Have you ever sought something so desperately only to find that it was right under your nose the whole time? Well, believe it or not this is the case with discovering top talent! You may have already hired them. In fact, they could be waiting for a promotion or new challenges to reach their full potential. So, it goes without saying, internal recruitment can be a win-win situation for both employees and organizations.
What you’ll find in this article:
What is internal recruitment?
Internal recruitment is nothing but leveraging your current employees to fill a vacant position. To quote Edie Goldberg, HR expert, and author of The Inside Gig, in this Keep It Simple podcast, when hiring internally you “[…] View all employees in the organization as potential sources of internal talent.” Promoting your employees or transferring them to new roles within the company helps their career growth. Also, supporting their transitions plays a pivotal role in boosting internal mobility – a highly desirable trait for companies today.
Want to know why hiring from within is equally (if not more) beneficial for your organization? Read on!
Internal vs. external recruitment: What’s the key difference?
Internal recruitment is a highly cost-effective way to fill positions by tapping into the talent you already have. It saves you time and resources while making the most of your existing workforce. On the other hand, external recruitment brings in candidates chosen based on how well they fit a specific role. So what’s the difference? It may seem that it’s all about which talent pool you want to explore, but there’s more to it than that.
Internal recruiting gives you better knowledge of your candidates and how well-suited they are for your company’s culture. In external recruitment, no matter how solid your process, there’s always some risk. You won’t truly know their fit until they’re onboarded. All in all, recruiting is about trust –believing in a candidate’s ability to succeed in their role. With internal recruitment, you place that trust on your current employees. In this way, you show them you value their growth and in return you’ll have a more engaged, motivated and loyal workforce.
Why is internal recruitment important?
According to iHire’s recent survey, employee turnover is affecting more than 70% of employers. Therefore, investing in your employees is an essential factor in retaining your workforce.
One essential factor influencing employee turnover is lack of career growth and opportunities within the company. And while there are a lot of obvious costs associated with hiring replacements for employees who have left, there is one that may not be considered as that significant. Employees who leave also take all the knowledge and experience they’ve acquired over the years with them.
Therefore, to safeguard experience and expertise within the organization, it’s important to invest in their ongoing development. Internal recruitment not only shows your employees that you believe in their potential, but also that the company is a place where they can have long-term growth.
It can help you foster employee loyalty and boost engagement and retention. With these benefits in mind, let’s explore the key advantages of internal recruiting and how it can positively impact your organization.
5 benefits of internal recruitment
Let’s have a look at some of the advantages of internal recruitment:
1. Speeds up the hiring process
Hiring managers are well aware of the precious time it takes to find qualified candidates. They must perform screening checks to filter out unqualified candidates, and then interview potential fits. But it doesn’t stop there. Once a selection is made, they need to spend more time to fully onboard them. With internal hires, you cut down on both hiring and onboarding time. Although internal recruitment may still require time and effort, it’s a far more streamlined and efficient process.
2. Reduces costs
When you promote or hire from within, you’re practically eliminating recruitment costs—no need for job boards, job ads or external recruiting services. Instead, you can let your internal candidates know through internal communication (e.g. newsletters, internal job boards, or team meetings). Plus, you’re strengthening your team without necessarily increasing payroll costs.
3. Reduces risk
Employees who’ve already shown they have the right skills are a much safer bet than external hires. External candidates often bring fresh ideas and strong qualifications. However, there’s a risk involved—these qualities may not necessarily translate into high-quality work. Plus, external hires need time to adapt to the company culture and processes. Internal candidates, on the other hand, usually present a lower-risk choice. The company is already familiar with their strengths, areas of growth, as well as company and role fit.
4. Retains talent
Your employees want to see a clear path for growth in their roles. If they feel stuck, their engagement starts to wane. But when your company actively shows that promotions and career advancement are on the table, it boosts employee morale and motivation. Based on the Work Institute’s Retention Study, the number one reason people leave their jobs is because they don’t see future opportunities within the company. By establishing internal recruitment programs, you are more likely to retain high achievers and achieve long-term business growth.
5. Promotes succession planning
Succession planning is one of the most effective ways to ensure the smooth running of your company after important people move on to other roles or retire. For example, if a manager is promoted, a trained team member can step in immediately. This avoids disruption and keeps projects on track. By preparing employees for future roles, succession planning builds a pipeline of ready talent. It saves time, reduces hiring costs, and helps maintain stability—making it a reliable way to protect your company’s future.
5 internal recruiting methods
Promotions
One of the most common methods of internal recruitment is through promotions. Promotions allow existing employees to move up the career ladder once they’ve shown mastery in their role. This is what we call vertical mobility and for most people it may be the most desirable way to evolve within a team or company. This type of internal recruiting strategy is a very standard way to grow, and it’s the heart and soul of succession planning.
Horizontal mobility
Horizontal mobility (or lateral moves), helps employees grow by transferring to roles at the same level. It lets them expand their skill sets, use underused skills or explore new areas of growth. This approach aligns their work with their strengths and interests, boosting job satisfaction. It also shows employees that the company values their unique talents. By offering horizontal mobility, companies create a more engaged and satisfied workforce.
Temporary to permanent
Internal recruitment isn’t just about promoting full-time employees. It also includes transitioning temporary staff like freelancers, part-timers, or contractors, into permanent roles. This expands the internal talent pool and gives companies time to evaluate these candidates for cultural and skill fit. As a form of quiet hiring, it’s low-risk, saves time, and strengthens loyalty and engagement. Even if they remain in the same role, this approach is a practical and efficient internal recruitment strategy.
Internal job postings
Internal job postings are a powerful tool for retaining talent. Instead of losing employees to external job openings, companies can advertise open positions internally through newsletters, emails, or internal sites. This gives employees the chance to explore roles that align with their goals and interests. By encouraging internal candidates to apply, you empower them to grow within the company. This not only supports career development but also strengthens loyalty, ensuring top talent stays engaged and motivated in their internal position.
Employee referrals
Employee referrals are a valuable part of an internal recruitment process. Your workforce can recommend an internal candidate who has the right skills and motivation for an open position. This creates a skill-based approach to hiring, driven by proven working relationships within the company. Employee referrals often result from firsthand collaboration, making them reliable and effective. By involving your team in this process, you streamline and foster a culture of trust and support while filling roles.
While these internal recruitment methods maximize existing talent and simplify hiring, it’s also essential to consider the potential challenges that come with recruiting from within.
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Disadvantages and considerations when recruiting internally
While internal candidates may seem like a low-risk and straightforward solution, relying exclusively on internal hiring has its drawbacks.
- Filling vacated roles: Promoting an internal candidate often leaves a vacancy that still needs to be filled. This means that the hiring process will inevitably involve some level of external recruiting to balance internal promotion with fresh perspectives.
- Risk of stagnation: Relying exclusively on internal hires can limit the influx of new ideas. Incorporating some level of external recruitment prevents employee burnout and brings in new ideas.
- Potential for employee resentment: Promoting one employee over others can create tension or dissatisfaction among team members. A transparent and fair process is essential to reduce perceived biases and ensure team harmony
- Skills gaps: Internal candidates may lack some of the required skills for certain positions, which may create a need for additional training. This can be addressed by combining internal training and external hiring, filling junior roles with external hires while advancing internal candidates into more senior roles.
Internal recruitment process tips
Internal recruitment is a great way to grow your team, but it works best with the right approach. Here are a few tips to make your internal hiring process more effective:
Establish a clear internal recruitment policy
Make it transparent and easy to navigate with clear criteria, timelines, and expectations shared across all channels.
Communicate your hiring process
Ensure all employees understand how to apply and what steps to expect during the selection process. A clear internal hiring process naturally encourages employees to engage and participate, boosting their overall involvement.
Support employee growth
Don’t rely on employees to upskill on their own. Foster a culture of continuous learning that empowers employees to take ownership of their development.
Provide feedback
Give constructive and actionable feedback to employees who weren’t selected. This not only promotes transparency further, but it can offer the opportunity to craft dedicated employee development plans that can craft a path towards their ideal role.
Hiring from within has never made more sense
We may be on the verge of another “great resignation” era, with many employees eager for change and growth. Now is the time for any hiring manager to act. Listen to the call for development and meet it by hiring from within.
By prioritizing internal recruitment, you’re not only addressing the demand for growth and development but also strengthening your workforce with talent that already aligns with your company culture.
In a job market full of movement and ambition, providing opportunities internally can be the key to retaining top talent. So, if not now, then when?
