Internal Versus External Recruitment: Operational and Financial Reasons Impacting The Decision

Abstract

This academic research investigation is done with an objective to investigate the role of internal and external recruitment or selection process in IT firms operating in Karachi city.  This study has aimed to support to understand pre-requisite of both recruitment processes i.e. internal and external recruitment. This research also studied the reasons for preference to external recruitment process instead of internal in IT firms operating in Karachi city. This study followed the interpretive paradigm to answer research questions. In this context IT firms in Karachi city are focused with a size greater than 100 employees. The respondent sample size of current study is 176 professionals from ten IT firms. The individual focused during study are in age bracket of 21 to 40 years with income ranging from Pak Rs, 25,000 to 200,000. This research study employed questionnaire as data collection instrument and used regression technique as method of data analysis and investigation.  The results of this study revealed that both internal and external recruitment models have significant results to understand the role of level of competency, level of experience, structure of HR department and cost of hiring in determination of selection of either technique in talent acquisition. It has found through this study that cost of hiring and level of experience has found significant and negative role in determination of external hiring of employees for vacant position in IT firms in Pakistan while level of experience, cost of hiring and level of competency are found with significant and positive role in determination of internal hiring of employees for vacant position in IT firms in Pakistan.