Despite the many benefits of internal recruitment, it is not always an easy process. In fact, one third of all internal recruitments fail. A failed internal recruitment results in not just one, but sometimes two recruitments as the employee who has been given a new position is unlikely to return to their previous role. A common cause of failed internal recruitments is the lack of a clear requirements profile. Trusting that it will work and already knowing each other can be reasons for these failures. Many of these problems could be avoided with a clear requirements profile and the use of assessment tools, such as a ‘Second Opinion,’ to ensure that the right candidate is selected for the new role. A requirements profile and an objective assessment are as important in internal recruitment as in external recruitment, perhaps even more so.
Advantages of internal recruitment
One of the benefits of internal recruitment is the shorter training period, as the candidate is already familiar with the company’s systems, processes and culture from the start. Statistics also show that, on average, employees stay 41% longer in companies with a high rate of internal recruitment compared to those with a low rate. Why is this? Most likely because these companies value the development of their employees and many employees don’t need to change companies to continue their career development. 73% believe that internal recruitment is important for their company, yet 65% believe they need to improve their internal recruitment process(LinkedIn).
In the LinkedIn survey, they discuss why more people want to recruit internally but don’t, and it comes down to managers not wanting to lose their staff/top performers or feeling that there are not enough qualified candidates internally.
5 tips for internal recruitment
1. create a formal internal recruitment process. A formal and structured process increases the likelihood of a successful internal recruitment.
2. Use an external party for a “Second Opinion” of your final candidates in the internal recruitment process.
3. proactively discuss with your employees about their career goals and development opportunities. Do they want to develop in their current roles or do they aspire to take on new challenges?
4. carry out a skills mapping exercise. Ensure that there is close cooperation between recruiters and the staff development team to identify existing competences and those required for the future.
5. Give every internal candidate a positive experience, even if they are not right for the job. This contributes to a stronger employer brand and a positive reputation.
The pitfalls of internal recruitment
One pitfall we often see is that in internal recruitments, the most suitable candidate does not always get the job. Many internal recruitments go well, but over the years we have noticed a risk pattern in internal recruitments. When a specialist moves to a new specialist role, internal recruitments usually go better than when a specialist moves to a managerial role. The same applies to a manager who is given a higher management role or more strategic responsibility than before. In internal recruitments with a change in scope of responsibility and strategic responsibility, we experience a greater degree of failure. It is therefore important to review the competencies and personality traits of the person in the new role to ensure that the employee is given the right opportunity to succeed in the role.
Harvard Business Review published a study of 11,000 internal recruitments and found that when candidates are found through an informal relationship-based reference, the likelihood of the candidate underperforming is higher. This is where the internal recruitment process needs to be reviewed. Perhaps it is time to conduct a skills mapping, cross-functional projects and to internally develop their staff to bridge the skills gaps that exist. There is no one-size-fits-all solution, but sometimes it can be worth bringing in an external party to provide support to reduce the risk of becoming “home-blind”
Internal candidate didn’t get the job – what do I do as a manager?
In many of the recruitments we work with, we see that the client has internal candidates. It is extra important to capture these candidates after a completed process where they did not get the role through an honest and developing feedback, preferably linked to a development plan or coaching. In these situations, we work with the Be the best version of you™ tool and sometimes also managerial coaching to give your internal candidates the opportunities for further development.
If you need help in your processes, we are of course here for you. Just like in a regular recruitment process, we can help you with a requirements profile, find candidates – both internally and externally – and help you in the step of choosing the right candidate. Unik’s vision is Always better and of course you are warmly welcome to contact us for an unconditional conversation about how we can help you.
Good luck with your next internal recruitment!
