Pros and Cons of Internal and External Recruiting

Promoting from Within	Hiring Externally
Potential Advantages · easier to assess candidates since more information is available · less costly and quicker than an external search · promoted employee is already familiar with organization policies, culture, etc. · signals to employees that career opportunities exist in organization · improve employee morale and organization loyalty	Potential Advantages · provides new ideas / fresh perspectives · initiate a turnaround · reduce expensive training by hiring experienced employee · may be less upsetting to present organizational hierarchy · allows rapid growth · increase diversity
Potential Disadvantages · narrowing of thinking and stale ideas (inbreeding) · possible discontent of rejected applicants · boss / subordinate relations can be problematic (e.g., new subordinates discount new boss’ knowledge, expect special treatment, etc.) · ripple effect · difficult to do with rapid growth · affirmative action goals may be more difficult to achieve	Potential Disadvantages · takes longer and costs more · little information about candidate’s ability to fit with rest of organization · destroys incentive of present employees to strive for promotion · outsider takes time to become familiar with current systems · current organization members may fight new ideas