Hiring Internal vs External

Author:  Halley Harrelson                                                                                                                                                    Published: October 2022

Hiring Internal vs. External

Internal and external hiring refers to the two types of hiring methods companies use. Having an efficient hiring process can ensure that the company is well-staffed.

What is internal hiring?

Internal hiring is promoting or transferring a professional who already works for the company. This may happen when the professional expresses interest in an open position within the company. It may also occur if the management professionals feel the employee is a good fit for a new role. Sometimes hiring managers share job postings with internal employees before publishing them online for public advertisement. This will allow the internal employees to receive first consideration for the open position.

What is external hiring?

External hiring is the process by which companies recruit professionals who do not already work in the company. This method of hiring is standard. It allows companies to grow and provide career opportunities to new professionals. This process involves advertising a job description on popular job search websites and interviewing potential employees.

Pros of internal hiring

•      Reduces hiring costs.

•      Shortens the hiring process.

•      Allows employee familiarity.

•      Establishes a clear performance history.

•      Provides career development opportunities.

Cons of internal hiring

•      Creates the need to hire for another role.

•      Impacts employee morale.

Pros of external hiring

•      Diversifies your staff.

•      Brings new skills to the company.

•      Allows the company to grow.

•      Manages employee workload.

•      Provides a larger talent pool.

Cons of external hiring

•      Increases hiring costs.

•      Creates the need for more extended training periods.


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