Using internal hiring to decrease employee turnover is an important practice for businesses of all sizes.

Internal hiring is one of the most important steps a business can take to create a strong and successful workforce. Unfortunately, businesses have been abandoning this practice in recent years, increasing employee turnover and decreasing productivity.

Why Employers Neglect Internal Hiring

There are several reasons why businesses abandon employee turnover and internal hiring. The most common reason is that businesses feel that they need to fill all positions with outside hires in order to bring in fresh perspectives and new talent.

One reason businesses abandon employee turnover and internal hiring is that they don’t want to train multiple people. However, by using employees who are already familiar with the company’s policies and procedures, businesses can limit how much training they need to do.

Internal turnover is costly and can have a negative impact on businesses. Employee turnover can cost employers an estimated $16,719 per employee lost, according to the Society for Human Resource Management (SHRM). Furthermore, research shows that employee turnover has negative impacts on business performance. In a study by Towers Watson, it was found that companies with high employee turnover rates experience lower profits and greater levels of customer churn.

One reason why businesses turn to internal hiring is that they believe they already have the talent they need. While this is likely true, research shows that when businesses hire internally, they often overlook key talent pools in their organization. For example, businesses may overlook talented employees who work in different departments or who are located in different parts of the country.

Employers Should Focus on Internal Hiring

Internal hiring is a critical part of any organization’s talent acquisition strategy. By targeting talented employees within your own organization, you can avoid costly external hires and increase your chances of finding the best possible candidate.

But how do you go about recruiting internal candidates? Here are three tips to help you get started:

1. Establish a clear job description:

Nothing is more frustrating than trying to fill a position that doesn’t clearly define the required skills and experience. Make sure your job descriptions are specific, concise, and straightforward. This will help you identify qualified candidates even if they don’t have a specific job title in mind.

This will also help potential candidates determine if they are qualified for the position, so they don’t waste their time or yours.

2. Involve your employees in the recruitment process:

Employees are sometimes better at identifying potential candidates than you are. Let them recommend potential candidates who match the required skills and experience for the open positions, and then reach out to those candidates directly. This way, you can ensure that all of your candidates are assessed fairly and objectively.

3. Use online tools to recruit internal candidates:

Technology has made it easier than ever to find, connect with, and assess potential candidates online. Job search websites are great for reaching external candidates, but intranet sites and internal communication methods are best for reaching current employees.

The Importance of Continuously Evaluating Your Company’s Potential for Growth

Many companies overlook the potential for growth by not continuously evaluating their talent pool. This can lead to missed opportunities and hamper your company’s ability to move forward.

In order to maximize your internal growth, you must be able to identify and assess new talent on a regular basis. The following tips will help you do just that:

1. Use Feedback Tracking Systems:

One of the best ways to track employee feedback is through a feedback tracking system. This type of system allows employees to anonymously submit feedback regarding their performance and management. By using this information, you can better understand what areas need improvement and how you can improve employee satisfaction.

2. Conduct Surveys:

Another way to get feedback from employees is through surveys. Surveys offer a simple way for you to collect feedback from a large number of people in a short amount of time. They are also an effective way to measure employee satisfaction and motivation.

3. Interview Employees Regularly:

One of the best ways to assess potential growth opportunities is by interviewing employees regularly. By doing this, you can better understand which positions are currently underutilized and which ones may have growth potential. By interviewing employees regularly, you can also glean information about employee retention and performance as a whole.

Conclusion

Perhaps you’ve been sitting on the fence about whether or not to hire internally. After all, it can be a daunting task to find and vet the perfect candidate for your team. However, if you take some time to assess what you have in-house already, you might be surprised at just how talented your current employees are. So put those resumes away and give yourself a break—your current employees are more than capable of doing the job!

Author: Kristin Harper is the Founder and Head of Growth at Incrementors. Incrementors is an Award-Winning Digital Marketing Agency that helps clients to grow their business online by generating more traffic, leads, and sales. Incrementors specializes in providing customized, tailored online marketing solutions highly specific to the needs of the clients.