Pros and Cons of External and Internal Recruiting for Tech Talent

Introduction:

When seeking tech talent, companies are often faced with the decision of whether to pursue external or internal recruitment. Each approach has its own set of advantages and disadvantages. Understanding these can help organizations make informed decisions tailored to their specific needs.

Pros and Cons of External Recruiting for Tech Talent

Pros:

Dedicated Teams: External recruiting can provide dedicated, long-term remote teams. This can be particularly beneficial for companies that need specialized skills that are rare in their area. Reduced Costs: Companies can save on payroll, management, and administrative hassles by leveraging external recruitment services such as Gaper, Andela, and Turing. These services handle a significant portion of the team's costs. Global Talent Pool: Access to a broader talent pool from different countries can help companies find the most skilled and desirable candidates. Easier Candidate Filtering: External recruitment agencies can screen and filter candidates, reducing the administrative burden on the company. No Long-Term Commitments: External recruitment agencies may not require long-term commitments, allowing for more flexibility in team composition and management.

Cons:

Poor Communication: Communication barriers with external teams from countries with lower wages can lead to misunderstandings and lower productivity. High Turnover: External recruits may have higher turnover rates, especially if the work environment is not as attractive as what they were expecting. Poor Execution: Some external recruiters may use a "shotgun approach," sending candidates who are not a good fit in hopes of getting a hired candidate. Poor Product Quality: If the team recruited externally does not meet the company's expectations, the end product may not deliver the value the company desires. No Long-Term Orientation: External recruitment can sometimes lack the long-term commitment necessary for a cohesive team that aligns with the company's culture.

Pros and Cons of Internal Recruiting for Tech Talent

Pros:

Better Understanding of Company Culture: Internal recruitment can lead to a better understanding of the company's culture and requirements, as these candidates are familiar with the organization from their previous roles. Long-Term Commitment: Promoting from within can result in employees who are more committed to staying with the company and not being mere job hoppers. Reduced Onboarding Time: Internal candidates often require less onboarding time compared to external hires, as they are already familiar with the company's operations and culture. Reduced Costs: Promoting from within can be less costly than external recruiting, as existing employees typically have a lower hiring and training cost.

Cons:

Smaller Talent Pool: Smaller companies may have a limited pool of candidates to choose from, leading to a more challenging recruitment process. Trade-Off Between Recruitment and Day Job: Internal recruitment can be a full-time job for a dedicated department, often detracting from the day-to-day responsibilities of department heads and other employees. Limited Skill Sets: While internal recruitment can provide a stable workforce, it may not always meet the specific technical needs of a position, especially if the job is highly technical and requires specific skills not currently available within the company.

Conclusion

Hiring tech talent is a complex process, and both external and internal recruitment have their merits and drawbacks. The most effective strategy often depends on the company's specific needs, resources, and goals. It is essential to carefully evaluate the pros and cons of each approach to make an informed decision. Ultimately, the goal is to build a team that aligns with the company's vision and delivers high-quality results.