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Seven Reasons To Use An Internal Hiring Team There are many that might argue about which operations should remain internal, there's an argument to be made that an internal hiring time can save you a tremendous amount of time and money in the long-term future.

By Satish Gaire Edited by Tamara Pupic

Opinions expressed by Entrepreneur contributors are their own.

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In business, there's a familiar phrase referring to internal operations, where an "in-house" team takes care of certain objectives for an organization. For example, a film studio might hire an in-house actor, or a record label might crank out hits using an in-house producer. There are many that might argue about which operations should remain internal, there's an argument to be made that an internal hiring can save you a tremendous amount of time and money in the long-term future. Here are seven reasons why you should consider an internal hiring team:

A Consistent Culture
There are many founders that have elaborated on the concept of a consistent "corporate culture" to succeed. This culture changes significantly depending on the stage of the organization, how many employees are involved, and the amount of funds that it has raised. An internal hiring team can keep the company culture more consistent than external options.

Less Training
There is a lot of time and money that goes into training new employees. It doesn't matter if you work at a fast food restaurant or an oil plant, there are strict procedures that take some getting used to. One great benefit of an internal hiring team is that it can often cost much less to train employees.

Save Time
If you are in the middle of a massive expansion, you might not have time to rigorously vet new employees. While employees should also be vetted, it should be acknowledged that there are tech companies that have expanded aggressively in the past, and that trend certainly doesn't seem to be slowing anytime soon. An internal hiring team can save team and help the organization stay focused on the big picture.

You Know Them Better
There's a good chance that some other employees can "vouch" for another employee's skill set. They might also shed light on their strengths and weaknesses. This is much more advantageous than being forced to observe and train a new employee, for example.

Avoiding Bidding Wars
There are plenty of qualified employees out there that some of the most powerful and influential organizations in the world might want for themselves. There are situations where competitive salaries are offered, and equity in the company is even included. There's nothing wrong with hiring externally, but it does mean that companies will probably have a better chance of "one-upping" you when it comes to certain workers. Of course, this might happen regardless - but the fact that bidding wars happen less when it comes to hiring internally should be noted. After all, if they already work in your organization, there's a good chance that they might be happy to advance (depending on how satisfied they are).

New Hires Feel Motivated
The idea that someone works at an organization where there is a potential to climb up the socioeconomic ladder is motivation to stay somewhere. We all know that there are plenty of opportunities for a qualified worker, but hiring within allows external hires for new entry-level positions. This helps to foster a culture where individuals can advance in terms of occupation and pay, and it can help to inject some motivation into the workforce. There is now an idea that one can advance and not have to leave the organization for another company.

Your Company Looks Better
We often hear stories about how individuals were able to show and prove their value to an organization that rewarded them for their long-term dedication. If you are an organization that values hard work and results, rewarding the right employees can send the right message to the overall marketplace. After all, employees want to know that they are appreciated and valued. If you consistently promote talent from within your organization, it says a lot about your company culture and demand for productivity. We all know that there are situations where employees think of a job as a short-term solution. However, employers want to know that they are hiring individuals who not only believe in the company, but who want to advance within it. The concept of a business hiring from within is a great way to maintain consistency, productivity, and respect. Of course, it's also a much more relaxed process, as there is often no need to get involved in external bidding wars.

Related: Three Steps To Help You Hire Someone Who's In Line With Your Organizational Culture

Satish Gaire

founder and CEO of DirectPay

Satish Gaire is the founder and CEO of DirectPay. He is an internet marketer and entrepreneur, who has founded multiple software companies, and is known for his expertise in sales, startups and SaaS.

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