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Leveraging Internal Recruitment for Retention

With the tight labor market, labor shortage, and slow-paced recruitment process, internal recruiting can be an invaluable tool for increasing retention and developing talent. An internal recruiting process without bias not only solves some of these struggles, but it enhances employee performance and productivity in both current and future roles. Here are some additional reasons why you should consider internal recruiting for retention first:

Create a better success rate

SHRM shared a study that 60% of 291 employers” surveyed saw a higher performance from those promoted internally than those hired externally into similar positions. An employee’s familiarity with the organization, its processes, and culture allows for a more seamless transition and a better opportunity for success within the position. 

Support current employees’ career goals

If employees have goals to grow their career and are not considered for an opportunity they are qualified for, they might look elsewhere. Internal recruiting allows for qualified candidates to be mentored into the position. If they understand there could be a promotion in their future, it might motivate them to work harder at their current job duties and stay loyal to the company.

Save money

According to SHRM, the average cost to hire is $4,425. This likely includes line items such as salary costs of those involved in recruitment, paid recruitment tactics, background checks, drug screenings, onboarding software, and time and materials for interviewing and onboarding, amongst others. By posting open job descriptions internally before distributing externally, you may significantly reduce the cost-per-hire. 

How to promote from within to increase retention

There are many benefits to this recruitment strategy, however, it’s necessary to make sure it’s performed in an unbiased fashion.

Understand employees’ career goals and skillsets

First, you should set the stage by understanding each employee’s career goals and how that could be integrated into your organizational structure. By understanding their goals and motivations, you have an opportunity to lean on workforce development to mentor and upskill them. 

You should also include current employees’ soft skills in your internal recruitment decision-making process because hard skills can be trained and developed more easily. Each individual’s soft skills will naturally set them apart from their peers and may propel them into a new role. 

Utilize tools to remove bias

Another step in the internal recruiting process is to make sure the whole process is unbiased, from the job description and posting, to recruitment, interviewing, and onboarding transition. Cangrade’s Pre-Hire Assessment can help you determine qualified internal candidates without bias and ensure that your open job descriptions include the necessary verbiage to hire for soft skills. These tools can significantly support and propel your internal recruiting efforts. 

Offer internal employees a first look

And finally, offer all internal employees a first-hand look at jobs before they are posted externally, and make your process fair. A SHRM article states that “[an employer] should craft a policy that is fair and equitable to internal applicants, that sets expectations for employees applying for a position, and that is implemented consistently and communicated openly throughout the organization.” 

See how Cangrade’s tools are built to support you throughout the internal recruiting process.