Internal recruitment (also called in-house hiring) is a process of identifying the vacant positions and filling those gaps by hiring employees from within the organization. It is a human resource strategy that helps to find out most suitable candidate to fill the job vacancies from inside the company. Internal recruiting includes transfers, promotions, referrals, previous applicants, contractor to full-time etc.
Advantages Of Internal Recruitment
The main advantages of internal hiring can be described as follows:
1. Saves Time And Effort
One of the most important benefit of internal recruiting is that it avoids rigorous process. Internal recruitment is quicker than external recruitment because it requires less time to find, evaluate and hire the suitable candidate for the vacant post. Therefore, it is time and effort saving process.
2. Cost Efficient Process
It does not consume more costs like in hiring from outside the organization. Internal recruiting eliminates hiring costs such as advertisement expenses, training costs and administrative costs. Therefore, this hiring strategy saves cost and resources.
3. Shorter Onboarding Time
Existing employees are familiar with the working environment and culture of the organization. So, internal hires can be adjusted quickly in the new position. So, it shortens the onboard time.
4. High Employee Morale
Another advantage of internal recruitment is that it increases the employee morale because it values their effort, performance and dedication. It helps to provide positive message and retain competent manpower in the workplace.
5. Good Labor Relation
As we know that internal recruitment provides opportunity for advancement, it helps to establish efficient relation between labors and management. So, it creates better working environment in the organization.
Disadvantages Of Internal Recruitment
The main demerits or disadvantages of internal recruitment can be highlighted as follows:
1. Limited Choice
One of the major drawbacks of internal recruitment is that it limits the pool of applicants. Organization may lose the chance to hire more competent and skilled manpower. By avoiding the arrival of fresh candidate from outside limits the diversity and promotes inflexible culture.
2. Possibility Of Internal Conflict
Internal recruitment may create jealousy among peers in the workplace. It may create conflict in the organization that may disturb the working environment.
3. Possibility Of Favorism
This hiring system may promote nepotism or favorism because managers may hire preferred ones rather than selecting competent and hardworking employees.
4. Not Suitable For Growing Companies
It is not suitable for rapidly growing companies because of insufficient internal candidates in the organization.
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Factors affecting recruitment process
5. Limits Innovation
As we know that internal hiring system creates stagnant culture, it lacks new ideas and talents. So, it limits innovation and improvement in the work.
Pros And Cons Of Internal Recruitment In Brief
Pros
* It is time, effort, cost and resources saving method
* It increases employee morale and engagement
* It shortens the learning curve
* It provides development opportunity
* It maintains good employee management relation
Cons
* It limits the pool of applicants
* It may create conflict among the employees
* Not suitable for growing companies
* It may promote favorism, bias, and nepotism
* It discourages innovation
