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September 7th, 2021 · 3 min read

Should you hire externally or internally?

The difference between talent acquisition and talent development

The advantages of hiring externally

  • Filling specialized positions
    It’s not uncommon for organizations to have mission-critical positions that require a very specific set of skills. There might be internal employees that are on the right path towards being a fit for the role, but they just aren’t there yet in terms of experience or skills. In this case, recruiting external candidates is the most efficient way to fill an opening.
  • Introducing outside perspectives
    Diversity in the workplace is top-of-mind for nearly all business leaders right now. Acquiring talent externally allows your organization to bring on new team members with varying backgrounds, levels of experience and a fresh perspective from outside of the company.
     

Cost of acquiring external talent

The advantages of hiring internally

  • Address skills gaps
    The rise of digital transformation has brought on an unprecedented global skills shortage. In a recent InStride study, 68% of decision-makers surveyed reported that skills gaps in their current workforce are limiting the organization’s growth. Prioritizing internal talent development allows business leaders to effectively address these gaps through various L&D channels, such as workforce education programs.
  • Boost engagement
    Disengaged employees are often unproductive and lack motivation. People want to feel confident in their skills and know that their hard work will pay off. The right development initiatives can do exactly that — arm your employees with the tools they need to grow their skills and get to the next level of their careers. In a recent LinkedIn study, 94% of employees stated that they would stay in their current role longer if the company invested in their professional development.
  • Retain top talent
    Top-performing employees are often eager to learn and advance their careers. Lack of growth and development opportunities are frequently cited as a major contributing factor to employee turnover. Randstad survey data shared that 47% of higher educated workers said a limited career path could get them to leave for a better opportunity.

Cost of hiring internal talent

Finding a balance between hiring externally and internally

You can address talent development challenges