MGT3045 WK 3 Discussion

Recruiting in Labor Markets

There are generally two ways to �nd candidates for required positions in a �rm. The �rst is called

internal hiring. This means choosing a suitably skilled individual from the current staff to �ll vacant

positions.

There are several bene�ts to internal hiring:

The employee is known and �ts in with the �rm’s culture.

The employee’s skill level, motivation, attitude, and potential are also known.

The longer an employee is with a �rm, the longer he or she will likely remain—this increases

retention and reduces the turnover rate.

Seeing other employees achieve upward mobility tends to motivate other employees.

It is the least expensive way to �ll vacant positions.

Potential drawbacks to recruiting employees internally:

There may be other employees who believe that they are a better �t for the position, which may

create competition and hard feelings among staff.

The individual who is promoted may need to supervise others who were formerly at the same

level.

Diversity may suffer, as internal hiring does not allow for new blood to enter the workplace. This

may lead to stagnation.

It creates another vacancy that also needs to be �lled.

There are several legal issues HRM needs to consider in determining how extensive the selection and

placement process should be. Besides costs and time, HRM should prepare for future claims against

the company. Read the following to learn more about legal issues involving selection.

 

Additional Materials

Legal Issues in Selection (media/week3/SUO_MGT3045_W3%20L1.pdf?

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