The Bias Against Internal Talent
Hiring is hard. Most of us don’t have the luxury of hiring well in advance of needing that extra pair of hands so when we do hire, we’re under pressure.
And as much as we all want to hire the best person for the role, we’re equally as motivated not to make a terrible mistake, hire the wrong person and look like an idiot.
For these reasons, I’ve often wondered if internal applicants are held to a higher standard than their external counterparts. And if recruiters (whose job it is to keep their customer or colleague happy) resist pushing back for fear of rocking the boat.
So I wrote a blog about it. If you need help convincing a hiring manager to consider someone internal, take a look. And if you’re an internal hiring manager who’s been sent this, consider this a hint!
The Benefits of Hiring Internal Candidates
If you need convincing, here’s the argument to consider internal talent.
- They Know the Ropes
One of the most significant advantages of hiring from within is that internal candidates are already familiar with your company's culture, processes, tech and values. They've navigated the twists and turns of your organizational landscape, already built internal relationships and understand the unspoken rules that make your workplace tick. This means less time spent on onboarding and training, and more time getting down to business.
- They’re a Proven Commodity
Think of internal candidates as a trusty car. Sure, a shiny new model might be tempting, but your reliable ride has already proven its worth on countless journeys. Similarly, internal candidates have a track record you can evaluate. You've seen their performance, work ethic, and ability to collaborate. This reduces the risk of hiring someone who looks great on paper but doesn’t always work in reality.
- Boosting Morale and Engagement
Promoting from within sends a powerful message to your team: hard work and loyalty pay off. When employees see that there's a path for career advancement within the company, it boosts morale and engagement. They know they’re not stuck in a dead-end job and that their efforts could lead to new opportunities. Happy employees are productive employees, and internal promotions can create a ripple effect of positivity and loyalty.
- Cost-Effective and Efficient
Hiring external candidates can be a costly affair. Advertising the vacancy, screening resumes, conducting interviews, and negotiating salaries all add up. On the other hand, internal hiring is often more cost-effective. You save on recruitment costs and reduce the time it takes to fill the position. Plus, since internal candidates are already part of the team, they can often transition into their new roles more smoothly and quickly.
- Continuity and Stability
Bringing in someone new can sometimes feel like trying to fit a square peg into a round hole. Internal candidates, however, already fit the company culture and can maintain the continuity and stability of your team. They’re less likely to rock the boat and more likely to hit the ground running. This is particularly important for roles that require a deep understanding of company-specific knowledge and relationships.
- Encourages Skill Development
By prioritizing internal hiring, you encourage your employees to continuously develop their skills and seek out new learning opportunities. They know that by improving themselves, they have a shot at advancing their careers. This culture of continuous improvement not only benefits the individual but also enhances the overall skill set within your organization.
- Fostering Innovation
Who better to drive innovation than someone who already knows your company inside out? Internal candidates bring with them a wealth of knowledge about what works and what doesn’t. They can offer fresh perspectives on existing challenges and are often more invested in finding creative solutions to problems. After all, their success is tied to the success of the company they already care about.
- Attracting More Internal Talent (and making you look good!)
Creating a reputation as a company that promotes from within and values career development can help you attract even more internal talent. Employees want to work for managers and organizations that invest in their growth and offer clear pathways for advancement. When you establish yourself as a great destination for career development, you become a magnet for other talented individuals who are eager to contribute and grow. This not only strengthens your internal talent pool but also enhances your own personal and employer brand.
The Drawbacks of Hiring Internal Candidates
We get it, hiring internally isn’t always without drawbacks.
- Limited Fresh Perspectives
While internal candidates bring valuable company knowledge, they may lack the fresh perspectives and new ideas that external candidates can offer. This can sometimes lead to stagnation and a lack of innovation if not balanced with external inputs.
- Potential for Internal Conflict
Hiring from within can sometimes cause tension between departments or colleagues. If one team loses a key member to another department, it can create feelings of resentment or competition. Clear communication and a fair, transparent hiring process can help mitigate these issues.
- Fear of having to reject someone internal
The risk of interviewing and rejecting someone internal can set off a hiring manager’s cringe factor and these fears aren’t entirely unfounded. No one wants to be the bad person. But consider the alternative: what message might you be sending to your internal talent if you won’t even consider hiring from within?
- Risk of Inbreeding
Relying too heavily on internal hiring can lead to "inbreeding," (a term I never imagined using in an HR blog!) where new ideas and diverse experiences are not introduced into the organization. It’s important to strike a balance between internal promotions and bringing in fresh talent from outside.
- Skill Gaps
Internal candidates might not always have the specific skills or experience required for the new role. While they can often learn on the job, this might require additional training and support, which can be time-consuming and costly.
Decision Tree: Should You Hire Internally or Externally?
Wrapping Up
While it might be tempting to look for external candidates who seem to fit the vacancy perfectly, don’t overlook the hidden potential within your own ranks. Internal candidates bring a host of benefits, from familiarity with company culture to reduced hiring costs and improved morale.
And remember, someone once took a chance on you. Maybe it’s time to return the favor and see just how far your internal stars can shine.
Helena Turpin spent 20 years in talent and HR innovation where she solved people-related problems using data and technology. She left corporate life to create GoFIGR where she helps mid-sized organizations to develop and retain their people by connecting employee skills and aspirations to internal opportunities like projects, mentorship and learning.
