We often talk about external hiring, but internal recruitment deserves a mention, too.
The first is a process looking on the inside of the organization to fill roles, reshuffle teams, or change departments; a process centered around internal Candidate Experience.

There are four types of internal recruitment:
– Promotions;
– Transfers;
– Temporary to permanent;
– Employee referrals.

Sometimes these processes happen based on the request of the employee or the management. On other occasions, it’s a streamlined process, just like external hiring. Recent research by LinkedIn found that over 70% of businesses now focus on internal hiring. 

Advantages Of Internal Recruitment 

Why should any company look into internal recruiting? Here are a few valid reasons.

Cost Savings

Hiring from the outside is more expensive when compared to hiring talent within the establishment. External hiring leads to costs such as posting, screening, onboarding, and training. The talent within the company is aware of the technology and processes of the business. 

Even if there’s a switch to a new system, there’s no need to go into the details of company culture, thus saving time and money.  According to Deloitte, this process can also ensure better growth for the establishment. 

On top of that, you don’t need the hiring manager or recruiter to post/advertise jobs and screen unqualified candidates.

Incentive for Employees 

Seeking a better role within the company is one of the most motivating factors for any employee. The motivation for internal promotions will boost morale and favor the employees who decide to upskill and put in their best effort for the business. 

Keep Turnover in Check 

A company that sees a frequent change in the workforce and a higher turnover rate is a red flag to the outside world. By moving people to better roles based on their skills and passion, you can ensure retention and employee satisfaction. 

How to Create Great Internal Candidate Experience

Here are some ways in which the company can provide valuable internal Candidate Experience. 

Establish a Process

You should implement a job board on the internal team just like you would for external hires. Having candidates reach out and show interest is the first sign of healthy recruitment. The second is to entice potential candidates to enroll in the program. 

Adopt certain strategies to keep this as clear and transparent as possible. For example, an Application Tracking System will streamline the process for both internal and external recruits. ATSs also provide add-on features like employee referrals, certificate additions, and more. 

Set up a team, and let people in charge of hiring take the lead.

Define Goals 

Establish that there is a career ladder that employees can use to rise through the ranks. This will keep the process neutral and impartial. It also helps to keep certain evaluation parameters public. 

Making the internal Candidate Experience positive requires a defined screening process. Goal-setting will also ensure that only those interested in the posting will apply or work toward it. Unsuitable promotions or reallocations can be very damaging for organizations.

Do Not Ignore Feedback

The rejection from an application can hurt the team more when it’s internal recruitment. You will need to establish a very discrete and mindful feedback loop. All those who face rejection must feel motivated to return to the workplace without malice or demotivation. 

Companies cannot send out generic rejection emails. The news should be backed with exact reasons, provide direction to achieve the goal the following time, and advise future prospects. 

One can also suggest other roles that might fit these candidates’ skillsets the best. 

Challenges to Internal Recruitment 

Before we reach the end, we must mention the challenges of internal recruitment: 

Lack of Fresh Perspectives 

One of the advantages of adding people to a team is the fresh perspective they bring to the table. However, this is not necessarily true in the case of internal recruitment, especially when it comes to vertical career moves.

Need For Resources 

More than one person is invoked when defining a process that ensures a positive internal Candidate Experience. This requires extensive planning, human resources, and dedicated systems in place, which many companies lack. 

Internal Conflict 

If done carelessly or without planning, internal recruitment could lead to uncomfortable tensions within the organization. Human emotions can be volatile, and when rejection seems unfair, it can cause workplace jealousy. 

Replacing Roles 

When a person moves within the company, it also opens up a new role that needs to be filled. Finding new people to replace those prompted could again drain the resources of the business.

Companies should have other potential candidates in mind before depending on internal candidacies for recruitment. Sending someone back to their old position could bring the whole ship’s morale down. 

Finally, What is the Right Time? 

Lastly, you must understand that there is also a suitable time for this process. Here’s a handy checklist: 

  • You have a well-established system in place that manages promotions and role changes; 
  • You have talent in your funnel so as not to create a void in the workforce after internal recruitment takes place; 
  • You have a defined internal job board and application tracking process;
  • The whole management is on board with the idea of internal recruitment;
  • You are confident that it would not negatively impact the company’s morale.  


Internal Recruiting: What, Why, How, and When – Paycor

Internal Recruitment: What is it and how do you enable it in your organization? – TalentGuard

Why Companies Overlook Great Internal Candidates – HBR

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