The Advantages of Job Bidding in the Workforce

Labor Relations Software

January 13, 2022

For most job seekers, the job hunt can be a daunting and difficult task, with many applicants all vying for the same position. This can prove challenging for HR departments and hiring managers, especially when a lot of applicants have the necessary skills and experience for the open position. These issues become even more evident when it comes to internal recruitment.


Typically, with internal recruitment, qualified applicants who are already employed with the organization are invited to place their bids on an open position. For example, an organization may have an open supervisor position that needs to be filled. The organization has over eight permanent employees that have expressed interest in the job, that are roughly on the same seniority level in terms of their qualifications. Organizations solve this predicament by using the job bidding method.Job bidding is a common process when an organization will require internal applicants that are already employed by them to compete with one another and bid or apply for the position. The employer will then use the bids as a basis in choosing who moves forward in the recruitment process, ultimately helping them select the right applicant for the open position.So, what are the advantages of using job bidding in your internal recruitment methods? Let’s take a look at some of the reasons organizations choose to use job bidding for recruiting for open positions.


The job bidding process can be less costly compared to job postings that are targeted both internally and externally. Job bidding eliminates the need to spend additional funds on recruitment advertising, since the position information will only need to be publicized internally as opposed to using digital advertising and broadcast media to reach an external audience. Job bidding also reduces the costs of training for new employees, since the job bidding process hires someone who is already an employee and will not require such extensive training as someone new to the organization.

Faster Hiring Process

As an organization is only looking at internal candidates for the open position through job bidding, the length of the hiring process can be reduced. An organizations HR department or hiring manager will no longer have to sort through tons of resumes to separate those who aren’t qualified and who are, since the candidates who applied or bid are already qualified. The organization also already has information on the candidates’ qualifications, skills, and performance as a result of past performance evaluations.

Employee Development

With the job bidding process, internal promotion and movement within an organization is faster, allowing for their employees to have greater career growth and development. This will ultimately motivate employees to perform better and encourages them to work towards moving up to a new position. This devotion to employee development will also help to increase an organizations employee retention, as employees will be less likely to leave to further their careers if opportunities are available to them at their current employer.

Organizational Culture

In today’s job market, organizational culture can have a considerable impact on the applicants that apply and want to join their organization. An organization that can keep their employees happy and encourages their development can benefit from the positive impression to the general public. With recruitment strategies that focus on employee development, the organization is more likely to be an attractive prospect for new external jobseekers.If your organization is using a job bidding process for internal recruitment, what does that process look like? Most organizations using job bidding for internal recruitment find their paper-based processes difficult to maintain and error prone. But with the job bidding solution by Sodales, we’re enabling HR administrators to easily set up job bidding rules and manage your job bidding processes for multi union environments. Contact us today to schedule a demo with Sodales Solutions.

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