Being a manager, you need to be more critical thinking on how to promote your staff. Your decision can make your company growth or down. Below is the advantage and disadvantage of internal recruitment:
- Morale : Employees feel that the company rewards hard work by offering an opportunity to take on new responsibilities or move to a department in which an employee has an interest
- Cost: Internal recruiting has a lower cost to the company than looking outside the company and to advertise a job to the existing staff, the human resources department only needs to post the job on a company bulletin board and circulate the opening on the company intranet.
- Risk: There are few risks of internal recruitment as the internal candidates are already known and familiar with organization
- Labor Relation: brings an efficient labor relation between employees and management as they are transferred and promoted to desired places.
- Staff Development: every employee gets an opportunity for transfer and development, which motivates him/her for higher level of performance. Ultimately, it helps in employee development.
- Limited choice: When new positions open within the company, managers have the opportunity to bring in new candidates who offer a different point of view from the existing staff. Lacking of new ideas to company
- Competition: Employees may feel pressured to compete with each other to be considered for a position during an internal recruitment process, and this can create conflict
- Favoritism: There will be tendency of referring friends and family members in the organization
- Limit of Internal Resource: The source of supply of manpower is limited in internal recruitment method. When an employee is promoted, his/her previous position will be vacant and another personnel is to be recruited to fill that vacant position
- Costly: When recruit a new vacant to replace the position which have promoted will be cost fairly the same previous one