With fewer and fewer banks hiring externally, internal promotion is the way to go. Fairplace’s Michael Moran offers a few words of advice.

Being an internal candidate isn’t easy. It can be both an advantage and a disadvantage to be known! You're an insider with the advantages of knowledge, a reputation, and relationships. You also have all the disadvantages of familiarity and it’s possible that some will see you as representing the status quo or old guard.

Should you apply?

Whether you’re interested in the vacancy or not, the mere fact of its existence puts you in an interesting position. When the position is announced, wait to see if you are approached. Asked the question, “Are you interested in being a candidate?", be sure of what you want – it’s not a question of responding with a straight-up "Yes; thank you for asking.” Consider your response very carefully.

The key to deciding if you want to apply is whether this job will develop you for a future role. Understand what competencies (skills, knowledge, expertise) you need for that ideal job five years out. Will this job eradicate your competency gap?

If you're not sure that you want the job or don’t feel you are yet qualified for it, then you’re on the spot. Declining an invitation to stand may well be seen as a clear signal that you have limited ambition or self-confidence. You’ll need to make your reasoning clear. If you do want to be considered, then go for it, but behave with professionalism and integrity and don’t expect any favours.

If you’re not asked to be a candidate you’ll have to decide whether to volunteer yourself. Be proactive, state your interest in applying, and be ready to justify your application. But be prepared: you may be told you won’t be put forward and that raises issues you’ll have to deal with. If your candidacy is turned down you have to consider your long-term future with the organisation.

Research and network

Assuming your expression of interest is well received, your next move will involve legwork. Internal candidates need to devote as much time to research and preparation as external applicants do. However good you are, if someone else performs much better at interview, it would be difficult for your organisation to justify not appointing that person. You want to win the appointment on your merits, so don’t expect an easy ride.

Find out more about the role, establish the strategic aims of the bank in the area concerned. You can put the fact that you already work for the organisation to good use by networking and gathering as much information as you can. Remember, even if you are networking, it’s no different from an interview. People always make judgements of you. How you handle yourself will be noted and the impression you make may be magnified by the recruitment team’s prior knowledge of you.

Coping with rejection

A word of warning – typically, the more senior the role, the less easy it is for internal candidates to slot themselves into it. When executive positions fall vacant, there is a strategic opportunity to attract high calibre external applicants with different skill sets (and the added bonus of possible intelligence on competitors).

If your application for an internal role is turned down, ask for feedback. Will your aspirations for a post of this kind ever be met? Was it because you are lacking in some area of experience, qualification or knowledge? If that’s the case you can work to remedy the deficit and apply for the next suitable vacancy.

A good employer should be willing to work with you so that you can grow and develop within the company. And if there are no development opportunities for you internally? Eventually you’ll have to look further afield.