Internal Recruitment

Internal recruitment stands as a beacon of opportunity within the world of modern businesses. It is a strategic approach to filling vacancies from existing talent pools, offering companies a pathway to cultivate loyalty, efficiency, and continuity within their workforce. In this blog, we delve into the intricacies of internal recruitment, exploring its manifold advantages, potential drawbacks, and the legal framework surrounding the process. Furthermore, we offer steps for executing an effective internal recruitment strategy, illuminating the path towards harnessing the latent potential residing within an organisation’s ranks.


So, what is Internal Recruitment?

Internal recruitment is the process of filling new or open positions within a company by hiring current employees. This method includes promotions, lateral moves, or temporary assignments, leveraging the existing workforce’s skills and experience. According to the Independent Business Reporter, “the single most impactful place companies ultimately find the talent they need to achieve hiring success is perhaps the most obvious – their current employees”.

Benefits of internal recruitment include increased employee loyalty and motivation, higher retention rates, and cost-effectiveness compared to external recruitment. It also helps maintain organisational culture and continuity, as current employees are already familiar with the company’s values and processes, leading to a smoother transition and quicker adjustment in their new roles.


Advantages of Internal Recruitment

Improving Employee Morale

Internal recruitment is a highly effective strategy for inspiring and encouraging employees to work efficiently and remain loyal to the company. By promoting or transferring current employees to new or open positions, it instils a sense of trust and appreciation, letting employees know their hard work is recognised. This boosts morale and motivation, leading to increased productivity and a stronger commitment to the company. Additionally, providing clear pathways for career growth enhances job satisfaction and reduces turnover, as employees are more likely to stay with a company that invests in their development. Integrating SMART goals and actively engaging in succession planning initiatives serve as additional indicators of the organisation’s genuine interest in employee’s career development and long-term success.


Reduced Hiring Time

By hiring from within, companies can significantly reduce the time spent on the hiring process. They already have completed background checks on current employees and have a good understanding of their character, work ethic, and performance. This familiarity allows for quicker decision-making and a smoother transition into the new role, ultimately saving time and resources.

Additionally, leveraging tools such as emPerform’s 360-degree reviews and personalised surveys offers a time-effective means of identifying employees with a potential interest in assuming new responsibilities.


Reduced Onboarding Time

Onboarding is extremely important but can be very time-consuming. Internal recruitment can reduce onboarding time as the employee is already familiar with the company’s culture, systems, and procedures. This familiarity allows them to adapt more quickly to their new role and responsibilities, minimising the learning curve and enabling them to contribute effectively much sooner. Additionally, internal hires often already have established relationships with colleagues and understand the company’s workflow, further streamlining the transition process and enhancing overall team cohesion and productivity.


Reduced Hiring Costs

Recruiting is expensive, involving costs related to advertising, interviewing, and training new hires. Hiring internally can mitigate these expenses as it often spreads through word of mouth within the organisation. Employees are aware of new opportunities and can express interest or recommend colleagues, reducing the need for extensive external recruitment campaigns. This approach not only cuts costs but also leverages the existing workforce’s knowledge and networks, making the hiring process more efficient and effective.

Colleagues working together

Disadvantages of Internal Recruitment

 Can Create Gaps in Departments

While internal recruitment can quickly fill open positions, it can also create gaps in the employee’s previous department that will need to be filled. This can lead to a temporary imbalance in the workload and disrupt the workflow in the department they leave behind. Additionally, the company may need to initiate another round of recruitment to fill the newly vacated position, potentially leading to a cycle of shifting vacancies and temporary inefficiencies.

Limited Application Pool

Internal recruitment restricts the application pool to only existing employees within the organisation. This limitation may result in a narrower range of candidates compared to external recruitment, potentially leading to a lack of fresh perspectives, diverse skill sets, and innovative ideas. Without considering external candidates, the company may miss out on individuals with valuable expertise and experiences gained from different industries or organisations. Additionally, relying solely on internal candidates may hinder efforts to introduce new talent and perspectives, which could be essential for driving growth and innovation within the company.

Lead to Competition Amongst Colleagues

Competition in the workplace can be healthy, pushing employees to work harder on individual progress and SMART goals. It can drive performance, innovation, and personal development as employees strive to achieve their targets. However, excessive competition can create a negative atmosphere filled with tension that discourages teamwork and collaboration. When employees view each other as rivals rather than teammates, it can lead to stress, reduced morale, and hindered communication, impacting the overall productivity and harmony of the workplace. Therefore, it’s crucial for management to balance competitive elements with a strong emphasis on collaboration and team cohesion whilst recruiting internally.


What Does UK Law Say About Internal Recruitment?

UK law supports internal recruitment as long as it adheres to the principles of fairness and equality. Employers must ensure that internal recruitment processes do not discriminate based on age, gender, race, disability, or other protected characteristics. Additionally, vacancies should be advertised internally in a manner accessible to all eligible employees.

How to Recruit Candidates Internally

  1. Identify the Vacancy: Clearly define the job requirements and craft a comprehensive job description.
  2. Communicate the Opportunity: Utilize internal communication channels like emails or meetings to inform eligible employees about the open position.
  3. Encourage Applications: Motivate employees to apply for the role or recommend qualified colleagues.
  4. Screen and Interview: Assess candidates’ qualifications and conduct interviews to determine their suitability for the position.
  5. Select and Extend Offer: Choose the most suitable candidate and offer them the position, ensuring transparency throughout the process.
  6. Onboard the Employee: Provide necessary training and support to facilitate a smooth transition into the new role, despite the candidate being internal.


By nurturing and leveraging the talents of its own workforce, a company fortifies its foundations, fostering loyalty, innovation, and resilience amidst change. In this transformative journey, emPerform’s tools are invaluable, offering essential features for efficient internal recruitment. Through instruments such as Goal Management and Surveys, emPerform facilitates the identification and engagement of potential internal candidates, ensuring smooth transitions into new roles. Embracing internal recruitment not only secures the present whilst cultivating a promising future, where organisational success thrives on the strengths and dedication of its employees.

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