In times when it is becoming difficult for companies to fill the vacant positions with the right candidates, Internal Hiring has come to their rescue. Internal Hiring enables existing employees to apply for the open positions within the company.
Companies like PepsiCo, Sapient, Pitney Bowes, etc. have already structured internal hiring processes and a culture supportive to that. These companies have gained a lot from this practice largely in terms of finding the right people for right positions and also retaining the top talent pool.
This kind of hiring has received appreciation by the top HR firms & researchers. We have listed 5 major advantages of Internal Hiring below:
- Cost saving on training: The employees recruited internally, already have a deep understanding of the organization & its culture.
- Retaining top talent: People are always in search of bigger roles & a chance to move ahead in the learning curve. Internal hiring can be really crucial in increasing the retention rates.
- Less ramp up time: The time for an employee in a new position to become productive is far less in internal hiring vis-à-vis external hiring.
- Expansion of Learning Curve: Cross-functional roles within the same company would allow individuals to expand their learning curve & could be fruitful for the all-round development of the employees.
- Cost cutting on recruitment: Internal hiring comes with a very low cost per hire compared to external hiring.
Interestingly, as per a survey conducted by LinkedIn, India is one of the two countries which consider structured internal hiring process as the most important trait defining a world class talent acquisition organization.