Make Internal Hiring Work For Your Company

Make Internal Hiring Work For Your Company

Internal hiring can help solve 4 common recruitment challenges:

  1. It takes too long to fill open positions
  2. It’s hard to find candidates with the right skills
  3. Some new hires aren’t a good cultural fit
  4. We are spending a lot on recruitment

All hiring managers know that internal recruitment is faster and cheaper.

Let’s discuss why.

First off, you’ve got a head start in the process. You’ve done a background screening. Checking references is easy because they’re just down the hall. Many tasks in the onboarding process aren’t necessary the second time around.

Internal hiring is not without its drawbacks.

4 Potential Disadvantages of Internal Hiring

  1. Resentment among employees and managers
  2. A productivity lapse in the position vacated
  3. If the organization lacks diversity, internal hiring will enforce the status quo
  4. Limited innovation and new insights

Create an Internal Hiring Process

How do you prevent the problems listed above? A carefully-designed policy will keep everything transparent and equitable. Then you will gain the most benefit from your internal hiring efforts.

Define the Goals of Your Internal Hiring Policy

Articulate your company’s dedication to employee career advancement. Explain how internal hiring fits with your career paths program. Describe the reasons why its important to follow the policy. Outline consequences for not following the rules.

Internal Hiring Process Integrity

Address the following in your policy:

  • Do you require hiring managers to post a job internally before looking outside the company?
  • How will you advertise the position so everyone has a fair shot?
  • Are all employees allowed to apply?
  • Is there a minimum tenure for eligibility?
  • Can managers invite employees from other departments to apply?
  • Do applicants need permission from their manager to apply?
  • Should you use an outside agency to evaluate internal candidates to minimize bias?

5 Tips For Successful Internal Recruiting

Companies who use the following practices experience the most success.

  1. Track internal applicants with your ATS the same way you use it for outside applicants
  2. Communicate frequently with internal applicants
  3. Give non-selected candidates feedback so they understand how to be more competitive next time around
  4. Screen internal candidates just as carefully as outside applicants
  5. Tailor your job description for
    • You will be able to explain the job requirements as related to current projects.
    • Your internal applicants have inside knowledge that can help them determine whether they are a good fit for the position.

Maintain a Workforce Skills Inventory

Keep employee profiles up to date. It’s a systematic way to match open positions with in-house talent. Remind supervisors to update profiles after every performance review.

Include hard and soft skills. Identify skills that don’t relate to their current position.

Your HRMS can create a skills report. It will show your workforce’s abilities organized by skill. This can help you determine which positions are a good fit for internal posting. Align it with your yearly hiring plan.

Consider the following skills/credentials:

  • Job goals and interests
  • Languages spoken
  • Education (certifications, degrees, areas of study)

What is Internal Recruiting?

Internal recruiting is identifying and inviting current employees to accept another job position within your company.

Types of Internal Recruiting

  • Promotions: When an employee is promoted to a higher position
  • Location transfer: When an employee relocates to another department or office
  • Inter-departmental transfer: When an employee assumes a similar level position within their department
  • Temporary-to-permanent: When an intern, temp, or part-timer assumes a full-time, permanent position
  • Contractor-to-employee: When a 1099 independent contractor becomes an in-house employee

Consult our How To Hire Your Next Employee series for guidance on hiring operations and policies. We explore each step in detail—from job descriptions to offer letters.

By Liz Strikwerda

Helpful Guidance For Successful Internal Recruiting: What, Why, How

Helpful Guidance For Successful Internal Recruiting: What, Why, How

When it comes to 2019 hiring challenges, many companies don’t take advantage of internal recruiting. This is puzzling, because most employers are intensely focused on retention. Plus many are struggling to meet staffing needs.

Internal recruiting helps on both fronts. Let’s discuss the relationship.

First, the fundamentals.

What is Internal Recruiting?

Internal recruiting is the process of identifying and attracting current employees to accept another job position within your organization.

Types of Internal Recruiting

  1. Promotions: When an employee is promoted to a higher position
  2. Location transfer: When an employee relocates to another office or sales territory
  3. Inter-departmental transfer: When an employee assumes a similar level position within their department
  4. Temporary-to-permanent: When an intern, temp, or part-timer assumes a full-time, permanent position
  5. Contractor-to-employee: When a 1099 independent contractor becomes an in-house employee
  6. Boomerang employees: Retired employees who return to work, sometimes part-time or as a contractor

Internally Assisted Recruiting

This is related to the types discussed previously. When existing employees recommend outside applicants, it can be extremely effective. One important difference is that it doesn’t leave a position vacated.

Current employees understand your company culture. They are in a position to know if a referral would also thrive in your organization. In one sense, they have performed a first-level screening.

What Are The Benefits of Internal Recruiting?

Financial Savings

When an existing employee assumes another position, you save time and money on:

Minimizes Hiring Risk

Internal recruits fit in with the company culture and have established relationships. Plus, they are already on the payroll. If you make a hiring mistake, you may be able to move them back to their original team.

Career Development Opportunities

Most employees want to advance along a career path. This is only possible with promotions—a type of internal recruiting.

Faster Hiring and Time-to-Productivity

Internal recruits don’t need to be onboarded. They require less training. Plus, they often accept a job offer more quickly than an outside applicant. Finally, it’s less common for an internal recruit to ask for an extended interim before starting the new position.

Employee Engagement and Productivity

Companies that promote from within often have a more engaged and productive team. When they see your company investing in them, it improves performance and sense of common purpose. Employees who are invested in your business serve your customers better. When it comes to retention, a commitment to your mission can be as important as benefits and perks.

Employee Retention

There is a higher retention rate for internal recruits in many industries. Presumably, they already enjoy working at your company. If they accept a promotion or transfer, they are probably planning to stay a while.

Tips For Successful Internal Recruiting

  • Create rules
    • Are all employees allowed to apply?
    • Is there a minimum tenure for eligibility?
    • Can managers invite employees from other departments to apply for positions on their team?
    • Do employees need permission from managers to apply?
    • Who needs to be involved in the decision-making process?
    • Should you use an outside hiring team to screen and evaluate candidates to mitigate potential biases?
  • Formalize internal job postings
  • Give non-selected applicants feedback to help them the next time they apply for an internal position
  • Screen internal employees just as carefully as outside applicants
  • Use applicant tracking software for internal applicants the same way you use it for outside applicants

When Not to Use Internal Recruiting

Do you need fresh ideas in a department? If there is stagnation, an internal recruit may not be the best person for the job.

Do you need to increase diversity in your organization? Internal recruiting will only reinforce the status quo.

Have you created a new department? Are you planning to develop a new product? If you don’t have the necessary skills and/or experience on your staff, you’ll need to go outside your company.

ApplicantStack For Internal Recruitment

ApplicantStack applicant tracking software simplifies external and internal recruiting. Track applicants, write screening questionnaires, share feedback, and create structured interviews. Try ApplicantStack for free today.