How to Lay the Foundation for Internal Recruitment


Internal Recruitment serves as a great contributor to employee engagement and retention which can be the biggest challenge for organizations. Hiring and developing employees internally is a great effort in managing talents globally.

Be it new or not to recruitment, this article can serve as a new start or a refresher, especially on internal recruitment. Talent retention is a gigantic challenge in today’s workforce. Getting the right talent, engaging and retaining them is a burning topic and on-going debate across the globe. Many organizations engage internal experts and external consultant to materialize this, yet is it successful and going in the desired direction? If no, what is the hindrance in achieving this?

I foresee there are numerous key contributors to the success of this such as industry and global talent trends, talent cost, talent shortage, market demand, globalization and many more. In this article, I will focus on internal hiring, and on Inside First, Outside Next (IFON) culture.

The internal recruitment strategies fall in place when the organization makes the decision of promoting employee or fill up vacancies internally. It makes a stronger sense to consider internal candidate when it comes to hiring since they have a good cultural fit and assuming that the rest of the requirements are met as well. Here are some of the advantages of internal hiring. Such strategy enhances boosting retention plan, stick to the organizational culture, and managing and keeping valuable skillset and knowledge and crucially support employee career development.

Higher Retention: The key outcome of IFON is it enhances retention which conveys a strong message to the employee that the organization cares and emphasis on their career growth, some organization set standards that internal hiring should hit certain annual KPIs. With this, it supports the ‘Trust’ culture and motivates employees to stay in the organization longer.
Cost Efficient – I believe most of us are aware of the cost of new hiring both in terms of dollars and time as well as efforts. It eliminates high cost such as referral fees, advertising cost, on-boarding cost, travel, and other hiring costs.

Time Savvy: Internal hiring can be completed within a short period. Also, internal hiring if backed up by Manager’s direct input and performance review as well as feedback from the management team (if any) and peers it eases the selection process.

Boost Employee Morale: It may frustrate employees if most of the new roles are taken by external candidates. The burning question is ‘Why not me, I have been around for several years, and I have not even considered for this new role? Such on-going frustration can lead to the exit door of the company. Most importantly, if employees can find what they need within the organization, I don’t see any reason they are looking for an exit door.

The below points serve as reasons not to do internal hiring for organizations

High Hostility: At times internal hiring creates hiccups and dissatisfaction among employees if it’s not carried out in a professional and transparent manner. A well-structured and planned execution is essential to make this successful. This may lead to further unhappiness if there is the element of ‘ favoritism’ in the selection process.

Lack of Diversity: Internal hiring hinders diversity at the workplace in bringing fresh new blood with different ethnicity, gender, age and different background leading towards a new perspective.

Kills Creativity: Business as usual with internal hiring can lead to the death of creativity. The employee carries out duty and usual, and they may not be room for innovation in processes and business as a whole. Everything may remain as status quo.

The Right Formula for Internal Hiring
The below diagram serves as a good example of a successful internal hiring process.

cruitment strongly supports in building the talent pipeline, improve the leadership benchmarks and boost employee engagement as a whole.

Championing the Internal Hiring

Generally, to champion the internal hiring, the employee needs to experience an easy internal transfer process (easily accessible and understood by employees). Also embedding the internal hiring in the company culture is essential as it comes as a practice and culture in the organization instead of merely a recruitment activity. Most important is to establish an internal hiring process which is communicated to all employees combined with a high level of transparency. The movement could be both upwards or lateral movements or a neighboring job family depending on business needs and employee preference.


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