Internal recruitment: strategies, best practices and checklist

With the increasing competition for the best talent out there, businesses are starting to realise the benefits of tapping into their existing workforce to fill job vacancies and nurturing the potential of their top talent to step up.

Robust internal recruitment strategies will empower your business to retain ‌top performers, helping you save money and preventing you from having a high turnover.

Download this checklist if you want to make the best out of your internal recruitment. We’ve included guidance on best practices regarding promoting employee growth, retaining talent and fostering a positive work culture.

What is internal recruitment?

Internal recruitment refers to the practice of identifying and filling job vacancies with existing employees.

By using existing talent pools, businesses can tap into the potential of their workforce, enabling them to thrive and prosper in the long run.

However, relying on the existence of an internal recruitment process is not enough. Implementing robust internal recruitment strategies and best practices is paramount in setting up a workplace that cultivates talent retention, promotes employee growth‌ and builds a positive work culture.

What are the benefits of internal recruitment?

There are lots of benefits to be reaped if you’re planning to boost your internal recruiting game.

Retain top talent that understands the business well

A well-designed internal recruitment programme empowers organisations to keep their most valuable asset—their employees. By providing opportunities for career advancement, skill development‌ and job enrichment within the company, employees are more likely to stay committed and engaged. The retention of top talent helps businesses maintain stability, minimise recruitment costs‌ and preserve institutional knowledge.

Build a positive work culture

An internal recruitment process fosters a positive work culture by instilling a sense of fairness, transparency‌ and trust among employees.

When people see opportunities for growth and progression, it boosts morale, motivation‌ and job satisfaction. Moreover, by valuing internal talent, organisations demonstrate that they appreciate the contributions of their employees, promoting loyalty and a sense of belonging.

An opportunity to nurture future leaders

Internal recruitment serves as a vital component of succession planning, enabling organisations to identify and groom future leaders from within.

By identifying high-potential employees and providing them with the necessary training and mentorship, businesses can build a leadership pipeline that provides continuity and smooth transitions during times of change.

How can organisations promote internal hiring effectively?

Set your business up for success in promoting internal hiring with the help of an HRIS platform such as Employment Hero.

With a powerful system in place to keep your employees engaged and the following actionable tips, you’ll be banging the drum in no time.

Embrace clear communication and transparency

Establishing transparent communication channels is crucial in promoting internal hiring.

Regularly communicate job openings, career advancement opportunities‌ and the qualifications required to employees. Make sure job descriptions are clear and accessible, and provide employees with information on the internal hiring process and criteria. This transparency builds trust and encourages qualified individuals to pursue internal opportunities.

Have development and training programmes in place

Invest in employee development and training programmes that align with organisational goals and individual career aspirations.

By providing resources and opportunities for skill-building, organisations empower their employees to acquire the necessary qualifications for internal promotions. This approach not only enhances the talent pool for internal hiring but also demonstrates a commitment to employee growth and fosters a culture of continuous learning.

Did we mention we have a learning management system in place for you to easily build custom learning pathways and upload your own content all in one platform?

What does an internal recruitment process look like?

A well-designed internal recruitment process serves as a cornerstone for organisations seeking to leverage their existing talent pool and promote growth from within. A good internal recruitment process follows several key steps to ensure effectiveness, fairness‌ and successful talent development.

Here’s a high-level overview of what a robust internal recruitment process looks like:

Strategic workforce planning

Begin by conducting a comprehensive analysis of current and future talent needs aligned with the organisation’s strategic goals. Identify critical positions, skill gaps‌ and potential growth areas. This proactive approach allows organisations to anticipate talent requirements and develop targeted internal recruitment strategies.

Transparent job postings

Create clear, informative job postings that outline the salary, qualifications, responsibilities‌ and expectations for internal roles. Share these postings widely across internal communication channels to ensure visibility and accessibility for all interested employees. Transparent job postings enable employees to understand the opportunities available within the organisation and make informed decisions regarding their career paths.

Internal job application and screening

Implement an efficient and user-friendly internal job application process that collects relevant information from interested employees. Establish objective screening criteria to evaluate candidates’ qualifications and match them with job requirements. This screening process ensures fairness and identifies the most suitable candidates for further consideration.

Benchmark candidate assessment and selection

Conduct thorough assessments of shortlisted candidates, such as interviews, skills evaluations‌ and performance reviews. Assessments may vary depending on the level and nature of the position. By employing rigorous selection methods, organisations ensure that the chosen candidates have the skills, competencies‌ and potential for success in the desired roles.

Development and training opportunities

Prioritise employee development by providing targeted training, mentorship‌ and coaching programmes.

These initiatives enhance the skills and capabilities of internal candidates, equipping them for successful transitions into new roles. By investing in development opportunities, organisations demonstrate their commitment to fostering growth from within and increasing employee engagement.

The good news? You already have a solution for this. Don’t forget Employment Hero’s learning management system we mentioned earlier.

Transparent decision-making and feedback

Communicate the selection decisions transparently to all applicants, providing constructive feedback on strengths, areas for improvement‌ and future opportunities.

This transparent decision-making process fosters trust, encourages continuous improvement‌ and maintains a positive employee experience.

Onboarding and integration

Internal promotees need onboarding too. Facilitate a smooth transition for successful internal candidates through a well-structured onboarding process. This will help them understand their job responsibilities and expectations.

Provide the necessary resources, support‌ and training to help them acclimate to their new roles and responsibilities. Effective onboarding provides a seamless integration into the team and organisation, setting the stage for success and long-term retention.

Did we mention our onboarding solution which you can use for both internal and external hires?

Continuous evaluation and adaptation

Regularly evaluate the effectiveness of the internal recruitment process and make adjustments as needed.

Use 1:1s to support your internal promotees. Stay on top of their performance, and get constructive feedback from both candidates and hiring managers to continuously set them up for success.

This evaluation enables organisations to refine their internal recruitment practices, identify areas for improvement‌ and optimise talent management strategies.

Looking for more? We’ve got a recruitment process guide just for you. It’s mainly for external recruitment, but there’s a lot you can repurpose for your internal processes.

What criteria should be considered when evaluating internal candidates?

Wondering how to create a fair assessment and prevent unconscious bias towards someone you enjoy working with? We’ve got some tips for that.

If you’re promoting across functions, our UK Talent Acquisition Partner Daniella Angel suggests that you should mix internal candidates amongst external candidates coming through so that you can benchmark their skills and remove that unconscious bias.

She also suggests that you can make a more informed decision by having a clear business growth plan. Having an idea of your growth trajectory can help you suss out whether you can hire for potential, or if you need to hire someone to hit the ground running. Wise words.

How do you measure the success of your internal recruitment hiring process?

Whether you’re implementing a brand new internal recruitment hiring process, or making improvements on an existing one, it’s important to measure its success. These measurements will set you on the right path:

• Internal candidate conversion rate: Measure the percentage of internal candidates who successfully transitioned into new roles.
• Employee retention: Review your retention rates of employees who were promoted, or moved internally through the recruitment process — a higher retention rate suggests that internal candidates are satisfied.

• Employee feedback and satisfaction: Get constructive feedback from internal candidates who have participated in the recruitment process. If they’re worried about any repercussions, make use of anonymous feedback so that you can get actionable tips. Did we mention that you can do this using Employment Hero’s happiness survey?
• Diversity and inclusion: A successful internal recruitment process should contribute to promoting diversity and inclusion and create a more inclusive workforce. Assess the representation of underrepresented groups among internal hires and compare it to the overall diversity goals of the business.

Retain your best talent with Employment Hero

Step up your retention efforts by downloading our free checklist packed with internal recruitment strategies to make sure you’ve got everything covered.

Use Employment Hero, the world’s first integrated HR and Payroll OS to keep your employees engaged from day one to their first promotion, thanks to your internal recruitment efforts. While you’re at it, don’t forget to book a demo with one of our friendly team to see how you can tailor a learning management system and keep your people engaged and motivated.