Internal applicants - handle with care

Now that more organisations are looking to recruit from within, we take a look at the consequences of such moves and the roles both HR and line managers must play. We also flag up the legislation that organisations must observe.


LEARNING POINTS

  • Internal recruitment is expected to grow within the uncertain labour market at present. In order for it to be effective, valid and fair to all employees, a policy that is consistently applied and communicated throughout the workforce needs to be in place.

  • Internal recruitment for successful applicants is a powerful motivator. Those who are not successful need to be told why, and need honest and constructive feedback about where they can go within the organisation.

  • Line managers and the HR or personnel department need to work together to ensure internal applicants are treated fairly and equally.

    • "As recession looms, organisations tend to turn to their internal labour markets and, as they grow, to the external. Fast growth or periods of rapid change tend to favour external labour markets, periods of stability mean a move to the internal. Both are important to organisational health," says Penny Tamkin, principal research fellow at the Institute for Employment Studies (IES), commenting on organisations' approach to, and use of, internal applicants.

    Why recruit internally?

    Making internal appointments can be an efficient and effective way to fill positions. It can send many positive messages to all members of staff about the opportunities for promotion and development within the organisation. Internal candidates also have experience of the organisation, its culture and how things are done, so they can generally adjust to their new role more quickly.

    Tamkin, who was principal researcher on a report produced by IES on the open, internal job market1, also feels that "complete mismatches are less likely. Internal candidates provide a stream of knowledge and expertise that can be important to quality working."

    It goes without saying that, not least to meet legal requirements, recruitment processes used by organisations have to be valid, fair and objective. They also have to be seen to be valid, fair and objective. And this is no less the case when dealing with internal applicants.

    Failure to meet these requirements will not only leave an organisation exposed to legal challenge, but could also leave it without a pool of experienced staff. Employees who have been through the internal recruitment process and are unsuccessful can be left with the feeling that they have come to end of the line within the organisation.

    The internal applicant

    When an individual applies for another role within the organisation they are working in, it carries a message for their line manager, or the organisation, or both. This message can be ignored only at a cost to the organisation. Either the individual is unhappy in their current role or they feel that they have learned enough within their current role to move forward.

    Successful applications can have a positive effect not only on the morale of the individual, but also on the organisation as a whole. Opportunities for advancement represent a strong motivator for the majority of employees. However, failure on the part of the internal applicant to be successful in recruitment also has consequences. If the individual feels they have learned all they can in their present role and then failed to secure a promotion or sideways move into another department or section where they will continue to learn, the negative feelings about the role they currently occupy will not go away. In fact, it is more likely that they will increase - and develop into a broader antipathy towards the organisation.

    Immediate action must be taken to avoid any negative reaction. It is vital to provide constructive and candid feedback to the individual, discussing the reasons for their unsuccessful application. It is also important to explore the individual's feelings about their current role and where they would like to see themselves within the organisation. Training and development needs, if any, should be explored at this stage and an action plan - incorporating career development - drawn up. According to the IES report, internal candidates are concerned that they do not receive honest feedback and career advice in such a situation. So this is the time to be honest, yet constructive, with failed applicants. If the message is communicated in a positive way, then an organisation could save itself the time and cost of advertising for another position when the disaffected employee resigns.

    Tamkin says there is very little evidence that unsuccessful candidates are being "rehabilitated" after failing to secure a promotion or internal move. She says: "At senior levels, candidates may receive focused feedback from their own line manager or from personnel, but this does not always meet the candidate's needs. There is some evidence that feedback from personnel is preferred as it is seen as more honest and open than that received from the line. On the whole, candidates complain that the feedback they get is too vague and unhelpful."

    Tamkin and her colleagues at IES have identified the following as concerns held by employees who are involved in the internal recruitment process:

  • the preconceptions of some line managers about who is most suitable for the position before the selection procedure begins;

  • a lack of opportunity to develop and learn in a new position, as the recruitment and selection process is too rigorous and leaves little, if any, room for learning and development;

  • selection processes that do not seem to take account of their track record, or experiences outside the workplace.

    Lin Grensing-Pophal, in a paper prepared for the Society for Human Resource Management2, stresses the importance of providing prompt and personal feedback and follow-through with every applicant. She writes: "Part of the value of recruiting from within is the opportunity to nurture and develop staff members. Feedback after the hiring process is critical. Help candidates to recognise their areas of strength and opportunities for improvement. Ultimately, both the individual and organisation will benefit." With regard to line managers, IES found that they also had their own concerns. Generally, they were worried about losing staff they might have wanted to keep, particularly when they knew the resulting vacancy would be hard to fill.

    Role of HR

    IES discovered that HR managers are concerned about the "rigour, transparency and fairness" of the internal application process. They also expressed concerns about how an internal job market would not be to the advantage of all members of staff - for example, those who were returning from career breaks or secondments. They also had concerns about how succession planning would fit in with the internal application process.

    Tamkin says that many organisations have both employer-instigated job moves (for development purposes) and open moves operating side by side. Where managed job moves account for more than 25% or so of the total, she believes that most individuals in the organisation will perceive that most job moves are managed.

    Combining succession planning and open internal moves is not impossible, says Tamkin. She has seen "organisations where succession plans might influence the shortlist, or might place people in terms of their development to compete better, or they might still advertise but say there is a favoured candidate, or manage moves much more proactively at senior level. Often the most important thing is to ensure there is a process that people can understand and receive feedback on. Knowing where individuals stand is often very important to them and rarely done well."

    The role of the HR department in recruitment and selection practices involving either all or some internal applicants is defined largely by the culture that exists within the organisation. Normally the HR department will at least define the procedures for dealing with internal applicants. This should enable the department to ensure that the procedure in place adheres not only to legal requirements, but also that it is based on good practice where possible.

    From here on in, the department may act in a policing capacity. This would mean that the onus would be on line managers to conduct the recruitment and selection process.

    It is recommended, though, that the HR department should be more closely involved than this, acting in an advisory capacity. Tamkin makes the point that "as a partner to line management, HR should be developing recruitment systems that are sensitive to the needs of line managers. The big lesson is, if the line don't like it, they will find ways around the system, so partnership and mutual understanding is critical. HR is there to create sensible, practical systems that work for the organisation and the candidates. They should be managing the administration and providing expert assistance with the process."

    Role of line managers

    Tamkin stresses the importance of line managers' involvement in the recruitment process. "They need to be involved, but they need to be skilled (trained) and supported. The support is both administrative - where the burden of the recruitment process is taken by others - and expert."

    She says it is important for organisations to recognise that line managers may have a different list of requirements to that of the organisation: "They will prefer people who can be effective from day one, whereas the organisation may prefer more developmental appointments. If this is the case, they may need encouragement to consider other candidates."

    Communication

    There is really only one way that all internal applicants are going to feel confident that they are being given the best chance of securing the internal promotion or internal move that they have applied for: effective communication. This applies to the first enquiry made on the part of the individual as much as it does to offering them the job, or letting them know they were unsuccessful.

    Penny Tamkin says: "It is important to communicate the policy in place within the organisation so that people are clear how open recruitment operates, especially if it happens alongside managed moves. Applicants need to know how to present themselves and how to receive feedback on their application."

    Lin Grensing-Pophal agrees, and says it is important to "clearly communicate a policy that is consistently applied. If you don't feel you can be consistent, don't create the expectation." She says it is necessary for the organisation to "be honest about how you will staff open positions. You may decide that positions at a certain level will always be advertised externally. If so, make sure employees are aware of this. You may want to reserve the right to promote an existing employee into a higher-level position without posting the position. If so, make sure employees understand this and that the criteria you use to make these decisions are consistently applied."

    Staying on the right side of the law

    Dealing with internal applicants requires the same adherence to anti-discrimination laws and data protection legislation that any application demands.

    The main legislation to adhere to when dealing with internal applicants is:

  • The Sex Discrimination Act 1975;

  • The Race Relations Act 1976;

  • The Disability Discrimination Act 1995; and

  • The Data Protection Act 1998.

    Sex and race discrimination

    The Sex Discrimination Act 1975 and the Race Relations Act 1976 prohibit discrimination at every stage of employment, including the recruitment and selection process. The Equal Opportunities Commission: Code of Practice on sex discrimination: equal opportunity policies, procedures and practices in employment (1985) recommends the establishment and use of consistent criteria for selection and promotion. This can remove much of the subjectivity around selection decisions that might lead to unlawful discrimination.

    The Commission for Racial Equality, in its Code of Practice for the elimination of racial discrimination and the promotion of equality of opportunity in employment (1983), recommends:

  • the adoption, implementation and monitoring of an equal opportunities policy to ensure that no job applicant receives less favourable treatment on racial grounds or is placed at a disadvantage by requirements or conditions with a disproportionately adverse effect on his or her racial group;

  • where appropriate, and where permissible under the Race Relations Act, employees of underrepresented racial groups are given training and encouragement to achieve equal opportunity within the organisation; and

  • staff responsible for shortlisting, interviewing and selecting candidates should be: clearly informed of selection criteria and of the need for their consistent application; given guidance or training on the effects which generalised assumptions and prejudices about race can have on selection decisions; and made aware of the possible misunderstandings that can occur in interviews between persons of different cultural backgrounds.

    Discrimination by victimisation is also unlawful under the Act. For example, a person is victimised if he or she is given less favourable treatment than others in the same circumstances because it is suspected or known that he or she has brought proceedings under the Act, or given evidence or information relating to such proceedings, or alleged that discrimination has occurred.

    Employees with disabilities

    The duty of "reasonable adjustment" referred to in the Disability Discrimination Act 1995 (DDA) puts the onus on the employer to ensure that disabled people are accommodated in arrangements for recruitment and selection. Employers are also required to avoid "less favourable treatment" of disabled candidates and must seek to comply with the duty of "reasonable adjustment" (see IRSER 680).

    Data protection

    The Data Protection Act 1998 (the DPA) applies to the processing of personal data - defined as information from which a living person can be identified (or can be identified from that data in conjunction with other information in the possession, or likely to come into the possession, of the data controller).

    Employers must comply with the data protection principles in relation to all personal data in their control. This means that all personal data must:

  • be processed fairly and lawfully;

  • be obtained only for one or more specified and lawful purposes, and must not be processed in any manner incompatible with that or those purposes;

  • be adequate, relevant and not excessive in relation to the purpose(s) for which they are processed;

  • be accurate and, where necessary, kept up to date;

  • not be kept any longer than is necessary for that purpose or those purposes;

  • be processed in accordance with the employee's rights under the Act;

  • be protected against unauthorised or unlawful processing, and against accidental loss, destruction or damage; and

  • not be transferred outside the EU without an adequate level of protection for employees.

    Under a draft Code of Practice, employers must keep data relevant to the recruitment and selection decision for four months for applicants who are not shortlisted, and four months from the date on which successful shortlisted applicants are informed of the appointment decision.

    Employers are being encouraged to be particularly cautious when promoting within the company or moving employees to a different department.

    Murray Fairclough, director of legal services for Abbey Legal Protection, is quoted in The Times3 as warning employers to be "scrupulously" fair when making internal appointments. He suggests creating a written job description, ensuring all members of staff are invited to apply and ensure all the interviewed candidates are asked broadly the same questions. He stresses how important it is for those involved in the process to make notes at every stage: "If you don't have proof that you had objective criteria on which you based your selection, you could find yourself in trouble. Indicators of unacceptable behaviour can stand out a mile to an outsider, but are missed by an employer."

    Conclusion

    Some final words of warning come from Penny Tamkin at IES: "Systems can either be positive in terms of morale, or negative. The use of internal applicants creates an internal labour market, which is important to most people. They can operate smoothly and with a light touch so they are unremarkable or they can act as a quagmire that sucks in resources and time and cause immense angst and anger.

    The internal selection process needs to be relatively quick and transparent. It should not be overworked or specified, neither too complex, nor too simple."

    1Free, fair and efficient? Open internal job advertising, W Hirsh, E Pollard and P Tamkin, IES, July 2000.

    2The dos and don'ts of recruiting from within, L Grensing-Pophal, Society for Human Resource Management (www.shrm.org ), October 2000.

    3The Times, 12 February 2002.


    Pointers to good practice

  • Take account of the business and personnel management context in designing the process. Of particular importance is the willingness and skill of line managers to take responsibility for filling job vacancies.

  • Produce clear descriptions of the general process and general training for staff in its operation, plus in-depth training and advice to those involved in drafting ads, shortlisting and selection.

  • If several similar vacancies occur at one time, run one process advertising them together.

  • If using electronic ads, ensure they can be easily found and searched. Use technology to reduce the need to repeat information (eg by on-line applications and posting CVs).

  • Produce clear and accurate information about each particular vacancy, and general background information on types of job.

  • Selection criteria should cover both generic and technical skills and be known to the candidates. They should clarify which skills are essential and which desirable. Competence-based applications and interviews should be user-friendly and not too rigid.

  • Involve someone who is independent in shortlisting and interviews alongside the line manager, eg an HR manager or panel member from another work area.

  • Use multiple sources of evidence in decisions. Data on track record is extremely important and should not rely exclusively on numerical competence scores from appraisal or the views of the current line manager.

  • When promoting an individual, consider their suitability for the grade not just the single post they are applying for.

  • Build an element of development into open ads and appointments, as you would with external recruitment.

  • If some developmental moves are made outside the open system, communicate about this clearly. Ensure the clear majority of jobs are still openly advertised.

  • Provide additional support to those who need redeployment, returners, secondees and those who are "stuck".

  • Indicate openly whether there is a preferred candidate for a particular post at the point it is advertised.

  • Provide feedback to all applicants for jobs, and access to further advice and coaching if they need it.

  • Do not tolerate line managers who abuse the system or block their own staff from moving jobs.

  • Communicate openly on how specific vacancies have been filled.

  • Create opportunities for staff and managers to give feedback from time to time on the process, eg through staff surveys.

  • Regularly publish monitoring information on how the system is performing in terms of outcomes.

  • Think of the whole process as a decision, not a set of rules.

    Source: "Free, fair and efficient? Open internal job advertising", W Hirsh, E Pollard and P Tamkin, Institute for Employment Studies, Mantell Building, Falmer, Brighton, East Sussex BN1 9RF, www.employment-studies.co.uk .

    		•


    Preparing a shortlist

    Sifting involves matching evidence from the application form against the requirements set out in your jobplan. To help make sure that you can justify your decisions at a later stage, if necessary, it is good practice to:

  • have more than one person carrying out the sift, to reduce the risk of prejudice or bias;

  • adopt a simple marking system to show how far each candidate has presented evidence that they can meet your requirements;

  • take each application in turn and work systematically through your requirements, in order of importance, awarding a mark for each;

  • carry out a brief review at the end of the exercise, making sure that marks have been awarded on the basis of evidence provided on the application form, rather than personal or second-hand knowledge about the candidate; and,

  • invite the candidates with the best total scores to interview.

    In particular:

  • recognise that skills and abilities can be demonstrated by experience gained outside the workplace;

  • count only evidence which is directly relevant to the job. Changing your criteria to enable you to include someone else at this stage may be unlawful;

  • consider whether adjustments could be made to enable disabled candidates to meet your requirements.

    Source: www.equalitydirect.org.uk .

    		•