The Benefits of Internal Recruitment

• Costs – the costs of internal recruitment are negligible, as there are no advertising or consultancy fees involved.
• Time – it can be significantly quicker, as a hiring manager does not have to go through a lengthy application process and interviews are likely to be arranged quickly. An internal candidate may also be allowed a shorter notice period.
• Staff engagement – the possibility for promotion or to develop new skills means employees have an incentive to perform to a high standard in their current role.
• Retention of key staff – many employees are ambitious and want to develop their skills and careers. By offering them the chance to do this within the organization, employers boost their chances of retaining key staff. This helps maintain a stable workforce.
• Shorter induction – an existing employee will take less time to adapt to the organization’s internal processes and systems. They will also have the advantage of already understanding the organization’s values.
• Reduced risk of leaving – every new hire is something of an unknown quantity. However, an employee with long-term service is less likely to join then leave quickly due to failing to settle.

What Are the Disadvantages of Internal Recruitment?

Internal recruitment is not without certain disadvantages. These include:

• Limited numbers of applicants – this can be a particular problem for smaller organizations, or when the vacancy is for a specialized role.
• It creates a gap – recruiting internally means there will be another gap to fill within the organization. If it is a senior position which has been filled, there could potentially be a chain effect as employees move up to fill the gap created in the level above. This is offset by the fact that the resulting role is usually a more junior role and theoretically easier to fill than a senior position.
• It may prevent new ideas and skills – external candidates may be better qualified than internal candidates, or may simply bring fresh ideas to the department.
• It can cause resistance to change – existing staff can become resistant to change, as they are so used to the company’s existing culture and practices.

When Should You Consider Internal Recruitment?

Ideally, an organization should always consider recruiting internally, as it can run concurrently with external recruitment. If there are no suitable candidates internally, then the external process (which will take longer) can continue. It can also be useful when the organization has a suitable pool of qualified candidates to choose from, or when cost is a consideration. It can also be useful when it would be beneficial for the employee to settle into the role quickly.

Where Do Internal Candidates Come From?

Internal candidates can come from within the same department, from other departments or even be contract staff employed on a temporary basis. Anyone within the organization who has the appropriate skills can be considered. However, it is always advisable to let another department know when a candidate is moving so they can begin the process of replacing them.

How to Source Internal Candidates

There are various methods of attracting applicants for an internal role:

• Advertising on company notice boards or newsletters
• Intranet
• Word of mouth
• Staff meetings
• Recommend-a-friend schemes (asking employees to suggest people they think are qualified).

Most organizations use a combination of the above approaches when recruiting internally.

The Internal Recruitment Process

Many departments/organizations choose not to have a formal internal recruitment policy. This may be because it is thought to be:

• Too time-consuming
• Recruiters think they know the ideal candidate already
• They tend to promote employees in turn

However, having a proper process will bring benefits both for the department/organization and the employee. Many of the processes for internal recruitment are the same as those for external recruitment.

1. The role needs to be advertised
2. A shortlist should be drawn up
3. Candidates need to be assessed by an interview process
4. Candidates need to be formally notified of the outcome
5. A formal offer needs to be made and a new contract issued

Advantages of Having an Internal Recruitment Process

1. Initiation Leads to Value

As a manager, it is important to have a recruitment process for any role, even an internal position. If a role is simply given to a team member, then they may not value it in the same way they would have if they felt they had earned it. This also helps to create a culture of competition which, if properly managed, can be healthy and productive for team output. Having a proper procedure in place also makes the recruitment process fair, and prevents any claims of favoritism.

2. New People Bring New Ideas

Recruiting an external candidate can often bring fresh energy and dynamism to the team/department. This can also be true when hiring an internal candidate. Bringing in someone who has the desire to impress in their new role can often have the same effect as if the person were new to the organization.

In a team which may have grown stale due to familiarity, a new person joining can bring new ideas and can create the impetus for innovation and process improvement. Existing team members can be inspired by the presence of a new team member to produce better results.

3. It Creates a Meritocracy

By having an internal recruitment process in place, managers recruit based on the best candidate for the role, which rules out any grounds for accusations of favoritism. Candidates have to demonstrate why they should be given the role and prove that they have the necessary skills to succeed.

Employees are also aware that every new role or secondment is available if they have the correct skill set and have demonstrated a high-level of ability in their current role. This acts as a motivating factor for the employees in the department.

Another benefit of having a formal process is that it allows a manager to see skills in an employee that may not have been previously apparent. For example, a manager may ask candidates to give a presentation. During this, a candidate who has not previously had the opportunity to demonstrate skills in this area may impress with their preparation and delivery abilities.

Disadvantages and How to Overcome Them

1. It Can Cause Resentment

Some employees may feel that there is a certain justification in them being given a new role, for example they have been in the department longest. This sense of entitlement can lead to resentment when they do not get the role. A manager has to monitor this situation, and stress from the very beginning that every candidate will be judged on their merits. By being honest and communicating with a disappointed employee, the manager can ensure that there is no lingering issue.

2. It Is Time-Consuming

While it will obviously be more time-consuming to devise and undertake a full recruitment process, it is better to do this at the start of a new role or secondment than to run the risk of finding an issue when the role has commenced. By taking the time to match the right employee to the role, a manager maximizes the chances of the new person being able to adapt and settle into the role quickly. This will save a manager having to repeat the process several times, which can damage the confidence of the team.

3. It May Not Produce the Result a Manager Wants

This is a common worry. Managers may feel they have identified an outstanding candidate already and be concerned that a formal process may result in another candidate being successful. However, by making the process as thorough as possible, the manager will ensure that the best candidate will be successful, as they will have the most complete set of skills. By making the process as transparent and open as possible, the manager will also ensure that everyone involved will feel that they had the same opportunity for success.

Summary

Internal recruitment is a cost-effective process which can run in tandem with existing external processes and can have considerable benefits for an organization. By looking within for people, an organization can reward exceptional performance and help employees to achieve their potential whilst gaining the right people for the role.