Sample Policy for Hiring from the Outside

By Staff Report

Oct. 21, 2004

Below is one organization’s policy regarding hiring from outside the firm–with references to the company removed.

It is the policy of the Organization to select employees from candidates possessing the required qualifications for a position. When qualified internal candidates are not available, external candidates are considered.

This policy and procedure applies to all departments and employees of the Organization.


3.1 All managers are accountable for identifying the staffing needs of their departments and the qualifications for each position within their departments.

3.2 Human Resources is solely accountable for obtaining qualified candidates for all open positions, conducting reference checks, negotiating compensation and start date, processing new employees, and providing all necessary forms to implement this policy and procedure.

3.3 The Supervisor of the position, Department Manager, and Human Resources are jointly accountable for making the selection decision.


4.1 Search Firm–An external organization contracted to obtain qualified candidates and used mainly for executive and professional positions. Generally, the fee is paid whether or not a candidate is hired.

4.2 Employment Agency–An external organization furnishing qualified candidates and used mainly for nonexempt, administrative, first-level management, and entry positions. Generally, no fee is paid unless a candidate is hired.


5.1 Employee Requisition

5.2 Employee Recommendation

5.3 Application for Employment

5.4 Emergency Information Sheet

5.5 Federal Form I-9

5.6 Federal Form W-4

5.7 Employee Handbook

5.8 Benefit Enrollment Forms and Manuals

5.9 Reference Authorization and Release


6.1 When a position becomes available, the supervisor to whom that position reports and his/her manager decide whether to obtain external candidates (see Internal Selection Policy and Procedure).

6.2 If external candidates are to be considered for the position, the supervisor completes an Employee Requisition, has it approved and signed by the manager to whom he/she reports, and submits it to Human Resources, along with a request for external candidates.

6.3 Human Resources obtains qualified candidates and refers them to the supervisor submitting the requisition.

6.4 Human Resources may use whatever sources it views as appropriate for obtaining external candidates, such as, but not limited to, employee recommendations (see 6.11 below), applications and resumes on file, new applications and resumes, newspaper advertising, school references, job fairs, professional references, employment agencies, and search firms.

6.5 The Human Resources manager has the sole authority for selecting candidates to be considered, scheduling interviews, checking references, and obtaining a completed Application for Employment and a signed Reference Authorization and Release.

6.5.1 Human Resources submits applications and/or resumes of candidates meeting qualifications to the supervisor of the position for review.

6.5.2 If approved by the supervisor, Human Resource schedules interviews for a candidate.

6.6 The selection decision is made by the supervisor from the candidates provided by Human Resources, with the approval of the supervisor’s manager.

6.6.1 Human Resources negotiates starting compensation and dates with the selected candidate and prepares and sends a written offer of employment (see 7.2 Compensation Policy and Procedure).

6.6.2 When the employment offer is accepted by the selected candidate, Human Resources notifies all other candidates for the position. If the selected candidate declines the offer, the external selection process is continued.

6.7 During the first hours of employment, Human Resources has the employee complete all required forms: Emergency Information Sheet, Federal Form I-9, Federal Form W-4, and any other required forms.

6.8 When all forms are completed, Human Resources will explain all appropriate conditions of employment and then escort the new employee to the supervisor to whom she/he will report.

6.9 Between sixty (60) and seventy-five (75) days after the date of employment, Human Resources will meet with the employee to explain the health and dental benefits programs. Prior to the ninetieth (90th) day of employment, the employee will be required to accept or decline (in writing) the benefits programs.

6.10 Record Keeping
Human Resources is accountable for maintaining the following records and files:

6.10.1 Applicant Log listing all applicants, from whatever sources, by date of application.

6.10.2 A file of completed applications and resumes. Applications and resumes are filed by type of position for which they were made or are qualified. Applications and resumes in each category are maintained by date received. Applications and resumes are retained for at least twelve (12) months. After twelve (12) months, they are discarded.

6.10.3 Bulletin Board
Human Resources maintains a bulletin board at each location where candidates and applications are received. The bulletin boards include a posting of all required local, state, and federal employment notices.

6.11 Employee Referrals

A system for existing employees to recommend external candidates for positions within the organization.

6.11.1 Human Resources may notify all employees of open positions by bulletin board notices.

6.11.2 Any employee may recommend a non-employee for any posted position by submitting to Human Resources a completed Employee Recommendation form, accompanied by an Application for Employment completed by the individual being recommended.

6.11.3 Human Resources retains all Employee Recommendation forms in a separate file for six (6) months from date of receipt.

6.11.4 If the recommended individual is hired, the recommending employee will receive a reward after the newly hired employee has completed six months of service with the organization.

6.11.5 In the event two or more employees recommend the same individual, the employee making the recommendation first will be paid any award, and the other recommending employees will be so notified.

6.11.6 Awards are: $**** for commissioned sales positions. $**** for all positions other than commissioned sales positions.

6.11.7 No awards will be paid if: The individual applied to the Organization within the past six months and prior to the receipt of the Employee Recommendation form. The individual was suggested to the Organization by a search firm or employment agency within the past six months and prior to the receipt of the Employee Recommendation form. There is a completed Application for Employment on file that was received prior to the receipt of the Employee Recommendation form. The individual is hired more than six months after the Employee Recommendation form is received. The employee making the referral is no longer employed by the Organization at the time the award is scheduled for payment. The recommended individual is terminated for any reason prior to 180 days of service. The referring employee is in the Human Resources department; is an officer or senior manager of the Organization; is a relative of the referred individual (sibling, divorced former spouse, parent, child, grandparent, grandchild, spouse, father-in-law, mother-in-law, brother-in-law, sister-in-law, son-in-law, or daughter-in-law); or is the supervisor or manager of the position.


7.1 Internal Selection Policy and Procedure

7.2 Compensation Policy and Procedure

SOURCE: Excerpted from How to Develop Essential HR Policies and Procedures by John H. McConnell. Copyright 2005 John H. McConnell. Published by AMACOM Books, a division of American Management Association, New York, NY. Used with permission. All rights reserved

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