Answered Essay: List and describe factors that should be considered when deciding whether to hire from within to

List and describe factors that should be considered when deciding whether to hire from within to seek external candidates. Defend your recommendation with examples

Expert Answer

Generally if an internal candidate has a 70% match for a particular role he/she is preferred to an external candidate because he /she knows about the functioning of the organization. Following factors can be considered to choose between internal and external candidates for a position-

  1. Whether the candidates have the required skills. E.g.: Somebody with SAP ERP skills will be preferred for a job that needs this kind of skills rather than one who doesn’t. The same may be the case for having soft skills such as team management etc.
  2. The availability of the candidate in the vicinity. E.g.: Attrition rate is reduced when you have candidates who belong from the nearby area because they have more job satisfaction and don’t need to change their job more often since they have the work-life balance.
  3. The language requirement. E.g. : In Germany, you’ll have to learn German language to be eligible for the job and interact with team members/ clients.
  4. Compatibility with team members: E.g.: Match with the prospective team members is seen before selecting from an internal or external candidate. This is important when the work is dependent on each other. If a person prefers to work alone, he/ she can’t fit in the group and hence would be a poor choice for the position.
  5. Budget ascertained for acquiring a candidate: E.g.: Generally a certain amount is kept aside for candidate selection and paying for their salary and other expenses such as amount for consulting agency/ referral candidate. Salary for the position has a particular range within which the candidate has to be hired. If the expense is more HR may opt for not choosing the candidate. This expense is also inclusive of the amount that needs to be given to referrer.
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