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Internal vs External
Recruitment
What is the best option for your business?
Internal Recruitment
                           PRO’s                                                          CON’s
•   More Cost Effective as salaries and subscriptions are      •   Recruiters may not have a powerful network of
    cheaper than Agency Fees.                                      individuals in one particular industry

•   Internal Recruiters do not normally receive commission     •   Scarce Skills will be harder to source as HR department
    and are solely focussed on recruiting for one client           may not have the necessary Technical Skills

•   It is easier to arrange 2nd and 3rd round interviews as    •   Some companies still use external agencies so the HR
    you have direct access to the Client and Interviewers.         Department just become a ‘Screening’ and ‘Interview
    The process is easier to manage                                Scheduling’ Function
•   Recruiters understand and hopefully embody the             •   Internal Recruiters can be spread very thinly as each
    company culture                                                department thinks their Hiring Requirements take
                                                                   precedence over others
•   Allows for a better relationship between HR Department     •   Internal Recruiters tend to get pulled into HR issues
    and the candidate                                              which may not be in line with their career aspirations

•   Allows for a more accurate gap analysis of a candidate’s   •   ALL Recruiters love incentives and being rewarded for
    skill set                                                      hard work. Will they move as they miss earning
                                                                   commission?
External Recruitment
                            PRO’s                                                     CON’s
•   You may have several different recruiters working on    •   Recruitment Agents and Agencies do not have a good
    your Top Positions at any given time                        reputation. Watch out for ‘Fly by Night’ Companies

•   Niche Agencies and Specialised Recruiters understand    •   Fees can be very high and really make a big dent in
    their chosen industries and are well connected to the       your bottom line
    Top Candidates
•   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    • The only metric they are measured on is the
  for the quality of their hires                       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      • Agency recruiters can be measured based on
  critical step in ensuring that recruiters make       client feedback and the number of times roles
  solid recommendations to line managers               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
Internal vs External Recruitment

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Internal vs External Recruitment

  • 1. Internal vs External Recruitment What is the best option for your business?
  • 2. Internal Recruitment PRO’s CON’s • More Cost Effective as salaries and subscriptions are • Recruiters may not have a powerful network of cheaper than Agency Fees. individuals in one particular industry • Internal Recruiters do not normally receive commission • Scarce Skills will be harder to source as HR department and are solely focussed on recruiting for one client may not have the necessary Technical Skills • It is easier to arrange 2nd and 3rd round interviews as • Some companies still use external agencies so the HR you have direct access to the Client and Interviewers. Department just become a ‘Screening’ and ‘Interview The process is easier to manage Scheduling’ Function • Recruiters understand and hopefully embody the • Internal Recruiters can be spread very thinly as each company culture department thinks their Hiring Requirements take precedence over others • Allows for a better relationship between HR Department • Internal Recruiters tend to get pulled into HR issues and the candidate which may not be in line with their career aspirations • Allows for a more accurate gap analysis of a candidate’s • ALL Recruiters love incentives and being rewarded for skill set hard work. Will they move as they miss earning commission?
  • 3. External Recruitment PRO’s CON’s • You may have several different recruiters working on • Recruitment Agents and Agencies do not have a good your Top Positions at any given time reputation. Watch out for ‘Fly by Night’ Companies • Niche Agencies and Specialised Recruiters understand • Fees can be very high and really make a big dent in their chosen industries and are well connected to the your bottom line Top Candidates • 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
  • 4. How NOT to Recruit http://www.youtube.com/watch?v=LdsWi3vDLTQ
  • 5. Measuring Internal vs External Recruitment Internal External • Often lack incentive as well as penalty metrics • The only metric they are measured on is the for the quality of their hires 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 • Agency recruiters can be measured based on critical step in ensuring that recruiters make client feedback and the number of times roles solid recommendations to line managers 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.
  • 6. The World’s Worst Recruiter http://www.youtube.com/watch?v=cy4yGxaUpXE
  • 7. 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
  • 8. 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
  • 9. 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