Why look outside the company for new hires when great talent is so close to home? Current employees already know the company. And you know them, as well. Those are two major steps in the usual recruitment process that you can file away as “done.”

It’s not corporate cannibalism if you do it right. Moving bright talent up through the ranks saves time, resources and builds an employer brand that says you value who you’ve got.

Do you have an internal sourcing plan? If not, you should. Here are 4 tips on how to build one.

#1: Build a Culture of Internal Promotion

The average employee doesn’t have the loyalty that you might think. Most are open to a new job, even if it’s not with you. If you want to successfully promote from within, let them know they’re valued from day-1. Give them a reason to stay.

According to a Jobvite survey, a whopping 74 percent of employees are open to a new job with a different company, even if they’re “very satisfied” with their current position.

But a company culture that embraces upward or cross-departmental mobility shows employees that they’re more than just a means for production. They matter, and you want to keep them around.

Your employees might just surprise you.

#2: Get to Know Your Employees

Did you know that Bob in accounting is a stellar graphic designer? He’s self-taught and runs his own freelance design company after hours. You should see his portfolio.

You won’t understand what a rich resource of talent you have on hand unless you get to know the people on the roster. That also helps employees feel valued.

The more you know about the interests, skills and career aspirations of your employees, the better you can cultivate a team that keeps getting better. Insperity says there’s another reason to learn more about employees.

Some of them might have challenges that you’re not aware of. Bob in accounting might not be suited for a higher-level accounting position, no matter how proficient he appears to be.

Mentoring gives employees real experience and the opportunity to make a difference in the company.

#3: Create a Coaching and Development Plan

Chances are, you’ve worked under a leader who didn’t have the right skills. Time in the industry doesn’t make someone a leader.

For most people, it requires training. With an internal leadership development program, employees can develop the skills they need. Chief Executive says it’s also a great recruiting tool.

Instead of purchasing a program, which is the expensive route many companies take, Robert Half says there’s a better way.

A combination of mentoring, shadowing, online courses and real projects help build a well-rounded skill set. It also helps participants understand the value of their progress.

#4: Get Plenty of Feedback

Just as you thought you knew Bob, you might not know enough about the success of internal talent sourcing unless you ask. Feedback is a valuable tool that offers insight that some employers don’t get until it’s too late.

Forbes contributor, Carol Kinsey Goman, interviewed former HR executive, Ruth Ross, who had this to say:

“Too often companies find out about their employees’ disengagement during the exit interview instead of while they are still working and there’s a chance for re-engagement.”

Ross advocates a “stay interview.” It’s a conversation, she says, that asks about satisfaction and level of commitment to the company. It’s sort of a backward performance review, where instead of management telling the employee how they’re doing, the employee tells management how they feel about the employment situation.

Internal hiring has many benefits. There’s less risk in moving an employee into a job with more responsibility because you already know their skills and work ethic. Loyal employees are great for referrals, too.

There is a downside to everything, even internal hiring. Your employer brand could suffer a bit if candidates outside the company feel like the process is weighted against them. You shouldn’t let external sourcing lag behind.

Also, too much of a good thing is, like they say, sometimes too much. New people joining the ranks from the outside being fresh vision and insight. Without them, your creativity could dwindle.

But overall, talent sourcing from inside the company is a smart strategy. It builds loyalty and trust, creates a more open company culture, and can help bring in more top talent on a referral.

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