This article is part of the Internal Recruiting Process Guide. Read our related articles on Internal Recruitiment Methods, and Internal And External Recruitment.
Internal Recruitment Overview
What is internal recruitment?
Have you ever considered re-hiring your employees for other roles? That is what internal recruitment is about. You can look inside your company and choose from your current employees whenever you have a vacant position.
Why is internal recruiting important?
Internal recruitment is important because it boosts your team morale and helps with engagement. When your people see that they have growth opportunities within the company, their trust level increases, and they are more willing to dedicate their time to help the company grow as well.
Advantages of Internal Recruiting
There are four advantages of internal recruitment that we want to discuss.
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It saves you time
One of the main advantages of internal recruiting is that it saves you a lot of time. Since you are recruiting from your existing employees, you already know who is suitable or not for the job. You don’t need to spend time advertising, interviewing, and onboarding external candidates.
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It is cost-effective
Another significant advantage is related to the budget. With internal recruiting, you can spend money on something other than advertising or participation at job fairs. You can redirect the budget towards internal initiatives or your employees’ rewards and recognition programs.
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It boosts employee engagement
Your employees always want to know that they have the opportunity to grow and advance their careers. Hiring internally will send the message that you appreciate the value they provide to the company and will make them feel seen and appreciated.
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It reduces the learning curve
A new employee needs up to 6 months to adapt to the new workplace fully. When you hire internally, your employee knows a lot about your company and its processes. He can skip extensive onboarding or company presentations.
Disadvantages of External Recruitment
Although the advantages sound good, there are also some disadvantages that you should consider before choosing internal recruitment as your go-to strategy.
Bad feelings among peers
One of the things you should consider is the resentment that might appear among the employees that applied for the job but didn’t take it. If the communication isn’t managed correctly, there might be internal conflicts.
Limited number of applicants
Also, remember that you will have a limited number of applicants since your pool is restricted to your current employees.
Lack of new perspectives
One of the most significant disadvantages is the lack of new perspectives. When using external recruitment, you usually hire talent that brings fresh perspectives from their previous job experiences.
Not fit for small teams
Internal recruitment is not fit for small teams because it creates vacant positions. Moreover, the number of people from which you can choose is usually too small to fill in the job requirements.
How to Counterbalance the Disadvantages of Internal Recruitment
If the disadvantages scare you, no worries. We have some ideas to counterbalance them.
Invest in your employee
Ensure that internal promotion is one of many ways to acknowledge and celebrate your employees. Create a rewards and recognition program to make sure they see that you recognize their contribution.
Communication is key
Make sure you are crystal clear when communicating the open role and why X employee took it. Communicate the criteria and offer feedback to all the applicants.
Mix internal and external recruitment
Truth be told, it is difficult for one recruitment method to satisfy all company’s needs. We recommend using a mix of internal and external recruitment to increase your chances of hiring the best talent.
Do you have any advantages of internal recruitment that you would add to this list?
Advantages and Disadvantages of Internal Recruiting FAQ
What are the pros and cons of recruiting internally?
Pros: you save time and money and reduce time to learn
Cons: you don’t have a diverse pool of candidates, there are limited numbers of applicants, and it might create resentment among the employees
What is the greatest advantage of internal recruiting?
The greatest advantage of internal recruiting is that it saves you a lot of time and money.
What is the greatest disadvantage of internal recruiting?
The greatest disadvantage of internal recruiting is that it limits the number of applicants.