Recruitment and selection — internal vs external
Internal recruitment is cheap, fast and motivating but limits fresh ideas; external brings new skills but costs more and carries risk.
Recruitment is the process of attracting suitable applicants for a job; selection is choosing the best from those who apply. Firms first define the role (a job description) and the ideal candidate (a person specification), then recruit.
Internal recruitment — filling the vacancy from existing employees (promotion or transfer).
- ✅ Cheaper and faster (no external advertising); the candidate is a known quantity; it motivates staff (career progression) and needs less induction.
- ❌ Brings no new ideas/skills, creates another vacancy to fill, and can cause resentment among those not chosen.
External recruitment — filling the vacancy from outside (adverts, agencies, online, referrals).
- ✅ Brings new skills, ideas and experience; a wider pool of talent; no internal knock-on vacancy.
- ❌ More expensive and slower; the candidate is an unknown (higher risk of a poor hire); more induction needed.
Selection methods vary in cost and reliability: CVs/application forms (cheap first filter), interviews (common but can be unreliable/biased), aptitude and psychometric tests, assessment centres (thorough but costly), and references. More thorough (costly) selection reduces the risk of an expensive wrong hire.
Choosing depends on the role, urgency, budget and whether the firm needs fresh ideas or to reward existing staff.
- Recruitment attracts applicants; selection chooses the best.
- Internal: cheap, fast, motivating, known — but no new ideas, creates another vacancy.
- External: new skills/ideas, wider pool — but costlier, slower, riskier.
- Selection: CVs, interviews, tests, assessment centres, references (cost vs reliability).
- Thorough selection reduces the risk of a costly wrong hire.
See the full worked example for recruitment, selection and training →