When deciding whether it is best to promote from within or hire externally, there are many things to consider. Transitions within an organization are inevitable, so deciding how best to manage them and subsequent recruitment efforts will be a fundamental component of successfully navigating organizational leadership.
The focus of this blog is on the far-reaching benefits of promoting from within. However, at Learn2, we always want to leave space for unique circumstances and particular company cultures. After reading this blog, if you are still not quite sure whether to hire from within or look externally, reach out to our professional development specialists, and we will support you to take the right next step toward a more energized workforce.
The Top Benefits Of Promoting From Within Your Company
1. You Are Hiring Someone Familiar With The Company
When you develop your leaders and hire from within, the team member will already be familiar with your company’s culture and many of your operational and strategic priorities. Rather than needing to put in the time and resources to bring them up to speed on your mission, vision, values, and most pressing to-dos, they will likely already have a much stronger grasp of what needs to be done – and how to go about it – than a new hire.
2. They Have Pre-Established Relationships in the Workplace
Like their familiarity with the company’s culture and operations, when you hire from within, your team member will likely have relationships with many of the people they will continue to work with. If that person has made a positive impression and can communicate effectively with the team, this can go a long way in expediting their transition into the new role and ensuring their effectiveness once they’ve landed.
3. Promoting from Within Can be a Source of Inspiration
When people see their fellow colleagues’ upward momentum, it shows others in the organization many positive things. First, your leadership team is willing to invest in their team members. As well, your company recognizes the value of those who contribute to its success and rewards those who do with meaningful, life-enriching incentives.
By living your commitment to professional development, you are more likely to inspire team members to put in the extra effort and seek out opportunities for growth. Not only will your team members feel more motivated by the potential for progress, but they will be more likely to stay for the longer term, developing a highly lucrative breadth and depth of knowledge and skills.
4. Internal Promotions are Inherently Cost Saving
Recruiting and training new employees can be costly. From posting to job boards to promoting the opportunity or hiring a recruiting agency, a lot of time and treasure can go into finding the right person. Plus, besides the interview process (which oftentimes is just a snapshot of the individual), you don’t really get the chance to vet the person until they are performing within the role.
Alternatively, when you hire from within, you can cut down on the costs associated with your recruitment strategy. Then, you can reinvest these funds into up-skilling the people who have already demonstrated their commitment to your mission. Better still, you already know what to expect from the internal candidate, and, very likely, the references you get will be from people you are familiar with and can rely on.
5. Emerging Leaders can Offer a Valuable Perspective
People who have already lived the day-to-day realities of your operations can provide important insight into how things are actually being done. Rather than hiring someone who only has a theoretical bird’s eye view of the company, you will get fruitful insight from a team member who can report – and improve on – the processes they have already been part of.
When a Company Should Consider an Outside Hire
When choosing between hiring within and looking beyond your organization to hire, there can be a number of factors that influence your decision. Some reasons organizations may lean toward an external hire would be:
- They cannot find an alignment of skills internally
- There is a scarcity of human resources, and new talent would help ensure no gaps form in production
- The organization is in need of an entirely fresh perspective and is searching for a very specific candidate
- The organization lacks diversity and is making a concerted effort to be more representative and inclusive
How to Create a Culture of Advancement
To more fully serve your short- and long-term organizational needs, it may be wise to strike a balance between ongoing internal promotions and strategic external hires. However, as much as possible, choosing to hire from within can provide tangible and transferrable benefits for your company, your culture, and your customers. By rewarding hard-working, knowledge-building team members, you will enhance retention alongside the quality of your workforce. You will see the difference believing in your team members makes and readily recognize when you advocate for your people, they will go the extra mile for you.
Explore Ways To Develop Your Team’s Potential So You Can Promote From Within
Balance the priorities of your company with the professional development goals of your team members. Spark and support an incredible alignment between the two to nurture a workplace where people are happy, successful, and well-suited to their roles. Reach out to Learn2 today to learn how we can curate professional development, retention, and recruitment plans that will transform your teams into high-performance, high-spirited powerhouses of positive productivity.
