What is internal and external recruitment?

The term already reveals the goal: both internal and external recruitment refer to filling open positions within your organisation. External recruitment means attracting the right talent from the open job market – outside your company. Internal recruitment, on the other hand, involves filling a position with someone already employed within the company. This process is also known as internal hiring. Especially in the war for talent, many HR departments are focusing on this approach – and for good reason, as internal recruitment offers several advantages.

How does internal recruitment work?

There are various ways to fill a position internally. For example, through internal job postings – giving all employees a transparent chance to apply. HR can also rely on nominations and recommendations from within the team. 

Usually, managers nominate high-performing employees for promotions. Alternatively, you can use data to determine which team member best meets the job requirements. With this information, recruiters can easily identify suitable candidates for internal promotion or transfer.

What are the obstacles to internal recruitment?

Some managers hesitate to promote top employees out of fear of losing them in their current role. Reasons might include:

1. Loss of expertise: The employee may hold a key role and possess unique know-how.
2. Lack of succession planning: Without a clear replacement, promoting someone may create a gap.
3. Personal motives: Ego, resistance to change, or convenience might also be factors.
   

To make internal recruitment work, companies need transparent processes, succession strategies, and a culture that encourages growth and development.

Advantages: Why internal recruitment makes sense

Hiring internally comes with many benefits:

• Faster time-to-hire and lower cost-to-hire 
• Reduced risk of poor hires 
• Shorter onboarding times 
• Increased motivation through promotion 
• Stronger employee retention 
• Reinforcement of company culture

Internal candidates already know the company, its structure and its values – ideal for leadership or key roles.

Disadvantages: What to watch out for when hiring internally

Despite many pros, internal hiring can also present some challenges:

• The promoted employee’s old role needs to be filled – potentially requiring external recruitment
• Internal competition may arise – making transparency essential
• Some candidates may not fully match the new job profile
• Relying too much on internal talent can hinder fresh perspectives

The key: find a healthy balance between internal promotion and external hiring.

  

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