In one of our earlier blogposts, we looked at how internal hiring can be a great way for businesses to find the best people for new jobs. Internal hires perform better, cost less, succeed more often, move out less frequently and provide a plethora of other benefits that don’t come from hiring new people from outside the organization.
However, internal hiring can also be tricky. If the right person is not matched to the right job, not only do you risk losing business resources, but perhaps also that employee.
This blogpost looks at a few steps an organization could take to maximize the efficiency of internal hiring practices:
What do your employees think?
Before you start ticking off existing employees against open positions, you first need to assess which of your employees are open to the concept of switching roles and exploring other opportunities. Afterall how can one be sure that just because someone has the skills to fit a position, they are also interested in taking up the position? Some employees find switching positions motivating, while others feel uncomfortable if they are asked to move to another job in the company. Knowing the preferences, career goals and aspirations, and motivations of your employees beforehand can save you the time spent on assessing the wrong candidates.
Assess, don’t assume
One of the best practices in internal hiring, as acknowledged by companies that have mastered the technique is the regular assessment of a workforce. Knowing beforehand the skills and abilities, strengths and weaknesses of employees puts a Human Resource function in a far better place to match the requirements of a new job with the company’s internal skill pool in an organized and effective manner. The way to maximize the effectiveness of conducting assessments would be to use a combination of skills tests with psychometric tests – that way the entire breadth of an employees’ technical aptitude, hands-on knowledge, cognitive abilities, and emotional intelligence are measured. This reduces the chances of recruiting the wrong person considerably since the person in charge of making the hiring decision is equipped with scientific knowledge of a person’s aptitude and attitude.
Do away with confusion
Having clear policies regarding internal recruitment, can avoid haphazard applications in the system. Make it clear who can apply for what kind of openings, which departments can poach employees from other departments, and how the internal vacancies will be communicated to all the employees in an organized way.
Deal with Rejections
Internal hiring is far more complicated than external hiring when it comes to dealing with rejections. The employees who aren’t selected for the position may feel like they have been treated unfairly or the management has somehow made a biased decision. In case of external hiring you don’t have to concern yourself about such reactions but with internal hiring, this can affect the motivation level of the rejected employees, bringing down their productivity. It can also create conflicts between employees. Therefore, you need to have a proper feedback and communication system in place, along with a plan to motivate rejected employees later to keep up the productivity levels.
Avoid the Vacancy Domino Effect
If you relocate employees within your organization from one position to another, you’ll have to plan who’s going to take up their position in return. To fill up that position, you might hire internally again, creating another vacancy as a result. This continuous cycle of vacancies is known as the domino effect where you’ll be continuing this loop of recruitments for an indefinite period, creating productivity loss. So, before you relocate an employee to a different position, make sure their responsibilities would be handled adequately by someone in their department without any productivity loss.
Asking the wrong person to move to a position would not only hurt the company but will also make them uncomfortable. Knowing what your employees want from their careers and having proof of what they are capable of achieving, can help you match the right person to the right job when you hire internally.