5 Advantages of Internal Recruitment

January 4, 2022 / by Frederid Palacios

Over the past year, the business world has been experiencing a labor shortage, forcing companies to optimize their recruitment efforts in hopes of attracting top talent. While this is beneficial for prospective employees looking to be wooed, the recruitment process can be time-consuming, stressful, and expensive for employers. 

On top of that, there is no guarantee that employers will find the kind of talent they are seeking at the end of the recruitment process - particularly in the tech industry, where experts are in high demand. Fortunately, there may be a cost-effective and time-saving solution to this dilemma: internal recruitment. 

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Internal vs. External Recruitment


What comes to mind when you think of employee recruitment is typically external recruitment. This is where employers look outside of their organization to acquire new talent, which typically requires posting a job opportunity, vetting applicants, and setting up a series of interviews and background checks. External recruitment is the more traditional form of recruitment used by companies, but that does not necessarily mean it is the only means of doing so. 

Another option to external recruitment is that of internal recruitment. Rather than looking exclusively outside of your organization for new hires, companies can supplement their external recruitment efforts with internal recruitment as well. Internal recruitment takes a significant amount of guesswork out of the recruitment process as you already know all of the candidates. Internal recruitment is also significantly less expensive and time-consuming than external recruitment - saving you time and money while you find the right person for the job. 

Some companies are hesitant to hire from within as they feel that they are missing out on new talent, or they don’t want to replace the team member that was promoted. While these are valid concerns, companies do not need to exclusively hire internally or externally. Instead, companies can open up their recruitment efforts to both pools of talent, increasing their chance of acquiring top industry talent. That being said, internal recruitment is worth considering and can be highly advantageous for these five reasons. 


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Benefits of Recruiting From Within


1. Candidates are Easier to Find

Hiring outside your company can be quite challenging, particularly in the tech industry, where specific technical skills and experience are required. As these experts may be few and far between, it can be difficult to find talent and even harder to get them to apply. But, with internal recruitment, these problems vanish. 

As all potential candidates are currently working for your company, it is easy to find candidates that are qualified for the position at hand. Recruiters can simply advertise the position to the whole office in minutes, and interested employees can apply just as quickly. In almost no time, you will have a strong list of potential candidates. 


2. You Already Know the Applicants and Vice Versa

As you already know the applicants, and they know your company, it makes sorting through applications much easier. Candidates already know how your company runs and have decided that they are a good fit, and you already know what they are like as an employee. Consequently, recruiters will quickly have an idea of who is a good fit for the position, leading to the next benefit.  


3. Faster Hire Time

Hiring time is significantly reduced when you know the candidates, as candidates have already been background checked and vetted as a good fit for your company. Additionally, recruiters will already know if a candidate is suited to the specific role at hand based upon their preexisting time and role in the company. 

This also means that you will significantly reduce time in training and onboarding. Aside from a few role-specific trainings, the candidate you choose will have already undergone most, if not all, basic company onboarding. As a result, you can fill the position quicker and allow your internal hire to get to work almost immediately. 


4. Lower Cost to Hire

External recruitment is expensive. Not only do you have to get the word out that your company is hiring, but take the time to interview applicants, take on the cost of onboarding, and accept the risk of a bad hire. On the other hand, internal recruitment is a great cost-saver, as you don’t have to post or pay for ads on job boards, search for candidates, or pay for background checks. 

Furthermore, you significantly reduce the risk of a bad hire as you already know that this hire likes the company and is a good fit. With a lowered cost to hire, your company can focus funds more on business driving projects or more competitive pay for your workforce. 


5. Boost Loyalty and Engagement

Finally, in recruiting and hiring internally, you can significantly increase employee loyalty and engagement within your company. When you hire from within, you are essentially investing in your employees, and they recognize this. 

Hiring from within provides employees the encouragement and motivation to further their skills, whether that be earning more certifications, taking on more leadership, or performing better in their current roles. Not only does this allow employees to further themselves in their own professional careers, but it also helps your company as you have more knowledgeable and skilled employees.  


Finding the Right Talent: Internally and Externally


Internal recruitment can be highly beneficial for organizations struggling to hire externally or merely looking to optimize their recruitment efforts. By hiring from within, companies can encourage their preexisting workforce to develop their skills further, in addition to saving time and money during recruitment. 

That being said, it can be helpful to view internal recruitment as a supplement to external recruitment rather than an alternative. While hiring from within can motivate employees to become more qualified, sometimes the talent you need is not yet a part of your organization. If this is the case - outsource! In the tech industry, experience is a must, and this needs to be acquired externally if not available internally. 

For companies facing this problem yet still struggling to acquire talent outside of their company, outsourcing to a managed service provider (MSP) may be the solution you need. In partnering with an MSP, companies can supplement their internal team. This is highly advantageous if your internal team members are still gaining the experience or skills you need or focusing on more strategic projects to grow your business. 

In this case, MSPs can use their experience and skills to take over the projects that may be too cumbersome for your internal team members. As a result, you can quickly obtain the expertise you need while still developing and growing your internal workforce. With the right combination of hiring from within and outsourcing your workforce, your company can find the experts needed to drive your business forward.


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Tags: Recruitment

Frederid Palacios

Written by Frederid Palacios

Fred Palacios is a seasoned software architect with more than 20 years of experience participating in the entire software development cycle across a host of different industries--from automotive and services to petroleum, financial, and supply chain. In that time, his experience working closely with high-level stakeholders has provided him with a strategic vision for developing the right solutions to flexibly meet critical business needs. As CTO of Intertec, he's continuing to focus on the creation of business-critical applications for large enterprise projects, particularly those that handle high concurrency and large datasets. He is passionate about using technology as a tool to solve real-world problems and also mentoring technical teams to achieve their maximum potential and deliver quality software.

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