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Are you using the same skill set and knowledge in your daily life, internet or way of dealing with an issue? No, right?

Same is the case with a company’s hiring process. The world is changing and so is the way of conducting the normal functions at offices which include taking the decision of hiring as well. 

A lot of companies go through discussions to make a decision regarding the compatible approach of hiring; whether conducting internal replacements or to hire new employees pertaining to the requirement of the vacant position.

Why Internal Placements?

Every company has some responsibility towards its employees. It is often heard that bookish knowledge can never beat experience. Moreover, according to different surveys, it was found that over 70% of employees feel more secure and stay loyal to the company because of the internal placements. Below are few more reasons why internal placements are significant:

1. Existing Talent Upgrade

Internal recruitments at office keep the growth and expertise of an employee in the same company as well as upgrade the existing talent through the means of training. It helps in reducing the time and efforts for hiring new employees as well. 

2. Flexible and Multitasking Environment

Working in different positions helps the employees to become flexible in their work and become multitasking by gaining knowledge about different work areas. It improves the critical thinking aspect of the employee as well. 

Why New Employees?

By hiring new employees and giving chances to the young people, a company fulfills its social responsibility. The duty of a company does not just consist of their own welfare or the welfare of their customers and clients, but also for the morality towards their social standing. A few benefits of hiring new employees with modern skill sets are as follows:

1. Newer Skill Sets

With the increasing digitalization, the younger generation are more capable and faster in understanding modern tools. Moreover, they are trained and educated with special skill sets to beat the modern day problems and the upgrades which may take place in the near future.

2. Lesser Cost

Promotions and increments usually cost more than hiring new skill sets at a comparatively lesser cost. Moreover, there is no need to put money into training new skill sets as the employees go through general training that does not require external or costly training procedures other than the senior’s guidance.

Comparison Between The Two

Both internal hiring and hiring new skill sets have their own benefits, but how good they are when it comes to comparison is explained below. 

Here are a few points on the basis of which a company hires for the position. Let us compare how well the existing employees and new employees work on these bases.

1. Compatibility

Compatibility includes the quality of getting frequent with the newer advancements and getting the hang of it easily. This is noticed high in the newly hired employees and low in the case of internal replacements. 

2. Critical Thinking

Critical thinking is a skill which cannot be learned, it has to be developed. It depends on the experience and number of issues dealt by an employee rather than discussed by an employee. Therefore, it is a skill acquired highly by the existing employees as compared with the new employees.

3. Adaptability

It is easier to learn than to unlearn first and then acquire new learning which ultimately improves the adaptability skill in the new employees. Their skills can be used more efficiently as compared to the somewhat outdated skills of the existing employees, especially in the technological and technical field.

4. Cultural Fitting

A company must make sure that the employees are culturally fit for the company so that it doesn’t raise a conflict of interests later on. The existing employees already have the knowledge about the company culture and are a better fit than the new employees who might take some time to make their mind about the company processes.

5. Employee Loyalty

A company’s image al;so depends on the employee loyalty as well as the minimum employee turnover. Internal hiring and promotional processes help in improving employee loyalty; whereas, new hiring does not guarantee that. Moreover, hiring a new employee for a position may lead to doubts in existing employees.

It is important to understand that the basis of taking decisions for this majorly depends on the requirements of the company as well as the job positions. If a great number of employees are required on vacant positions, then it is better to go for mass hiring but in case the number is small, then going with the internal hiring process is suggested.