The benefits of hiring from within
Internal recruitment helps promote greater opportunities
within an organisation for employees career growth and increases their
engagement levels, writes Vinita Gupta.
have two major assets that are fundamental to their success. Firstly, it is
a product or service that meets the needs of customers in a way that competitors
find it very hard to match and secondly, it is the highly committed and customer-focussed
"Internal recruitment gives consideration to qualified and interested
employees who are able to meet the basic performance
standards of the open position"
- Prashanth L J
Global Marketing Head
Infinite Computer Solutions
The second asset can be achieved by recruiting, selecting
and retaining talented staff. Organisations have two options for recruiting
their staff and both has its own advantages and disadvantages. The first option
is internal recruitment; it refers to the filling of job vacancies from within
the companywhere existing employees are selected rather than employing
someone from outside. External recruitment is when the company looks to fill
the vacancy from any suitable applicant outside the organisation. Internal recruitment
happens when an organisation decides that it already has the right people with
the right skills to do the job.
Advantages of internal recruitment
"The trend of internal recruitment is gaining
significance now as it
is a means of providing meaningful growth
opportunities to the employee"
- Shantanu Dhar
Deputy GM, HR
Internal recruitment helps promote greater opportunities within
for employees career advancement and promotion which leads to increased
morale and higher levels of employee engagement by retaining and growing talented
employees who might otherwise leave the organisation.
Prashanth L J, Global Marketing Head, Infinite Computer Solutions
says, Internal recruitment is a system which gives consideration to qualified
and interested employees who are able to meet the basic performance standards
of the open position. According to him the advantages of internal recruitment
is lower costs and time in locating the staff as it does not require longer
orientation programmes to make the employee fit into the organisation culture.
It also helps in retaining and growing talented staff by giving them opportunities
at higher levels.
The trend of internal recruitment is gaining significance
now as its a means of providing meaningful growth opportunities to the
employee, both at a vertical and horizontal level, within the organisation,
says Shantanu Dhar, Deputy General Manager, HR, HCL Technologies. He further
adds that internal recruitment reduces the risk of employing an inappropriate
candidate from outside as the employer knows more about the internal candidates
"Internal recruitment has always been the first option in Sasken
as in this kind of hiring there is a greater understanding between the
employer and the employee"
- Srinivasa Rao Kandula
Srinivasa Rao Kandula, Director, HR, Sasken states, Internal
recruitment has always been the first option in Sasken as in this kind of hiring
there is a greater understanding between the employer and the employee as he
knows his existing employee very well. This in turn also leads to employee satisfaction
as he can apply for the job of his interest keeping in mind the requirement
of the position.
Ganesh Apte, Executive Vice-president, IT & Technology
Services Division, Larsen & Toubro (L & T) further adds, Internal
recruitment also helps the existing employer as he would know more about his
internal candidates competencies.
The flip side
There are a few drawbacks of the isidenternal recruitment
process. It limits the number of potential applicants for a job as external
candidates might be better suited/qualified for a position and hence the company
may become resistant to change, but in turn by recruiting from outside, new
perspectives and attitudes can be brought in.
As mentioned earlier internal recruitment refers to the filling
of job vacancies from within the companythat means the internal employee
applying for the job would be handling a particular job in the organisation
and if he is recruited for some other job then it would lead to a vacancy at
his previous position that needs to be filled up.
There are even chances that the existing staff may feel they
have the automatic right to be promoted, whether or not they are competent and
also internal recruitment may cause resentment amongst candidates not appointed.
To apply for internal recruitment there are certain eligibility
requirements for the employees. This requirement can vary from company to company.
The basic eligibility requirements for a person to apply for
internal recruitment are:
- He/She needs to be a current, regular full- or part-time
(your company) employee.
- He has to be in his current position for at least six
months. (Exceptions to this six-month requirement can be made by your current
supervisor and should be consistent with company business needs.)
- His performance should meet the performance development
plan (PDP) standards or established work standards in his current position.
- He should meet the qualifications listed for the position
on the job posting.
Infinite Computer Solutions have a well-defined policy framework
in place for cross-functional movement and internal recruitment. Prashanth L
J says, According to our HR policy all the employees need to declare their
career aspiration and growth plans. Depending on their desire and career aspiration
they are provided with required set of boot camps and trainings to make them
skilled and competent in line with their career plan. He further adds
that the employee should also have to complete his annual appraisal process
to be selected for the internal job opening/cross-functional movement.
Employees who have been with the organisation for minimum
two years are eligible to apply for such job postings, says Apte.
Dhar adds, At HCL broadly there are four areas we focus
on, the areas are performance, required skill sets, extent of existing gaps
in skills and transferability of the employee.
In-house recruitment process
Internal vacancies are usually advertised internally via a
variety of media like staff notice boards, intranets, in-house magazines/newsletters
and staff meetings. The interested and eligible candidate has to fill the internal
job application form; the form would be later approved by the employees
supervisor and at the end would be submitted to the HR department followed by
Prashanth L J says, All the vacancies within Infinite
Computer Solutions are published in the intranet portal which is accessible
by all employees. The employee should sign off his career progression path with
his manager in line with our HR policy, based on which he is given a cross-functional
change when the opportunity arises. We maintain a thorough process of identifying
a diverse poll of qualified candidates within the organisation for anticipated
In L & T Infotech there is a mechanism named the
common talent pool for junior levels by which a group of people are transferred
internally, depending upon the business needs. It also serves the purpose of
exposing the associates to different technologies and domains. Apte says, In
addition to the common talent pool we have an internal helpdesk through which
we flash all our internal job postings. We also have career workshops, wherein
the business plans and the growth plans of each SBU are shared with the employees.
This helps create an awareness of the future requirements of the business units.
At HCL they have a Central Resource Allocation team that
looks after all the openings across various levels. This team analyses the knowledge
and skill sets of existing and potential employees and attempts to bridge the
gap between the position description and the candidates skills. Once an
employee is selected they are individually contacted by the Centre of Excellence
(COE) and the remaining processes are ironed out.
Role of training
Internal recruitments would also mean having a strong training
focus as the employees promoted from within may not have all the requisite skills
required for the job. In such cases, employees have to be trained for their
It is very important to understand an employees
interests and career development plans. Once the employee fills his aspirations
and his career development plan and shows his intent towards a cross-functional
activity, he has to complete the identified boot camps and trainings to fit
into the desired job so that he can be moved into the requested function when
the opportunity arises, says Prashanth L J.
According to Dhar, training is absolutely mandatory and is
the final responsibility of the HR/Talent & Transformation team. He says,
Training gains significance as it helps to bridge the skills and knowledge
gap of the employees and also helps to comprehend the complexity of the scope
of work in their job profile at any given level.
|Gives existing employees greater opportunity to advance
||Limits the number of potential applicants for a job
|Help to retain staff who might otherwise leave
||Another vacancy will be created that has to be filled
|Requires a short induction training period
||Existing staff may feel they have the automatic right
to be promoted, whether or not they are competent
|Reduced risk of selecting an inappropriate candidate
||Business may become resistant to change; by recruiting
from outside, new perspectives and attitudes are brought in
|Usually quicker and less expensive than recruiting
||May cause resentment amongst candidates not appointed
The toughest are cross-functional transfers, which not all
companies encourage considering the problems associated with training an employee
to come up to the productivity level.
In a rare case, where an employee may have made
a wrong choice, the companies set a new career objective for
him which may more suit him. Many a times an employee quits
when his professional expectations are not adequately met with.
This kind of a challenge can be proactively monitored and managed
by the immediate line managers of the employees in the organisation
through internal recruitment. By giving an employee ample growth
opportunities within the organisation, a company can retain them
for a longer period of time, says Dhar.
Nirupama V G, Associate Director, TeamLease, states,
Cultural fitment of candidates and cross-functional recruitment
helps employees explore other avenues/job roles within which suit
In IT companies their would be only about five percentage
of people going for cross-functional transfers as it takes time to understand
a particular technology and hence people usually dont go for it,
Percentage, preference and levels of recruitment
At Infinite Computer Solutions, vacancies arising in the middle
and lower level functions are filled through internal recruitment depending
on an employees aspiration and his career movement plans.
Prashanth L J informs that nearly 10 percent of the middle
and lower level jobs in the support functions are filled through internal recruitment.
Dhar adds, The preference would typically depend on the required skill
sets of the job posting. If we sense the need to hire an internal candidate,
we do go about it.
Kandula from Sasken points out that if the desired skills
for the vacant position is available within the organisation and if it fits
the employees career development plan then he is given the first preference
to fill the position. Other wise the vacancy is filled externally.
Whatever would be the way of recruiting employees, ultimately
the aim of any company is to employ talented and highly committed employees.