What do you do when a job role opens up at your own agency?
Sourcing, engaging, following up—the process goes on and on!
But have you considered looking within your team?
Internal recruitment not only helps you find the best fit but also strengthens the growth and development of your existing talent.
So, what exactly is it, and why should you consider it?
Let’s explore!
What is internal recruitment?
When you need to fill an open position, you’ve got two main options: internal recruitment or external recruitment.
Internal recruitment means promoting or hiring someone who’s already a part of your organization. This means you give your current employees the first shot at the new role before considering external candidates.
External recruitment, on the other hand, involves bringing in fresh talent from outside the organization, which can add new skills and perspectives to your team.
In fact, recruitment agencies often favor internal recruiting, as research by Matthew Bidwell from the Wharton School shows that external hires are 61% more likely to be laid off than internal recruits.
However, it’s essential to consider the pros and cons of each approach carefully.
You might also want to invest in internal recruiting software!
4 major advantages of internal recruitment
In-house recruiting offers numerous advantages that positively impact both your organization and its recruitment metrics.
Here are some key advantages:
1. Candidate familiarity
One of the biggest perks of internal recruitment is that you already know the candidates.
You’re aware of their strengths, weaknesses, and how they work.
Plus, you know they fit well with the company’s culture. Since they’re already in your HR management system, accessing their track record and other information is a breeze.
2. Shorter onboarding time
Onboarding an internal candidate takes less time and effort.
They’re already familiar with your agency’s practices and systems. Even if they’re moving to a different team or department, their learning curve will be much shorter than someone from outside.
You won’t need to spend weeks explaining company protocols or workflow expectations. They know everything and will, therefore, fit in easily.
3. Cost-effective
Hiring externally is always expensive. Internal recruitment helps save money on employee search as well as training.
You will save your budget on job board advertisements, new hiring channels, and background checks.
4. Growth opportunities
Promotion from within can prove that you are genuinely serious about employee development.
This clear line of progress will improve morale and inspire the team greatly.
A positive work culture and internal growth also attract job seekers who are looking for long-term benefits, which is especially appealing to Gen Z.
Also read: What are new graduates looking for? The ultimate guide to recruiting Gen Z
Top 4 disadvantages of internal recruitment
While internal recruitment has its perks, it’s not without its challenges. Let’s have a look at some of the top disadvantages:
1. Disturbs the existing workforce
Internal recruitment can, at times, create hard feelings, particularly for those who applied for the vacant post but were not successful.
This could foster feelings of resentment, disrespect, and adjustment problems associated with new roles and responsibilities. This may result in a lack of communication and reduced satisfaction with the job.
Even remote teams feel this tension. The answer lies in ensuring transparency from the time recruitment starts.
2. Narrow down the options
Relying solely on internal candidates narrows your options.
While promoting from within can be great, it might not always bring fresh ideas or updated skills that an external hire could offer.
If the internal candidate isn’t a perfect fit for the new role, they may struggle, leading to performance issues and frustration.
This could require extra training, whereas an external hire might already have the necessary skills. So, imposing a freeze on external hiring is not always the best step.
3. Handling immediate vacancies
When you promote or transfer an employee to a new role, it often leaves another position vacant.
While internal recruitment can help fill that gap, it may create a chain reaction, leading to additional vacancies elsewhere in the organization.
This may eventually make you turn to external recruitment, which costs both time and money. It may be tricky to manage this domino effect.
4. Increases unconscious bias concerns
Internal recruitment has bias implications. It is hard to be completely objective with the candidates being familiar faces.
Either implicit or explicit, unconscious biases may lead to unfair preferences, which can prevent the best person from being considered for the job. A fair and transparent process can avoid these risks.
Balancing internal promotions with external hires is key to bringing fresh ideas and energy to your team.
You may also like: How to eliminate unconscious bias when hiring remotely?
Best practices for internal recruitment
Internal recruitment can be a game-changer for your agency, but it has to be done right.
Here are some of the best practices to make the process smooth and effective.
1. Be transparent in communication
Start by clearly communicating the open position to the entire team using multiple channels—not just emails but also meetings and posting messages on internal job boards to keep everyone informed.
This definitely maintains trust and encourages every eligible employee to try out their chances.
2. Define job descriptions clearly
Job descriptions should be clear and detailed. Mention the responsibilities and requirements explicitly.
This provides an opportunity for individuals to self-evaluate if they fit the position, and it gets them ready for what might lie ahead.
3. Ensure a fair selection process
Create a fair and unbiased selection process. Use standardized criteria for evaluating candidates and involve multiple stakeholders in the decision-making process.
This helps mitigate any unconscious biases and ensures the best person gets the job.
4. Encourage applications
You should motivate your employees to apply for any internal position by showing the advantages of the new role and the developmental opportunities coming along with it.
In some cases, employees do not believe they can fill a certain job unless encouraged.
5. Offer developmental opportunities
Provide training and development programs to prepare the interested internal candidates for the higher roles.
This shows your commitment to their growth, and they are likely to perform better in the new position.
6. Give feedback
Make sure to give positive feedback whether the employee got the job or not.
If they did not, give them advice on which skills or experiences they should gain for future opportunities.
This approach helps maintain employee morale and commitment to the organization.
7. Develop a transition plan
When promoting an employee, it’s essential to plan a smooth transition.
Ensure that the person taking over their previous role is well-trained and that responsibilities are transferred seamlessly.
This approach minimizes disruptions to workflow and sets the promoted employee up for success in their new position.
8. Monitor and evaluate
Continue to monitor the process of internal recruitment and keep evaluating the process for effectiveness.
Obtain feedback on candidates and hiring managers for gaps in the process. This will sharpen your approach and maintain a rich internal recruitment strategy.
Keep in mind these practices, and you should be on your way to building a much more cohesive and strong team.
Happy hiring!
Don’t miss out: 10 killer recruitment tips for new recruitment agencies
Frequently asked questions
1. How do you handle the feelings of employees who did not get selected for the promotion?
The process of handling the feelings of employees who did not get selected should be open and transparent.
Let them understand the reasons behind the decision by explaining why it was made, highlighting the criteria used in selecting the candidate, and outlining the skills and qualifications that set the chosen person apart.
Also, those not considered for the current position can be provided with constructive feedback on what to work on and improve on for future opportunities.
2. What must a good job description for an internal position have?
Job advertisements for the internal recruitment process should contain a clear description of the responsibilities, day-to-day roles, and required skills or qualifications.
They should also be detailed and indicate the experience one needs to have. Determining the objectives and aims is important to let the employees know what to achieve within the position.
This transparency enables them to self-assess their fit for the position and, therefore, be aware of what to expect out of the job.
3. What kinds of development opportunities should be made available to internal applicants?
Offering developmental opportunities to internal applicants is vital in preparing them for higher roles.
These opportunities can include training programs, workshops, and mentorship schemes tailored to the skills required for the new position. Provide access to online courses, seminars, and industry conferences to help them gain new knowledge and insights.
By investing in their development, you demonstrate your commitment to their growth, which can improve their performance and readiness for the new role.
