Internal hiring in companies rose by 10% in 5 years: LinkedIn

• Companies hiring their own people can turn them productive, shows LinkedIn Global Talent Trends 2020 report.
  
• The report highlights that internal recruiting is crucial to employers as it improves retention, accelerates the hiring process and thereby productivity.
  
• Globally, companies witnessed a 10% increase in the number of internal hirings — via promotions, transfers or lateral move — over the last five years.
  
• Almost seven in 10 talent professionals say that managers are not willing to let go of good talent, acting as a barrier to internal recruiting.

Companies are cutting costs by laying off employees across levels. But hiring their own people across roles can play a huge role in improving their productivity, shows LinkedIn Global Talent Trends 2020 report, which highlights the key HR trends.

The report highlights that internal recruiting is crucial to employers as it improves retention, accelerates the hiring process and thereby productivity. This may be because learning at the workplace builds employee skills — which eliminates the need to import them.

As high as 96% of talent professionals believe that internal hirings can shape recruitment in the country. “Top ways internal candidates are recruited are through jobs on internal job boards and hiring managers reaching out to employees they know,” the report said.

Globally, companies witnessed a 10% increase in the number of internal hirings — promotions, transfers or lateral move — over the last five years, according to LinkedIn. In fact, the companies with a slightly higher than average internal hiring could retain employees for longer.

However, companies need to have formal internal recruiting programmes in place to avoid biases and maintain diversity. The trend echoes the times when companies filled their vacancy by promoting its own employees — which led to employees sticking to the same company throughout their careers.

Roadblocks to internal recruiting

Almost seven in 10 talent professionals say that managers are not willing to let go of good talent. Lack of qualified internal candidates also restrains internal recruitment.

Other parameters influencing the hiring trends include employee experience, people analytics and multi-generational workforce.


The report analysed responses from over 7,000 talent professionals and HR leaders across the globe.

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