Recruiting | 8Min Read

Best 11 Guaranteed 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 that type of hiring comes with many expenses. 

Plus, there is no guarantee. Who knows, you can even end up with an unfit employee. 

If so, it would become a vicious cycle with high recruitment costs. 

To avoid the bad outcomes of traditional recruiting, HR and hiring managers have started adopting internal recruitment, which offers more advantages than cons.

Internal recruiting offers many strategic advantages for businesses that want to optimise their workforce. 

The internal hiring approach boosts employees’ morale by offering growth opportunities and enhances retention rates by valuing and developing current team members.

In this blog, we discuss the top 11 Guaranteed Advantages Of Internal Recruiting, which will give you better recruiting options.

So, are you ready to dive in? 

Let's first understand what internal recruiting is and then explore the benefits recruiters and HRs can leverage via the internal hiring process.

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 organisation. 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.

Top 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.

1. Lowers 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.

2. 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.

3. Create Growth Opportunities for Your 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 employee retention rates and efforts by your employees in the hope of promotions.

4. Provide Job Security to Your Employees

Provide job security to your employees

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 will know their employer will not only provide job security but will also retain them through new hiring opportunities.

5. Shorter Time-to-Hire 

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.

Elsner Success Story using iSmartRecruit ATS+CRM

6. Reduced Cost of Hiring

Time is a cost you can save through internal recruitment.

In addition, other monetary costs also come with recruitment that you can save.

These include paying recruiting agencies, conducting interviews, forming tests, taking a subscription to AI 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.

7. 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.

8. 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 unalignment with your company's culture and goals.

To avoid this problem, it is better to consider someone who is already a part of the culture.

Company culture

9. Training Will be Easier in Internal Recruiting 

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.

That's not it! Steps like orientation or introduction to the office or employees are all ignored in internal recruiting, which reduces the responsibilities of HR managers.

10. 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 organisation.


The reason is simple: They see a growth opportunity in your organisation. It will also enhance your employer brand. 

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.

11. Preservation of Your Organisational Knowledge

When you hire talent internally, then it ensures that the deep expertise and specialised skills your employees developed remain within your organisation.

It Keeps valuable skills and knowledge within the company.

Retaining individuals who are integral to core processes and company standards also helps sustain the quality of your service and products.

Final Thought on Internal Recruiting Advantages 

Internal recruiting has cons like limited talent from outside or the comfort of 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.

So, if you want to conduct internal recruiting effectively, then choose iSmartRecruit's AI Recruitment Software to streamline the overall hiring workflow and hire superstars within your organisation faster and more effectively. Book a Free Demo Now!

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