How can a wrong application (external recruitment) be a source of costs for company?

1.The new staff may come with higher qualifications to occupy top position

2.The need to be inducted which may cost money

3The need training to fit into the system which involve money to the organization

4.The may be taking fat salaries which additional expenses to the organization

Advantages of Internal Recruitment

Internal recruitment has some natural advantages. You do not have to "reinvent the wheel" with an internal recruit. He will likely understand your business model, your culture and your processes before assuming the new position. The resulting outcome is that he will assimilate into the new position faster than a new employee who will need to be trained on the many formalities of your firm from benefits to where your fire exits are before he can begin job-specific training. These employees take longer to find, longer to train, more money to prepare for the job and may not fully integrate into your culture after all of the training process. Often, the opportunity to advance provides a strong motivation in a firm that employs a strong internal recruitment strategy.

Advantages of External Recuitment

External recruitment also has some substantial advantages. Unlike internal recruits, you are getting an inflow of often completely new ideas with an employee who has not been exposed or overexposed to your corporate culture. An outside prospect often yields new ideas. She may bring information or methodologies from her former employer that can be integrated into your best practices. Internal job pools may cause problems with a larger company's diversity mix, and lead to problems with the Equal Employment Opportunity Commission in terms of promoting a diverse workplace. External job recruiting allows for rebalancing in this realm if needed. External recruiting may lead to team stability, as teams may remain intact when hiring externally.

An external recruitment can be source of expenses for the company when the newly hired employee do not meet the expectations that were placed in him.

Tha will mainly lead to a situation where the company needs to re-hired another employee.

This can be handled easily when the HR manager make sure that the concerned employee is terminated at the end of the probation period.

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Good answers from Mr. Mohamed and Mr. Simon

Thanks

I support my colleague Mohammed's answer

Internal v/s External Recruitment:  Many things can go wrong when a company has a wrong application and we see the plus factors for the internal recruitment  and it disadvantages.

1. It’s quicker.

It takes (a lot) less time to hire someone from within and the whole process is a lot more certain…

• You’ll know pretty much everything you need to know about them already.
• They’ll also understand the company, its values, technologies and processes.
• You’ll already know that they are a good cultural fit.
• You can approach them directly.
• You may even already have someone in mind for the role.

This means you’ll spend less time advertising the job, sifting through CVs, interviewing candidates and all of those other niggly tasks that come with external recruitment.

2. It’s cheaper.

And inside hires actually cost less money in general; they won’t get the dreaded counter-offer and they’re less likely to turn down the role or haggle on the salary (promotions are positive and exciting)!

3. It’s less risky.

Think about it; people will lie on their CV and in interviews, they will be on their best behaviour and may exaggerate their commitment and passion about the role, however, with an internal recruit you actually know all of these things about them.

4. It’ll improve your employer brand.

People are always looking to the future and if you can show them that it’s full of chances to grow, with your business, then they’re much more likely to want to join you.

5. It’ll boost your employee engagement.

Similarly, your own staff will feel more valued, engaged and happier if you offer them opportunities to progress at your company and reward their hard work and loyalty.

6. It could cause internal conflict.

If you open up a job to internal employees, especially if you already have someone in mind, it can have a negative impact on morale.

This might all seem a little fickle to you, but if the morale of the team suffers, it can really impact your whole business and you could even lose staff because of it.

7. They may not be respected by others.

Sometimes, people are skilled enough to do a job but simply aren’t respected, liked or well-known enough to pull it off.

The ability to work with others whilst earning their trust and respect is an essential trait of a good leader.

8. Sometimes, you just need a breath of fresh air.

Bringing in someone who can inspire others could be the breath of fresh air your team need to get back into their groove.

9. You’re essentially hiring two people.

Of course, often, you’ll also have to hire a second person to fill the promoted person’s job.

However if the role is roughly at the same level, you might wonder whether it’s simpler and quicker to just hire one, external person.

10. You’re limiting your options.

At the end of the day, recruitment is a numbers game and if you choose to only advertise a vacancy internally then then you are limiting your options.

You just don’t know whether the perfect person is somewhere out there, just waiting to be plucked.

Is it worth the risk?

The above 1-10 for internal recruitment have the advantages and disadvantages, but it does help a company improve as it could be the right person for the job.

The External recruitment wrong application could affect the company in many ways such as getting advertisements in various papers and on selection the person could be right or wrong for the job.  The training factor will depend on his or her education and for the right faculty hence the person personality can be a down factor.  It means getting interviewers to do the job and payment terms hourly or day basis.  Expenses build up for the company yet the company does not know his or her new employee until on the job.A new employee can benefit the company by his or her skills too . Exposure to the various task will be the test of time for the new employee.

THanks for invitation,

Support all of our colleagues' answers especially for Mohamed Abdelaty's one.

mohamed abdelaty  has nailed it. No more to add in that.

I support Mr.Mohamed answer

Lack of experience and efficiency leads to making wrong decisions, the results of which are borne by the company.

 

I believe the question is referred to COST PER HIRE? external recruitment increases the cost per hire and takes a longer time to close a position as compared to internal recruitment. It could damage the current employee morale they think they will lose chances to get promoted when employee morale decreases mean productivity decreases. It takes more time to train external candidate on the system also spend more money on training as well. Cost per hire is really high in external hiring.