TSA Business Management Practice Test

An external candidate in a hiring process refers to an individual who is not currently employed by the organization seeking to fill a position. In this context, an applicant who does not already work within the organization fits this definition perfectly, as they are external to the company and are considered new potential hires.

Understanding the classification of external candidates is important for organizations because it often influences the recruitment strategy, such as whether to promote from within or to seek new talent from the broader job market. This approach can help to ensure a diverse pool of applicants and can bring fresh perspectives to the organization, which may not be available through internal promotions.

The other choices involve individuals who are already connected to the organization in some capacity, such as current employees or managers, thus classifying them as internal candidates. Additionally, a contractor may have a contractual relationship with the organization but is not a full-time employee, still classifying them as an external resource rather than a candidate for employee roles.