What is job bidding?

Job bidding is an internal recruitment method. You invite “bids,” or applications, from your current employees. When an employee bids for the role, they often highlight how their skills, experience and performance align with the position’s requirements. These bids also typically include an applicant’s desired salary or commission.

Job bidding lets you compare candidates’ qualifications, such as knowledge, skills and on-the-job performance record, with their expected compensation.

Bidding factors

Some companies use an open bidding system, where applicants choose the bidding elements. You can also use a standard bidding form, which may include common bidding factors, such as:

• Salary
• Insurance packages
• Paid holidays
• Commission rates

Bidding forms may also include additional information, such as a candidate’s current role, employment dates, relevant skills and experience. This can help narrow down your list of potential candidates.

Advantages of job bidding

Job bidding has several advantages for employers and candidates.

Equal opportunity for candidates

Job bidding can help ensure equal opportunity for all applicants. By posting the job opening and letting candidates bid, employers can often get an accurate picture of each candidate’s qualifications, experience and expectations.

Cost savings

Opting for job bidding over traditional hiring methods can potentially reduce costs in several ways.

• No onboarding costs: Since job bidding prioritizes existing employees who are familiar with your company, it generally saves on orientation and other onboarding costs.
• No advertising costs: By advertising the opening internally, you avoid paying for posts on professional job listing sites.

Faster hiring process

When your company hires from within, you can typically fill vacant positions quickly. The company likely has a record of the employee’s abilities and credentials from employee performance reviews, so you may be able to shorten the application process.

Familiarity with candidates

Hiring internally can show you prioritize employees’ professional growth and build or strengthen relationships between existing members of your organization.

Employee development

The job bidding process can help speed up internal promotion and mobility within your organization. Seeing colleagues move into new roles can help inspire career development in current employees.

Worker retention

Seeing an employer’s commitment to internal promotion can help boost employee retention. When you hire from within, your employees may be less inclined to seek employment elsewhere.

Positive company reputation

Companies that promote from within may build a positive reputation, which can help you attract top talent seeking jobs with promotion possibilities. This also potentially gives you an edge over competitors when hiring new workers.

Getting the most out of job bidding

Choosing the right candidate for a role can be challenging, especially if applicants have comparable skills and experience. By prioritizing internal hiring, job bidding can reduce time spent on training, empower employees and streamline the onboarding process. It also encourages competitive bidding on salary and compensation packages.

To help you implement a job bidding process, you may consider implementing a standardized process and using automation, such as human resource information systems (HRIS) software with features such as applicant tracking to sort through data. This can save time and help ensure objectivity when assessing candidates so you can easily match a candidate with an open role.

Alternatives to job bidding

If you don’t think a job bidding system may benefit your organization, you can opt for a standard job posting, which invites external candidates to apply.

Professional recruiters can also help you find quality candidates for important roles. However, they usually charge a commission.

Job bidding versus job posting

While these terms are often used interchangeably, job bidding involves employers posting a job internally and employees inputting their desired earnings. By contrast, job postings are external advertisements that list the requirements and duties of a position and information about how to apply.

The job bidding process

Here’s a step-by-step look at the job bidding process:

1. Identify your open position

If you’ve identified an open position, consider whether it can be filled internally or if an outside candidate is needed. If it can be filled internally, you can start a job bid.

2. Create a job posting

Create a job posting that details the skills, qualifications and experience required.

You may also research standard market requirements and compensation for similar jobs by viewing competitors’ postings for comparable roles or consulting an HR manager who’s well-versed in your industry.

Once you’ve gathered the necessary information, write a concise job posting. You could have a colleague review it for accuracy.

3. Post the job

Since job bidding is an internal process, the job listing should be visible in a prominent area, such as your company newsletter or email update, the break room door or on your company intranet. You may also share the information in interdepartmental meetings.

4. Allow bid submissions

If the listing was shared via email or website, you might provide a standard bidding form as a link or attachment. If you’re posting it in the break room, tell employees where they can pick up the form.

Consider including the following on your bidding form:

• Position title
• Bidder’s name and contact information
• Bidder’s employment dates
• Previous employers and job titles
• Dates of employment and roles
• Current job responsibilities
• Educational background
• Skills and qualifications
• Certificates and licenses
• Current salary
• Expected salary or commission
• Anticipated benefits
• Deadline to apply

5. Evaluate the bids

Once you’ve reached your submission deadline, evaluate the bids. Develop a list of criteria to assess the bids and create a short list of potential candidates.

Software that can evaluate bids can be a great way to save time by eliminating the need to review each bid.

6. Interview top candidates

Contact candidates from your short list to schedule an interview. You may create a unique set of final interview questions from those used for hiring external candidates.

7. Host a second round of bids

If you haven’t found a suitable candidate or wish to allow employees to adjust their bids, consider hosting a second round of bidding. This can open the process to employees who missed the initial bidding.

8. Select an employee and make an offer

Once you’ve chosen a candidate, you can draft an offer or employment contract for them to review. Although you may have agreed on details, such as salary and job duties, putting them in writing helps make them official.

Best practices for a successful job bidding process

When executed properly, job bidding can help you save resources and find the right candidate for a particular role. The following tips can help make your job bidding process successful.

Create a systematic bidding system

Manually sorting through submitted bidding forms can be time-consuming. To conserve resources, consider implementing an automated evaluation system. With the right technology, you can streamline the process and potentially reduce the cost of time and resources.

Be clear about expectations

Clearly explaining your expectations to potential candidates can help ensure both parties agree. For example, if you have a maximum salary in mind, inform candidates upfront.

Provide bidding guidelines

Your employees may be unfamiliar with bidding for work, so it’s crucial to provide clear guidelines. You can attach these to your job posting and ask candidates to review them before proceeding with their application.

Be objective when reviewing bids

Objectivity in the hiring process is always important. Creating a standard process can help protect against bias.

Using technology to collect and sort through data may also help promote objectivity.

Hire an HR professional to oversee the process

If you’re new to job bidding and don’t feel confident overseeing the process, consider hiring a job bidding specialist or delegating the task to an experienced HR representative.

Frequently asked questions about job bidding

What does a successful job bidding posting look like?

A successful job bidding posting may contain relevant information, including:

• The position’s responsibilities
• Qualifications a candidate should have
• Instructions for participating in the bidding process
• A bidding timeline
• Contact information for the person overseeing the bidding

What are the best HRIS tools for job bidding in 2025?

HRIS can help you streamline the job bidding process by automating tasks and analyzing data, but choosing the right package is crucial. To find the best HRIS tools for job bidding, consider looking for features such as:

• Data collection and analysis
• Process integration for posting jobs, screening candidates and scheduling interviews
• Online application submissions
• Recruitment expense tracking

Should rejected candidates be notified?

When hiring internally, notifying candidates who haven’t been selected for a position can affect how employees view your organization. Whenever possible, schedule meetings to share the news with candidates to explain why they weren’t selected for the role.