Any company that has employees and opens a new vacancy faces the choice of one of two paths to obtain candidates for the position – it can conduct internal recruitment or external recruitment. Internal recruitment is based on employees currently employed by the company, while external recruitment involves attracting new candidates through various external channels. Both recruitment methods have their pros and cons. Each company should evaluate which option will be more favorable based on the current situation, the general labor market situation, and the specifics of the position itself. Learn the advantages and disadvantages of internal recruitment.
Internal recruitment – fair conditions
When deciding to recruit internally, that is, among the company’s current employees, it is important to ensure that information about the available vacancy reaches everyone in the organization. To this end, after carefully drafting the job description and the recruitment process, it is a good idea to throw information about the recruitment in the available internal channels of the company. Such announcements should include the expectations of the employee who would be promoted, the responsibilities of the new position, as well as information on how to apply. This will ensure that recruitment is open and conducted on a clear basis for all.
Advantages of internal recruitment
- Internal recruitment is cheaper and faster
This applies to issues both when it comes to the recruitment process itself and onboarding. When recruiting internally, there is no need to invest in paid advertisements or external campaigns. The candidates are well known to us, we know what their strengths and weaknesses are, because we have already met them in practice. The candidate knows the company, often also the team where he or she will work and the specifics of the position from his or her own observations. There is also less likelihood of a candidate withdrawing during the recruitment process. Financial expectations are likely to be better aligned with company realities. The onboarding process will be less costly and faster because the candidate knows the organization, its culture, its rules, and often his or her co-workers.
- Professional development of employees
The ability to participate in internal recruitment for higher or simply different positions is a definite advantage for employees. This means that they can grow within the company’s structures and try their hand at different positions without having to change employers. It gives motivation to work, expand and improve their competence, and is also a good promotion of the company among newcomers and existing employees, who know that their competence, ambition and commitment, can be appreciated. An employee who gets a promotion will feel appreciated, and it may also increase his loyalty to his employer.
- Planning the company’s structure
For the employer and the HR department of a given company, this is a good time to look at the potential of their employees, think about and plan the company’s structure, which may need to be improved, and refine the competencies and responsibilities of each position.
Disadvantages of internal recruitment
- Lack of new competencies and ideas in the company
Internal recruitment restricts the flow of “fresh blood” into the company’s structures, which can hinder its growth. By not hiring from the outside, we are depriving ourselves of the opportunity to learn the perspective of an outsider who has experience, for example, in a similar position but at a different company, and has a fresh perspective on both the company and the position. An outsider can bring new ideas to the company.
- Emerging staff shortages
The department from which the promoted employee will move may be weakened, and there may be a need to recruit for the position left by that person. In large organizations, this is unlikely to be felt as much, due to the large number of employees, but small companies may feel the negative effects of transferring an employee to another position.
- The forgotten EB
If external recruitment is used, it is, an important part of external Employer Branding, which can advertise the company as a good employer, but also simply the company itself – more people will hear about it.
- Internal competition
Internal recruitment creates rivalry within the organization and disappointment for those who did not get promoted, and they then have to work with a supervisor who was their teammate. It can spoil the team atmosphere. To reduce the risk of such a situation, it is important to recruit openly, fairly and with clear rules. Also, employees, before the promoted person assumes new responsibilities, should be prepared for the change in team relations, learn about the tasks and competencies of the newly promoted person to avoid misunderstandings. In addition, it is important that the person being promoted has the right management skills to succeed in the role of supervisor of his former colleagues.
Internal recruitment – what is worth remembering?
Regardless of the recruitment method chosen by the company – it is a good idea for the direct supervisor to cooperate with the HR department in selecting the right candidate. The HR department can help properly communicate the recruitment opening and present the vacancy itself, as well as fussy about whether the candidate has the right motivation and competencies needed for the position. Often the HR department is very familiar with a company’s employees and has an idea of what direction individuals want to go in, which can speed up the recruitment process.