Why human resources may choose to hire internally

What is your business policy on hiring internally?

What is your business policy on hiring internally?

Looking for high-quality candidates can be a challenge, which is why supervisors and hiring managers will consider promoting internally. This approach can save departments a significant amount of time in the hiring process, but it also has its disadvantages.

Human resources departments that leverage HR software solution to vet potential candidates may find that the company might not have a perfect fit for the opening, but recruiters shouldn't discount these applications right off the bat, according to Silicon Valley Business Journal contributor Bob Corlett.

"Give your full and fair consideration to current employees. You're not "wasting an hour" on a mere courtesy," he wrote. "You're investing in their future productivity."

Not giving these workers a chance to increase their responsibilities could damage morale and worker perception of the business.

On the contrary other hand, businesses that do a lot of their hiring internally may not grow as fast as expected.

"People tend to hire people they know," Drake University professor Lance Noe told the Sioux City Journal. "That's good perhaps at creating a corporate culture, but the downside is unrealized opportunities that can be missed from people outside of that network."

This may be a problem in Iowa, where governors have hired hundreds of individuals without ever posting a job description on the internet, the Sioux City Journal reported. More than 350 individuals were hired from referrals or internally, under Governor Terry Branstand's administration. Before Branstand, Governor Chet Culver brought in more than 600 workers within a four-year period. 

HR software solutions can help human resources departments find a balance between both of these challenges, giving prospective candidates the best possible chance at a position.