But what exactly is internal recruitment, and what are its pros and cons?
In this blog post, we delve into the concept of internal recruitment, elucidate the differences, and explore the advantages and disadvantages this process brings. Additionally, we reveal five steps to successfully implement internal recruitment.
Definition: What is internal recruitment?
Internal recruitment refers to the process where an organisation fills vacancies by recruiting and promoting its existing staff members. Instead of hiring external candidates, internal resources are utilised to fill vacant positions through internal job postings, employee referral programmes, or targeted talent development.
Types of internal recruitment
There are two types of internal recruitment:
- Internal recruitment with personnel movement.
- Internal recruitment without personnel movement.
Internal recruitment with personnel movement
Companies use internal recruitment with personnel movement to relocate or promote existing employees to new positions within the organisation.
Internal transfers or promotions
These are based on the skills, experience, and performance of employees, allowing them to switch to positions that better match their competencies or offer more responsibility.
Horizontal transfers
Horizontal transfers allow employees to move to a different position within their current hierarchy level, enabling them to broaden their expertise and acquire new skills without a formal promotion.
Vertical transfers
Vertical transfers or promotions give employees the opportunity to advance within the organisational levels and take on new tasks and responsibilities in higher positions. This not only promotes their personal development but also strengthens their commitment to the company.
Internal recruitment without personnel movement
This type occurs when employees remain in their current positions while the organisation conducts internal processes to identify and select suitable candidates for open positions or temporarily deploys existing staff in specific company areas.
Job postings and internal applications
These enable employees to actively apply for new positions that match their interests and abilities. This openness in the application process allows talented employees to realise their potential and engage in new areas of responsibility.
Talent management and succession planning
Talent management and succession planning help companies to identify talents early within the organisation. Through training and development programmes, coaching, and both on-the-job and off-the-job measures, these talents can be specifically developed and prepared for future key positions.
Short-term personnel needs
In situations with short-term personnel needs, it is advisable to coordinate possible changes in holiday planning with the affected employees in advance. However, a temporarily increased deployment of employees may be necessary. In such cases, employees can accumulate overtime for a limited period, which they can later compensate.
Advantages and disadvantages of internal recruitment
Opting for internal candidates offers several benefits for companies but also comes with drawbacks that must be carefully weighed.
Advantages of internal recruitment
Cost savings
Internal placements are generally less expensive as no external recruiting activities such as advertisements, interviews, or hiring agencies are needed. Also, familiarisation time is eliminated for the new employee, as internal placements are usually already acquainted with the company’s structures and processes.
Stronger employee engagement
By offering internal advancement opportunities as part of personnel development, employee motivation is enhanced, recognising that performance and commitment within the company are rewarded. This not only strengthens loyalty and satisfaction, but also the willingness and performance of employees.
Faster recruitment
As employees are already part of the company, vacancies can be filled more quickly. It also eliminates the lengthy application and selection process, as the required qualifications and skills are already known. This means that internal employees in the position can effectively contribute to the company’s success more quickly than external hires.
Disadvantages of internal recruitment
Limited selection
Internal recruitment leads to a limited number of potential talents with the necessary qualifications. If suitable internal talent cannot be found, this can lead to a decline in the quality of the position filled. Therefore, a well-thought-out personnel development concept is often crucial.
Lack of innovation and fresh know-how
Internal placements may tend to be entrenched in their thinking patterns and work routines. The input and fresh ideas from external sources can often contribute to new perspectives and innovations in the company.
Risk of stagnation
By exclusively filling positions internally, diversity and versatility within the company may be jeopardised. New impulses and perspectives from outside can be lacking, leading to stagnation in the company’s development.
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Five steps for successful internal recruitment
Internal recruitment offers companies an efficient way to fill open positions with qualified staff from within. Here are five steps that can lead to a successful internal recruiting process:
1. Analyse the existing staff to determine if potential talents with the required qualifications are already present in the company.
2. Create a compelling job posting and communicate it through internal channels to relevant employees to spark interest in the open position.
3. Carefully evaluate the incoming applications and conduct discussions with supervisors to see if missing competencies can be compensated through targeted personnel development measures.
4. Review the internal transfer possibilities to see if moving an employee can fill a position and assess the associated recruitment effort compared to external recruitment.
5. Consider the onboarding process for the internal employee. Even though they are already familiar with the company culture, onboarding discussions with the new manager are crucial to ensure a smooth transition.
Companies should rely on both internal and external recruitment
Internal recruitment undoubtedly offers valuable benefits like cost savings and enhanced employee engagement. However, it is important to remember that internal personnel resources are limited. Therefore, it is advisable for companies to pursue a balanced approach that also includes external recruitment opportunities.
To support these efforts, consider leveraging advanced HR solutions. Zalaris PeopleHub offers a comprehensive HR platform to streamline your internal and external recruitment processes. This includes integrated talent management, recruiting, onboarding, performance & goals, compensation, learning, and succession & development. By utilising such platforms, you can optimise your recruitment strategy and maintain a balanced and effective workforce. Get in touch with our experts to discuss how Zalaris PeopleHub can help in streamlining your recruitment process.