Internal vs External RecruitmentWhat is the best option for your business?

Internal Recruitment

PRO’s CON’s

• More Cost Effective as salaries and subscriptions are cheaper than Agency Fees.

• Recruiters may not have a powerful network of individuals in one particular industry

• Internal Recruiters do not normally receive commission and are solely focussed on recruiting for one client

• Scarce Skills will be harder to source as HR department may not have the necessary Technical Skills

• It is easier to arrange 2nd and 3rd round interviews as you have direct access to the Client and Interviewers. The process is easier to manage

• Some companies still use external agencies so the HR Department just become a ‘Screening’ and ‘Interview Scheduling’ Function

• Recruiters understand and hopefully embody the company culture

• Internal Recruiters can be spread very thinly as each department thinks their Hiring Requirements take precedence over others

• Allows for a better relationship between HR Department and the candidate

• Internal Recruiters tend to get pulled into HR issues which may not be in line with their career aspirations

• Allows for a more accurate gap analysis of a candidate’s skill set

• ALL Recruiters love incentives and being rewarded for hard work. Will they move as they miss earning commission?

External Recruitment

PRO’s CON’s

• You may have several different recruiters working on your Top Positions at any given time

• Recruitment Agents and Agencies do not have a good reputation. Watch out for ‘Fly by Night’ Companies

• Niche Agencies and Specialised Recruiters understand their chosen industries and are well connected to the Top Candidates

• Fees can be very high and really make a big dent in your bottom line

• No fees are incurred until a candidate is hired • Recruitment Agents tend to be ‘Job Hoppers’. This becomes an issue when it comes to building a rapport and developing a relationship with them

• A guarantee period is provided by the agency and a replace is normally provided within 3 months

• External Agencies are positioned better to Headhunt candidates out of your competitors

• Bringing ‘New Blood’ into the Organisation does add great value

How NOT to Recruit

http://www.youtube.com/watch?v=LdsWi3vDLTQ

Measuring Internal vs External Recruitment

Internal External

• Often lack incentive as well as penalty metrics for the quality of their hires

• The only metric they are measured on is the time they take to fill the role

• If metrics for quality of hire are clearly tracked and compared between internal and external recruiters, it can help identify the best recruitment model for your business because you will be able to tell who is providing the highest-quality candidates.

• Linking recruiter pay to quality of hire is a critical step in ensuring that recruiters make solid recommendations to line managers

• Agency recruiters can be measured based on client feedback and the number of times roles have to be re-filled at no charge to the client

• If you use a hybrid model, consider measuring and comparing both your internal and external recruiters on the quality of new hires. After implementing such a metric, measure them upon their first placement, at six and 12 weeks, again at six months, and then at regular intervals.

The World’s Worst Recruiter

http://www.youtube.com/watch?v=cy4yGxaUpXE

6 Easy Steps to Building a Recruitment Strategy & Successfully Measuring it’s Outcome

1. INPUTS

• Do you have the yearly Recruitment needs for the Company?

• Are there Job Descriptions in place?

• Which are Critical Roles?

2. ACTION

• What sourcing channels are you going to use? Eg: Portals; Social Media Strategies

• Create a sourcing calendar eg : When is the best time to target Grads?

• Build and Nurture a Talent Pipeline

6 Easy Steps to Building a Recruitment Strategy & Successfully Measuring it’s Outcome cont.

3. EXPECTATIONS

• Do you have a reasonable budget in place?

• Are the right people on your Team Bus to make this happen?

• Is your Recruitment Model in line with the rest of the company’s, especially the HR Model?

4. DELIVERY

• Do you understand your current Workforce Landscape? Are there gaps? Is there place to

grow people?

• Do you have a Recruitment Plan in place? Review and Revise this plan every quarter.

• Execute on plan within set Time Frames

6 Easy Steps to Building a Recruitment Strategy & Successfully Measuring it’s Outcome cont.

5. CHANGE MANAGEMENT• Do you have a robust Change Management Plan in place to drive this through the Company?

• Communication with all Stakeholders and Parties involved is critical during this process

• Continually assess whether you are making a positive impact on the company

6. MEASUREMENT• Need to regularly review Individual and Team KPIs

• Are your KPIs measureable? What are the repercussions if these are exceeded or not reached?

• Measures:

1. Time to fill

2. Quality of Hire — hiring manager surveys, time to productivity, retention;

3. Recruiter productivity: Break the recruitment process into several steps; Measure time taken to fulfill each

step of the process