As recruitment and HR experts, we have helped many companies find the best executive talent in their industry. But increasingly, HR managers worldwide are struggling to retain their talent and keep recruitment costs down. While recruiting externally fills skills gaps in the company and enhances corporate culture, internal recruitment should be part of your strategy too. Acting as an indicator of internal mobility, internal recruitment is a powerful tool for employee retention and leads to longer employee tenure, better employee engagement and productivity.
Here are some benefits of internal recruitment.
1. Employee retention
Actively recruiting internally sends a message to employees that you care about their professional development. This is a major part of your company’s Employee Value Proposition (EVP), where career progression and mobility are available to employees who are willing to grow within the company. Additionally, it helps build a culture of trust, which in turn increases engagement and incentivises employees to stay in your company.
2. Hire quicker
External hiring can be an extensive process. There are screening calls, several rounds of executive interviews, reference calls and track records to follow up. Most of all, determining whether the new talent has the right cultural fit for the team within a short time during candidate screening is always a gamble. Hiring internally, however, is much simpler than that. With employees’ performance and track records easily available, the number of hiring stages is greatly minimized, speeding up your recruiting process.
3. Shorten onboarding times.
Everyone needs time to settle into their new jobs. While introductions and job training can take place quickly, the relationships and bonds formed within colleagues are something that takes time to organically grow. In this case, current employees have a head start: they are already immersed in your company culture and processes and may even know your team members. Hiring across departments and teams also creates meaningful relationships across teams in the company, increasing operational efficiency within the corporation.
4. Reduce Operational Costs
External recruitment isn’t cheap: with job board fees, sourcing costs, and the expected pay raise for external hires, the costs add up. On average, outside hires take three years to perform as well as internal hires in the same job, while internal hires take seven years to earn as much as outside hires are paid. These costs will be more evident for a larger company facing employee retention issues. Additionally, the intangible factors of client satisfaction, cultural fit and many others will later translate to monetary costs.
5. Customer Satisfaction
When you lose your talent to your competitors, you lose your clients too. As clients develop their relationships with members of your team, they develop attachments and bonds to the particular person as well. At the same time, customers expect consistency and quality from your company. The best way to ensure quality products and services is to retain your core talent and develop your teams.
6. Increases Revenue
As mentioned previously, external recruitment is an expensive process. While bringing in talent from other companies is important in introducing diversity and skills to the team, your internal talent should be fully utilised. Investing in an efficient internal recruitment system will increase transparency within the company and answer your recruitment needs more efficiently before your HR team starts looking for talent elsewhere. With all these factors combined, the overall productivity of the company will be increased, and operations will be enhanced. This will automatically translate to better sales and happier employees who are willing to stay in the company
Ready to boost your employee retention strategy? Designed by HR experts, ReturnOnTalent enables internal opportunities for your employees. Acting as a global referral system, ReturnOnTalent boosts your long-term HR strategy by providing important employee data about potential leavers and encouraging employee engagement.
Learn more about Return On Talent and how it can impact your company.
Comments