6 Key Benefits of Internal Recruiting

by | Jun 3, 2020 | Human Resources

internal recruiting software Wausau

What is internal recruiting?

Internal recruiting is the process of identifying and attracting current team members to accept another position within your business.

When it comes to talent sourcing, many businesses don’t take advantage of internal recruiting. 

This is strange, because everyone is concerned about employee retention.

Internal recruiting improves retention.

6 Types of Internal Recruiting

  1. Promotion: When a staff member is promoted to a higher level position.
  2. Location transfer: When an employee relocates to another office or sales territory.
  3. Inter-departmental transfer: When a worker switches to a similar level position within their department.
  4. Temporary-to-permanent: When an intern, temp, or part-time staff member transitions to a full-time, permanent position.
  5. Contractor-to-employee: When a 1099 independent contractor becomes an in-house W2 employee.
  6. Boomerang employees: Retired employees who return to work, often part-time or as a contractor.

Employee Referrals

When existing staff members recommend outside applicants, it can be extremely effective. One important difference is that it doesn’t leave a position vacated. Current team members understand your company culture. They are in a position to know if a referral would also flourish there.

What Are The Benefits Of Internal Recruiting?

1. Monetary savings

  • Recruiting
  • Onboarding
  • Training

2. Reduced hiring risk

Internal employees already fit in with the company culture. They have developed relationships. This makes them less likely to quit the new position.

3. Career development opportunities

Most staff members want to advance in their career. A common reason employees quit is because of a lack of career paths.

4. Shorter time to hire

Internal recruits don’t necessitate onboarding. They may require less training. Plus, they often accept a job offer more quickly than an outside candidate.

5. Employee engagement and productivity

Companies that promote from within have more engaged and productive employees. Employees who are invested serve your customers better. A belief in your company’s mission can be more important than benefits and perks.

6. Increased employee retention

Internal recruits will stay with your organization longer. Presumably, they already enjoy working there. If they accept a promotion or transfer, they are likely planning to stay a while. 

How to Create an Effective Internal Recruiting Policy

1. Create rules

  • Are all employees allowed to apply?
  • Is there a minimum tenure for eligibility?
  • Can managers invite employees from other departments to apply for positions on their team?
  • Do workers need permission from managers to apply?
  • Who needs to be involved in the decision-making process?
  • Should you use an outside hiring team to screen and analyze candidates to mitigate potential biases?

2. Formalize internal job postings

  • Give non-selected job candidates feedback to help them for future efforts
  • Screen internal employees carefully

When Not to Use Internal Recruiting

Do you need fresh ideas? If there is stagnation, an internal recruit may not be the best suited person for the job. Do you need to improve diversity? Internal recruiting will possibly reinforce the status quo.

ApplicantStack Manages Internal Recruiting

ApplicantStack applicant tracking system from Payroll Solutions  can help you manage internal recruiting as well as traditional recruiting. ApplicantStack is the hiring solution in WorkforceHUB. It helps you hire quality employees faster and keep them longer.

 

 

Contact Payroll Solutions for information regarding WorkforceHUB™UPGRADE TODAY

Payroll Solutions offers WorkforceHUB, the Human Resources Management System (HRMS) that makes it easy to optimize the performance of your supervisors, employees, and business processes.

WorkforceHUB includes TimeWorksPlus, TimeSimplicity, TimeWorks Mobile, and ApplicantStack. We’ve just added applicant tracking, onboarding, benefits enrollment, performance reviews, and employee engagement! WorkforceHUB was developed for busy employers like you who need to reduce cost-per-hire, streamline scheduling, automate time tracking, maintain regulatory compliance, and shrink labor costs.

How much can you save? Check our Payroll Solutions ROI Calculator.

We can get you up and running with WorkforceHUB immediately. Contact us today to set up a demo.

ArticleID 8227