Internal staffing is a way companies hire for positions they need filled from within. This strategy stands in contrast to external recruiting, in which employees are brought in from outside sources. While internal staffing can make employees happy, it can also lead to several problems that you may not have when recruiting externally.
Change Is Difficult
One of the potential problems with internal recruiting is that it can be difficult to institute any changes in the way things are done. When you take someone from within the organization, there is a good chance that he will continue to do things the way they have been done in the past. If the business is successful, this may not be an issue. However, if you want to improve things in your business, internal staffing may not be the best approach.
Even if you try to do things fairly and give everyone an equal shot at the job, someone in the business will inevitably feel like she has not had a chance at the job. She will feel slighted and angry at upper management because of this. Even if she is vastly under-qualified, she will feel like she should have been given a better shot at the job. This often leads to problems with employee relationships. Many employees think that they are just as good as the person who got the job and the business is unfair.
Another potential problem with internal recruiting is that it limits your options for the job. When you can only choose among the people who work in your company, you may not have anyone who is really qualified for the job. This means that you could overlook some solid applicants outside of your company who would actually be a better fit. To be successful, you should focus on hiring the best people you can find. If you limit your options, this may not be the case.
Creating Another Opening
When you promote somebody from within to a new position, this immediately creates another opening that you have to fill. If you take someone from below that opening and fill it, then you will have yet another opening to fill. Eventually, you will have to bring someone in from the outside to fill an opening. If your business is running smoothly, taking someone good out of a position can also alter the flow of operations.