Whether to hire internally or externally is often a debate among hiring managers and human resources professionals. While almost every company adopts a hybrid strategy in the end, it can be hard to determine if internal candidates should be given preference over those coming from outside the company.
Before making a decision, it is important to understand there are benefits of internal hiring that go well beyond simply providing an employee with a promotion. To help highlight these unique positives, here is an overview of some of the most notable advantages of internal hiring.
An internal hire is already aware of many business processes and cultural norms. Additionally, they are familiar with some of the people they will work with as well as the locations of specific resources. In cases where finding a candidate who can hit the ground running, choosing an internal candidate allows you to bypass much of the onboarding process required for an external hire. So, in cases where expediency is a priority, an internal hire can be an ideal choice.
When employees know there is room for advancement, it can often build excitement among workers looking to move forward in their career. It also shows upper management rewards employees who put in the work and become valuable resources to the company.
In fact, successful internal promotional placements can lead to a series of promotions from within. As each vacancy is filled with another current employee, it can motivate those assuming new positions to give the work their all while also encouraging other workers by demonstrating the potential for upward mobility.
No Surprise Issues
When vetting external candidates, you often cannot find out every detail you would like to know regarding their prior performances. This means there is a chance of a surprise issue presenting itself simply because you couldn’t be fully informed.
Internal candidates do not present a wild card to the company. Their previous performance is known and documented, so questions about key decision points like attendance and the ability to meet deadlines aren’t question marks that require you to take someone else’s word on. Instead, your company knows exactly what you are getting, making the decision feel more secure than an external hiring.
Hiring internally can also be more cost-effective than external hiring. And the savings is even higher when a position is only opened to internal candidates. First, no money is spent on external advertising of the job. It can also limit the number of applications that need to be reviewed, which can save the hiring manager or human resources a significant amount of time.
Second, many internal candidates aren’t necessarily looking for new opportunities outside of the company. This means the likelihood that they are entertaining other offers is general low, limiting the chance of a bidding war over salary offerings. As long as the new salary is generally competitive, the employee may be less inclined to fight for more.
Are you looking to fill open positions?
This also means external hiring can be focused on entry-level positions, which are often less expensive to fill. Additionally, you can streamline these hires by working with a skilled recruitment firm like TRC Staffing Services to help lower costs even further. If you are looking to fill a vacancy with an external candidate, contact us and speak with one of our staffing professionals today.