It can be quite beneficial to hire from within for several reasons. First, it creates good morale among employees. Javitch (2005) states that other employees are pleased when “one of their own" has been promoted to a management-level position. He thinks that increased morale among employees has a positive effect on productivity .Second, when vacancies are filled by hiring from within, there is no recruitment cost. The use of recruitment sources such as newspaper job listings, direct mails, employment agencies, recruitment firms and job fairs are expensive. Green (2007) argues that the cost of recruiting candidates, interviewing candidates, and orienting new employees outweigh the cost of training current employees for a new position. As a result, some organizations would rather train their employees in other positions rather than invest large sums of money in the recruiting process. Third, hiring from within requires less training time. Organizations tend to save time when they hire from within. Current employees are familiar with existing practices. Green (2007) argues that internal employees would require less time to become effective in a new position because they are familiar with...
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...ing vacancies. At the same time, organizations such as a 200 bed hospital should prevent their company from becoming homogenous and stagnate. External candidates should not just be recruited to file entry level positions; they should be recruited to file high level positions when experience and qualifications are needed and it is absence within the organization.
Fallon, L.F, & McConnell, C.R. (2007). Human resource management in health care. Sudbury, MA: Jones and Bartlett Publishers.
Green, A. (2007) .Promoting from within .Retrieved from http://www.boston.com/jobs/on_staffing/111907.shtml
Javitch, D. (2005).Selecting the Best Manager. Retrieved from http://www.entrepreneur.com/article/78576
Tracey, W. R. (1994). Human resources management & development handbook. Amacom books. Retrieved from EBSCOhost.
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