Why recruit internally?
Internal recruitment is an effective way to strengthen the company culture and leverage existing skills within the organization. It saves time and costs compared to external recruitment, as the candidate is already familiar with the company and its ways of working. In addition, internal recruitment can increase employee engagement and motivation, as it shows that there are opportunities for career development within the organization. It is also a chance to retain talent, create continuity and promote a strong employer brand.

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. Because the employee given a new position is unlikely to return to their previous role. A common reason for 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. For example, 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 recruitments as in external recruitments, maybe even more so.
Advantages of internal recruitment
One of the advantages of internal recruitment is the shorter training period. 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% consider internal recruitment 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 who want to recruit internally do not do so. It’s because managers don’t want to lose their staff/top performers. Or that they feel 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 progress in their current roles or do they aspire to take on new challenges?
4, Conduct a skills mapping exercise. Ensure that there is close collaboration between recruiters and the staff development team to identify existing competencies and those required for the future.
5, Give every internal candidate a positive experience, even if they are not right for the position. 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 relation to the new role. All 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 develop your staff internally to bridge the skills gaps that exist. There is no one-size-fits-all solution. Sometimes it can be worth bringing in an external party to provide support to reduce the risk of being “home blinded”
Internal candidate didn’t get the job – what do I do as a manager?
We see in many of the recruitments we work with 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 executive coaching. This is to provide your internal candidates with opportunities for further development.
Contact us if you need support in your internal recruitment.