Internal recruitment is the filling up of the vacancies in the organization from within the organization by putting the already employed person in another area or job. It is one of the best ways to fill up the jobs.
One of the basic functions of HRM is to recruit and select employees who can fill up the jobs. This means placing the right man in the right position. This recruitment can be done from outside the organization and it can be done from within the organization.
There are numerous advantages of recruiting internally. The candidates’ performance is known well, as are their attendance records and their strengths and weaknesses. From an employee's viewpoint, an internal promotion is normally a far more satisfying move than the risk involved in moving to another organization when service rights are lost and a mass of cultural and technical information has to be learned in a very short time.
A promotion generally gives a healthy signal both to the individual, who will feel valued but a signal is also given to the rest of the workforce who will be encouraged to stay, all being well, with the hope of following in the successful employee's footsteps. Moreover, an existing employee knows the organization, its systems and procedures, and should find it easier to adjust and settle in the position. Finally, internal recruitment is normally short, except in the largest public sector organizations and it is certainly cheaper than external advertising. The vacancy can be advertised through internal advertising on notice boards and in newsletters to denote that it is open to all employees and to support a culture of transparency.
The ways by which internal recruitment can be done are:
- Transfer: Transfer means the shifting of employee from one department to another to fill the vacancy. Transfer can be from one department to another or one city to another. Generally, in the transfer, the employee retains his same position, authority and powers and exercises them in another department. Thus there is no upliftment in the pay scale or amenities.
- Promotion: Promotion means the increase in the pay scale, position in the organization, authority and responsibility. It has a positive effect on the morale of the employee. Promotion can be inter departmental or intra departmental depending upon the requirement. The higher-level vacancies are filled by the employees who deserve promotion.
- Demotion: Demotion is the opposite of promotion. It is the decrease in the pay scale, level of authority and responsibility. It has a negative effect on the morale of the employee. These are generally due to bad performances of the employee continuously.
- Referral: At the time of recruitment, generally referrals from the existing employees regarding filling up of the job are invited. Their referrals are considered during the selection process.
- Internal Advertisement: Sometimes businesses post internal advertisements on the notice boards or company portals to fill out the vacancy from within the organization. The employees can employee for the jobs they deem fit.
There are several benefits of internal recruitment:
- Cost: Internal Recruitment saves a lot of cost to the organization. There is no need for incurring any advertisement costs for internal recruitment neither is there any requirement for conducting tests or interviews. This saves up a lot of cost in terms of money and time.
- Competition: Internal Recruitment triggers an environment of competition within the organization. Every employee aims for the promotion in the organization and in the run of fetching the opportunity; every employee tries to excel the other one. This promotes a culture of competition in the company. It enhances the performance of the employees and the resources of the company get utilized efficiently.
- Morale: The internal recruitment helps in motivating the employees. Their morale gets boosted as they are given due consideration in the company. The promotion to an employee boosts his morale and in turn, he works more efficiently. Seeing one getting promoted, the other employees also start working more efficiently in order to get promoted.
- Known employees: Internal Recruitment is an effective process as the employer is already known to the employee’s weakness or strength and his working capabilities. This makes the working all the easier and it becomes easy to manage the employee.
- Easy to implement: Internal Recruitment is comparatively easier than the External Recruitment process. No advertising or other document compiling is required for this process.
But along with this, there are some drawbacks too:
- Limited choices: The choice of the employer gets limited. He is supposed to choose from the given set of employees for filling up the vacancy. This can create hindrance to the effectiveness of the filling up of the vacancy with a competitive employee.
- Sometimes the requirements are not matched: Sometimes the employer is looking for a specific quality or skill in the employee he wants to hire for the job. But due to the limited choice, he may not find that quality or skill in anybody and thus, has to go with the second-best option available.
- Conflict among employees: Promotion of one employee may create conflict among other employees. This might demotivate them and result in resistance from their side. This will create an imbalance in the working of the company.
- The basis for Promotions: Sometimes deciding the basis for promotion is very difficult. The employer becomes unable to decide the basis on which the promotion should be granted i.e. on the basis of duration of the work served or on the basis of performance.
Internal Recruitment is an effective method of filling up the vacancies but it needs to be carried out with utmost care. Some points to be taken care of while implementing Internal Recruitment method:
- An internal recruitment policy should be designed before the implementation and it should be efficient and effective so as to mitigate the risk of wrong recruitment.
- The management should not be biased while filling up the vacancies in the business. Everybody should be given an equal chance.
- The candidates selected for the filling up of internal vacancy must be screened properly so as to know the deep insights.
- The proper feedback should be given to the employees.
Thus the policy of Internal Recruitment should be implemented very carefully taking into consideration its drawbacks and risk factors.
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