Internal Hire Rate
Percentage of vacancies filled by internal candidates, indicating career development and succession effectiveness
What is Internal Hire Rate?
Internal hire rate is the percentage of hires that are filled by existing employees. It shows how much an organisation fills roles from within.
Internal moves reduce hiring cost and ramp-up time and support engagement, but some external hiring brings in new skills and ideas.
How this KPI is measured
- Function
- Human Resources
- Sub-function
- Talent Acquisition
- Industry
- All Industries
- Type
- Lagging
- Impact
- People
- Unit
- %
- Measurement frequency
- Quarterly / Annual
- Formula
- (Internal hires / Total hires) × 100
How to calculate it
Divide internal hires by total hires, and multiply by 100.
For example, if 60 of 200 roles were filled internally, the rate is 30%.
Track by level and department, and consider the performance and retention of internal hires.
Where it is used
Supporting mobility
Help people move.
Reducing cost
Lower external hiring.
Improving retention
Show career paths.
How to improve it
Tips and common mistakes
- Balance internal and external hiring.
- Do not let managers hoard talent.
- Track how internal hires perform.
More Human Resources kpi library
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