Importance Of Internal Recruitment

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When number of vacancies are available to be filled in the organization, the employers’ job is to fill them with the best candidates from the pool of qualified applicants applying for the job. For any organization, the most critical thing while recruiting employees is to consider whether to recruit internally or externally is the cost effectiveness and profitability approach. However, internal recruitment is very crucial for organizations if the goals of organisations are to be productive and more profitable in a long run. Practically, internal recruitment provides meaningful purpose to organizations, with the help of this, organizations are meant to be more focused on promoting and enhancing their internal talent through providing them better…show more content…
While deciding about the recruitment the initial problem faced by the organization is “what suitable strategy that is internal or external to be used in the recruitment process for the organization”.
For this, the important thing to consider before deciding whether to recruit internally or externally is the cost effectiveness and productivity of that approach. Moreover the fact that internal recruiting is better and more profitable results than hiring externally by the empirical and theoretical analysis by DeVaro and Morita (2008), the analysis is based on two models that are tournament model (promotion based incentive) by Lazear and Rosen (1981) and the job assignment model (increased performance results better wages).
In other words tournament model explains how an employee is motivated by using promotion as an incentive for work, which results in better performance and increase productivity, Gibbs (1996). Whereas job assignment model explains how an organization increase its performance and productivity by giving vacant positions to those employees who are experienced and have better competencies to perform the job, Costrell (2004) and DeVaro
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It also becomes the source of maximizing the affinity to the organization, which ultimately leads to the enthusiasm of the employee about organizational goals. Internal recruitment makes sure that company choose best possible employee internally, which ultimately contribute to achieve strategic goals of organization. Long-run productive and profitable organizational goals increases the importance and need of retaining existing employees. The cost effectiveness is not only the criteria of selecting a candidate internally but it also becomes time saving to select a candidate from already developed pool of candidate. And selecting the candidate from internally developed pool will become a catalyst to upsurge the morale and motivation of employees which leads to the high performanceHeraty and Morley

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