They Said You Had a Fair Shot, But Did You Really? The Truth About Internal Candidates No One Explains

In many recruitment processes taking place in the United States, most firms tend to indicate that they are evaluating their internal staff members along with external applicants in an attempt to hire the most qualified individual.

In this case, an organization would evaluate its internal employees and external applicants at the same time. While the former are already acquainted with the firm, the latter represent new talent that could be brought in by the organization to fill the available positions.

Nevertheless, research indicates that this double-barreled evaluation method does not necessarily imply that internal staff members and external applicants are assessed under the same conditions, despite the fact that the vacancy announcement implies so.


As explained by Odgers, it seems highly unlikely that companies assess both groups equally during the recruiting process.

Familiarity often shapes hiring decisions

One of the main reasons why internal applicants have a chance to benefit more often is the element of familiarity, as the hiring managers have the knowledge of the work habits of such applicants, along with other attributes, reducing risks when making a choice.

As described in the analysis performed by Odgers, it is natural for decision-makers to show a preference towards those employees who already belong to their company due to them being familiar figures to the decision-makers, whereas it takes some time to make an evaluation of external applicants.

Thus, the latter appears to be associated with some risks, despite the qualification level. It is important to note that such behavior may not always be associated with bias.

Internal hiring as a risk management strategy

Companies also see internal recruiting as a means of minimizing risks and maintaining stability since the current employees are well familiar with the organizational culture, processes, and norms. Internal recruiting saves time spent during the recruitment process and minimizes the risks of misfits in organizational culture, which is usually one of the biggest concerns for any organization.

As stated in the article published by Forbes, organizations always prefer internal candidates when it comes to reducing risks, although it would be beneficial for them to consider external recruits who bring innovation and fresh ideas to their operations.

The halo effect and its influence

Another critical consideration in this context is the halo effect, which refers to a psychological tendency where prior successes of a person color the perception of his or her future prospects. In organizational contexts, when an individual has been a good internal performer, he or she may be considered as a viable candidate for the job in question, regardless of whether it calls for different competencies.

According to the studies mentioned by Odgers, the halo effect tends to make hiring committees ignore deficiencies in qualification among internal candidates, yet demand more from outsiders.

The halo effect may be unconscious, yet it plays a vital part in recruitment decision-making.

How external candidates experience the process

The knowledge of the presence of internal candidates among the external job seekers could significantly alter the whole recruitment experience for the latter because it brings with it the aspect of competition that does not necessarily appear fair at first glance.

Many individuals start to wonder whether the position was indeed open to external hires when they realize that there were already internal employees who had connections inside the organization.

As BetterUp explains, the external candidate would lose motivation during the recruitment process due to perceived unfair treatment by the organization.

This is important to note since this perception affects not just their performance during the interview process but also their evaluation of the organization as a potential place to work.

Effects on motivation and employer reputation

In case candidates perceive that the recruitment process is not completely fair, then it can result in frustration as well as a lack of motivation among the candidates, thus forcing the latter group to lose interest and opt out of the selection process.

According to research, continuous perception of bias by candidates can negatively impact the reputation of the organization as far as recruiting top talent goes.

As observed by BetterUp, the initial experience of bias can even influence the level of engagement if the organization hires an external candidate.

A system that feels fair but is not always equal

The method of joint assessment of internal and external candidates is meant to achieve equality and effectiveness. However, in actuality, it reveals fundamental aspects of human psychology, organizational preferences, and behavioral patterns. Although organizations strive to ensure equal chances along with practical benefits, it is quite possible for them to unwittingly give preference to internal applicants.

The awareness of this situation makes it easier to comprehend why many external candidates become skeptical or apprehensive upon hearing that internal candidates are taken into consideration.