The labor market is tight these days. If you’re going through some sourcing woes, one solution for filling your open positions may be right in front of you. Instead of casting a wider net, consider hiring from within your organization. Internal recruiting can be an excellent way to fill positions with tried-and-true candidates.
But promoting from within does more than just fill your current requisitions. The benefits of internal recruiting can have a lasting positive impact on your company and workforce. Internal recruitment takes some of the guesswork out of traditional external hiring efforts. Let’s explore the benefits of adding an internal mobility program to your overall hiring strategy.
Internal hiring cuts down on recruiting costs.
The cost to hire and onboard an external candidate dwarfs an internal hire. On average, it costs twice as much to hire an external candidate compared to an internal one.
When you’re trying to connect with candidates outside your company, you have to pay to post an ad on a job board and pay for background checks. Add to your tab the labor cost of managers reviewing and interviewing potential new hires. These costs add up. The average candidate costs over $4,000 to hire. Internal hires on the other hand? You can notify your internal candidate pool for free via the company email. These hires also don’t require a background check since one was already completed when they were first hired. And since they’ve already completed basic training with your company, they only need training for new job-relevant skills.
Plus, internal hires are more likely to feel comfortable in their new role, resulting in longer tenure and lessened concerns for you about having to find a replacement in the near future. In fact employees stay 41% longer at companies with an internal mobility program compared to those who don’t prioritize promoting current employees.
Internal recruiting takes less time to hire and onboard.
Typically, it takes 42 days to hire an outside candidate. When you hire from within, you’re able to save time by connecting directly with people you know would be a good fit – both for the role and your company. Instead of wading through hundreds of applications, you’re likely only reviewing a few dozen candidates.
And once you’ve found the right employee to fill the position, they get up to speed much faster. Compare this to external hires: it can take up to 8 months for a new hire to become truly productive in their role. Your current employees are already familiar with your company, your product, and key company initiatives. Internal hires are able to get into the swing of things significantly faster than their external counter parts. It’s likely they already know some of their new coworkers and key players in other departments, improving communication and collaboration both within and between departments.
Promoting from within boosts employee morale, loyalty, and engagement.
When your workers feel they have a clear path to success, the see your company as a way to advance their career. Internal recruiting rewards high performers and encourages others to meet (and even exceed) their targets. Hiring from within signals to your employees that you value them and want to invest in their futures.
By promoting your employees, you create a clear path for career advancement. Workers are often hungry for opportunity – they are eager to learn and expand their skillset. And when they can’t find it at your company, they’ll look for it elsewhere: 23% of new hires quit before reaching their first anniversary. No one wants to be stuck in a dead-end job, and lack career advancement is one of the top reasons employees quit. In a recent survey, 82% of people reported that they would leave their job due to a lack of professional progression. That’s one of the key benefits of internal recruiting: you’ll increase company loyalty and reduce turnover.
When workers know they will be rewarded for their efforts – both with a better title and a pay bump – they are more likely to bring their A game. And an engaged workforce is worth its weight in gold. Employers with strong employee engagement generate 20% more in revenue than companies with a unmotivated workforce.
As a result of internal recruitment efforts, your employees will stay longer, work harder, and tend to be happier overall, creating a positive culture and improved bottom line for your business.
Sometimes the best person for the job is already on your team.
When looking to fill a new role, look internally before exploring external options. We've discussed the benefits of internal recruiting - now it's up to you to reap them! When you have a new position opening up, send out a company-wide email about the opening and encourage employees to apply. Talk to your management team. Which of their reports they believe would do well in the role? Managers can connect with these employees in one-on-one meetings to let them know about the opening and gauge their interest.
While not all your hires can happen from within, internal recruiting is a strong component of any robust hiring strategy. Considering your current employees for new positions helps you to cultivate a culture of success that will serve you well in the long run.