Can The Zambian Insurance Industry Use Internal Hire Versus External Hire As A Strategic Tool?

Abstract

This study aimed to assess the efficacy of internal and external hiring practices as tools for strategic human resource management in the Zambian Insurance industry. The investigation analyzed the strengths and weaknesses of both internal and external hiring strategies, with a specific focus on their impact on organizational performance and employee development. Through an extensive examination of existing literature, interviews with industry professionals, and a survey of senior executives responsible for recruitment and selection processes in the Zambian Insurance sector, the study gathered data from a sample of both large and small insurance companies operating in different regions of Zambia. This ensured that the entire industry was represented. The study provided valuable insights into the strategic considerations and outcomes of internal and external hiring in this specific context, enhancing our understanding of effective human resource management practices in the Zambian Insurance industry and offering recommendations for improving talent acquisition strategies. The study also looked at the possibility of turning the human resource function in the surveyed industry from a 'day-to-day' issue to a more strategic aspect of the business through a comprehensive hiring plan and the use of internal recruitment with employee retaining strategies. In conclusion, the research findings suggest that the Zambian insurance sector has the capability to utilize both internal and external candidates as a strategic approach. The decision to choose between internal and external hiring is influenced by various factors, including financial considerations, the immediate need to fill a vacant position, the desire to bring in fresh expertise, and the compatibility with the company's culture. Internal hiring offers several advantages for the Zambian insurance industry, such as cost savings, reduced recruitment time, and the ability to foster employee growth and loyalty within the organization. Conversely, external hiring brings in new perspectives, skills, and experiences that may not be readily available internally.