Internal recruitment differs from external recruitment, which involves finding, interviewing, and hiring job candidates for a new position from outside your firm.
Advantages of Internal Recruitment
There are numerous advantages to focusing on your existing expertise initially. Here are some of the benefits you may expect from the internal recruitment process, ranging from cost savings to employee engagement.
1. Reduces the Time it takes to Hire Someone
In contrast to external recruitment, which needs you to start from scratch with new faces you don't know, you already know your internal applicants. Many elements of full life cycle recruiting, such as external job posts on job boards and elsewhere, as well as the review process, can be skipped.
You may also see their pay history, previous performance ratings, and background checks. You save time and money by hiring people who have been thoroughly vetted and are familiar with your company's culture. You can do it without a lot of the training and onboarding that a new hire would require.
2. Reduces the Time it takes to get Started
You won't have to spend months discussing payroll or creating employee conduct expectations, as you would with an outside recruit. Your internal hire is already familiar with the company's basic regulations and culture. They've also developed connections, so you won't have to waste time assisting them in forming relationships. Even though the function is new to them, they understand how it fits into the bigger picture of your company since they are familiar with it.
3. Saves Money
What happens when you cut the time it takes to hire and onboard new employees? You save money by doing so. You saved money on things like using outside recruiters, performing external recruiting, attending job fairs, and completing background checks, in addition to the resources saved on finding and training personnel or hiring managers. When you consider that many internal employees are already up to speed on their new jobs and producing at a higher rate than new hires, you can add even more value to your bottom line.
4. Strengthens Employee Engagement
Employees are enthralled by the promise of further advancement in their careers. Good things happen when investing in people becomes a part of your brand. It fosters a positive work environment and communicates to others outside the organisation that working for you has long-term rewards.
Disadvantages of Internal Recruitment
While the advantages of this technique should not be overlooked, it is not without flaws. Internal recruitment has significant disadvantages that everyone participating in the hiring process, from Human Resources teams to managers, should be aware of before getting started.
1. Causes Conflict among Coworkers
Internal hiring can lead to resentment among coworkers who are unable to adjust to the new jobs and duties. Those who applied for the job but were not hired can grow resentful over time.
You may also encounter situations where departments are hesitant to let go of good team members in order for them to advance their careers. When internal hiring isn't done properly, it might have a negative impact on interpersonal connections. For a successful transfer, you must be aware of these possibilities and prepare for them.
2. Creates a Skills Gap in the Current Workforce
Internal recruitment is a good technique to fill new positions, but it almost always results in a vacancy. How do you intend to replace the void created by the promoted employee's departure? Finally, you may fill that post through internal recruitment, leaving yet another gap. It's a never-ending cycle of personnel shuffles that may force you to look for external candidates to break the pattern.
3. Restricts the Number of People who can Apply
While your current employees are capable, they may not possess all of the qualities you seek in a new hiring. That implies you might have to search outside your organisation for someone with particularly specific or technical skills. Furthermore, someone from a different industry can be better equipped to bring a new perspective to a role.
4. It Leads to a Rigid Culture
Another disadvantage of simply hiring from within is that your staff may become too comfortable. Cliques can emerge and workers may become reluctant to change if groups aren't refreshed with new faces on a regular basis. Because change can be perceived as a challenge to how they've always done things, this type of rigid culture may bring out the worst in your workplace.
Five Methods to Mitigate the Disadvantages of Internal Recruiting
What can you do now that you're aware of some of the disadvantages of hiring from within? Other businesses have found success with the following strategies:
1. Explain how the Hiring Process Works
Make it clear to your internal candidates how you arrived at your hiring decision. If they want to learn more, schedule a meeting to discuss how they might improve their position in the future. Additionally, consider establishing an internal employee referral programme to encourage employees to stay involved in internal hiring.
2. Offer other modes for Mobility
Even if they aren't a good fit for promotion, give staff opportunity to learn and grow inside your company. Some employees may not be fit for managerial positions, but they should have a variety of opportunities to feel challenged and engaged in their work. Bonuses, for example, should be given to employees who do not advance in their careers.
3. Only Share Positions that are Currently Open
If you're already in mind for a job position, don't tell anyone about it. Giving employees false expectation that they would be taken into consideration might lead to conflict. Send out a request for internal applicants only if you want to consider all internal candidates.
4. Provide Managers with the tools they need to create Succession Plans
If you haven't previously, teach your leaders how to find qualified internal applicants. Make it easier for employees to go ahead and enhance their careers by putting your next managers in place before they are needed. When a vacancy arises, you can check in with department heads to determine who is already qualified to fill the position.
5. Don't Rely on Internal (or External) Recruiting Exclusively
Mix up your hiring processes to incorporate new faces as well as proven company performers for the greatest results. It is possible to find a method that balances internal recruiting with external assistance systems.
