Business Statistics 101: The Benefits of Internal Recruitment
Is internal recruitment right for your business? According to LinkedIn data, it has been making a comeback at 10% since 2015. From the perspective of talent professionals, 73% of them believe that internal recruitment is becoming more important to their businesses.
There are several reasons that companies opt for internal recruitment. One of the main reasons is that it improves employee retention. According to the data, 81% of talent professionals see the effectiveness of it. Other reasons include the acceleration of productivity at 69%, as well as the acceleration of the hiring process itself at 63%.
Benefits of improved employee retention include a steady workflow and internal team that can work well together. In addition, with a lower turnover rate, the bottom line does not get overwhelmed by hiring and training costs.
As for the productivity aspect of hiring internally, employees know that a company’s system would be able to quickly adjust to their new roles if they get a promotion. Training would not have to take up a lot of time because these internal hires would be familiar with the company culture and processes. The hiring process itself would also be shortened due to the familiarity with each employee’s talents, skills and capabilities.
In terms of how the majority of internal hires are recruited, they can be identified in a number of ways. For example, business owners can have their human resources department post on an internal job board. According to LinkedIn’s research, 72% of talent professionals find internal candidates using this method.
Another popular method is having hiring managers themselves reach out to employees at 50%. This is followed by employees hearing about a new position through word of mouth at 45%.
To have a strong team that continues to grow professionally and benefit their company as whole and for the long term, there needs to be an effective internal recruitment strategy in place.
Such a strategy can help maintain objectivity and good business decisions. According to a study by the Harvard Business Review, informal hiring processes can hinder the effectiveness and production rate of employees. Therefore, with monitored internal job postings that are not based on relationships, for example, a company can ensure that it will find the best candidates.
Other effective ways to improve the internal recruitment process is by identifying the employee skills, encouraging projects that are cross-functional and giving employees the opportunity to be taught new skills. In fact, LinkedIn’s study found that 73% of learners would stay at their company if there were more opportunities that encouraged skill-building.
Hiring the best internal talent can be challenging in terms of figuring out what’s right for your business. The Find Your Audience team prides itself on its ability to conduct thorough market research and internal business analysis to help clients understand their needs and reach their goals.
To contact Find Your Audience, call 647-953-5042. The team may also be reached via email at email@example.com.