According to a report by The Insight Partners, the entire global hiring industry is worth $757.56 billion in 2023. And with a compound annual growth rate (CAGR) of 13.1 per cent it is expected to reach $2.03 trillion by 2031. This is why recruiting the best of talent has only got much harder as companies continuously fine-tune their recruitment process to attract the best talent.
However, hiring is now more than just conducting interviews and hiring candidates. The rise of artificial intelligence has caused massive disruptions in several sectors, and hiring is one of them. So, the recruiter’s job is not only limited to hiring people but also to forming policies and strategies that ensure the companies get the most suitable candidates.
One such strategy is external recruiting, which, if done right, can work wonders for a company but is highly detrimental to the organization if it backfires. So, what is external recruiting, and is it beneficial for the company or not?
Our vetted panellists can make it happen
External recruiting
In simple terms, external recruiting is the process of hiring candidates from outside an organization. However, it also involves identifying and screening employees who have the potential to become future hires. Candidates can be hired from social media platforms, recruitment agencies, job fairs, employee referrals, advertising, college and university hiring, alumni networks, etc.
External recruiting aims to hire candidates who bring skills that the company may require. It also brings in fresh ideas that might help the company in the long run. Although a company may have a great group of employees, there is always room for improvement, and external recruiting is one of the best ways to do so.
Also Read: What is an Employee Integrity Test?
Is external recruiting better than internal recruiting?
One of the most asked questions during hiring is which is better: internal hiring or external hiring. Well, if we are to believe research, we have a clear answer. A study by Cornell University found that internal hires are more likely to outperform external hires. Another report by Deloitte stated that external hires are 61 percent more likely to be terminated within the first year compared to internal hires. The report also found that companies were 32% more likely to be satisfied with internal hires than external ones.
However, internal hires are possible only in a few cases. Most of the time, companies have no option but to recruit from external channels, which is why any company’s recruitment strategy should be heavily tilted toward recruiting from the outside. So, while internal recruiting is better, it can only be a small part of a company’s hiring process.
Also Read: What is Bureaucratic inertia and how to solve it?
Advantages of external recruiting
Access to a Larger Talent Pool
The biggest advantage of external recruiting is access to a large talent pool. In internal hires, recruiters have a limited talent pool, while in external recruiting, the entire world is their oyster. External recruitment also offers candidates with diverse skills, experiences, and qualifications, which massively increases the chances of the recruiter finding the most suitable candidates.
Also Read: What is Telecommuting and is it useful?
Brings Fresh Perspectives
Hiring externally also helps companies attract employees with fresh ideas. One problem with internal hiring is that since the employees are working for the same company, they are less likely to introduce new ideas, strategies, and innovative approaches. This is why companies prefer to hire externally, as it can help the existing employees see things in a different light, helping them improve themselves.
Also Read: What is Culture Sensitivity Test?
Increases Workforce Diversity
A study by Boston Consulting Group found that teams with diversity had earned 45 per cent of their revenue from innovation, much more than 26 per cent average industry standard. Another report from McKinsey & Company also found that companies with diversity were 35 per cent more likely to generate revenue above the media in the said industry. This is where external recruiting focusing on Diversity, Equality, and Inclusion (DEI) hiring can massively help improve a company’s profile.
Also Read: What are skills mismatch and how to solve them?
Promotes Healthy Competition
Another advantage of hiring from external sources is that it promotes healthy competition within the company. The problem with internal hires is that they could disrupt workplace dynamics, especially when multiple people within the organization are vying for the same role. However, hiring from the outside acts as a motivator for other employees to step up their game, which promotes healthy competition within the company.
Also Read: What is Skill Gap Analysis and how to conduct it?
Enhanced Employer Brand
Attracting talent from as many external channels as possible not only improves the company’s workforce but also improves the company’s brand image. A company with a diverse group of employees hired externally projects an image that the company is a place that values top talents. This, in turn, acts as a marketing for the company, attracting more talent for the company and helping in the recruitment process.
Also Read: Charthops Approach: Enhance Candidate Experience in Hiring
How to improve external recruiting
Use data analytics
One of the best ways to improve external recruiting is to rely on data to identify the weaknesses of the recruitment process. Certain metrics, such as time-to-hire, cost-per-hire, and source-of-hire, help companies identify bottlenecks in their decision-making system. Companies also need to use data to analyze the types of candidates who may have the chance of becoming successful hires.
Also Read: Inclusive Language in Hiring: Strategies for a Fairer Workplace
Broaden Sourcing Channels
A common mistake companies make while conducting external recruitment is hiring from a small batch of channels. A company should be as diverse as possible, which means broadening the scope of hiring from different sources. These include job boards, social media, colleges, universities, recruitment agencies, job fairs, employee referrals, advertising, and alumni networks. Diversifying the sourcing channels will also allow companies to tackle the hiring demand during the peak season.
Also Read: What is Job Analysis? A Guide to Effective Hiring and Recruitment
Leverage Technology
The hiring world is slowly adopting new technologies that can make hiring swift and efficient. One of the most common tools used is the Application Tracker System (ATS), which helps a company keep track of the entire recruitment process. The rise of Artificial Intelligence has also given birth to a host of new tools, such as Ai interview copilot software and Interview as a service (IAAS) platforms.
Also Read: Hiring Success Framework: Key Strategies for Effective Recruitment
Focus on DEI hiring
As discussed earlier, several types of research prove that hiring DEI helps a company increase its revenue and profit. However, companies need to create an unbiased recruitment process for this. The first step is to train the recruiters to avoid biases, be they subconscious or unconscious. The next step should involve identifying the underrepresented groups, which should then be targeted for a portion of the future hiring to increase diversity.
Companies can follow all the above steps and still fail to hire the best talent available. The advent of AI-based hiring tools has completely changed the recruitment landscape, and companies need these tools to take their hiring game to the next level. So, that is why we present to you BarRaiser an end-to-end hiring solution for all the companies looking to take their hiring game to the next level.
This tool can act as a check and balance, keeping a tab on both the interviewer and the candidate so that the process is transparent. This will give their tool a huge stamp of trust.
Also Read: Dunning-Kruger effect: Definition, causes and how to counter it
Our state-of-the-art tool gives companies the perfect interview tool that makes Quality hiring easy. With BarRiaser, users get our AI Interview Copilot, which helps recruiters conduct a smooth, flawless interview.
Our product analyzes the interview and gives helpful suggestions to the interviewers on what questions to ask and to maintain the interview speed. In addition, it also analyzes the recruiter to ensure the interview process is not discriminatory in any way. Our tool can raise an alert if the Hiring manager asks for information pertinent to the interview or the job description. This ensures perfect checks and balances in the system.
We also provide Interviewer training to ensure organizations have the perfect team for the job. Furthermore, we also provide interview as a service in which we will conduct the entire interview process on behalf of an organization.
Elevate your hiring quality today
Using BarRaiser, we guarantee quality hiring that will bolster Diversity and inclusion. BarRaiser is the best AI Interview platform that features Structured interviews, AI-generated interview notes, and tools to ensure quality hiring while eliminating recruitment bias. With BarRaiser’s support, you’ll be well-equipped to build a strong team of sales associates who will drive sales and deliver exceptional customer service.