What types of employee recruitment do we distinguish?
The recruitment process is often a challenge due to both the need to check the competences of candidates and the costs associated with it. Not only the specifics of the company and the position, but also the type of recruitment conducted have a great impact on its course. In this article, you will learn what types of employee recruitment are distinguished and what are the characteristics of each of them. We also provide tips to help reduce the costs associated with hiring new people.
Internal and external methods of recruiting employees
Recruiting employees is a crucial process of human resource management in a company. During the recruitment process, potential candidates for the so-called vacancies are acquired and selected. There are two main types of recruitment, and they include Permanent internal recruitment and external recruitment.
One of the most popular divisions in the context of recruitment is the one concerning the source of candidate acquisition. If the search for the perfect person for a given position is carried out by using the human resources of a given company, i.e. promotions are given to people already employed, we are talking about internal recruitment. If the search is conducted outside the organization, e.g. through employee portals or social media such as LinkedIn, we are talking about external recruitment. Internal recruitment usually shortens the time of employment and allows you to better assess the candidate’s competencies, because the organization already knows their experience and way of working. External recruitment, on the other hand, gives access to a wider talent pool and allows you to acquire new skills and a fresh look at the functioning of the company. In practice, the choice of the right type of recruitment depends primarily on the needs of the organization, the specifics of the position and the available human resources.
Low employee costs in the internal recruitment process
Internal recruitment is associated with relatively low costs, due to the lack of the need to look for a person on the labor market, and the use of current employee resources. What’s more, promoting an existing employee is motivating for both him and other team members. Employees, seeing that their efforts are bringing results, are more willing to get involved in their tasks, responsibilities and the life of the company. The downside, however, is that usually after one person is promoted, a gap arises in their current position, which sooner or later will have to be filled by external recruitment. Moving employees between positions is therefore not an excellent method of filling staff shortages.
An additional limitation of internal recruitment may also be a smaller diversity of perspectives and competencies, because the organization is based solely on people already functioning in its structures. In the long run, this can make it difficult to introduce new ideas, innovative solutions or changes in the way teams operate. For this reason, internal recruitment works best when a company wants to develop and retain talent, but at the same time is able to supplement them with knowledge and experience gained from the outside.
External recruitment, i.e. a wider room for manoeuvre in the search for suitable candidates
External recruitment is the process of hiring employees from outside the company. This solution offers a number of benefits and opportunities that you, as the owner, director or employee of the HR department, can use to make the company flourish and use its full potential.
External recruitment is associated with relatively high costs. It is necessary to devote time and resources to searching for candidates and talking to them. Publishing a job advertisement or using the services of external recruitment companies is also associated with costs. However, external recruitment is irreplaceable in a situation where you are looking for “new blood” for the team, someone with new ideas or a specialist ready to take over existing projects.
What’s more, external recruitment allows you to reach many candidates, e.g. through social media. More choice means access to a larger pool of talented employees who can bring refreshment to a given position and even bring a new perspective on the company’s processes.
External recruitment also introduces diversity, which is very necessary in the team. Thanks to this, the level of creativity among employees increases, they make better decisions, which results in more effective solving of various problems.
External methods of recruiting employees also have a positive impact on building the brand image. Employer branding portrays a company as an attractive workplace where you can develop. This is how talented people are attracted.
The most popular methods of external recruitment of employees
The types of employee recruitment and the division into internal and external definitely do not exhaust the topic of recruitment. Suitable specialists, as well as promising talents, can be found on the market in various ways. There are several most popular methods of external recruitment, which we can most often encounter in modern enterprises. Some of them require more activity and are more expensive, others are rather passive, but each has its advantages and disadvantages.
The selection of the right method of acquiring candidates depends primarily on the specifics of the position, the expected level of experience and the situation on the labor market. Recruitment for mass positions requires different activities, and the search for highly qualified experts or managers requires different activities. For this reason, organizations are increasingly combining different channels and recruitment tools to increase the chance of reaching the right people and streamline the entire recruitment process.
Recruitment by publishing a job advertisement
Among external types of recruitment, this method still remains the most popular solution. By posting a well-prepared job ad on a general or industry-related recruitment portal, you can gain quick access to an unlimited database of potential candidates who are actively looking for a new job or who want to change employers. Internet portals and social media are ideal places to look for employees.
Direct search
This type of recruitment works on completely different principles, because the search takes place among passive candidates, i.e. those who, at least theoretically, are not looking for a new job at a given moment. The method is especially popular with regard to candidates for the highest specialist positions, who have impressive achievements. The effectiveness of this method depends largely on the quality of identification of potential candidates and the ability to establish relationships with them. This process requires a lot of discretion, knowledge of the industry and an individual approach to each person. For this reason, it is sometimes carried out by experienced recruiters or specialized personnel consulting agencies.
Recruitment by referrals
Some companies use another type of external recruitment, guided by the recommendations of existing employees. Recruitment by recommendation is largely based on mutual trust, and candidates are usually highly motivated. Very often, the so-called referral bonuses are also used, which of course motivates employees to take an active part in the recruitment process. An additional advantage of this method is the ability to more quickly verify the candidate’s fit into the company’s organizational culture. Recommended people often have a better understanding of the specifics of the workplace even before the recruitment process begins. However, in order for this method to be effective, the organization should ensure that the rules of the referral program are transparent and that candidates are evaluated clearly.
Networking
Participation in conferences, job fairs, or webinars is an ideal opportunity to establish contacts with potential candidates. Recruitment can be carried out in various ways, and although the first contact with a new person, on such occasions, will not be an official job interview, you can really get a lot out of such a conversation. Networking allows you to build a long-term network of contacts, which may also prove valuable in future recruitment processes. Thanks to direct conversations, the employer has a chance to get to know the motivations, interests and communication style of potential candidates better. This method also strengthens the company’s recognition in the industry environment and can support building its expert image.
Recruitment through the “career” tab
Many companies have a special “career” tab on their website. This type of recruitment combines active and passive methods. The subpage is a suitable place to publish current announcements regarding ongoing recruitments, but often also allows potential candidates to leave their CV for future recruitments. Thanks to this solution, candidates can learn more about the company itself and submit an application for a selected job position directly on the website.
Participation in job fairs
Another type of external recruitment is the participation of the company in job fairs. Such activity is primarily an element of empoyer branding, i.e. creating a positive image of the company as an employer, which is to result in attracting attractive candidates in the future. Job fairs are also used to catch young talents completing their education. At the same time, job fairs can be used to search for candidates who will take part in the current recruitments. Attendance at the fair also gives the opportunity to directly present the specifics of the organization and answer questions from interested people. Thanks to this, the company can quickly interest candidates in its offer and initially assess their potential. The effectiveness of participation in such events increases when the company properly prepares information materials, team representatives and a plan for further contact with candidates.
Passive candidate databases
Many companies decide to create databases in which previously sent CVs are collected, which are then used in the recruitment and selection process of employees. The candidate database is a simple solution, but also effective, because it allows you to select optimal candidates for vacant positions in a short time. This solution can significantly shorten the company’s response time to emerging personnel needs. However, the condition for effective use of the database is its regular updating and proper organization of the collected data. It is also important to comply with the regulations on the protection of personal data and the rules for processing application documents.
Cooperation with universities
Many companies also use cooperation with universities in order to build future staff and identify talents entering the labor market. Candidates for individual positions can start working with the employer before completing their education, for example as part of internships and internships, which benefits both parties. Then, the most talented take up positions in the company at the beginning of their careers, and the advantage of such a solution is the shortened time of introducing a new employee to the specifics of the organization and duties.
Cooperation with the Labour Office
Currently, this method is rather used by companies looking for employees for lower-level positions. This is due to the fact that specialists relatively rarely seek employment through this institution. However, cooperation with the Labour Office may bring benefits in the form of formal and organisational support for the employment process. Employers sometimes have the opportunity to use instruments supporting professional activation, such as internships, training or co-financing the employment of selected groups of candidates. For this reason, this solution can be especially useful for organizations that want to fill staff shortages and reduce employment costs at the same time.
External recruitment as part of outsourcing
In the case of manual or lower-level employees, instead of using the services of recruiters, it is better to outsource the entire process of hiring and handling offers. Temporary work, due to its characteristics, usually does not have to be provided by people with specific competencies, so it is much easier and faster to find employees for it. In the case of employing seasonal workers, outsourcing recruitment may also turn out to be a better solution. Especially when it comes to recruitment of IT staff. This solution allows the company to focus on its core operations, without having to commit its own resources to time-consuming administrative activities. An external partner can also provide greater flexibility in responding to sudden increases in staffing demand, which is especially important in industries with high employment variability. An additional advantage is the opportunity to take advantage of the experience of entities specializing in quick recruitment of employees and the organization of formalities related to their implementation.
Narrow and broad types of employee recruitment
Recruitment processes can also be divided according to who can provide certain services to the employer. If the group of people who can take up employment is small, we speak of narrow recruitment. In the case of searching for candidates for positions that do not require specific qualifications or competencies, we are talking about broad recruitment.
Narrow recruitment requires much longer searches and larger outlays of resources. If the employer wants the offer to be received by people with specific qualifications, he should use a professional recruitment company. Such recruitment focuses on specific competencies, requires the use of specialized channels (specialized job portals, industry forums), includes a smaller number of candidates, but also offers high quality candidates.
The higher the requirements, min. education and experience, the greater the chance that it will be necessary to actively search for an employee (i.e. contact people who meet certain conditions), e.g. through contact via LinkedIn.
Broad recruitment has a wider reach and allows you to use multiple recruitment channels. Wide recruitment attracts a large group of employees from different backgrounds and with diverse skills, which does not exclude that there are no talented people in this group. A larger number of candidates means a greater chance of finding a well-qualified person.
Overt and implicit types of employee recruitment
A popular division is also the one that takes into account how the employer’s offer is displayed. If it is disseminated through popular portals (including those where it takes place recruitment of employees from abroad) or on the company’s website, we are talking about open recruitment. However, if the whole process takes place “quietly” only through e-mail or telephone contact with interesting candidates, and the offer has not been publicly published at all (or without indicating which job it concerns), we are talking about classified recruitment.
Open and Classified Recruitment – the advantages of both solutions
Both models have their advantages and disadvantages. Open recruitments are less expensive, but less suitable candidates respond to them, so the entire search process can become a mess. This is because a wide range is used here. On the other hand, open recruitment builds trust among candidates who see that the company is open and does not hide its activities. Open recruitment attracts many candidates, which, as in previous cases, gives the opportunity to hire someone really talented.
Classified recruitments are often more expensive, but the probability of quickly hiring the ideal candidate is much higher. Conducting classified recruitment can be particularly problematic, especially when you don’t have an internal HR department or head-hunters. It requires a lot of experience, so in such a situation it is best to trust an experienced external company, e.g. the LeasingTeam employment agency, which will find and present you with the most advantageous candidates for the position your company is looking for.
Alternatives to Recruiting Employees
When discussing the types of recruitment, it is also worth mentioning the alternatives to looking for new employees on a permanent basis. Recruiting and then selecting candidates is not always the optimal solution, especially when the demand for employees is potentially temporary. How can a company solve the problem of missing hands to work without traditional recruitment?
Overtime work
In some companies, employees are willing to accept overtime in exchange for additional, higher than standard, remuneration. In the short and medium term, such a solution may be more cost-effective than individual types of recruitment, as it leads to savings. The company does not have to bear the costs of recruiting new employees, training them or onboarding them. In the long run, overtime may prove insufficient due to potential employee fatigue and higher salaries.
Civil law contracts
New employees who are unlikely to be associated with the company for a longer period of time can be employed for a certain period of time under civil law contracts. This is associated with slightly lower costs, but also fewer obligations of the employer towards the employee employed under a contract of mandate or a contract for specific work.
Employee leasing
Employee leasing is becoming an increasingly popular alternative to individual types of recruitment. In this case, employees are not employed on a permanent basis, but are provided by a specialized employment agency where they remain employed. From the employer’s point of view, this is a significant cost saving and a very flexible solution. Contrary to appearances, employee leasing applies not only to temporary work and lower positions, but also to specialists, a good example of which is the IT industry.
Recruiting employees is a crucial process in human resource management. It is divided into external and internal recruitment. Each option offers a different use that can be used due to the needs of the company. This process can also be classified into narrow (focusing on specific competencies) and broad (with a larger scope of search), as well as overt (cheaper, building trust) and covert (more expensive, but with a better chance of finding the perfect candidate quickly).
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