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Internal Hiring Process – Advantages and Disadvantages


When there are openings for some job positions in a company, there are many firms that opt for internal hiring. This means that they seek the best talent among its employees.

Here are some qualities they seek for, apart from the professional skills when they hire candidates within the firm.

internal hiring process

Internal Hiring – What companies look for in candidates?

1. Loyal to the firm:

If you expect to be hired to a superior position in a firm, you must be loyal to the organization and you must have proved your loyalty through your conduct in the past years.

2. Dedicated to work:

Dedication and devotion to the work you do, will always count in your favour. Organizations always like individuals who care for the work they do.

3. Punctual:

While very few individuals understand the importance of this value, it does hold great importance in the professional life.

4. Reliable:

An organization will select you for higher position only if you seem to be reliable. They may refer to your past work to understand how reliable you are.

5. Cordial relations with colleagues:

Make sure you have a good relation with your colleagues as this will also count when you are being promoted.

Internal hiring is a very successful approach due to the myriad merits it has. Yet there are certain drawbacks too when an individual opts for internal hiring.

Here is a quick overview of the merits and demerits of the internal hiring process.

Internal Hiring Process Advantages Internal Hiring Process Dis Advantages
Knows the company well and is aware of its working Pay hike will be lower than what you get outside
Lesser changes in your routine The firm will know your weaknesses and drawbacks
You are being promoted because you are regarded a talent You may face a stiff competition from your peers
You get a pay hike and greater job security Professional Jealousy is bound to happen
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Internal Hiring Process Advantages:

A change is always too tiring for individuals and when it is the change of the role you play in your professional lives, it becomes even more tiring.

If you get internally hired to a better job position, it not just boosts your morale but also helps you avoid the whole tiring process of a job change. Here is a list of a couple of merits of getting hired to a higher position in the same organization.

1. Knows the company well and is aware of its working:

company knowledge When you have been working with an organization for a long duration, you are bound to know how the office politics works in that organization.

You will also know well who the influential individuals in the organization are and how to deal with them. This prevents you from going through the whole process of reinventing the wheel.

2. Lesser changes in your routine:

When you switch an organization, you are bound to make changes to your routine. This affects your sleep, your routine food habits and indirectly your health.

When you get hired to a higher position in the same organization, you do not have to go through these changes. This is definitely a great merit, especially in jobs where individuals may be expected to work in shifts.

3. You are being promoted because you are regarded a talent:

The respect you gain when you are promoted to a higher position in the same organization is very high.

When you are hired to the same position in a different organization, you are hired based on your resume and your interview while they do not professionally know you.

On the contrary, in your own organization when you are awarded a higher designation, it is a result of the consistent performance and effort you have shown while being a part of it. That results in respect and recognition from your colleagues and peers.

4. You get a pay hike and greater job security:

Salary hike A higher designation directly means a greater pay rise. The fact that the company chose you for the particular position means that the company relies on you.

This clearly means that your job in the organization is safe and secure. You do not have to fear losing the job. This security helps to increase your confidence and helps you perform better.

Internal Hiring Process Disadvantages:

Just like the numerous merits associated with getting hired to the same organization, there are numerous demerits associated with getting internally hired.

Here is a list of a couple of the major demerits that may discourage you from opting for a higher position in the same organization.

1. Pay hike will be lower than what you get outside:

The reason why companies prefer to hire an individual from their own organization is the fact that they can cut down on cost.

You may be able to quote for a higher pay when you are applying for the same position in a different company. In your own company, you may have to make adjustments to retain the goodwill of the company.

2. The firm will know your weaknesses and drawbacks:

Very often in a career you wish to start all over again. You may apply for a different job designation because you want to perform better by making reforms in your approach.

You may want to opt for a company where no one knows you so that your past follies do not prevent you from succeeding. This is not possible when you are selected for a higher position in the same organization.

3. You may face a stiff competition from your peers:

competition at work The competitive spirit in peers who know you is bound to be pretty high. When you are aware of their capabilities, you can find it difficult to retain your confidence and move ahead. The challenges you face from your peers are often more frightening than the challenges you face from strangers.

4. Professional Jealousy is bound to happen:

There is always a great risk when you get promoted within the same organization. It may invite professional jealousy from your peers who may be equally skilled, talented and deserving.

Professional jealousy can go a long way and it may even affect your relation with your colleagues. You must be capable of handling such sticky situations to climb the ladder of success.

To Wrap Up:

While there are merits and drawbacks to internal hiring, it is always great to be promoted to a higher position within your own organization. It is a matter of pride and very few people are fortunate to get identified for their abilities.