Press & Media

Why Internal Hiring Matters?


Hiring is one of the most important decisions that organisations should make on a regular basis. When choosing between internal and external hiring, hiring managers need to consider their own organisational environment, as well as the nature of the job posted and its level within the organisation. In general, for an entry-level position, hiring managers tend to prefer external hires. Meanwhile, for a senior-level position, internal hire is more preferable through promotion or lateral transfer as it has a relatively low risk because there is little uncertainty about the talent’s productivity and performance. 

See also: How to Reach Out to Talents During the Covid-19 Crisis 

Internal recruitment improves retention 

LinkedIn’s Global Talent Trends 2020 report found that employees stick around 41 percent longer at companies that regularly hire from within. Internal hiring can create incentives for workers as well as encourage the development of specialised knowledge and skills because employees are likely anticipating a long career with the firm, the report explained. 

While it remains vital to bring in a new perspective and fill the skill gap at an organisation by hiring externally, the report found that talent professionals are increasingly realising that a balance is important. 73 percent agreed that internal recruiting is becoming more important to their company, and role changes within organisations have increased by 10 percent since 2015. 

Hiring manager should do the initiative 

According to the LinkedIn survey, the majority of internal moves are driven by employees, with 72 percent of talent professionals admitted that it usually starts with employees finding jobs on internal job boards. Only half (50 percent) cited that their hiring manager reached out to them and almost as many (45 percent) said employees hear from word of mouth. 

However, it was reported that by taking a more intentional approach to internal recruiting and encouraging recruiters to proactively reach out, hiring managers could see a more successful internal hiring. Consequently, this can give company’s retention and engagement rates a boost. 

Next also: 2 Factors to Consider Before Making Final Hiring Decisions

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