Internal v. External recruitment

 

Empire ( & it subsidiary National) car rental have an HR Recruitment policy to hire new employees only at the entry level position.   ALL other positions are filled by internal recruitment.

The renowned (or infamous) retired CEO of GE, Jack Welch, enacted an HR policy of terminating the lowest performance rated 10% of GE’s workforce of over 200,000 employees, or about 20,000 employees, every year.

These 2 companies exemplify the extreme poles of the perennial “recruit from inside” and “recruit from outside” camps.  Companies of all sizes  will lose employees to death, retirement, and voluntary or involuntary separation.  Companies will need to hire new employees due to growth in demand, or losses noted before.

As the newly minted manager of recruitment at a moderately sized, 1000 employee, healthcare system.  (Fun fact about 89% of US companies have a 1000 employees or less).  With your shiny new HCM MBA from FSU in hand, what strategy do you recomend? Why?