What You Should Know About Internal Hiring

By Robert Half May 17, 2017 at 5:55pm

By gaining solid knowledge of the advantages and disadvantages of internal hiring, you can better understand when to look to your existing workforce to step into other roles at your company.

Having as much information as you can helps you use the right hiring strategy for any open position that comes up within your company. In today's hot job market, hiring challenges abound across many industries. That creates competition for the most skilled candidates, and with every new job created, the competition will increase.

The pluses of internal hiring

In some cases, hiring from within can be the best solution. Businesses that recruit from within their own employee ranks for promotions and lateral assignments help keep morale and motivation levels high. And, assuming that the internal hiring process is successful, you don't have to worry about staff members fitting into your corporate culture. They already know the territory.

Plus, the practice of internal recruiting can also be an attractive perk for external job candidates who want to work for an organization where they know they have a chance to advance or try on new roles.

Drawbacks to consider

Are there drawbacks to internal hiring? Some. The most obvious is that restricting a search to current employees limits the pool of available candidates, and organizations may end up hiring someone who's not up to the challenge of the job. Another drawback is that other important and valuable employees who don't get the job may become resentful and eventually decide to quit.

Robert Half has been doing the heavy lifting when it comes to hiring since 1948. Let us take on the time-consuming steps and the administrative details of bringing a new person on board.

Going in with your eyes open

Fortunately, defenses against the potential pitfalls of internal recruiting exist. Go out of your way to ensure that everyone understands the scope and basic duties of the job and the internal hiring criteria you're using. You also must make sure that, whatever system you use to alert employees to job opportunities in the company, everyone gets a fair shot at vying for them.

Strategize to keep your best employees

One of the most effective employee retention policies is to assure your staff members that they are being paid at or above market rates and have good benefits. They want to be treated fairly and know they are appreciated by their employer. They want to be challenged and excited by the job they're asked to do.

So if you plan to use internal hiring to fill your open positions, consider mentorship programs, recognition and rewards systems, work-life balance, training and development, communication and feedback, and good manager-employee relations.

Also be sure you offer attractive compensation packages. That includes bonuses, paid time off, health benefits, retirement plans and other perks — and salaries, of course.

Robert Half’s Salary Guides are the most respected source for starting salaries, insight into the latest benefits and perks, and hiring trends across a wide range of professional fields. You can see salary comparison analyses by city in each industry and get tips on how to negotiate salary.

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