Are you filling positions internally? Here are some things you should know before you get started

Since companies shifted from the traditional model to a hybrid model due to the pandemic, there has been an immense increase in employment opportunities. While this is great for professionals around the world, it is also causing companies to lose talent at an alarming rate. We call this “The Great Resignation,” and it is wreaking havoc on the business world like we have never seen before.

In order to curb the increasing fluctuation, companies are taking various measures, such as: B. revising their R&R methods, improving the employee experience , salary increases, etc. However, there is still a gap among those who have already left or are planning to leave soon because they are migrating too quickly.

Public advertisements to fill available positions certainly seem to be the way forward, but in a rapidly changing one Business environment this is very time consuming. This is where the concept - or should I say, a more practical solution - of hiring employees internally can be helpful.

If the term “internal hiring” sounds familiar, let’s take a look at what it means and how it evolved.

First, what is internal recruiting?

To put it simply, it is the internal one Recruitment a process whereby you prioritize your existing employees when filling a vacancy rather than recruiting new talent from outside the company.

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Instead of posting the vacancies in public forums, inform your teams within a department or across the company via internal communication channels/media. In this way, you save a lot of time, resources and the associated workload compared to external recruitment.

At the internal Recruitment It is not just about filling vacancies, but it can be divided into the following four categories.

1. Switching from temporary to permanent employment relationships
As the name suggests, the main goal here is to convert an existing employee's position from a temporary to a permanent position, just like promoting someone working as an intern to a full-time position in the relevant function/department.

2. Promotions
Another form of internal hiring or recruiting is promotion. Here, permanent employees are promoted from their current position to a higher position with additional responsibilities and better pay and other benefits.

Employees particularly look forward to this type of internal hiring process when their professional goals align with the company's motives.

3. Employee recommendations
In this internal recruiting model, suitable candidates for a specific position are recommended by existing employees. This model allows HR managers to leverage their internal employees' professional connections to find and hire the best candidates.

4. Transmission
In this model, existing employees are either transferred to another work location to perform a similar task or to another department within their current work location where they could be assigned a suitable task or a new task.

Why and when should you consider internal hiring?

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It certainly won't be wrong to say that the answer to this question is still a topic of debate for many HR and business leaders. Typically, companies tend to look for or recruit potential candidates from outside whenever a position is vacant.

This has numerous advantages, but I have a clear opinion on why you should also focus on hiring internal employees.

You will certainly find someone who is experienced in multiple disciplines and has the potential to bring new areas to the company. Ultimately, you should also make sure that your company sticks to the core goals that you and your existing employees have worked towards over the years.

At the same time, as a responsible company manager, you should offer your employees sufficient opportunities to develop and grow within the company.

The trust factor also comes into play. They will trust those who have proven themselves working for the company and have played a key role in its growth.

Now to the next part of the question: When should you consider internal hiring?

There are several cases in which an internal hire is the best option for filling a vacancy at your company Workplace could be.

Case 1 - If the position in question requires a high level of in-house knowledge.

Case 2 - If you have a tight budget for hiring and training new or experienced employees from outside the company.

Case 3 - The qualifications required for the position to be filled are already present in most of the existing workforce.

Case 4 - You already have enthusiastic talent in your workforce who are ready to fill the vacant position and demonstrate their skills again.

Case 5 - When filling the vacancy is the need of the hour and you don't have much time to look for external talent.

Now that you know when you should consider doing this, let's take a look at the best practices when it comes to internal Recruitment must be taken into account.

Best practices for internal recruiting

Hiring employees from within your own ranks can be difficult if not handled correctly. One wrong step can cause you to lose your best talents. That's why I want to list some of the best practices you can consider when planning internal hiring.

1. Create an appropriate SOP for internal hiring

Many Human resources manager make the mistake of giving a position to an employee of their choice or to someone recommended from above when hiring internally.

This is indeed a wrong step because it could lead to resentment among other employees and give a negative image of the company management. To avoid such situations, it is always better to form an internal hiring committee and make necessary rules.

You must also ensure that the policy created is well communicated within the workforce and that their concerns are taken into account when the policy is revised.

2. Define the hiring strategy in advance for everyone involved

If Human resources manager or company managers, you will always welcome new talent for the available positions. However, if people with appropriate qualifications for these positions are already in the workforce, you may need to decide who to give priority to.

You can choose to make the open position visible to both the public and internal interested parties. If this is a newly introduced position, it should primarily be for someone with experience or a newcomer from outside the company. You should clearly define how you want to proceed and take into account the different criteria for attracting, hiring and retaining the best talent.

3. Make it part of your employee L&D program

Employees and job seekers value companies that support their professional development and are always willing to give their best to achieve more.

Therefore, it would be better if you developed an internal succession policy that goes hand in hand with your L&D program. In this way, you can help your employees to continue their training while preparing them for future roles within the company.

4. Keep it transparent and fair

One of the core principles of a successful internal hiring process is ensuring that everyone is given a fair chance and that there are no hidden terms or conditions.

One way to achieve this is to establish a cross-departmental hiring committee made up of both employees and management. This will ensure that candidates are evaluated equally based on their talent, work experience, and willingness to take on the new role.

5. Encourage internal referrals from employees

Employee referrals are one of the most effective ways to find suitable candidates for available positions. This method is suitable for both internal and external hiring strategies.

If e.g. For example, if a position becomes available in a department, you can get recommendations from everyone working there as to who could be considered for the position. Likewise, you can ask managers to recommend the best candidate from their respective team, who can then participate in the selection process and apply for their next position.

Advantages of hiring internally

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1. Time saving

Selecting applicants from the workforce to fill a position can save you time compared to searching for external applicants. This is mainly because marketing the position and screening and onboarding external applicants are less time-consuming.

2. Helps retain experienced employees

As part of your retention strategies, internal hiring can help discourage experienced employees from leaving your company by offering them a new challenge that comes with better pay and benefits.

3. Maintains employee motivation

Employees find a reason to go the extra mile when they realize the future positions they can achieve while working for the company.

4. Can help reduce costs associated with training and hiring

Hiring employees from within your company helps you reduce training and hiring costs compared to external applicants. As in a previous study des Saratoga-Instituts mentioned, an external hire can cost 1.7 times more than an internal one.

Disadvantages of hiring internally

1. Impairing the influx of new talent

One of the biggest downsides to hiring from within is that it prevents new talent from entering the company, which is detrimental to the principles of diversity and inclusion that are currently at the forefront of the corporate world.

2. Reducing the chances of new ideas and perspectives

Because employees come from within the company, they may find it more difficult to come up with new ideas or see things from a different perspective than external applicants.

3. It could negatively impact workplace relationships

Suppose an employee on a team is promoted or moved to a role that puts them in a better position. In this case, it could trigger negative emotions among other team members, which would jeopardize their overall performance.

conclusion

This article is intended to give you an overview of the basic things you need to consider when making internal hires in your company.

While internal hiring has its advantages, you shouldn't ignore the disadvantages if it aligns with organizational needs. I would also advise you to start with a pilot project where you keep the position open to both external and internal applicants until you can get a clear picture of who is a better fit.