ASSIGNMENT 2: RECRUITMENT IN A CHANGING INTERNAL LABOR MARKET 1

Recruitment in a Changing Internal Labor Market

Meriem Daoudi

Tarleton State University

Author Note

This paper is being submitted on Monday, October 12th, 2020 for Dr. Joanna Shaw
HRMT 5314 – Workforce Planning & Talent Management online course.
ASSIGNMENT 2: RECRUITMENT IN A CHANGING INTERNAL LABOR MARKET 2

Table of Contents

Page

Recruitment in a Changing Internal Labor Market......................................................................3

Seniority.......................................................................................................................................3

Seniority Options ........................................................................................................................3

Job Posting System .....................................................................................................................4

Promotion Policy ........................................................................................................................4

Career Mobility...........................................................................................................................5

Communication of New System ................................................................................................6

References...................................................................................................................................8
ASSIGNMENT 2: RECRUITMENT IN A CHANGING INTERNAL LABOR MARKET 3

Recruitment in a Changing Internal Labor Market

Seniority
Seniority should not be eliminated as an eligibility standard for bidding on jobs.

However, exceptions must remain possible in special cases. In fact, senior employees generally

have a great deal of experience and considerable organizational knowledge. Juniors, on the other

hand, maybe more proficient in digital technologies, more flexible, or have other skills that

predispose them to excel in the new position. They might outperform seniors in some cases.

Liz Ryan, (2017) pointed out that we must hire an individual if we feel he or she will be more

successful in the job and have the necessary KSAOs for the position. It is important to know how

to create a fair and equitable working environment. Choosing a former employee over another

who does not have the minimum 2 years' experience, but is more qualified, is anything but fair.

Thus, seniority should not be eliminated, but it should never be the only factor considered in

employment decisions (Susan Heathfield, November 27, 2019, What Seniority Means at Work,

Retrieved from: https://www.thebalancecareers.com/what-seniority-means-at-work-1919372).

Seniority Options

In internal recruitment decisions, honoring senior employees means recognizing their

years of service and dedication. Though, it should be noted that it is not illegal to promote a new

employee if he or she is more qualified for the position. However, this can be misinterpreted by

seniors.

If seniority is eliminated as the first qualifier, protocols must be defined to ensure that we always

maintain a fair work environment. Leaders must have a section in their labor contract or

handbook that regulates promotion considerations, seniority, and performance scale necessary to

be considered for promotion (the “blue book” in our case). They might ensure that the company
ASSIGNMENT 2: RECRUITMENT IN A CHANGING INTERNAL LABOR MARKET 4

has a performance evaluation system that fairly rewards deserving employees (SUZANNE

LUCAS, 2019). On another hand, exchanges of know-how between teams should be encouraged

in order to make room for the transmission of knowledge and the strengthening of the corporate

culture. Suzanne Lucas said “Promoting a newer employee can cause morale issues. However,

these issues are usually limited to a few employees who have been striving for promotion but

can't.”

Job Posting System

individuals to find a new job with their current employer. Additionally, the organization may

also have a talented staff that it does not know about.

This is why, for transparency reasons, so that managers do not select certain people with whom

they have an affinity, the job offer must be posted, specifying the selection criteria, including

seniority, KSAOs, past performance, appraisals, etc... For Peter Cappelli (2015), all openings

should be posted internally so that everyone can apply. However, what might change is the way

in which a job announcement is communicated to employees (Heneman III, H.G., Judge T.A., &

Kammeyer-Mueller, J.J. (2015) Staffing Organizations, p276). In my opinion, managers should

opt for hybrid internal recruitment system. Based on it, the job posting will be published for all,

and the hiring manager and the HR representative will conduct its research outside the job

posting system. The selection criteria will be based on KSAOs, seniority eligibility,

demographics, and availability of applicants. Thus, highly qualified profiles could be selected

and constitute an exception to the seniority eligibility criterion. Training can also be provided to

them and a succession plan must be put in place. (Heneman III, H.G., Judge T.A., & Kammeyer-

Mueller, J.J. (2015) Staffing Organizations, p277).

Promotion Policy
An internal promotion policy should be maintained, but it must be flexible. Indeed, by

recruiting internally, the company saves time (integration process, talent search...), motivates

employees, and allows them to develop their careers. Susan Adams (2012) says that “there is a

cost to bringing in talent from the outside and that it pays to nurture and promote from within”.

However, when there is a lack of in-house skills, the company must look outside the company's

premises for talent. Another hypothesis that can motivate the decision to recruit externally is if

the position to be filled does not interest anyone internally.

Internal promotion, therefore, has many advantages, but the organization should ideally recruit

both internally and externally, depending on the type of position and whether there are sufficient

internal qualified candidates. Paul Slezak (2011).

Paul Slezak added that: "Every new position filled leaves an old position vacant, so an

organization will be required to hire externally anyway from time to time”.

Career Mobility
In my opinion, a well-defined lateral mobility path needs to be adopted to allow cross-

team movement without threatening team identity (Heneman III, H.G., Judge T.A., &

Kammeyer-Mueller, J.J. (2015) Staffing Organizations, p274). In fact, if mobility is well

managed, it can be a source of performance, productivity, and fulfillment for employees. By

optimizing mobility paths and making them possible, we offer the company's employees the

opportunity to discover new challenges, increase their skills and develop their loyalty, thus

ensuring greater efficiency of the process for the benefit of the company.

The lateral mobility path allows employees to pursue career development and take on new

challenges. Since this movement has no real impact on salary or pay grade, cohesion between

coworkers is less likely to be compromised. The employee will receive personal satisfaction and
ASSIGNMENT 2: RECRUITMENT IN A CHANGING INTERNAL LABOR MARKET 6

will put their experience and KSAOs at the service of the organization. The lateral move is also

often accompanied by a slight increase in responsibilities, so the employee may feel more

connected to the company, as he or she begins to have a greater influence on the decision-

making process. SUSAN M. HEATHFIELD (2019). Ultimately, the career ladder can be lateral

and offer additional benefits that are worth considering; by remaining open-minded, employees

and employers can benefit from lateral movement Catherine Iste (2019).

Communication of New System

success for the company. If Mitchell Shipping Lines decides to implement a new internal labor

market system, a communication plan must be developed. It will aim to bring stability within the

teams. First of all, the actual internal labor market system needs to be reviewed to identify

inaccuracies and inconsistencies (criteria that are more important than seniority like the computer

skills, for example, decisions of external recruiting...etc.). Douglas Zucker(2020).

Then, future changes must be discussed with employee representatives. They should be informed

of the changes to be introduced (the changes to be made to the Blue Book) to allow them to

understand the reasons behind this decision and to give them the opportunity to express their

views and concerns. All policies must be reasonable and non-discriminatory. James Tamm

(2020). Let’s keep in mind that the employees in our case are treated as unionized employees,

and seniors may resist change. In fact, if they organize strikes like Labor Unions, it can provoke

a critical shortage of employees. Strikes have the potential of stopping production and may even

bring an organization to the brink of bankruptcy, at which point the organization may be forced

to agree to the employee (i.e., union) terms of employment. Therefore, seeking legal advice is

always recommended. Finally, employers must clearly inform the employee of the change and

provide the employee with an updated copy of the employee handbook and the labor contract
ASSIGNMENT 2: RECRUITMENT IN A CHANGING INTERNAL LABOR MARKET 7

and ask the employee to acknowledge that they understand the policies and procedures. James

Tamm (2020)

References:

Catherine Iste, (Tuesday, October 01, 2019), The professional advantages of a lateral move,
Retrieved from: https://exclusive.multibriefs.com/content/the-professional-advantages-of-a-
lateral-move/business-management-services-risk-management

Douglas Zucker, (2020), How to Amend an Employee Handbook, Retrieved from:

James Tamm (Oct 12 2020), Can you change the contents of an Employee Handbook? Retrieved
from: https://elliswhittam.com/blog/can-change-contents-employee-handbook/

Liz Ryan, (Jun 9, 2017), Should I Promote Workers Based On Talent -- Or Based On Seniority?
Retrieved from : https://www.forbes.com/sites/lizryan/2017/06/09/should-i-promote-workers-
based-on-talent-or-based-on-seniority/#41267c067574)

Paul Slezak, (2011), 5 REASONS WHY INTERNAL RECRUITMENT IS THE BEST PLACE
TO START, Retrieved from: https://www.zippia.com/employer/keeping-it-in-house-5-reasons-
why-internal-recruitment-is-the-best-place-to-start/#:~:text=Promoting%20from%20within
%20has%20definite%20advantages%2C%20but%20to,there%20are%20sufficient%20internal
%20candidates%20to%20fill%20it.

Peter Cappelli (2015), Your Approach to Hiring Is All Wrong, Harvard Business Retrieved from:
https://hbr.org/2019/05/recruiting

Susan Adams, Forbes Staff, (Apr 5, 2012), Why Promoting From Within Usually Beats Hiring
From Outside, Retrieved from: https://www.forbes.com/sites/susanadams/2012/04/05/why-
promoting-from-within-usually-beats-hiring-from-outside/#4088155936ce

SUSAN M. HEATHFIELD, October 29, 2019, Lateral Moves Offer Career Development for
Employees, Retrieved from : https://www.thebalancecareers.com/lateral-move-provides-a-
career-path-for-an-employee1918175#:~:text=Growing%20Laterally&text=A%20lateral
%20move%20is%20an,as%20the%20employee's%20former%20job
ASSIGNMENT 2: RECRUITMENT IN A CHANGING INTERNAL LABOR MARKET 8

Susan Heathfield, November 27, 2019, What Seniority Means at Work, Retrieved from:
https://www.thebalancecareers.com/what-seniority-means-at-work-1919372)

SUZANNE LUCAS, September 14, 2019, Fair Promotion Practices Justify Promoting The Most
Qualified, Retrieved from: https://www.thebalancecareers.com/new-employee-promoted-over-
longer-term-employees-1919142