The internal versus external recruitment phase
After the planning phase, employers need to decide whether the vacancy can be filled internally or whether they are to open the vacancy to the external labour market. This decision is based on the HR strategy and goals of the organisation (Rudman 1999). It is more common in large organisations like BHP Billiton to have an HR policy that promotes filling vacancies through internal transfers or promotions (Stone 2010). The findings of this research confirm Stone's argument and illustrate how the large Wollongong-based organisations also tend to groom professionals from graduate positions to specialised management roles.
There are many reasons for organisations to groom professionals from within. In the case of Wollongong employers, many of the traditional manufacturing industry-based organisations in the region are renowned for being excellent remunerators and thus experience low staff turnover levels.
When you become part of the xxx industry, it's like winning the lottery in some respects. People are well remunerated, and challenged and localised. It tends to be family oriented. If you look at the managers, every year XXX has a function at his own house for Christmas rather than just go out. Two weeks ago we had an award ceremony. We recognise things like 25 years of service, 35 years and 40 years. (HR professional, 7 July 2009)