The Hard Truth: Why Internal Candidates Have the Advantage—And How to Compete as an External Applicant

If you’ve ever applied for a nursing job and lost out to an internal candidate, you’re not alone. Many hospitals and healthcare facilities prioritize hiring from within, leaving external applicants frustrated and wondering what went wrong.

The reality is that internal candidates often have the edge when it comes to hiring into open positions. But that doesn’t mean external applicants are out of the running. Understanding why employers favor internal candidates - and learning how to position yourself as a strong contender - can significantly improve your chances of landing the job.

I have personally witnessed internal candidates selected over exceptional external candidates. It makes these external candidates think they are doing something wrong, when in reality they did a wonderful job with their application, interview, and follow up - they just lost to an internal candidate.

Let’s break it down. ⤵️

Why Do Employers Prefer Internal Candidates?

Hiring managers don’t just choose internal candidates to be unfair- they do it because it often makes good business sense. Here’s why:

1. Familiarity & Trust

Internal candidates already know the hospital’s policies, workflow, and culture. They’ve built relationships with colleagues and leadership, and managers trust their work ethic. Hiring from within reduces uncertainty about performance, making them a safer bet.

Personally, as a hiring manager, if I have an internal candidate apply to one of my roles – I can easily reach out to their current manager for all the details on this employee. Would they recommend them? Any performance concerns? This removes a lot of the risk you take with an external hire. Sure, you can reach out to references. But these are people who are handpicked by the applicant and likely give a glowing review. A current manager gives a more objective, reliable description of the team member.

2. Faster Onboarding & Training

A new hire - especially an external one – may require more time to onboard. Internal candidates, on the other hand, already understand charting systems, hospital protocols, and department workflows. Apart from new grads, they can transition into the role with minimal training, which saves time and money.

3. Employee Retention & Morale

Hospitals and healthcare systems want to keep their best employees. Promoting from within shows staff that there’s room for growth, which encourages retention and job satisfaction. If employees feel like they have no chance for advancement, they may leave for other opportunities. Hospitals want to retain their own employees as they advance through their careers.

4. Cost-Effectiveness

Hiring externally often means higher recruiting costs, onboarding expenses, and training time. Internal hires require fewer resources to get up to speed, making them a more budget-friendly option. Reducing turnover is a huge initiative for hospitals. Retaining employees reduces the cost of hiring new ones.

How External Candidates Can Compete

Now that you know why internal candidates often have an advantage, let’s talk about how you, as an external applicant, can make yourself just as competitive.🏋🏻‍♀️

1. Build Your Network Before You Apply

Many jobs are filled before they even hit job boards because managers already have someone in mind. If you’re applying blindly, you’re at a disadvantage.

✅ Engage and proactively network with recruiters and hiring leaders on LinkedIn

✅ Attend hospital hiring events or professional nursing conferences

✅ See if you can set up job shadows within the hospitals you want to apply

✅ During nursing clinicals, proactively network when you're on the units 

✅ Join professional nursing associations that may connect you with hospital leadership

A personal connection can be the difference between getting an interview and getting ignored.

2. Tailor Your Application to the Hospital’s Needs

Most applicants submit generic résumé and cover letters - don’t make that mistake. Research the hospital’s mission, values, and initiatives, and then match your application to what they’re looking for.

💡 Example: If the hospital focuses on patient-centered care, highlight specific stories from your experience that show your dedication to personalized nursing care.

3. Ace the Interview by Demonstrating Value

If you do land an interview, your biggest challenge is proving why you’re worth the investment over an internal candidate.

💬 Focus on these key points:

✔️ Fresh Perspective: What unique skills, experiences, or ideas do you bring that an internal candidate might not?

✔️ Adaptability: Show how quickly you can learn new systems and integrate into the team.

✔️ Passion for Their Mission: Employers want nurses who are committed, not just looking for any job.

4. Consider Getting Your Foot in the Door First

If you’re struggling to land a full-time position at your dream hospital, consider applying for PRN, part-time, or even a different department to gain internal status.

If you are in nursing school, I highly recommend getting an entry level position within the hospital. Whether that’s a nurse technician, unit secretary, patient transport, or environmental services – this is going to help you when it comes time to apply to RN positions.

Taking a proactive approach to your job search is key when applying to any job, but especially as an external candidate. Make sure you have my free application blueprint to ensure you're taking all the right steps to becoming a standout applicant.