I was talking with someone recently about their company’s take on hiring from within. Although the organization was all for it, there were definite challenges in actually making it happen. These challenges sounded to me like they all revolve around Human Capital Management.

There are a number of benefits to hiring this from within such as:

  • Already evaluated work performance as well as an employee’s ability to fit into company culture.
  • It is much more cost effective to re-invest in an employee, even if you just consider recruiting cost alone.
  • The employee already has knowledge of the culture, corporate policies, and your business goals.
  • Advancement opportunities do wonders to increase engagement, instill loyalty, and lower turnover.

But this may not be so easy to implement, especially for very large organizations. I saw this video and it made me realize how many things you need to know to make hiring internally a valid and productive choice. It uses a funny comparison between the role a chair plays and the role an employee plays in the company to demonstrate these things. And of course, it ultimately winds up being a commercial for Human Capital Management systems, but the video raises some valid points nonetheless.

 

 

  • Do you have a solid understanding of each employee’s strengths and weaknesses?
  • Do you have knowledge of your employees’ career aspirations and focus on training and career development?
  • Do you know what your company has already invested in each employee?
  • Are you aware of the specific contributions made by your employees?

All of these things have to be there in order for you to successfully tap into a pool of potential candidates. 

What’s your takeon it? Does your organization take steps to hire from within and is it successful? Do many of your employees lose opportunities and do you lose out on this resource because of poor human capital management?  Do you have processes in place to make this a viable option?  Do you see the relationship between hiring from within and Human Capital Management?