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HR Operations & Employee Lifecycle

What is a Internal recruitment?

Updated 27 Jan 2026 5 min read

Internal recruitment is the process of filling job vacancies with existing employees rather than external candidates. It includes promotions, lateral transfers, and moves between departments. Internal recruitment supports employee development, reduces hiring costs, and retains organisational knowledge.

Understanding internal recruitment

Internal recruitment leverages existing talent to fill vacancies. Instead of looking outside, organisations first consider whether current employees could take on new roles. This creates advancement opportunities, retains institutional knowledge, and often results in faster, more successful placements.

Internal recruitment

  • Promotions
  • Lateral transfers
  • Department changes
  • Role expansions

vs External

  • Lower cost
  • Faster filling
  • Known performance
  • Shorter onboarding

Benefits of internal recruitment

Internal recruitment offers advantages for both organisations and employees:

Key benefits

Cost savings: No advertising or agency fees
Faster: Shorter recruitment cycle
Lower risk: Known track record
Retention: Shows career opportunities
Knowledge: Retains company expertise
Morale: Boosts engagement

Internal recruitment process

  • Post internally: Use internal job postings
  • Screen applications: Review internal candidates
  • Interview: Formal process even for known candidates
  • Select: Make decision based on merit
  • Transition: Plan handover and backfill

Don't skip the process

Internal candidates deserve a proper recruitment process. Informal appointments or "tap on the shoulder" approaches create perceptions of favouritism and may miss better candidates. Follow your standard process.

Internal recruitment best practices

Process practices

  • Post roles on internal job board
  • Clear application process
  • Fair interview process
  • Transparent decision criteria

People practices

  • Encourage applications
  • Support current managers
  • Provide feedback to all
  • Plan transitions carefully

Common internal recruitment mistakes

Manager blocking

Managers who prevent good people from moving internally. This damages careers and drives talent away. Create policies that support internal mobility and don't let managers hoard talent.

Poor feedback for unsuccessful candidates

When internal candidates are rejected without proper feedback, it damages trust and engagement. Provide constructive feedback and discuss development opportunities.

Forgetting about backfill

Moving someone internally creates a vacancy that needs filling. Plan for backfill as part of the internal recruitment process - it's not complete until all roles are covered.

Key takeaways

Internal recruitment is a cost-effective way to fill roles while developing employees and retaining knowledge. Use fair, transparent processes and provide feedback to all candidates. Don't forget to plan for backfills.

RosterElf's staff management helps Australian businesses manage team transitions alongside efficient rostering and scheduling.

Frequently asked questions

RosterElf Team

Written by

RosterElf Team

The RosterElf team comprises workforce management specialists with deep expertise in Australian employment law, rostering best practices, and payroll compliance. Our team works directly with businesses across hospitality, healthcare, retail, and service industries to develop practical solutions for common workforce challenges.

General information only – not legal advice

This glossary article about internal recruitment provides general information about Australian employment law and workplace practices. It does not constitute legal, HR, or professional advice and should not be relied on as a substitute for advice specific to your business, workforce, or circumstances.

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