Recruitment vs. Development: examining organizations' professional talent acquisition & training practices
Palomäki, Jessica (2025)
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2025051411618
https://urn.fi/URN:NBN:fi:amk-2025051411618
Tiivistelmä
This study examines the decision-making processes that organizations use to choose between internal development and external recruitment in addressing talent needs. By employing a qualitative research design, the study uses semi-structured interviews with HR professionals and high-stakes recruitment decision-makers from organizations in Finland, the United Kingdom, and the United States of America. The research offers insights into the factors influencing these decisions, such as organizational culture, cost-benefit analysis, and talent management strategies, as well as the strategic goals shaping recruitment and development choices.
The study finds that while both internal development and external recruitment have their advantages and challenges, many organizations adopt a hybrid approach, using external recruitment for urgent skill gaps and internal development for long-term growth and cultural alignment. Internal development is valued for its role in fostering employee loyalty, reducing turnover, and aligning talent with organizational values. However, it can be time-consuming and limited in addressing immediate skill shortages. External recruitment, on the other hand, offers quick access to specialized expertise and fresh perspectives but presents risks such as cultural misfit, higher costs, and retention challenges.
The findings of the study align with several theoretical frameworks emphasize the long-term benefits of investing in internal talent while recognizing the need for external recruitment in industries facing rapid technological change or skill shortages. The research suggests that organizations should adopt flexible and context-sensitive talent management strategies, incorporating both internal development and external recruitment based on specific needs and business objectives.
Additionally, the study discusses practical recommendations for organizations. Ethical considerations were maintained throughout the study, and limitations, including the small sample size and industry focus, are acknowledged. Finally, the research encourages future studies on the long-term impacts of these strategies and how organizations balance immediate needs with long-term talent development in dynamic labor markets.
The study finds that while both internal development and external recruitment have their advantages and challenges, many organizations adopt a hybrid approach, using external recruitment for urgent skill gaps and internal development for long-term growth and cultural alignment. Internal development is valued for its role in fostering employee loyalty, reducing turnover, and aligning talent with organizational values. However, it can be time-consuming and limited in addressing immediate skill shortages. External recruitment, on the other hand, offers quick access to specialized expertise and fresh perspectives but presents risks such as cultural misfit, higher costs, and retention challenges.
The findings of the study align with several theoretical frameworks emphasize the long-term benefits of investing in internal talent while recognizing the need for external recruitment in industries facing rapid technological change or skill shortages. The research suggests that organizations should adopt flexible and context-sensitive talent management strategies, incorporating both internal development and external recruitment based on specific needs and business objectives.
Additionally, the study discusses practical recommendations for organizations. Ethical considerations were maintained throughout the study, and limitations, including the small sample size and industry focus, are acknowledged. Finally, the research encourages future studies on the long-term impacts of these strategies and how organizations balance immediate needs with long-term talent development in dynamic labor markets.