Internal Recruitment

Internal Recruitment




Internaltransfer and promotion policy is the management technique whichentails moving from one job position to another in the sameorganization. In other words, it’s that practice by anyorganization to fill the existing vacancies from within itsworkforce. This movement may be vertical, that is, from a lower to ahigher position, or horizontally, from one job to another but of thesame level. Hiring managers are encouraged to internally post jobopenings. Internal employees are thus aware of opportunities so thatthey express interest and receive first consideration (Stafsudd,2003). The main objective of this hiring strategy is to increase theopportunities for upward mobility of employees and thus improve theirmorale. Subsequently, this review comprehensively analyzes internalretention and promotion policy and its overall impact to theorganization and employees (Foot &amp Hook, 2011). This paperfocuses on the internal hiring process, its characteristics, meritsand demerits to an organization that practices internal hiring.

Characteristicsof an Effective Internal Hiring Policy

Internalhiring practices are meant to yield positive results on the generalperformance of the organization. The effectiveness of this policydepends on the organization’s ability to follow Human Resourceethics in hiring. This gives employees equal opportunities to acquiredesired job positions. On the other hand, employees should strive toyield, exemplary results in their performance. They should alsosupplement their performance by advancing their education so as to beup to date with the external competition. Therefore, the eligibilityof an employee should be a function of their qualifications. Mosthuman resource departments require one to have worked for theorganization for at least twelve months. In addition, the employeeshould have shown satisfactory performance within this period andshould not be having any warnings or disciplinary issues. More so,upon transfer an employee should serve a ninety-day probationaryperiod to ascertain their potential. Lastly, an effective internalhiring policy should be in line to continue the organization culture(Foot &amp Hook, 2011). In summary, an effective internal hiringpolicy should entail aspects such as offering control of theorganization environment, should also set a risk assessmentprocedure, and promote internal communication and information flow.In addition, and effective system should provide and effectivemonitoring tool, not forgetting to be an effective tool fororganization control activities.

PositiveImpact of Internal Transfer and Promotion Policy

Internaltransfer and promotion policy has the effect of increasing employeemorale. By giving internal employees an opportunity to apply forthese jobs, organizations motivate their staff. They perceive this asrecognition of their contribution to the organization. As employeesmove up the job ladder, they are motivated to work harder and movehigher, and they also motivate their fellow colleagues. This should,however, be done entirely on the basis of merit. In addition, thispolicy creates greater opportunities for upward mobility of qualifiedemployees. This is by creating a positive attitude towards work and ahard working spirit.

Ultimatelythe organization benefits through increased productivity, thus higherprofitability. On the other hand, internal transfer and promotionalpolicy have been an effective aspect towards the maintenance and thepassing of an organization’s culture from generation to another.For example, when an organization like The Apple Inc., wants tocontinue in its well-known culture, the best practice has been tohire the managers and other workers from within the existing ones.This helps to continue growing and supporting their culture(Stafsudd, 2003).

Loyaltyand commitment towards an organization are also enhanced throughinternal transfer and promotion policy. By giving existing employeesthe first priority when there are available job openings,organizations enhance employee loyalty and commitment towards theachievement of its goals and objectives. Subsequently, the employeeshave a sense of job security. This is important because employeeswill portray a positive image of the organization which is animportant tool for branding and marketing. As stated earlier,production becomes more efficient and thus greater profits areregistered. Additionally, employees are more satisfied with theircareer path (DeVaro &amp Morita, 2013).

Internalrecruitment is also economical in that it saves time and costsaccrued in training new staff. Existing employees require minimal orno training to get into a new job position. This in turn helps in thegreater extent to save the organization’s finances that would havebeen invested in recruiting and training workers. The organizationhas prior knowledge of the existing employees and, therefore, givesthem new job positions based on their abilities and talents. This notonly saves time and money but also ensures consistency in performanceof the organization.

NegativeImpact of Internal Transfer and Promotion Policy

Internalhiring policies may lead to the accommodation of unqualified staff.When internal candidates are exclusively given new positions, theorganization may have unqualified workers who derail its generalperformance. Inbreeding in hiring also leads to lack of diversity inideas and thinking. Diversity is important in formulating up-to-datepolicies and strategies in a dynamic economy. Internal transfer andpromotion policy which does not take into account ethical issues inhiring may create a non-conducive working environment (Stafsudd,2003).

Whentransfers and promotions are based on favoritism ‘who do you know’by the managerial team, isolated employees, and the less connectedones feel frustrated and this affects their commitment hence theirproductivity towards the organization’s realization of goals. Thosepromoted may also take advantage of their position to eradicate theircompetitors so as solidify their status (DeVaro &amp Morita, 2013).In general dubious internal hiring policies create negative energy inthe workplace in which colleagues are jealous, frustrated and lessmotivated, which in turn impacts the commitment and satisfaction ofthe employee. Less motivated employees are more of liability in anorganization, as they are less productive.


Forinternal transfers and promotions to yield positive results firmsshould not compromise ethical issues in hiring. Hiring should beentirely based on merit and only qualified candidates should beconsidered. Performance appraisals should be constantly conducted toanalyze the productivity of each employee. The managerial team shouldidentify the talents of their employees and use these in internalhiring. However, talents should be sought externally if there are nopotential candidates internally. Organizations should also traintheir staff regularly as a strategy of change management. Moreimportantly firms should consider the nature of their operations whenimplementing a hiring policy. Different firms respond differently todifferent hiring policies and thus should consider their operationsprior to implementation. In the modern organization managementenvironment, older and more established firms tend to focus more onthe aspects of internal hiring, while upcoming and fast growingfirms which are dependent on innovation tends to fall for externalrecruitment.


DeVaro,J., &amp Morita, H. (2013). Internal Promotion and ExternalRecruitment: A Theoretical and Empirical Analysis.&nbspJournalOf Labor Economics,&nbsp31(2),227-269.

Foot, M., &amp Hook, C. (2011). Introducing Human Resouce Management (6th Edition ed.). Financial Time / Prentice Hall.

Stafsudd, A. M. (2003). Recruitment Policy Vs. Recruitment Process: Espoused Theory And Theory-In-Use.Academy Of Management Proceedings, G1-G6.