurant Manager Trainee Fred Turner, former CEO Grill Operator

External Recruitment External recruitment is a type of recruitment where organizations rely on suitable applicants from outside the organization to fill a vacancy. Methods of external recruitment include headhunting, advertisements, data base search on job sites and contract staffing. - Ask.com

Sources of External Recruitment Employment Agency Campus Recruitment Advertisement Walk-In Interview

Headhunters A corporation or individual that provides employment recruiting services. A headhunter is hired by firms to find talent, and to locate individuals who meet specific job requirements

Pros and Cons Internal Recruitment Easier to assess applicants since more information is available Less costly and quicker than an external search Promoted employee is already familiar with organization policies, culture, etc. Improve employee morale and organization loyalty Cons Narrowing of thinking and stale ideas Internal politics (discontent of rejected workers, employees discount new boss’ knowledge) Smaller talent pool / fewer applicants

Pros and Cons External Recruitment Provides new ideas / fresh perspectives Could initiate a turnaround Hiring experienced employees can reduce training needed Internal politics may be avoided Bigger talent pool / more applicants Cons Less information available on applicants Search takes longer and costs more Outsider takes a longer time to become familiar with current systems and organization culture Destroys incentive of present employees to strive for promotion Can hurt employee morale and loyalty

Multiple Choice 1.) What is one advantage of external recruiting? a.) Less costly than internal recruiting b.) Provides new ideas and fresh perspectives c.) Easier to access employee information d.) Employee is familiar with company’s culture What definition best describes a headhunter? a.) A corporation or individual that provides employment recruiting services b.) A person who oversees which employees to layoff c.) A person that oversees management

References Randell,Laura, "External vs. Internal Recruitment“, ERE.net, June 13, 2007 http://www.ere.net/2007/06/13/external-vs-internal-recruiting-who-does-it-better/ William, Dr. Chan, "External Recruitment versus Internal Promotion", The HKU Scholars Club, 1996 http://hub.hku.hk/bitstream/10722/43534/1/27161.pdf