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By: Krystal Freeman on April 17th, 2015

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5 Benefits of Recruiting Internally Vs. Externally

Employee Relations | Talent Acquisition

As the hiring manager, there are a few candidates within your organization that would be a great fit for your vacancy. Recruiting internally can be advantageous for you as a hiring manager, and should be considered a best practice for your organization.  Let’s take a little time to review the benefits of recruiting for a position internally versus externally.

Top 5 Benefits of Recruiting Internally

  1. Increase Employee Morale: Employees want to see that their company values them and have provided opportunities for forward progression. In addition, employees feel they are a part of the company and not just a “worker bee”.  They will want to bring new and innovative ideas to the table. Last but not least, employees with a high morale will not only increase their productivity and efficiency but could potentially increase their tenure.
  2. Utilizing Institutional Knowledge: Promoting or offering an employee a new position within the organization is an opportunity to sustain and build upon institutional knowledge. Additionally, the employee feels rewarded for the “hard work” they have put into the company, are now feeling empowered having gained additional responsibility, and have an opportunity to grow professionally.
  3. The Cost is Cheaper: Recruiting for a position internally can be cheaper than doing so externally. Many times it’s just a click of a button, sending mass e-mails to the organization, or communication through word of mouth. Word of mouth can be managers speaking to employees about the vacancy during team meeting as well as through general team communications. Lastly, you can post the vacancy announcement in communal areas, break rooms, a kitchen, and/or a company intranet. These activities mean that your time-to-fill will most likely be lower than going outside of your organization.
  4. Specialization: If your organization is one that operates in a more of a specialized field looking inside your organization could be your best option. Recruiting externally could prove to be more difficult if the knowledge and experience needed to perform the job function is organizationally based.
  5. Increase in Brand Awareness: Guess what?  Recruiting internally can increase your brand awareness. Employees will definitely tell those in their network about the good things your organization is doing for them. This, in turn, will help any external recruiting efforts.

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5 Benefits of Recruiting Internally Vs. ExternallyAs you go through the hiring process, consult your HR department about your organization’s formal internal recruitment process. Many times an HR department’s formal process for internal recruitment will include the posting of a position internally, a review of resumes, receiving approval from an employee’s department manager to apply for a new position, and recommendations from an employee’s current manager.  A formal process will ensure your recruitment is fair and objective while utilizing each of the above-mentioned benefits. If your organization does not have an internal recruitment process, speak with your HR representative about establishing one. As a recruiting consultant, my recommendation is to always look within first before going outside of your organization, but sometimes there just isn't a perfect match, and if that's the case, give me a call and we'll help you find your next great fit!


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