This article is part of the Internal Recruiting Process Guide. Read our related articles on Internal Recruitment Methods, Internal And External Recruitment, and the Advantages of Internal Recruiting.
Our previous articles covered different recruitment processes that can help you jump-start your career or get new perspectives. This one talks about internal recruitment and how it is an effective tool for your company’s growth.
Internal Recruitment Overview
What is internal recruitment?
Internal recruitment is focused inwards. Instead of going to external sources to find candidates for your open jobs, you hire them from your existing pool of employees.
Internal recruitment advantages
Hiring internally has a couple of benefits you might want to consider before deciding which type of recruitment is suitable for your company:
It saves time and money
The main advantage of internal recruitment is that it saves you time and money. Instead of spending time and money on external advertising, you can focus on selecting the employees already accustomed to your company mission and values.
It increases engagement
When employees see that they have different opportunities to grow inside the company, their morale increases. This also contributes to developing a culture of trust and a positive work environment.
It reduces the learning curve
Since your employees already know all the processes and expectations, internal recruitment also helps reduce the learning curve and time spent onboarding.
Internal recruitment disadvantages
Like any other process, internal recruitment also has disadvantages.
It reduces diversity
If your company doesn’t have a diverse workforce, using internal recruitment as your primary tool will perpetuate the lack of diversity even more.
It develops a competitive landscape
Another aspect that you should consider is that there might be more internal applicants for the same position, which might lead to competition between employees. However, competition is good if you keep it within healthy boundaries.
It creates a gap
You may have already done your math. When you open a role and fill it internally, you still have a vacant role opened (the one your employee previously filled). This might be an advantage and disadvantage at the same time.
Internal Recruitment Types
There are 4 types of internal recruitment and we will tackle each of them.
When you have an employee that is performing well, one of the strategies that companies use to keep him engaged with the company is to offer him a promotion. This might involve a new title, new responsibilities, and also a raise.
You should ensure you discuss the promotion with that employee and prepare him for the new role. One of the traps companies fall into when promoting someone is that they forget he still needs extra training and shadowing for a while.
Transfers represent the geographic relocation of talent. Your employee will have the same role, but he will perform it from another location.
This strategy works when you need an extra workforce in another office or when your employee moves, and there is no point in commuting from one part to the other.
Reorganizations take place when there is an internal restructuring. Someone is moved into a different role with different responsibilities.
This often happens in HR when people move from Payroll to recruitment to HR specialists.
Role change is when an employee starts a totally different role and responsibilities. This is a great way to keep knowledge internally and keep the company agile and adaptable to the changes.
Internal Recruitment Process
After reading the pros and cons and the different types of internal recruitment, you decide it is the right process for your company. In that case, you should also be aware of the steps you must follow.
Step 1 – Decide if you will use internal recruitment
This one might seem obvious. You must decide if internal recruitment is the right tool for each specific role. You have to analyze if your internal talent can cover the needs or if you should focus on bringing someone from external sources.
Step 2 – Announce the open role
Once you have agreed on the requirements, job description, and ideal candidate profile, you should announce the open role within the company. You can use the intranet, emails, Slack channels, or your company’s internal communication tools.
Step 3 – Respond to every internal application
Candidate experience is crucial regardless if we talk about internal or external recruitment. That’s why you should ensure you respond and offer feedback to each internal applicant.
Step 4 – Announce when the role has been filled
Once you make the decision, make sure you openly communicate it across the company and what will happen with the vacant role.
Internal Recruiting vs. External Recruitment
You now understand what the internal recruitment process is and what are the main advantages and disadvantages. The other type of recruitment that companies use is the external one.
External recruitment is when companies fill their open roles with applicants from outside the organization. External recruitment is best used when you don’t have the set of skills you are looking for internally. Also, when you need fresh perspectives or have multiple roles opened.
All in all, we highly recommend using a mix of these two types of recruitment to maximize the results.
Internal Recruitment Process FAQ
Why should you hire internal candidates?
Hiring internally reduces the overall time spent in the process, saves you money, and boosts engagement.
When should you recruit internally?
You should recruit internally when you have a high-priority job and you need to fill it immediately.
What is an internal employee?
An internal employee applies to the open roles within the company.
What are the common types of internal recruitment?
There are four types of internal recruitment: promotions, transfers, reorganizations, and role changes.