Advantages of Internal Hiring Essay

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In their efforts to reduce their hiring costs and increase their employees’ success, most organizations are being forced to embrace internal hiring. Currently, this approach is preferred over other approaches owing to its numerous benefits. In the past, companies favored external hiring over internal hiring because it was thought that external hiring added new talent to an organization.

However, studies indicate that hiring from external source is not only expensive but also ineffective. By embracing this norm, organizations have been able to cut down on advertising costs, recruiting costs, and expenses used in training new employees. This paper seeks to highlight advantages gained by an organization when it adopts internal hiring.

According to business researches, internal hiring is the most efficient and appropriate way of filling organization’s vacancies. Through this approach, an institution can reduce its recruitment costs and orientation training expenses and time. When an organization embraces this approach, its employees are given priority to fill the existing vacancy.

By doing so, an organization offers its employees with abilities to advance their career through regular training. As a result, employees can progressively develop and advance their careers.

Through career advancement, workers’ morale will be enhanced enabling them to dispense their knowledge and capabilities effectively. Equally, by improving on the workforce’s morale an organization can increase its productivity leading to an increase in returns.

Internal workers have no external offers, therefore an organization can easily agree with the existing employees on their remunerations, allowance packages, and conditions of vacancies. Through this, an organization can save on time, which could have been spent on negotiations.

Similarly, recruiting from external necessitates that an organization allocates time to advertise new vacancies, review job applications, hire recruiters, and organize job interviews. However, through internal hiring approach, the entire recruitment procedure can be reduced. Existing employees’ information can be accessed with ease from a database.

Similarly, to enhance the smooth operation of their companies, employers should adopt internal hiring over external hiring. As such, internal workers adapt faster to changes in an organization than external workers. Similarly, through internal hiring an organization can safeguard its traditions and confidentialities.

An organization is at a higher risk of compromising its privacy through external workforce than through internal workforce.

In this respect, external recruits than internal recruits would compromise on the organization’s secrets such as annual returns, chemical formulas, processing formulas, workers’ payroll, and medical records. This confirms why companies such as Coca Cola have resorted to giving priorities to internal employees.

In conclusion, all companies should acknowledge that internal hiring offers them a chance to reduce recruitment costs, enhance employment security, cultivate a good working culture with their employees, and enhance cohesiveness and good relations among the employees.

In this regard, it would be appropriate for companies to give priority to the internal workforce over external workforce to enhance their operation and increase their profits. For instance, in the last decade, most of the Chinese and Indians companies have experienced stiff competition from other firms due to their failure to prioritize and maintain their internal trained employees.

Through studies and research, it is estimated that from the year 2005 to 2010 many companies and organizations were able to save $20 million from adopting internal hiring over external hiring. Equally, these organizations realized higher returns in the same period.

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IvyPanda. (2019, June 18). Advantages of Internal Hiring. https://ivypanda.com/essays/advantages-of-internal-hiring/

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"Advantages of Internal Hiring." IvyPanda, 18 June 2019, ivypanda.com/essays/advantages-of-internal-hiring/.

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IvyPanda. (2019) 'Advantages of Internal Hiring'. 18 June.

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IvyPanda. 2019. "Advantages of Internal Hiring." June 18, 2019. https://ivypanda.com/essays/advantages-of-internal-hiring/.

1. IvyPanda. "Advantages of Internal Hiring." June 18, 2019. https://ivypanda.com/essays/advantages-of-internal-hiring/.


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IvyPanda. "Advantages of Internal Hiring." June 18, 2019. https://ivypanda.com/essays/advantages-of-internal-hiring/.

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