Successfully fill critical positions internally

Internal candidates with the same qualifications offer decisive advantages: they embody the culture of the company and can draw on their local network. The company is very familiar with the candidate - with his strengths and weaknesses. This is why internal candidates often have a more realistic view of the requirements profile and working environment of the position to be filled, can adapt to it more easily and demonstrate higher productivity than external candidates even in the initial period (Martins/Lima 2006; Bidwell 2011). Scientific studies also show that internal candidates have a 40 % higher retention rate (Zottoli/Wanous 2000) and are often more satisfied in their new job (Moser 2005). Compensation costs are also on average 15 % lower (Bidwell 2011). However, it is important to decide whether an internal or external candidate is better suited based on the specific requirements of a job. External candidates are most sought after when specific expertise is needed or cultural change is to be promoted. Desired ratios of internal to external appointments are typically in the range of 80:20.

Success factor 1: Clarify requirements and expectations

As a rule, the superior, as the client of a job advertisement, should define what type of candidate is being sought. In close cooperation with the HR department, it should be clarified what the value of the position is and what remuneration is appropriate. The following points should be considered in detail:

• A personal interview with the superior of the position to be filled is essential. If this does not take place, it results in repeated interview loops and long processing times.
• Re-appointments are often made with a new "mandate" for the future holder of the position. If a job-specific succession plan exists, it must be reviewed with regard to the new requirements profile.
• Expectations of a person's working methods and management style must not be neglected. They are often more important than professional requirements and at the same time more difficult to clarify.

Success factor 2: Use and expand the entire talent pool

If you want to fill positions with internal candidates, you have to know your talents. For this purpose, existing talent and performance management processes can be expanded to include, for example, self-disclosure by the appraisees. In this way, employees can disclose information about their career preferences and willingness to be mobile.

For the first round of selection for a vacancy, the motto is "don't overlook anyone" - for example, through a broad database search with predominantly objective and basic criteria. The search should take place throughout the company. In the case of senior management positions, too, there is now a trend towards opening up the appointment process: positions are consistently advertised and employees can apply - irrespective of their potential assessment and evaluation by their line manager.

This alternative access route of self-nomination increases the talent pool. It also helps employees better explore internal options for a career move before disclosing their willingness to change to competitors and executive search firms.

Success factor 3: Accompany the process professionally

When choosing the appropriate selection tools (interviews, tests, etc.), recognition by all involved is crucial: the candidate as well as the client and HR should consider the use of the tool useful and trust its judgement. (See graphic) Once a decision has been made in favour of the desired candidate, a commitment is made, an offer is made and - after the holding period has expired - the new position is taken on. Typically, a staffing process takes four to six months until the new position is accepted. In addition to interviews with the shortlist candidates, "time eaters" are, in particular, holding or release periods.

In this context, it is HR's core task to lead and moderate the process. One starting point is, for example, the establishment of a company-wide talent broker. This independent HR function is the central point of contact for all parties involved in the recruitment process. The knowledge of internal candidates from a wide range of sources that is pooled here and a high degree of networking make it particularly valuable. Talent brokers prepare and accompany staffing processes, help evaluate candidates and support the selection process.

Success factor 4: Define and adhere to rules of the game

Staffing processes work well when responsibilities are clearly defined, respected and adhered to. This includes in particular:

• The information and authorization concept: Who has access to employee data?
• Approach: Who contacts candidates - HR or superiors?
• Communication and agreements: When does the current supervisor learn of a candidacy of his employee?
• Decision-making authority: Does the superior have the right of veto in critical cases?
• Rejections: When, how and by whom are rejected candidates informed?
• Holding periods: typically three months, based on external notice periods
• Cost issues: For example, travel expenses for interview appointments
• Diversity aspects: For example, quota regulations

An often underestimated point is how to deal with rejected internal candidates. It is highly critical that they also perceive the entire process as transparent and fair and are thus open to future staffing processes.

Success factor 5: Making new job holders fit

Only afterwards does it become clear whether a casting is successful. The first six months in the new role play a crucial role. Particularly when companies bring internal talent into new roles, they should offer targeted training to new job holders.

Special programs support employees and managers in finding their way quickly into their new role, mastering the common challenges of a job change and working on their leadership skills. The methodological design is flexible and can range from individual coaching to group training in workshops. The goal is to sensitize job holders to their new tasks and to help them adapt their own leadership behavior to the new requirements.

Conclusion

The search and screening of internal candidates as well as cross-departmental recruitments are time-consuming. Nevertheless, they are the ideal way of successful talent management. No other instrument has such a direct effect on retaining talent as the realistic prospect of development opportunities.

Literature:

• Bidwell, Matthew (2011): Paying more to get less: The effects of external hiring versus internal mobility. In: Administrative Science Quarterly, Volume 56, Number 3, pp. 369-407.
• Martins, Pedro; Lima, Francisco (2006): External recruitments and firm performance. In: Applied Economic Letters. Number 13. pp. 911-915.
• Moser, Klaus (2005): Recruitment sources and post-hire outcomes: The mediating role of unmet expectations. In: International Journal of Selection and Assessment. Volume 13, Number 3. pp. 188-197.
• Zottoli, Michael A.; Wanous, John P. (2000): Recruitment source research: Current status and future directions. In: Human Resource Management Review, Volume 10, Number 4. pp. 353-382.