Tuesday Mar 12, 2024

Internal Hiring vs External Hiring - What’s Better? Ft. Fit Small Business

Summary

This episode’s conversation explores the topic of internal versus external hiring in small businesses. Experts from Jumpstart HR and the Fit Small Business team discuss the key differences between the two methods, including the impact on cost, time efficiency, employee morale, retention rates, and diversity of skill sets. They also provide a five-step framework to determine whether to fill a role with an internal hire or an external hire, which includes assessing current skills and gaps, identifying growth and development opportunities, conducting a cost benefit analysis, considering cultural fit and adaptability, and evaluating long-term impact and strategic alignment.

Takeaways

  • Internal and external recruitment methods have different impacts on cost, time efficiency, employee morale, retention rates, and diversity of skill sets.
  • A five-step framework can help small businesses determine whether to fill a role with an internal hire or an external hire: assess current skills and gaps, identify growth and development opportunities, conduct a cost benefit analysis, consider cultural fit and adaptability, and evaluate long-term impact and strategic alignment.
  • Communication, performance reviews, and feedback are important in assessing current skills, identifying growth opportunities, and promoting internal candidates.
  • Cost considerations include compensation, benefits, and potential expenses for external hiring, while internal hiring may involve salary adjustments and filling previous positions.
  • Cultural fit and adaptability should be considered when deciding between internal and external candidates, as well as the long-term impact and alignment with business goals.

Chapters

00:00 Introduction

03:23 Key differences between internal and external recruitment methods

06:00 Cost implications of internal versus external hiring

08:46 Time efficiency of internal and external recruitment methods

14:16 Effect of internal and external recruitment on employee morale and retention

16:31 Impact of internal and external candidate recruiting strategies on diversity of skill sets

21:57 Step 1: Assessment

24:30 Step 2: Identifying

28:04 Step 3: Costs

31:24 Step 4: Culture

31:54 Step 5: Long-term impact and strategic alignment

 

To learn more about Internal vs External Hiring, visit @FitSmallBusiness’s Helpful Guide: https://fitsmallbusiness.com/internal-vs-external-recruiting

 

To subscribe to Fit Small Business, visit: https://link.fitsmallbusiness.com/join/65m/hr-social-signup

 

To work with Jumpstart HR’s team of HR professionals, visit our website: www.jumpstart-hr.com

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