Sometimes, you don’t have to look far to find what you’re seeking. This could be one of the premises of internal recruitment when searching for candidates for a job position: the selection is made from the existing pool of employees within the company (or related).

In this article, we will explain in detail what internal recruitment is, how it works, and what its advantages and disadvantages are for companies. Are you interested in implementing it? We will also provide guidance on how to proceed

What is Internal Recruitment?

Internal recruitment refers to the process of sourcing candidates from within the organization itself. It involves considering existing employees as potential candidates for new job positions within the company, making the internal workforce the primary source of recruitment.

There are several advantages associated with internal recruitment, which we will explore further, such as cost savings and a quicker adaptation to the new role. However, it is important to approach internal recruitment with caution, as it may not always be the best option, and we will discuss this in detail in this article.

Differences between Internal and External Recruitment

The main difference between internal and external recruitment lies in the source of talent. External recruitment looks outside the organization to find suitable candidates, while internal recruitment focuses on identifying and selecting candidates from within the existing workforce.

In addition to this fundamental difference, here are some additional distinctions: internal recruitment requires fewer financial resources and less time investment; internal hiring managers are already familiar with the employees and vice versa; it can serve as a tool for recognition and employee development, among other benefits.

Methods and Types of Internal Recruitment

There are different methods and types of internal recruitment, each with its own advantages. Here are some examples:

• Horizontal Promotion: This occurs when an employee changes positions or functions within a company without a vertical promotion. It usually happens due to new organizational needs or at the explicit request of an employee to be transferred.
• Internal Promotion (Vertical): In this case, an employee is promoted to a higher position with increased responsibilities and hierarchy. This option is beneficial when recognizing performance and providing growth and development opportunities.
• Reassignment or Reorganization: Talent is relocated, typically when there is a need to restructure teams. This involves moving employees from one role to another as part of the overall restructuring process.
• Career Development: This involves creating opportunities for employees to develop their skills through training programs and assume new responsibilities within the organization.
• Change in Responsibilities: When an employee demonstrates skills and willingness to take on new responsibilities or a different role, they are given additional functions without necessarily changing their position.

Sources of Internal Recruitment

Internal recruitment can draw from various sources, such as:

• Existing talent pool within the company: Selecting a person who was previously a candidate, demonstrated interest in working for the company, and preferably for the vacant position.
• Union Relationships: Utilizing union connections to promote the vacant position. Involving union representatives can be an effective way to recruit internally.
• Referrals: In this case, although the person may come from outside the organization, it is someone within the company who recommends a person from their network for the vacant position.
• Rehiring Former Employees: As the name suggests, rehiring former employees who return to the company.
• Interns: Interns can be a good source of potential recruitment, as they have already been working in the company and are familiar with the organization.

Tools for Internal Recruitment

Here are some of the main tools used for internal recruitment:

• Intranet: Utilizing the organization’s private internal network to share information and resources among employees. This can be done through documents, policies, news, employee directories, calendars, and collaboration tools, for example.
• Email: Communicating with employees via email about the selection process and informing them of the necessary requirements to fill the position.
• Instant Messaging: Applications like Microsoft Teams, Google Chat, and Slack offer real-time communication channels that facilitate quick and efficient collaboration and exchange of information. Resources Management Software (HRMS): Certain human resources management systems offer internal communication modules that facilitate sharing news, updates, and events with employees, for example.
• Internal Newsletters and Magazines: Periodic print or electronic publications can be distributed internally within the organization to keep employees informed about available job positions within the company and other relevant topics.

Advantages of Internal Recruitment

There are many advantages associated with internal recruitment, and we have already mentioned several. Here are some of the main advantages:

• Cost savings: Compared to external recruitment, internal recruitment is more cost-effective as it avoids the expenses of advertising, hiring recruitment agencies or headhunters, and conducting lengthy selection processes, for example.
• Improved employee engagement and performance: Internal recruitment makes employees feel valued and motivated, as they see the possibility of growth within the same company. This positively affects their commitment and performance.
• Talent retention: Retaining talented employees is highly valued. When employees perceive professional growth opportunities within the organization, they are more likely to stay and explore new experiences. This increases retention rates.
• Employer branding: Linked to the previous point, internal talent is retained, and employees become more receptive. They may be willing to share their positive experiences and feel valued by the company. This, in turn, attracts potential external candidates.
• Reduced time investment: When an employee is recruited internally, time is saved because these employees have an advantage. They are already familiar with the company’s work methods and will quickly adapt to the new position. Additionally, onboarding and training times for employees are reduced.

Disadvantages of Internal Recruitment

Here are the main disadvantages of internal recruitment:

• Limited perspectives: While internal recruitment allows for faster and easier access to potential candidates, it can also limit the organization’s exposure to new and diverse candidates who can bring fresh ideas and approaches.
• Stagnation of organizational culture: One of the risks of internal recruitment is that it can perpetuate the existing organizational culture by not bringing in new influences.
• Limitation of skills and experience: There may be limitations in terms of the skills and experience available compared to when recruiting externally.
• Possible lack of impartiality in the selection process: Biases and personal relationships may come into play when making decisions about who fills a new position.

How is Internal Recruitment Conducted?

To carry out effective internal recruitment, the following techniques are proposed:

• Clear and concise announcements: Communication is crucial, especially when announcing internal movements within the company, to avoid confusion and foster a positive work environment.
• Personnel changes within departments: It may be necessary to make changes within departments or teams to refresh the workforce or address internal issues.
• Promote the desired profile: It is important to clearly communicate the type of professional the organization is seeking and the required qualifications to employees.

Afterward, candidates are selected through interviews, assessments, and other tools, which are typically fewer compared to the selection process for an external candidate who is unfamiliar to the organization.

Examples of Internal Recruitment

When considering examples of internal recruitment, we can mention the following scenarios:

1. Promotion within the same department: An employee who has demonstrated exceptional skills and capabilities in a specific area is promoted to a managerial position within that department.
2. Internal job application: An employee applies for a different position or role within the organization to expand their knowledge and skills.
3. Rehiring former employees: An employee who previously left the organization is rehired due to their past experience and track record, bringing valuable insights and familiarity with the company.

If you find this approach interesting and are considering implementing an internal recruitment plan for your company or organization, Kilpatrick has experts who can assist you in achieving success.