Future-Proof
Talent Acquisition
Internal recruitment - Validation Statistics
Internal recruitment is becoming increasingly important for several reasons, supported by various statistics and trends in the labor market.
Sources - data and statistics:
Cost of Turnover & Retention Rates:
- SHRM (Society for Human Resource Management) reports that the cost of replacing an employee can range from 33% to 200% of their annual salary, depending on the role and seniority.
- A study by Glassdoor suggests that internal promotions lead to a 41% higher retention rate compared to external hires.
Speed of Hiring:
- A report from The Society for Human Resource Management (SHRM) found that the average time to fill a position externally is 42 days, compared to around 20 days for internal hires.
- Wharton School of Business research revealed that internal hires outperform external hires in their first two years and require less onboarding time.
Lower Recruitment Costs:
- According to SHRM, external hires cost up to 1.7 times more than internal hires due to recruitment fees, advertising, and onboarding.
- Training Magazine has published data showing that internal hires require 20-40% less onboarding and training.
Career Development & Employee Engagement:
- Gallup reports that companies offering internal mobility have a 38% lower turnover rate.
- A study by Deloitte suggests that 76% of employees are more likely to stay with a company that offers career progression.
- PwC’s Millennial Survey indicates that 87% of millennials consider professional growth and career development crucial to job satisfaction.
Cultural Fit & Knowledge:
- A Gallup study highlighted the importance of cultural fit, showing that internal hires can contribute to a 30% productivity increase.
- Harvard Business Review has noted the importance of institutional knowledge, especially with internal promotions.
Skills Gap & Succession Planning:
- A LinkedIn Learning report found that 94% of employees would stay longer if companies invested in their careers.
- Deloitte and Gartner have emphasized the role of internal recruitment in closing the skills gap and supporting succession planning.
These sources are well-regarded in the HR, recruitment, and talent management sectors and provide strong evidence for the benefits of internal recruitment.
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