Published: Nov 8th, 2023

Finding, hiring, and retaining employees is critical to running a successful business and growing and thriving in the long term. Your recruiting strategy is a vital tool that can help move your organization forward — and you're wise to keep it sharpened. With that said, there are several ways to go about filling an open position.

To find the best approach, first familiarize yourself with internal and external recruitment. So — what is external recruiting exactly, and how do you know if it's the right option for your company?

Read on for a simple external recruitment definition (and external applicant definition). You’ll get a clear rundown of external recruitment advantages and disadvantages, plus internal vs. external recruiting tips. You’ll also see examples of external recruitment, and tried-and-true methods to find talent. Let's get started.

What is external recruitment?

External recruitment is filling an open position with an outside hire. An external applicant is someone who applies for a role at a company they don't already work for. To get non-employees to apply, the hiring team must announce the opening or implement a plan to connect with a talent pool.

External recruitment advantages

As with any business strategy, there are several advantages and disadvantages of external recruitment. The main benefits are:

• A larger talent pool
• Broader skill sets
• Fresh outlooks on obstacles and opportunities
• Greater diversity
• Competitive insights
• Avoiding internal competition
• Quickly establishing authority
• Business growth

Find a breakdown of each advantage of external recruitment below.

Larger talent pool

One of the most clear-cut benefits of external recruiting is that it gives you a larger pool of talent to choose from. A corporate job opening has 250 applicants on average. While some employers might be apprehensive about the idea of sorting through so many resumes, modern technology has streamlined the process.

Of course, the best person for the job might already be on your payroll. But by exploring who else is out there, you can feel more confident that you found the right candidate.

Broader skill sets

Some positions call for specific knowledge, work experience, skills, or credentials. Your current employees might not be qualified. Even for roles that aren't as technical, someone with a broader skill set can help optimize your process. In the meantime, they keep your company’s finger on the pulse in your industry.

Fresh outlooks on obstacles and opportunities

Most business leaders see a lack of turnover as a good thing. But the absence of new hires can also lead to a period of complacency, stale ideas, and a dulled company culture. All of those can ultimately cause a business to become stagnant.

When you recruit people from outside your organization, you'll get fresh outlooks on how to navigate the hurdles your business may be facing. Outside hires can also drive innovation and bring positive change. External hires can also help you identify opportunities as they arise, give a different perspective on the right chances to take, and provide insight into new strategies or organizational structures.

Greater diversity

Hiring from outside sources can make your company more diverse. Having an internal team that accurately represents the population is a point of pride for many businesses — but DEI (diversity, equity, and inclusion) goes well beyond an opportunity to boast.

Greater diversity often means new perspectives, richer company culture, more efficient problem-solving, and better creativity. Most employers aren't legally obligated to post job openings externally to reach a diverse pool of candidates. Even so, posting externally can help you avoid discrimination claims.

Competitive insights

External hires may have worked previously at other companies in your industry and can offer competitive insights. They may shed light on anything from marketing tactics and internal software to onboarding protocol and growth strategies.

External hires can bring fresh insights and ideas into your organization. Hiring from outside can create a true competitive advantage based on wide experience."

Avoiding internal competition

When you don't look outside your organization for potential hires, you run the risk of creating internal competition. In some cases, an employee who feels snubbed after being passed over in favor of a peer may become disenchanted and end up giving their notice. While this may be impossible to avoid altogether, opening the role to external candidates can keep a bad situation from escalating.

Quickly establishing authority

New hires are acutely aware of their roles and have been recently briefed on their superiors and the organizational structure. So — it's often easier to establish authority with new hires.

When you fill an executive or other authoritative role with an external candidate, subordinates may be more inclined to accept their leadership than if they were reporting to a promoted peer.

Business growth

External recruitment can invigorate business growth. If you plan on expanding your company, there's no way around it: you have to continuously hire new people. And even if growth isn't currently on the trajectory, filling a vacancy internally could mean you have to backfill the employee's previous role.

Increasing your headcount also signals to the current team that your business is thriving. Growth can give employees a sense of job security by making them feel confident about the company's financial health — and enthusiastic about where it's headed next.

External recruitment disadvantages

There are a few key drawbacks to hiring people from outside your organization. Potential disadvantages include:

• Longer time-to-productivity
• Higher costs
• Internal resistance to change
• Risk of turnover

Here's what to consider.

Longer time-to-productivity

Time-to-productivity is the time it takes to get a new hire up to speed. This business metric is important because it gives you an idea of the necessary resources (including time and money) for onboarding and training an employee. Current employees are more familiar with things like company processes and internal software. So — they often enjoy a shorter time-to-productivity after promotions and lateral role changes.

Higher costs

External hiring costs range from $500 to upwards of $10,000 per employee, depending on the company and the position. Expenses can include job board fees, outsourcing a professional recruiter, and the time spent filtering resumes to background checks, training hours, and purchasing computer equipment.

Internal resistance to change

New employees undoubtedly bring change to a company. And while the shift can be refreshing and fruitful, you might face some resistance or temporary discomfort from your internal team. Showing enthusiasm for growth and actively communicating your vision for the future can help put employee anxiety at ease.

Risk of turnover

An employee who feels they were passed over for a role may have hard feelings toward your company and end up resigning. That being said, promoting from within poses the same risk, and hiring externally could lessen the blow.

Internal vs. external recruitment

The best method of filling a vacancy isn't always cut-and-dry. As a hiring manager, work to build a keen understanding of when internal vs external hiring is more suitable.

When internal recruitment is best

Sometimes, it makes more sense to fill a role with a current employee. If the employee has the necessary skills, experience, and knowledge — and you want to maintain their loyalty — promoting them or permitting a lateral move may be in everyone's best interest.

If your organization has many internal candidates eager to climb the corporate ladder, filling open roles internally can motivate others to work toward career advancement. Just bear in mind that you may still need to backfill their previous position.

When external recruitment is best

There are many scenarios in which external talent sourcing may be the most suitable route. If your business is experiencing complacency, a need for fresh ideas, or a lack of diversity, it may be best to look outside your organization.

You might also need to hire someone with a technical background or create entirely new departments that your current staff simply doesn't have the capacity to fill. Some companies realize they need to reroute their entire business strategy, in which case bringing someone on with outside knowledge might be necessary.

Further, if you have immediate plans to grow your business (or you have multiple vacancies to fill) external recruiting is the way to go.

External recruiting examples and methods

There are several methods of sourcing candidates from outside your company. You can post the position on job boards, your business's website, or social media. You could also outsource a recruiter, rely on referrals, participate in job fairs, or hold a hiring event. Read on for insight into each strategy.

Job fairs and hiring events

Increasingly, many professional recruiters use job fairs and hiring events as a sure-fire way to find new talent. In job fairs, multiple employers get together at a single event to network with candidates. A hiring event also involves meeting with potential hires, but it’s exclusive to your company.

Job boards

Posting the opening on a job board is an excellent way to recruit new employees. Job seekers regularly monitor these forums. They may have alerts set for roles that match their skill set, and they’re often quick to apply.

While you might have to pay a fee when posting to job boards, you can typically expect a high number of applicants from them. Are you wary of receiving hundreds of resumes? You might consider including a simple test in the job posting to narrow down the pool or use applicant-filtering software.

Company website

Depending on the size of your company and its brand presence, posting the opening on the careers page of your website can generate plenty of applicants.

Lots of employers post vacancies both on job boards and their company websites. Keep in mind that job postings primarily attract current job seekers. As recruiters are well aware, the best talent may not be actively looking for a new role.

Social media

Posting a position on social media is another example of external recruitment. You can share information about a specific job opening or simply announce to your followers that your organization is hiring.

Whether it's Facebook, Twitter, Instagram, or LinkedIn, the beauty of social media is that it's inherently shareable. Your current team can share the post, then their contacts can tag others or share it again.

This is a great way to attract potential candidates that might otherwise not be familiar with your company. Learning about a role through a friend or acquaintance can spark someone's curiosity, even if they weren't actively looking. You can also run paid posts on social media to reach a broader audience.

Outsourced recruiting

Sometimes, the best way to find the right person for a role is to outsource the search. Professional recruiters know where to look, and they often have a list of contacts who may be interested in a position like the one you have open.

External recruiters handle the initial outreach process for you. They’ll also often do initial phone screenings, saving you substantial time filtering through resumes and short-listing candidates. In the end, you might be left with five to ten highly qualified applicants and can take the process in-house from there.

The other benefit of outsourcing the process is that recruiters actively reach out to passive candidates. As mentioned above, the best talent is often currently employed in a position they're happy in. But that doesn't mean they wouldn't be interested in learning about a new opportunity.

Referrals

Referrals can be an excellent way to source new candidates. Employers often have more confidence in talent leads who have an initial stamp of approval from a trusted team member. Likewise, potential hires may be more eager to join a company when they know someone else who not only works there but likes working there.

Outsourced recruiters can get referrals within their network too. For instance, if a recruiter reaches out to someone who ends up not wanting to leave their current company, they might be able to recommend someone else with similar qualifications.

Employee referral incentives

Many companies offer incentives for employees who refer candidates that end up being hired. Those incentives may be cash rewards, gift cards, or another enticing benefit. This does cost money, but can be worth it in the mix of the overall expense of recruiting and onboarding.

While lots of businesses rely primarily on referrals, this recruiting method can lead to a lack of diversity.

Tips for successful external recruitment

Now that you're familiar with the benefits, potential drawbacks, and approaches to recruiting external talent, let's go over a few tips and best practices.

1. Post the job opening in multiple places, including your company website, job boards, and social media.
2. Announce the vacancy to your internal team and communicate your plans for growth to avoid hurt feelings or anxiousness. Consider opening the role to both external and internal candidates.
3. Encourage employee referrals, and consider implementing an incentive program.
4. Fine-tune your recruiting process to save time and money while prioritizing the candidate experience.
5. Compare your salary range to the industry average, and evaluate your benefits package. Improving these salaries and benefits can help you attract better talent.
6. Outsource all or part of the process to a professional recruiter, and use digital tools to filter through applicants.
7. Consider participating in a job fair or holding a company hiring event.

Home in on your external recruitment strategy

If you want your established firm or startup to evolve and grow, external talent sourcing is the name of the game. JobFairX virtual job fairs let you meet and interview talented, credible candidates without leaving your desk.

External Sources:

https://www.glassdoor.com/employers/blog/50-hr-recruiting-stats-make-think/

https://diversity.umich.edu/about/defining-dei/

https://www.dol.gov/sites/dolgov/files/ofccp/CAGuides/files/Postings&NoticesGuide-CONTR508c.pdf

https://www.shrm.org/ResourcesAndTools/business-solutions/Documents/Talent-Acquisition-Report-All-Industries-All-FTEs.pdf