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IGCSE · Cambridge (CIE) · 0264

Compare internal and external recruitment

Evaluate whether to fill a vacancy from within the organisation or seek applicants outside it.

Section 2 · People in business

People in business · Cambridge IGCSE Business 0264 · 2.1.1

Cambridge IGCSE Business 0264, 2027–2029 syllabus, Topic 2. Apply each people-management concept to the stated organisation and explain the conditions behind a recommendation. Written practice is self-checked and does not certify exam readiness

Before you begin

  • No previous business study is assumed. Read each scenario for the people affected, the business objective and any limits on time, cost or information.

Work on paper. Try each question before revealing help, and explain why your method works.

Quick readiness check

What makes recruitment internal?

What you will learn

  • Define internal and external recruitment
  • Compare costs and candidate pools
  • Recommend an approach for a stated vacancy

Choose where to search

Internal recruitment appoints someone already working for the organisation. External recruitment seeks candidates from outside it.

Internal applicants may already understand the organisation and can be quicker to assess. Their move creates another vacancy, and the choice is limited to current employees.

Compare the wider effects

External recruitment can bring new skills and ideas and a wider candidate pool. It may require more advertising, take longer and involve induction for someone unfamiliar with the organisation.

The suitable choice depends on the required skills, urgency, development of current employees and the cost of filling any resulting vacancy. Neither method is always better.

Pause and explain

Which is a possible advantage of external recruitment?

Put the idea to work

Worked example

A firm needs a team leader who knows its stock system by next month. When might internal recruitment be suitable?

Show the worked solution
  1. Check whether a current employee has the required ability.
  2. Consider time to learn the system.
  3. Account for any vacancy caused by promotion.

Answer Internal recruitment may be suitable if a trained employee is ready, reducing time to learn the stock system. The firm should also plan how to fill that employee's previous role.

Try a topic test

Choose Easy, Normal or Difficult. Save your answers and open worked review after finishing.

Test this topic →

From guided practice to a new situation

Write your answer and reasoning first. Use a hint only if you are stuck. The model solution is for self-checking; your written work is not automatically marked.

1 · Guided

A hotel needs a supervisor who understands its booking system, and a current receptionist has already led shifts. Recommend internal recruitment and identify one risk.

Give me a hint

Connect the candidate's experience to the immediate role, then consider succession.

Compare my reasoning
  1. The receptionist already knows the system.
  2. Shift leadership is relevant evidence.
  3. The hotel still needs to cover the receptionist's former duties.

Internal promotion appears suitable because the receptionist knows the booking system and has shift-lead experience. The hotel must cover the resulting vacancy and check the candidate meets all supervisor requirements.

Look for these in your work

  • Fit to vacancy explained
  • Evidence used
  • New vacancy considered
2 · Independent

A business is introducing a technology it has never used. Explain why external recruitment may help and give one disadvantage.

Give me a hint

Look for expertise the existing workforce may not have.

Compare my reasoning
  1. External candidates may bring specialist experience.
  2. The available pool may be broader.
  3. The employer may incur recruitment and induction costs.

External recruitment may bring experience with the new technology that current employees lack. It can take time and money to advertise, select and induct a new employee, and their fit still needs checking.

Look for these in your work

  • Skill gap stated
  • Potential benefit explained
  • Disadvantage included
3 · Transfer

A company values career progression but its best internal candidate lacks one essential qualification for a regulated role. Recommend a fair next step.

Give me a hint

Balance staff development with the role's required competence.

Compare my reasoning
  1. Progression can support motivation.
  2. The qualification is stated as essential for safe or lawful work.
  3. Compare external candidates and consider development for a future vacancy.

The company should not appoint someone who lacks an essential requirement. It can recruit externally for this vacancy while offering the employee a development plan for future roles, explaining the criteria transparently.

Look for these in your work

  • Essential criterion respected
  • Internal candidate treated fairly
  • Justified route proposed

Common mistakes

  • Assuming internal recruitment has no cost
  • Assuming external applicants are automatically more skilled
  • Ignoring the vacancy left by an internal promotion
Recall without your notes

What can you explain now?

What makes recruitment internal?

Compare with the explanation

The successful applicant already works for the organisation

Internal candidates come from the existing workforce.

After trying it yourself, choose your next review. This is your self-assessment.

Your review choice appears on Today. Sign in to sync it across devices.

Make it stick

Name one advantage and one disadvantage of each recruitment source.

If you needed the solution, close it and solve the problem again from a blank page. A correct answer is stronger when you can explain the reason for each step.

Keep learning Business

Course scope and assessment

Ninety-one original lessons cover all six topics of the Cambridge IGCSE Business 0264 syllabus for exams 2027–2029, mapping all nine Topic 1 sections, all twelve Topic 2 sections, all thirteen Topic 3 sections, all nine Topic 4 sections, all nine Topic 5 sections and all nine Topic 6 sections to guided, independent and transfer practice with explained answers. This A*–G qualification has a separate 9–1 grading route, Cambridge IGCSE (9–1) Business 0774, linked to the same six-topic content in its own subject page. Candidates are not assessed on constructing cash-flow forecasts or financial statements. They are also not assessed on exchange-rate calculations. This is not a claim of Cambridge IGCSE Business Studies 0450 or O Level Business 7081 coverage. Written practice is self-checked; full timed Paper 1 data-response and Paper 2 case-study coverage and human subject-teacher review remain outstanding.

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