external recruitment advantage disadvantage

External Recruitment Advantages and Disadvantages

external recruitment advantage disadvantage


The battle to secure talent is heating up. In a recent survey, 92% of C-Suite leaders claimed that without recruitment success, their organizations would struggle to stay in business. Many of these leaders are lined up for failure because, by the end of 2022, 86% of employees in India are expected to resign from their posts.

These are the reasons why HR leaders are investing in different types of recruitment strategies. The most popularly used alternate recruitment strategy in the post-pandemic world is external recruitment. What is external recruitment, how is it different from internal recruitment, & can it help businesses meet their staffing needs?

Let’s answer these questions & explore the key external recruitment advantages and disadvantages in detail.

What Is External Recruitment & How Does It Work?

Internal recruitment is the practice of promoting/transferring existing employees from within. External recruitment is the practice of looking outside your company to find new talent. That means external recruiters have wider talent pools to choose from. They can also employ a variety of recruitment tactics such as –

  • Using online recruitment platforms.
  • Using social media posts to organically source candidates.
  • Hosting job fairs & recruitment drives to promote their companies and advertise available positions to large groups of qualified candidates.
  • Working with recruitment agencies.

The last recruitment tactic is by far the most effective because business leaders get to work with professional head hunters and recruitment agencies. These agencies specialize in discovering premium candidates for a variety of executive roles. The main reason why companies use recruitment agencies is to boost their recruitment quality.

Advantages of External Recruitment

Let’s explore the core external recruitment advantages and disadvantages to determine the true merits of this recruitment strategy. Here are the main advantages of external recruitment:

  • Higher Conversion Rate: External recruiters attract a variety of candidates. The chances of discovering the right candidate for the job are much higher.
  • Quality: External recruiters get to source workers from wide talent pools. They have more high-quality candidates to choose from compared to internal recruiters.
  • Improve Workforce Quality: An efficient external recruitment strategy can give companies constant influxes of highly-skilled recruits.
  • Boost the Company’s Future: The right external candidates spark healthy competition within their workforces & improve their overall quality.

Disadvantages of External Recruitment

Here are some disadvantages of external recruitment

  • Slow Onboarding: Inviting an outsider to your workforce comes with its own set of challenges. External recruits need time to settle into their workforces. To become productive, they need structured training, day-to-day mentorships, and various other amenities.
  • Higher Turnover Risk: External recruits are likelier to quit their jobs within the first 6 months of employment.
  • Costs: From advertising the job roles to hiring the right external recruitment agency – there are several costs employers must undertake to set up an efficient external recruitment strategy.

These potential disadvantages are hard to avoid. But, the countless advantages of recruitment via third-party recruitment agencies are much harder to avoid for employers who are desperate to fill up job positions.

Some Examples of External Recruiting

There are over 76,690,000 LinkedIn users in India. That figure reveals the rising popularity of external recruitment in the country. More & more employers are looking outside of their company bubbles to source the right talent.

The top employers don’t just rely on online recruiting. They hire staffing agencies to support their recruitment activities. From Reliance to Tata – every leading company in India uses external recruitment agencies to fill management, technical and leadership positions.

Why Do Companies Use Recruitment Agencies? Can You Trust Them?

Are recruitment agencies good? Yes, they have been for decades. But, the rise of digital work practices has made these recruitment agencies more efficient than ever. They’ve streamlined their recruitment processes with the help of the Internet. They use extensive databases of potential candidates to discover the right talent.

Then, these professional recruiters leverage their expertise to help multiple businesses find the right talent. But, can you trust staffing agencies? Yes. Recruitment agencies define their terms of services in highly detailed contracts. These contracts make them legally responsible for meeting certain objectives. If they break these contracts, they can be sued. So, yes – recruitment agencies are reliable.

How Does A Recruitment Agency Work?

Here’s what recruitment agencies do

  • Agree the terms of service with their clients.
  • Identify the best possible candidates for the position based on the client’s requirements.
  • Reach the best candidates using their own unique networks.
  • Interview the candidates to see if they’re good matches for their clients.
  • Negotiate salary, compensation, and other details of the employment contract.
  • Help their clients onboard their new employees.

Are Recruitment Agencies Worth it?

Absolutely. If your company needs access to larger talent networks, working with an external recruitment agency is the way to go. In the long run, these agencies help companies cut down costs by improving the quality of their workforces.

More importantly, employers don’t have to constantly worry about recruiting. They can outsource all recruitment-related tasks to their staffing partners.

What Are the Best External Recruitment Agencies in India?

The best employment agencies in India have extensive track records of placing candidates in jobs they’re satisfied with. Synergy is one of the leading staffing and placement agencies in India. It has helped hundreds of companies from different industries recruit premium-grade workers.


Filling up highly technical positions isn’t easy. Professional headhunters & external recruiters have exhaustive understanding of the industries they serve. They go the extra mile to find highly qualified employees who are looking for new job opportunities. In the current recruitment landscape, this form of recruiting has become the most effective option for businesses.


Can recruitment agencies charge candidates?

No. Such practices aren’t legal.

What is the importance of recruitment?

Recruiting the right workers is the key to securing the long-term future of any company.

How can recruitment agencies help job seekers?

Recruitment agencies help job seekers by connecting them to employers who are looking to hire new candidates.

How do recruitment agencies make money?

Recruitment agencies have long-standing contracts with their clients. They either charge on a per-recruit basis or they have monthly/yearly retainers for their services.


Founded in 2010,Staffing & Consultancy Services Pvt. Ltd. is catering its nationwide clients with a high hand being a hub of shortlisted eligible candidates to completely rely on. We have efficiently created tons of career opportunities for thousands of professionals in pan India.


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