What is internal recruitment?
Internal recruitment is hiring in-house by moving employees from role to role, promoting them, and so on.
What are the top benefits of internal recruitment?
Internal recruitment has a low risk of downsides as there is little uncertainty about productivity. Also, a smaller pool of competitors means that efforts are more likely to be rewarded with promotions, while internal hiring creates strong employee incentives.
How do training policies complement internal recruitment?
An advantage of internal recruitment is that internally hired employees have accumulated knowledge and skills that are particularly valued at their firm but not necessarily at others. These skills may be acquired as a result of the firm’s training policies. When the organization has a policy of mainly hiring insiders, it creates a strong incentive for employees to undertake job-related trainings because they know they have a chance of being promoted.