What are the types of internal recruitment?

1. Career Development
2. Internal Recruitment: Definition, Benefits and Tips

By Indeed Editorial Team

Published 16 August 2021

One common decision that recruitment managers make is whether to hire someone from outside the company or to recruit internally. Internal recruitment is a way for managers to fill open positions from within their organisation. Doing this has its pros and cons, so recruitment managers often consider the benefits and drawbacks of both hiring from within or onboarding an external candidate. In this article, we discuss what internal recruitment is, its pros and cons, and how the process works, with tips to help you decide if it's right for your company.

What is internal recruitment?

Internal recruitment is a human resource strategy that prioritises hiring current employees for new or open positions within the company. There are several types of internal recruitment:

• Promotions: Promotions are the most common internal recruitment method. If an employee is performing well and willing to take on more responsibility, you may give them a promotion after conducting an interview.

• Transfers: Transfers of employees from one department to another are also quite common. The job responsibilities don't change, but the employee moves to another department within the organisation.

• Confirmations: An employee on probation, an intern in a temporary position or even an independent contractor who becomes permanent are all examples of confirmation.

• Referrals: Referrals have become an essential part of the recruitment process. If an employee refers a viable candidate with the right qualifications for a particular job to hiring managers, it could help save lots of time and money during recruitment.

Related: How To Write an Internal Position Cover Letter (With Examples)

The pros of internal recruitment

Internal recruitment offers several major advantages, such as:

• Reduced hiring time: Companies can spend several days interviewing and conducting background checks. Internal recruitment can reduce hiring times and ensure that new employees are ready to take on responsibilities almost immediately.

• Reduced hiring expenditure: Companies spend a considerable amount of money during the hiring process. Recruiting internally reduces expenditure by a significant margin because companies can use internal resources, like community boards, to advertise new positions.

• Reduced onboarding times: When you recruit internally, the training period can be shorter than when you hire an employee for another position. Existing employees might already be familiar with company processes. They may start learning their position without having to learn about company culture, benefits and other common onboarding topics.

• Improved employee morale: Internal recruitment boosts morale because employees understand there are paths to progress internally. They might feel more passionate about their jobs.

The cons of internal recruitment

There are a few downsides to recruiting internally as well:

• Limited application pool: When you recruit internally, you reduce your application pool. Rather than exploring additional candidates from other companies or industries, you select from internal employees only.

• Gaps in existing departments: When you promote or transfer an employee from their department, you may have to hire a replacement. Be sure to have a plan to fill any open positions if an employee moves to a new role.

• Competition among colleagues: If many people want the same role, this can create competition or conflict between colleagues. Be sure to avoid favouritism and ensure a fair hiring process where you communicate frequently to all applicants.

How to recruit candidates internally

With internal recruitment, a company's recruiting managers and department managers work together to fill open positions with existing employees. Here are some steps you can take to start internally recruiting at your company:

1. Establish policies

The first step you can take is to establish some key policies for internal recruitment. Clear policies can ensure only qualified candidates apply for open positions and that they follow the appropriate protocol when applying for a transfer or promotion. For instance, you could create a policy that each internal applicant must seek approval from their supervisor before they can apply. Similarly, you could also establish a policy where an employee can't apply for a new position until they've spent at least two years in one position.

2. Avoid favouritism

It's important that all candidates feel like they can get the job. If you have one particular employee in mind, it's fine to interview and consider them as long as you provide the same treatment and review process for others. A process without favouritism can promote healthy competition among colleagues and encourage more people to apply.

3. Conduct multiple interviews

It's important to conduct multiple, competency-based interviews for applicants who best fit the job description. This can tell you about a candidate's prior experience, how they apply their skills and how they may handle certain scenarios. Multiple interviews can help you target the specific requirements for a position.

4. Be clear about the job requirements

One of the best ways to streamline the internal recruitment process is to make sure that you provide job requirements as clearly as possible. This way, only applicants who qualify for the role apply for it. This can save you a considerable amount of time and allow you to find the right candidates for the job. Include the education, skill and professional experience requirements you seek.

Related: How To Write a Job Description Template

5. Screen applicants carefully

Internal recruitment is a great way to screen applicants again and make sure that you find the right employee for the position. Review your interview notes, prior job performance data and any documentation. This can ensure you're hiring candidates who are dependable, hardworking and willing to adapt to the new role.

6. Simplify the application process

It's important to simplify the application process as much as possible so that anyone with the right skills can apply. The best way to do this is to use digital tools. Using HR management software or even creating a shared form is a great way to open up the position to many people. If your company has an integrated communication or collaboration platform, you can put up the job posting there. Ideally, internal systems can populate employee data to save candidates time when applying.

7. Encourage people to apply

Verbal encouragement can have a great effect on how many people apply for a role. If you know people who might be a good fit for the job position, encouraging them to apply can boost their confidence and inspire them to grow with a company. It's important to discuss their qualifications and why you think they're a good fit for a job. Consider an informal conversation where you can learn about their career goals and discuss the open position.

8. Be honest with candidates about rejection

When you reject candidates, give honest reasons you selected someone else. This encourages people to continue to apply for new or open positions within the organisation and can motivate them to improve. When you reject a potential applicant for the position and hire someone else, provide a clear reason for the rejection. For example, if you hire a sales manager because of their experience with large-scale presentations, encourage the other applicants to develop those skills.

Related: Retraining: What To Know When Broadening Your Skills

9. Keep it transparent

Make sure that the hiring process is transparent. People within the company will appreciate knowing what stage the hiring process has reached. It's important for you to provide regular updates to applicants and let them know when you decide. As you reduce the number of candidates, let each person know about their status to reduce anxiety.

10. Involve multiple stakeholders

It may be beneficial to get fresh perspectives from multiple stakeholders. This can include previous managers, colleagues or other references who can speak about the candidate's qualifications. Similarly, when you start the internal recruitment process, consider having a few people from their potential new team interview them. This can determine if their skills and qualifications are a good fit for both a manager's goals and the team culture.

Related: Character Reference: Definition, Examples and Writing Tips

11. Create an interview calendar

Scheduling interview times can be difficult for managers. Creating an interview calendar and sharing it with internal applicants allows each candidate the opportunity to schedule times during their slower periods. It's always better to discuss times with potential applicants and their current managers before you decide to schedule the interviews.

12. Announce the filled position

Once you hire for a position, you want to announce it to the company. You can either write a blog post, email or hold a meeting in order to let everyone know who got the job. It's important that you also celebrate the success of an internal applicant. It can be good for morale when you announce the position to the entire company and invite congratulations. If you already have an intranet system in place, you can use that to handle this type of communication. Employees can check your web portal for updates and share their congratulations publicly.