Question

Hello everyone, I've been working on an HR Project, and I'm stuck on the Internal and External Recruitment Options, I just can't understand it!
In this project, I'm looking for a Social Media Marketing Manager! Now I did the job summary, duties, and responsibilities, specifications, recruitment calendar, etc. and I'm left with the recruitment options. This is what the professor is asking:

• Internal and External Recruitment Options – list and describe all options that are available to generate a diverse pool of candidates for your job opening. Your description should include the costs of these recruitment methods (as best as possible) and the identification of the methods you plan on using for your search (explain your reasoning).

Answer 1

Recruitment Cost: The recruitment costs depend on many factors. Few are mentioned below:

• Type of Recruitment (Internal Recruitment usually costs less as compared to External Recruitment)
• The geographical location (Metro cities have higher recruitment cost, due to limited supply of manpower as compared to Non-Metro cities)
• Level of Recruitment (Cost to search and recruit a senior-level employee is much higher than freshers recruited from campuses etc.)
• Experience (Experienced candidates command higher salaries and during external recruitments costs more. HR consulting companies charge more for such employees)
• Sector (Recruitment of employees in creative jobs are usually costlier than non-creative roles)

These factors can be used to associate tentative costs with each method. A table of methods with assumed relative cost attractiveness rating is given below. Reason for Rating is also mentioned. The effectiveness of methods is NOT used to rate but Cost is used to rate, as the same was desired in the question asked.

Internal Recruitment:

Definition: Recruiting people from inside the company is Internal Recruitment.

Benefits: Internal methods are time-saving. No separate induction program is required. The method increases loyalty and reduces labor turnover. This method is less expensive as compared to external recruitment.

Disadvantages of internal recruitment: There is no opportunity to get new talent in this method. The method involves selecting people from those available in the company so there is limited scope for selection. There are chances of bias and partiality. Chances of employee discontent are very high.

Methods / Options:

S.No.	Internal Recruitment Method	Relative Cost Attractiveness Rating (10= Best as lowest cost. 1= Worst as highest cost)	Relative Cost Attractiveness Explanation
1	Promotion	9	Identified people can be nurtured to ascend in a career. This motivates the employees to give the best at the job. Such employees also set an example for others. No additional costs except for nurturing through skilling.
2	Departmental Exam	7	Managing the exam and communication leads to some costs.
3	Internal Advertisement	8	Effective, as interested employees can be identified within the company and interviewed for recruitment.
4	Transfer	6	Relocation costs are usually born by the company. Allowances can also increase for employees.
5	Retirement	5	Connecting with such employees, getting them on-board and keeping them updated with newer technology or changing environment.
6	Employee Recommendation	6	Quite effective but the employees referring are rewarded and leads to some cost.

Note: The above ratings are relative and must be read for Internal Recruitment Methods only. The effectiveness of methods is NOT used to rate but Cost is used to rate as the same was desired.

1. Promotion: Existing employees, fill the new requirement through promotion. This method of recruitment saves a lot of time, money and effort because the company does not have to train the existing employee. Since the employee has already worked with the company. He is familiar with the working culture and working style. It is a method of encouraging efficient workers.
2. Departmental Exam: This is most often used by government departments to select employees for higher-level posts. The opening within the company is advertised on the notice board of the department. Interested candidates send application to Human Resource department and appear for the exam. Successful candidates ascend in their career by taking the higher-level jobs.
3. Internal Advertisement: Vacancies can be advertised on the notice board in a branch. Interested candidates apply for the job.
4. Transfer: Many companies adopt transfer as a method of recruitment. The idea is to select talented personnel from other branches of the company and transfer them to branches where there is shortage of people.
5. Retirement: Many companies call back personnel who have already retired from the organization. This is a temporary measure. The method is beneficial because it gives a sense of pride to the retired when he is called back and helps the organization to reduce    recruitment selection and training cost.
6. Employee recommendation: In this method employees are asked to recommend people for jobs. Since the employee is aware of the working conditions inside the company he will suggest people who can adjust to the    situation. The company is benefited because it will obtain.

External Recruitment:

Definition: Recruiting people from outside the company is External Recruitment.

Benefits: There is influx of new talent in the method. The method encourages more and more competition. There is lesser chance of partiality through this method. If options like campus recruitment have been exercised, we get a chance to employ fresh graduates, thus increasing employment.

Disadvantages of internal recruitment: The method is costly because it involves recruitment cost, selection, training cost. The method is time-consuming. The method reduces loyalty to the company.

Methods / Options:

S.No.	Internal Recruitment Method	Relative Cost Attractiveness Rating	Relative Cost Attractiveness Explanation
1	Recruitment Consultant	4	Percentage of salary or contract with company is a major cost
2	Employment Agencies	4	Percentage of salary or contract with company is major cost
3	Campus Recruitment	6	Travel, Stay are some of the major costs
4	Newspaper Advertisement	7	Buying space in the newspaper is a major cost
5	Internet Advertisement	9	Buying space on the internet is a major cost
6	Walk-in-Interview	7	Managing such interviews is the major cost

Note: The above ratings are relative and must be read for External Recruitment Methods only. The effectiveness of methods is NOT used to rate but Cost is used to rate as the same was desired.

1. Management Consultant: Management consultant helps the company by providing them with managerial personnel when the company is on the lookout for entry-level management trainees and middle-level managers. They generally approach management consultants.
2. Employment agencies: Companies may give a contract to employment agencies that search, interview and obtain the required number of people. The method can be used to obtain lower level and middle-level staff.
3. Campus recruitment: When companies are in search of fresh graduates or new talent, they opt for campus recruitment. Companies approach colleges, management, technical institutes, make a presentation about the company and the job and invite applications. Interested candidates who have applied are made to go through a series of selection tests and interview before the final selection.
4. Newspaper advertisement: This is one of the oldest and most popular methods of recruitment. Advertisements for the job are given in leading newspapers; the details of the job and salary are also mentioned. Candidates are given a contact address where their applications must be sent and are asked to send their applications within a specified time limit. The method has maximum reach and most preferred among all other methods of recruitment.
5. Internet advertisement: With increasing importance to internet, companies and candidates have started using the internet as medium of advertisement and search for jobs. There are various job sites, candidates can also post their profiles on these sites. This method is growing in popularity.
6. Walk-in-Interview: Another method of recruitment which is gaining importance is the walk-in interview method. An advertisement about the location and time of the walk-in-interview is given in the newspaper. Candidates require to directly appear for the interview and have to bring a copy of their C.V. with them. This method is very popular among B.P.O and call centers.