Internal Hiring: The Better Method for Silliman University

Turner, Alessa A.
BS Accountancy II

Andres, Michelle K.
BS Entrepreneurship II

Cagandahan, Ereca R.
BS Entrepreneurship II
 Lady Flor Partosa
BC 25-N
September, 2016

Topic Outline

Internal hiring: The Better Method for Silliman University

Thesis: Although external hiring is the common method of recruitment, Silliman University

should practice hiring instructors internally because it costs less, yields a healthy employee

turnover, and produces valuable firm specific human capital that external workers lack.

I. Definition of the types of hiring

A. Internal hiring

B. External hiring

C. Hiring procedures and policies in Silliman University

II. Pros of Internal Hiring

A. Costs less

1. Recruiting fees

2. Training

3. Advertising

B. Yields healthy employee turnover

1. Less uncertainty about productivity of internal than external

2. Better employee turnover

C. Produces valuable firm specific human capital that external workers lack

1. More educated and experienced workers

 2. More task specific and occupation specific

3. Better employee morale

III. Cons of Internal Hiring

A. Limits infusion of new knowledge

B. More complacent workers

C. New vacancies made by internal hiring

Conclusion
 Sentence Outline

Internal hiring: The Better Method for Silliman University

Thesis: Although external hiring is the common method of recruitment, Silliman University

should practice hiring instructors internally because it costs less, yields a healthy employee

turnover, and produces valuable firm specific human capital that external workers lack.

Introduction: Being students of the College of Business Administration, we are equipped with

the fundamentals of successfully running a business. One of the important factors to consider is

choosing the best method of hiring. Silliman University, a business entity, currently uses both

methods of hiring: internal and external. Although external hiring is the common method of

recruitment, Silliman University should practice hiring instructors internally because it costs

less, yields a healthy employee turnover, and produces valuable firm specific human capital

that external workers lack.

I. There are two types of hiring being practiced in Silliman University.

A. Internal hiring is identifying and attracting job candidates from within an

organization.

B. External hiring is the assessment of an available pool of job candidates, other

than existing staff.

 C. Possible job candidates go through a tedious hiring process based on the policies

in Silliman University.

II. There are pros of internally hiring instructors.

A. Internal hiring costs less.

1. The company saves money on recruiting fees.

2. The company’s training expense will decrease.

3. The company will spend less on advertising fees.

B. Internal hiring yields healthy employee turnover.

1. There is less uncertainty about the productivity of internal hires than

external.

2. It yields better employee turnover.

C. Internal hiring produces valuable firm specific human capital that external

workers lack.

1. Produce more educated and experienced employees.

2. Produce more task specific and occupation specific employees.

3. It yields better employee morale.

III. There are cons of internally hiring instructors.

A. It limits infusion of new knowledge.

B. Workers tend to become complacent.

C. New vacancies made by internal hiring are associated with additional

recruitment fees.
Conclusion: In several business entities, the popular method used in hiring is external hiring.

Despite it being the prevailing method of hiring, there are many reasons for Silliman University

to exercise internal hiring instead. A few of these reasons are: less expense, less employee

turnover, and more valuable firm specific human capital.

Being students of the College of Business Administration, we are equipped with the

fundamentals of successfully running a business. One of the important factors to consider is

choosing the best method of hiring. Silliman University, a business entity, currently uses both

methods of hiring: internal and external. Although external hiring is the common method of

recruitment, Silliman University should practice hiring instructors internally because it costs

less, yields a healthy employee turnover, and produces valuable firm specific human capital

that external workers lack.

Internal hiring produces valuable firm-specific human capital that external workers lack. To

better understand this, we need to first define the term firm-specific human capital. Firm-

specific human capital is the “skills and knowledge that have productive value in only one

particular company”. Internal hires have an advantage against external hires because of the

firm-specific human capital that they possess. Usually, external hires need to compensate this

disadvantage by being more educated and experienced.

Externally hired workers have skills that the job level needs while internally promoted workers

tend to have the company’s distinct

Produce more educated and experienced employees.

Produce more task specific and occupation specific employees.

It yields better employee morale.

 Workers tend to become complacent.

Although internal hiring may make employees do well in their jobs to receive a

promotion, it can also make employees more complacent because they are not in risk of

getting overtaken by an external worker.( DeVaro, J. 2016)

In an organization like Silliman University where professors work together, the

idea of an external worker being hired for a higher position may be seen as a threat to

them.