KPIHuman Resources

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.

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