Section Four
Another strategy-related recruiting issue is the extent to
which the company should rely on internal or external
recruiting, or a mixture of the two. Some well-managed
companies hire externally only at the entry level and fill all
higher-level positions from within the firm. Examples of such
companies include Merck, 3M, and IBM. There are a number of
advantages associated with internal recruiting. These include
having more reliable information on internal applicants, the
motivational impact of employees knowing that promotions will
be filled from within the company, less recruiting and selection
expense, quicker response time, and a shorter adjustment
period in the new job because of the internal applicant’s
familiarity with the company. Unfortunately, internal recruiting
may lead to managerial inbreeding, which may be particularly
disadvantageous in rapidly changing environments in which old
strategies may be ineffective. Further, external recruiting has
the advantages of providing fresh ideas, requiring less internal
employee development, and possibly facilitating affirmative
action.^28
Employee shortages may not even require recruiting.
Aside from the obvious approach of assigning more overtime,
another alternative to recruiting is provided by temporary help
firms. As indicated in earlier sections, in addition to reduced
recruiting responsibilities, temporary workers provide greater
flexibility in matching staffing with workload requirements.