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Internal Recruitment, the advantages and disadvantages of going it alone

Published: 29 November 2021

Author: Jenny Finch

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When a new vacancy arises, it can be difficult to know where to start. Not only is trying to find the best person possible for a role a daunting task, it is also costly, stressful and requires a lot of time. Certainly, it can leave many Rec2Rec hiring manager’s questioning, is it really necessary to go external? I already have a great team of staff that I am looking to progress. Furthermore, as a recruiter, I should be able to recruit for this role myself, right?

Employee Familiarity: Too Familiar To Promote? 

Without a doubt, promoting employees who already know how your business operates and fit into your company culture, whilst being a proven force within your business can be a great option.

Indeed, internal recruitment can provide a good opportunity to nurture talent from within and help them develop. As a result, you may see an increase in your staff member’s morale, making them even more effective within your business.

However, it is important to note that doing most of your hiring from inside your business may result in a stagnant culture. This is because employees can get too comfortable. Members of staff may become accepting of the ‘way things are done’ and struggle to spot inefficiencies, rarely experimenting with new ways of working. 

Why is this an issue? Well, an inflexible culture can be particularly problematic in leadership positions where employees may need to advocate for change, improve company policies, and provide innovative strategies to excel in an ever-changing marketplace - instead of relying on established, inefficient practices. For this reason, external hires are essential in shaking up office culture and offering a fresh perspective on existing problems. 

Certainly. bringing in external candidates can stimulate your culture, ensuring your employees meet new people, collaborating and bringing exciting new ideas to the table. Indeed, by only hiring internally, you may block employees from such opportunities. 

Can Internal Recruitment Improve Employee Engagement Or Cause Conflict?

Sure, by promoting from within, it can strengthen your company culture. Indeed, it shows you value your workforce and there may be opportunities for career progression.

However, for your employees who were unsuccessful when applying to a new role, it can create bitterness. So to maintain harmony, you may want to hire someone new. 

Employees who were considered for a role could feel resentful if a colleague or external candidate is eventually hired. Also, managers are often uncomfortable losing good team members and may even go so far as to hinder the transfer or promotion process.

Limited Candidate Pools Vs Lower onboarding times

Moreover, by choosing to hire internally, you may also seriously limit your business. If there are only a handful of candidates to choose from—and their experience isn’t quite what you want—that’s not the best option. As a result, this may cause further conflict between employees. Staff members may feel that the promotion is unfair if the chosen colleague does not possess required knowledge/skills. 

Additionally, you may excel current workforce gaps in your organisation. Recruiting from within creates another vacancy which needs to be filled. Currently, the aftermath of COVID-19 has created a surge in the demand for recruiters which may make recruiting timely and expensive. For example, promoting a senior consultant into a HR partner role leaves a huge gap to fill.

It is, however, worth considering how expensive the replacement of your promotional hire may be.

If you’re looking to promote from a junior role within the same team, internal recruitment could be the right fit for you. Particularly as employees will already know the content and context of their new roles. For example, a resourcer becoming a principal recruitment consultant. 

Moreover, due to employee familiarity, employees know your business. Therefore, the need for induction days and training may be greatly reduced. Established employees know how your company operates alongside most of your key policies and procedures.

However, even when replacing a junior role -this may still be difficult, time consuming and costly in our current climate. 

Amy Schultz, the global head of talent acquisition for the Australian software maker Canva, wrote in a recent post: “As of right now, there are 364,970 ‘Recruiter’ jobs advertised on LinkedIn worldwide. For comparison, there are 342,586 ‘Software Engineer’ roles open on LinkedIn worldwide.”

The Benefits of Hiring Externally: Something to Consider

Outside people bring in new ideas whilst internal recruitment may cause resentment amongst candidates not appointed. Through hiring externally you can enjoy:

  • A Larger pool of workers from which to find the best candidate
  • Talent with a wider range of experience
  • A fresh perspective
  • Saves you time and therefore, money

At Raymond George Consultancy, we pride ourselves on our ability to deliver. Our holistic approach means that we get to know you and your business. As a result of this, we can provide you with candidates who will make the greatest impact on your business, whilst slotting into your company culture perfectly. 

Intrigued to find out more? Speak to a member of our expert team today!

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