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Internal vs External Recruitment


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A presentation that I did at the Talent Acquisition Conference in Johannesburg. We looked at the Pros and Cons of Internal and External Recruitment. We then looked at putting a Recruitment Strategy in place

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Internal vs External Recruitment

  1. 1. Internal vs ExternalRecruitmentWhat is the best option for your business?
  2. 2. Internal Recruitment PRO’s CON’s• More Cost Effective as salaries and subscriptions are • Recruiters may not have a powerful network of cheaper than Agency Fees. individuals in one particular industry• Internal Recruiters do not normally receive commission • Scarce Skills will be harder to source as HR department and are solely focussed on recruiting for one client may not have the necessary Technical Skills• It is easier to arrange 2nd and 3rd round interviews as • Some companies still use external agencies so the HR you have direct access to the Client and Interviewers. Department just become a ‘Screening’ and ‘Interview The process is easier to manage Scheduling’ Function• Recruiters understand and hopefully embody the • Internal Recruiters can be spread very thinly as each company culture department thinks their Hiring Requirements take precedence over others• Allows for a better relationship between HR Department • Internal Recruiters tend to get pulled into HR issues and the candidate which may not be in line with their career aspirations• Allows for a more accurate gap analysis of a candidate’s • ALL Recruiters love incentives and being rewarded for skill set hard work. Will they move as they miss earning commission?
  3. 3. External Recruitment PRO’s CON’s• You may have several different recruiters working on • Recruitment Agents and Agencies do not have a good your Top Positions at any given time reputation. Watch out for ‘Fly by Night’ Companies• Niche Agencies and Specialised Recruiters understand • Fees can be very high and really make a big dent in their chosen industries and are well connected to the your bottom line Top Candidates• No fees are incurred until a candidate is hired • Recruitment Agents tend to be ‘Job Hoppers’. This becomes an issue when it comes to building a rapport and developing a relationship with them• A guarantee period is provided by the agency and a replace is normally provided within 3 months• External Agencies are positioned better to Headhunt candidates out of your competitors• Bringing ‘New Blood’ into the Organisation does add great value
  4. 4. How NOT to Recruit
  5. 5. Measuring Internal vs ExternalRecruitment Internal External• Often lack incentive as well as penalty metrics • The only metric they are measured on is the for the quality of their hires time they take to fill the role• If metrics for quality of hire are clearly tracked and compared between internal and external recruiters, it can help identify the best recruitment model for your business because you will be able to tell who is providing the highest-quality candidates.• Linking recruiter pay to quality of hire is a • Agency recruiters can be measured based on critical step in ensuring that recruiters make client feedback and the number of times roles solid recommendations to line managers have to be re-filled at no charge to the client• If you use a hybrid model, consider measuring and comparing both your internal and external recruiters on the quality of new hires. After implementing such a metric, measure them upon their first placement, at six and 12 weeks, again at six months, and then at regular intervals.
  6. 6. The World’s Worst Recruiter
  7. 7. 6 Easy Steps to Building a RecruitmentStrategy & Successfully Measuring it’sOutcome1. INPUTS • Do you have the yearly Recruitment needs for the Company? • Are there Job Descriptions in place? • Which are Critical Roles?2. ACTION • What sourcing channels are you going to use? Eg: Portals; Social Media Strategies • Create a sourcing calendar eg : When is the best time to target Grads? • Build and Nurture a Talent Pipeline
  8. 8. 6 Easy Steps to Building a RecruitmentStrategy & Successfully Measuring it’sOutcome cont.3. EXPECTATIONS • Do you have a reasonable budget in place? • Are the right people on your Team Bus to make this happen? • Is your Recruitment Model in line with the rest of the company’s, especially the HR Model?4. DELIVERY • Do you understand your current Workforce Landscape? Are there gaps? Is there place to grow people? • Do you have a Recruitment Plan in place? Review and Revise this plan every quarter. • Execute on plan within set Time Frames
  9. 9. 6 Easy Steps to Building a RecruitmentStrategy & Successfully Measuring it’sOutcome cont.5. CHANGE MANAGEMENT • Do you have a robust Change Management Plan in place to drive this through the Company? • Communication with all Stakeholders and Parties involved is critical during this process • Continually assess whether you are making a positive impact on the company6. MEASUREMENT • Need to regularly review Individual and Team KPIs • Are your KPIs measureable? What are the repercussions if these are exceeded or not reached? • Measures: 1. Time to fill 2. Quality of Hire — hiring manager surveys, time to productivity, retention; 3. Recruiter productivity: Break the recruitment process into several steps; Measure time taken to fulfill each step of the process