How do companies decide whether to hire internally or externally?

Understanding employers' thought processes can help you address concerns or play up strengths in your resume, cover letter, and interview. Eric Krell's "Weighing Internal vs. External Hires: When hiring, it’s not always clear whether you should cast a wide net or go with who you know" in SHRM's HR Magazine looks at employers' decision-making in choosing between internal talent and external talent.

Among the pros for hiring internally:

  • Candidate already knows the corporate culture and processes, as well as how to operate successfully within them

  • Faster and less expensive hiring process

Among the pros for hiring externally:

  • Injection of new ideas and skills

  • Larger pool of candidates

The article contains insights from top experts in corporate hiring, including executives, hiring consultants, recruiters, and professors:

  • Boris Groysberg, professor at Harvard Business School

  • Daniel Sonsino, vice president of talent management at voice and video communications company Polycom in San Jose, California

  • Greig Schneider, U.S. managing partner of global executive search company Egon Zehnder

  • Roger Ahlfeld, vice president of human resources for Tedeschi Food Shops in Rockland, Massachusetts

  • Larry Nash, the Pittsburgh-based director of experienced and executive recruiting for accounting and consulting company EY

  • Matthew Bidwell, professor at University of Pennsylvania Wharton School

  • Laura Randell, CEO of global recruitment strategy and HR technology consulting company PeopleMatters

  • Bob Damon, executive chairman for the Americas at global executive search company Korn Ferry International

  • Scott Olsen, a New York City-based principal in PricewaterhouseCoopers LLP and U.S. leader of the HR services consulting practice