Internal Hiring: Advantages and Process

Posted by Heba Asaad on July 13, 2016

Internal Hiring: Advantages and Process

The recruitment process is the process of hiring the right people in the right place, at the right time. This is a critical activity which allows companies to conduct proper and effective workforce planning. This process is important because it involves all stakeholders, to make sure they are well equipped with the appropriate knowledge and skillset to hire. Where there are several well-known candidate sources to look for future employees like the company website, job boards, vendors etc., this blog we will instead focus on the internal employee transfer employment.

report

Saratoga Institute reports that, the average cost of finding and hiring someone from outside the company is 1.7 times more than an internal hire ($8,676 vs. $15,008). What’s more, in the Business Times research shows that between 40% and 60% of external hires aren’t successful, compared to only 25% for internal hires are unsuccessful. This is good news for employees who typically leave firms due to lack of career opportunities, yet its bad news for job seekers who may have fewer jobs to apply for as internal hiring rises. According to Business Times article

Advantages of Staffing Internally:


  • Money: Rather than going through the whole recruitment cycle from scratch and paying investment money in different sources to find the right qualified external applicants; internal staffing allows you to easily find the right nominees for the position.
  • Culture Fit: When you promote or transfer an internal employee, you know that he/she already fits in with the corporate culture, which is something that is often a risk with external candidates; for example many candidates can say the right things in the interview but that does not mean that they can fit as part of the team. So as an employer you already know the work ethics of your employees which reduces this risk factor when hiring external candidates.
  • Motivation: Motivation is key because it allows companies to retain their talent and reduce turnover. When employees know the career path that they can achieve as a result of hard work then they are tempted to stay and work harder resulting in a happier staff and higher revenue generation.
  • Time: As we know time is money. So rather than spending time in publishing an open vacancy in different sources and going through the whole interview process and waiting for the new hire to submit his resignation from the other company and join yours; you can reduce the recruitment time in half by hiring internally.

How is that Accomplished?

Finding the right people internally starts by having the right tools that allows you to assess employees on relevant competencies and skills. Running their gap analysis and create career plans for them while giving your employees the relevant training programs to help them grow. Allowing the employee to have access to update his/her competencies and skills profile gives your organization the ability to always have up-to-date information for future leaders’ planning.

Few other important items to take into consideration while performing internal transfers are:


  1. Make sure your internal transfer policy is clear and followed consistently.
  2. Give internal employees clear feedback if you select someone else so they don't look elsewhere because of miscommunication.
  3. Make sure their current manager is a part of the process.
  4. Don't make them feel like their current job is in jeopardy because they applied to a different one.

The recruitment process is one the key building blocks that helps define a company’s workforce level of competitiveness in the market and generate revenue. There are many benefits to hiring internally for vacant positions, however, doing this efficiently requires a full well planned and organized process of identifying top performers, their level of qualification and the development options. For more information on other benefits for why talent management solutions are beneficial check out our website: https://www.deltek.com/en/products/hr-and-talent-management/talent-management/why