Internal and External Recruitment

internal and external recruitment 13

Author’s Name

Abstract

Internal and external recruitment have pros andcons, which can determine the success of a company. The aviationindustry as a whole requires members of the workforce who can performtheir duties and responsibilities to the best of their abilities. Theaviation industry is highly competitive. Hence, the HRM departmentneeds to ensure that they apply the proper methods of recruitment. Insome case, internal recruitment is more effective than externalrecruitment vice versa. Aviation companies have to understand thedynamic of their industries before they partake in this process.Therefore, it is vital to understand the merits and demerits ofinternal and external recruitment and the benefits companies in theindustry get from the two elements.

Recruitment is an important element of humanresource management and is essential in identifying the perfect fitfor any organization/firm. Most establishments have criteria foridentifying personnel who can carry out the functions and practicesof their company(Kim &amp Mauborgne, 2015).Ideally, there is a misconception that the recruitment process issimple given that it concerns selecting qualified employees for aspecific position in a given establishment. However, many elementsdetermine successful recruitment with respect to short and long-termbasis hiring (Reihlen&amp Werr, 2012). The papertakes the initiative to discuss recruitment in the aviation,aerospace, and the airport industries. This will focus on internaland external recruitment and the pros and cons of each factor.

The pros and cons of internal and externalrecruiting with a company’s (HRM) Human Resource Management

Recruitment as a Function of HRM

Recruitment is the process of attracting,selecting, hiring, and integrating new employees for a given positionin an organization using recruitment methods such as screening,interviewing, and training. There is no specific protocol ofrecruitment being that the process differs in every job, company, andsector/industry. In addition, recruitment can be either internal orexternal depending on the procedure and requirements of a givencompany. As such, it is essential to have a comprehensiveunderstanding of the company and its industry before partaking inrecruitment of employees into available positions (Andrews,2009).&nbsp

Each company has a personal experience ofrecruiting employees seeing as human capital is one of the essentialfactors of production. For a company to meet its goals andobjectives, it needs to have the appropriate employees and staffmembers to implement strategies and business practices needed forsuccess. With that said, the recruitment process is one of theaspects that can result in the success or failure of a company in thecompetitive global market. Hence, all companies and industries shouldunderstand the pros and cons of recruiting internally and externally(Kim &ampMauborgne, 2015).

The aviation industry is one of the mostcompetitive industries in the United States and economies across theglobe. In 2012, the annual revenue for companies in the aviationindustry in the United States alone reached a record 706 billion U.Sdollars. Over the years, the competition amongst private and publiccommercial aviation companies has increased (Reihlen&amp Werr, 2012). One of thereasons for this dynamic is that more investors are realizing theessentiality of the aviation industry and its role in the overallgrowth of various aspects of the global economy. In turn, to remainrelevant, companies are constantly recruiting new personnel in orderto improve their efficiency, effectiveness, and reliability. Asmentioned earlier, organizations have the option of recruitingemployees internally or externally depending on their policies andrequirements. Both methods have their advantages and disadvantages,which can work in the favor or against the company if not executedwell (Robinson,2009).

Advantages of Internal Recruitment in theAviation Industry

The aviation industry faces many challengeslike other industries. With that said, companies in this sector suchas airline, aerospace companies, and airports experience risks thatare only specific to aviation. One of the ways of identifying thepotential risk is by hiring employees with the proper experience,skill set, and creativity needed to solve issues from the internaland external environment (Reihlen&amp Werr, 2012).&nbsp

The first advantage of internal recruitment isthat selecting employees internally is less costly than hiring froman outside source. Management costs of aviation and aerospacecompanies are expensive owing to the overhead and maintenanceexpenses, the cost of fuel, and the cost of human resource. It isless expensive to recruit employees from within the organization inthe case of new positions, appraisals, and promotions. Hiringentirely new employees is more expensive considering that they willhave to create new positions, which may involve firing someemployees, orientating new employees, and training the new staff(Andrews,2009).&nbsp

Secondly, hiring candidates internally ispreferable in most cases because the organization is familiar withtheir personnel. For instance, the management is aware of thestrengths and weaknesses of each employee in a given department.Airline companies require pilots, technicians, flight attendants,mechanics, and engineers. Each of these positions is demanding andpeople who serve in the departments should meet the right criteriafor the company to remain relevant in the industry. Company heads,managers, and supervisors often identify with employees who meet theobjectives of the company. Hence, they can hire people from withinwith the hope of training and motivating them for the appropriateposition or vacancy (Kim&amp Mauborgne, 2015).

Hiring people from within the organizationoften motivates members of the aviation workforce. Companies in theindustry require creative employees who can improve their brand andmarket position in the industry. Organizations, which promote theirown employees, motivate them to improve on their creativity,production, and level of efficiency. In fact, most aviation andaerospace companies have policies to recruit a given percentage ofemployees internally. One of the reasons for this dynamic is thatsuch companies place emphasis on trust and hence value people theyknow. This shows good faith to the employees and ensures that theemployees invest their time and experience in growing the company(Andrews,2009).&nbsp

Existing employees have an understanding of thecompany’s operations, systems, strategies, organizational culture,and processes. Recruiting internally saves the company time duringtraining and orientation. In contrast, hiring externally takes time,which the company may not have in the case where they have to fill animportant position (Kim&amp Mauborgne, 2015).

Lastly, companies, which recruit from within,have better chances of financial stability, profitability, andsuccess in the long term. Introducing new employees especially in toptier positions or management levels may cause instability or widenthe risk factors in the company if external sources are not capableof adapting to the company culture (Reihlen&amp Werr, 2012).&nbsp

Disadvantages of Internal Recruitment in theAviation Industry

Internal recruitment may have its advantages,which can leverage the performance of aviation companies. However,over the years, research has shown that internal recruitment has itscons if not implemented properly. Organizations that insist on onlyrecruiting from inside sources risk redundant organizational culture.Ideally, the company needs to have a culture that all employeesfollow. Hiring from the same pool of people may limit ideas,opinions, and level of creativity to the employees who have worked inthe company for many years. This will block the chance of introducingnew ideas and concepts needed to advance the company’s performancein the ever changing and competitive business world (Andrews,2009).&nbsp

Companies, which recruit from within, face theproblem of resistance to change in the case whereby new ideas inaerospace or airline management emerge into the business world.Employees in managerial positions may cause the most issues seeing,as they may not want new ideas to challenge their old views. Whencompanies develop a culture of external recruitment, employees learnhow to incorporate business practices, functions, and skills intotheir routine responsibilities (Kim&amp Mauborgne, 2015).

Employees that remain in a company for manyyears develop a superiority complex if the company does not challengetheir authority. Some employees in leadership positions assume thatthey own the company making them resists any change, which may besignificant for company growth. For example, if a company only hiresmechanics from within, an issue may arise when a new pilot fromanother company requests or gives an idea of efficiency machinerymaintenance that was used in his or her previous company. This maygive rise to conflicts between the pilot and the head of maintenancein the company. Hence, all persons should understand that change isinevitable (Reihlen&amp Werr, 2012).&nbsp

One of themain issues of recruiting employees within an organization is thatmost of the time, different departments/functions in an organizationdo not complement each other. Research shows that the aviationindustry faces issues of lack of coordination between employees fromdifferent departments. For instance, if one department (IT)recognizes the potential of a candidate in the company in theengineering department, both functions may compete amongst each otherfor the employee. This form of office politics is one of the reasonsfor dysfunction in many companies in the industry. As such, companiesshould ensure that they have a wide selection of qualified candidatesto avoid such dynamics (Robinson,2009).&nbsp

In manycases, a company may recruit employees who do not meet thedescription of the available vacancy. Sometimes, companies end upcompromising on quality with the intention of saving costs and timeby recruiting unqualified personnel for the position at hand. Theaviation industry is highly competitive owing to the emergence of newtechniques and technologies of operations, flying, communication, andsecurity. Hence, employers need to understand the critical nature ofthe recruitment process and its effect on the quality of the service.In addition, all the departments should work to together to ensurethe safety of both the employees and the customers. This is becauseof the high-risk nature associated with air transport. Moreover, therising rate of domestic and international terrorism in airports andairplanes is a challenge to companies, which operate in the industry.All employees should qualify for their positions irrespective oftheir rank. Companies, which recruit unqualified employees fromwithin, may compromise the standards of the company, which can resultin a slump in sales, lack of proper feedback, and compromise onintelligence, and the loss of lives in severe cases.

Advantages of External Recruitment in theAviation Industry

Recruitingemployees internally is a common practice owing to the convenience itprovides for an organization. However, more businesses are changingtheir perception of internal recruitment because of the risingbenefits of external recruitment. As such, companies in the aviationindustry are adopting policies and strategies, which allowflexibility with regard to recruiting from external sources (Kim&amp Mauborgne, 2015).&nbsp

One of the reasons for the shift from internalrecruitment to external recruitment is that the present economy isunpredictable. Moreover, the aviation industry is one of the sectors,which require continuous analysis, research, and projections. To meetthese demands, company heads and investors often hire employees withextensive experience of managing different airlines (Kim&amp Mauborgne, 2015). Apartfrom this, employers go as far as recruiting CEOs from differentindustries such as banking, logistics, mining, and construction.Currently, businesses work hand in hand with firms in otherindustries in order to widen their scope (Andrews,2009). In turn, investors, CEOs(Chief Executive Officers) CFOs (Chief Financial Officers, and CTOs(Chief Technology Officers), have to understand the way differentbusinesses operate in the global market. This option has becomeattractive to airline companies given that they get the opportunityto change the method of operations by bringing in people with newideas and business skills (Robinson,2009).&nbsp

Notably, one of the reasons for recruitingexternally is to learn about the practice, functions, and financialstate of competing businesses. Companies often use this strategy as ameans of gaining access to company books, customers, and strategiesof their competitors. This strategy is mostly essential duringmarketing and promoting new services in the industry. One of thechallenges that airline companies experience is the decline ofcustomers during the low season. As such, companies have to introducecreative strategies to attract new customers. Companies have theoption of recruiting externally in order to learn the strategies ofleading companies, which control the cost of production, pricing, andtrends in the industry (Kim&amp Mauborgne, 2015).&nbsp

Some companies place emphasis on keeping upwith the new business and marketing trends. Hence, theirorganizational culture allows employers to introduce new changes on aroutine basis. Recruiting externally may pose a grave risk tocompanies in the airline and aerospace companies. This is becausesome of the positions require well-trained employees for a particularjob. However, the advantage of taking this risk is that the companyrealizes the merit of hiring creative personnel to overallperformance of the establishment. Organizations should implement thisprocedure carefully to avoid hiring employees who do not understandthe aviation or aerospace industry (Kim&amp Mauborgne, 2015).&nbsp

An advantage companies often recognize as theygrow is that external recruitment is essential for short contractsand consultancy. Aerospace companies are unique owing to the servicethey provide to companies in the airline industry. Such companiesfocus on designing, testing, engineering, building, maintaining,marketing, and selling aircraft equipment such as rockets, craftparts/equipment, and machinery (Kim&amp Mauborgne, 2015). Thisinvolves highly skilled employees who understand how to apply thelatest technology in the industry. As such, the operating cost ofsuch companies is high. One of the solutions involves contracting anemployee for special jobs to reduce some of the costs. Most companiesprefer hiring from outside in order to get access to emergingtechnologies which may enhance the companies functions. On the otherhand, an airline company may desire services from an outside partysuch as external auditing, brand management, and training. It isessential to recruit people from external companies in order to avoidissues such as bias (Andrews,2009).&nbsp

Disadvantages of Recruiting Externally inthe Aviation Industry

Recruitingemployees externally may have its advantages. However, if notperformed well, it may have negative implications on anyorganization. As mentioned earlier, one of the issues that managersin airline companies and airports have is the lack of propercoordination and cooperation of departments/divisions. Externalrecruiting is only suitable for given situations being that it can becumbersome (Robinson,2009).&nbsp

The main con associated with recruiting fromoutside sources is that it may reduce the motivation or demoralizeexisting employees who have dedicated a considerable amount of timegrowing the company. The HRM team should only hire from outsidecompanies if the available candidates are incapable of filling thevacant position. Hiring from outside may increase the rate ofemployee turnover if staff members do not feel appreciated oressential to the company in the long term (Reihlen&amp Werr, 2012).&nbsp

The airline and airport industry faces theissue of high employee turnover due to the presence of temporarypositions. In addition, the industries hire staff members on ashort-term basis due to the presence of high and low seasons ofoperation. Hiring people externally may affect these situationsnegatively because temporary employees will feel the need to move tocompanies with better benefits and packages. This becomes costly tothe companies who need to reduce their cost of production andoperation.

While hiring externally may be inevitable,companies may be able to hire few people. Hiring from outside thecompany may be expensive especially on a long-term basis. Companiescannot maximize on the available skilled labor in the market. Hence,they have to hire in low numbers to keep within the budget (Kim&amp Mauborgne, 2015).&nbsp

Lastly, companies who hire externally have toensure that they select highly skilled employee who can elevate thecompany to the next level. This is an investment on its own and takesa considerable amount of time and money. External recruitment canonly occur periodically which require that some companies wait forthe right moment before they bring in new employees. To add on, thecompany needs to invest in orientating, training, and incorporatingthe new employees in the organization. This is essential so that thenew parties can become a part of the organization culture (Andrews,2009).&nbsp

Conclusion

The airline, aerospace, and airport industry is responsiblefor the extensive globalization and social integration of differenteconomies. Companies in such industries have to ensure that they hirethe right work force to complete the business practices and functionseffectively. The recruitment process is an essential part of businessmanagement. All companies must undergo this process. Recruiting theright employee is significant for the overall performance,production, and success of any establishment. Recruitment can beeither internally or externally depending on the companies needs. Thementioned industry has specific needs, which determine their successin the short and long term. Both methods have their pros and cons.Therefore, employers have to understand their company dynamic beforedeciding which option suites their company best.

References

Andrews, S.(2009).&nbspHumanresource management: A textbook for the hospitality industry.New Delhi: Tata McGraw-Hill.

Kim, W. C., &ampMauborgne, R. (2015).&nbspBlueocean strategy: How to create uncontested market space and make thecompetition irrelevant.

Noe, R. A.(2013).&nbspFundamentalsof human resource management.New York, NY: McGraw-Hill/Irwin.

Reihlen, M.,&amp Werr, A. (2012).&nbspHandbookof research on entrepreneurship in professional services.Cheltenham: Edward Elgar Publishing.

Robinson, P.(2009).&nbspOperationsmanagement in the travel industry.Wallingford, UK: CABI.