It’s an age-old question. When you have an open position at your company, should you promote from within or go with an outside hire? Ultimately, only you can decide, as there are pros and cons to both options. Here are some things to consider.
Why You Should Consider Promoting Within vs. an Outside Hire?
Promoting from within can be a powerful morale booster for the rest of your team. It proves that your company values its talent. It also shows that it is possible to chart a career path within your organization. Higher morale generally means less turnover and higher productivity, which are both great for your bottom line.
Hiring is an expensive and time-consuming process. When you hire externally, you are taking a leap of faith that you’ve selected the right person for the job. But when you promote from within, you are dealing with someone you already know. The candidate has already established trust both with you and with their coworkers, making it easier to be sure about your decision.
On the other hand, hiring externally can help your company broaden its horizons. An outside hire brings a whole new way of looking at things. Their ideas may be just what you need to breathe new life into a struggling business or to help grow a successful one.
A major disadvantage to promoting from within is that the person carries existing baggage. Simmering rivalries could erupt when one person receives a promotion. Work teams could struggle when one member suddenly becomes the boss. When considering an internal promotion, be aware of existing relationships and try to minimize the disruptions.
Time and Money
It’s almost always easier and less expensive to promote from within than to hire an external candidate. You won’t need to run job ads or go through multiple rounds of interviews. Holding a position open can mean your existing employees need to pick up the slack, potentially leading to worker burnout and pricey overtime pay. And when you do find a suitable external candidate, you’ll need to pay for orientation and training. Promoting from within can save you a significant amount of time and money by streamlining the process.
When deciding whether to promote from within or bring in an outside hire, you’ll need to decide what’s most important to you. Do you want to move quickly with a candidate you already trust? Or would you rather bring in a fresh perspective? There is no right answer, only what works best for your company at this time.