AP Moller Maersk Group Evaluating Strategic Talent Management Initiatives Case Solution

1. Compare and contrast recruitment and selection of internal versus external candidates in general.

A business can recruit internally as well as externally for its vacant positions. Internal recruiting is when an organization looks to fill vacant positions and job roles within its existing employee base. In contrast, external recruiting is when an organization seeks to fill vacant job positions from applicants outside the business. 

Internal or external recruitment processes and decisions are based on several factors, ad businesses must carefully assess both hiring methods to benefit optimally. Internal recruitments, for example, are less costly for the organization, and incumbents do not require extensive training. Furthermore, incumbents hired internally also display a better fit with the organizational culture and system owing to their familiarity with the company. Internal recruits also do not require referral bonuses or relocation and travel costs – which adds to cost saving for the company. Moreover, internal recruitment processes are generally faster and usually completed within a few weeks. Employers also prefer internal recruitment because of the presence of previous performance reviews and documents and because of the support and familiarity with business managers. Managers also know the employee, his strengths, and areas for further development – making training needs and designs easier. Internal recruitment also offers encouragement and confidence to the employee – leading to increased work morale and job satisfaction. However, with continuous internal recruitments, organizations may limit and restrict opportunities for innovation and new ideas – leading to a culture of complacency where employees are comfortable with existing systems and processes. This will also lead to increased resistance to change processes and restricted adaptation within employees toward new processes and ideas – giving way to a stagnant culture. Internal recruitment will also lead to a continuous gap in the workforce – where the organization will have one position vacant.

In contrast, organizations may resort to external hiring and recruitment plus selection methods when they seek new and advanced skills that are not found in-house and within the existing employee base. Moreover, external hiring is necessary when businesses seek to grow horizontally and in new directions. This is because external hiring and selection will lead to new ideas and perspectives within the organization. This will allow the organization to inject increased experience and exposure within the employee base by placing more qualified talent between them, leading to increased growth and development prospects. However, external hiring may also be expensive for the company – as it may require additional training and development programs. Moreover, external recruits may not fit in well with the organizational culture –resulting in internal friction and conflicts. The external hiring process can further be extensive, requiring multiple stages and screening tests which may not only be cost extensive, but also require longer periods.