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Recruiting | 6Min Read

10 Vital Advantages of Internal Recruiting

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When it comes to recruiting, the first thing that comes to your mind is traditional recruitment, where you hire someone from the outside. But hiring comes with many expenses. Who knows, you can even end up with an unfit employee. If so, it would become a vicious cycle with costs. To avoid bad outcomes of traditional recruiting, you can adopt internal recruitment that offers more advantages than cons. In this blog, we will mention 10 of the most vital factors of internal recruiting that will give you better recruiting options. If you are ready, let us dive in.

What is Internal Recruiting?

Before listing the advantages of internal recruiting, let us clarify what internal recruiting is. Internal recruiting means hiring from within the organization. It revolves around promotions, turning part-time or contract-based employees into full-time and permanent employees, and hiring ex-employees for a position. It is linked to internal employees by any means. Consideration of employee referrals also counts as internal recruiting because you never really go out to find your employees.

10 Vital Advantages of Internal Recruiting

There are many pros of internal recruiting that might help minimize the risks related to recruitment and hiring. Yes, it has many cons attached, but let us leave the details for some other day and focus on the benefits.

Reduces risk of bad hiring

Reduces risk of bad hiring

Bad hiring can cost your organization a fortune ranging from $17,000-$240,000 per year. So, when you invest so much time and money into your recruitment and hiring processes, you know you are stuck with your employee for a long time to at least recover a portion of those costs. Internal recruiting can save you for at least you know your candidate from before. You know how hardworking they are if they can handle the pressure of the new position. Trusting someone you know is better than trusting a stranger.

Boost employee morale

When you consider assigning the existing employees heavier duties, it will boost their morale after finding your faith in them. They will feel responsible. Hence, the chances of higher productivity are greater. They will also try to uplift their juniors with the same energy you give them. Internal recruiting will eventually help build a stronger rapport among employees that would count towards the long-term benefits of your organization.

Give growth opportunities to employees

Employees have different priorities that push them to accept or reject a job. When your organization provides growth opportunities, many suitable candidates stick to you for a long time. It will reduce your turnover rates and add to increased efforts by your employees in the hope of promotions.

Provide job security to your employees

Provide job security to your employees

In a 2022 survey, 27% of Americans reported fear and stress about job security. When you carry out internal recruitment, this will help reduce the stress of losing a job. Instead, employees will feel more secure with internal recruiting because they would know their employer would not only provide job security but will also retain them through new hiring opportunities.

Reduced time to hiring

If you have an energetic and well-functioning workforce, you already have a vast pool of talents from which you can hire. You will not have to invest time monitoring the recruiting steps such as background checks, interviews, and other time-consuming hurdles. You can always track the employees you feel may give higher returns if given better opportunities. Giving chances to employees you are sure about can reduce your time-to-hire.

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Reduced cost of hiring

Time is a cost you can save by internal recruitment. In addition, other monetary costs also come with recruitment that you can save. These include paying recruiting agencies, conducting interviews, forming tests, buying recruiting software, paying for ads, and much more. If you have an employee who you are sure will be a job fit, you need to onboard them, train them, and wait for positive returns. They won't let you down to continue being in your good books.

Talented ex-employees can serve you again

For any reason or a better opportunity, if your current employees leave today, your internal recruiting can bring them back in the future. For example, if your employee has gained enough experience to become a manager but, you do not have any vacancies for that job, they might turn to another organization. But, once you have an open position, you can bring them back by internal recruiting. Internal recruiting will help you retain your talented employees for a long time.

Greater cultural compatibility

An existing employee serving for quite some time can be a great cultural fit if they perform well on the job. Sometimes, external hiring of a top-notch employee can be a failure just because the employee is not able to adjust to the organization. It is reported that 73% of employees left their jobs because they disliked their company's culture. Imagine hiring with so much effort, and in the end, your employee resigns because of your company's culture. To avoid this problem, it is better to consider someone who is already a part of the culture.

Company culture

Training ease

Training an internal employee is comparatively easy and more cost-effective than training someone new. There will be many steps in the training process that can be skipped by carrying out internal recruiting, such as teaching them to use employee portals or basic software. Moreover, steps like orientation or introduction to the office or employees are all ignored in internal recruiting, which reduces HR's responsibilities.

Attracting more talents outside

When you are famous for giving opportunities to your existing employees, more talented candidates would want to be a part of your organization. This will never leave you short of professionals and talented candidates. Moreover, it becomes your recognition in the form of employer branding when you are famous for internal recruiting.


Internal recruiting has cons like having limited talents from outside or comfort in relying on existing employees. But, it depends on you which pros or cons matter to you the most based on which you can make informed decisions.

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