As your business evolves and expands the need for a bigger management team increases. As you grow, new positions will become available and you will need qualified workers who are capable of performing specific tasks. When you have new positions to fill, hiring managers are faced with an important decision. Should you look at current employees and promote from within or go outside the company and hire someone externally? It is in the best interest of the company to consider current employees first because there are several advantages to hiring internally. Below are just a few of the benefits of promoting employees from within the company.
You Will Save Time and Money on Hiring
One obvious advantage of promoting from within is that you will save on hiring costs because you will not be spending money advertising the position. In addition, it will save you the time and hassle of reading through countless applications and conducting loads of exhausting interviews. Instead, you can quickly narrow down your list of candidates and you will already have all of the information you need about the candidate readily available. Plus, minimizing the hiring time minimizes the productivity being lost by not having the position filled.
You Will Save on Compensation
When you are hiring someone externally, you need to be sure that you are offering a competitive compensation package. This is especially true if you are hiring for a specialized position that is hard to fill. Instead of spending more on an outside candidate, you could promote a current employee and increase their salary for less than you would be paying an outside candidate.
Internal Candidates are More Likely to Accept the Job
You could spend countless hours interviewing candidates and just when you think you have found the right one, you still run the risk of them not accepting the job. Conversely, the likelihood of a current employee turning down the job is little to none.
There is a Shorter Learning Curve
When you hire from within, you can simply talk to the employee about the new position, explain what needs to be done, and your business is up to speed in no time. They are already familiar with the company, the product, and the people they are working with so they are able to just jump right in and get started without having to go through an onboarding process.
You Get More Quality Performance
When you hire an existing employee, you already know that they are a good fit for the company culture and they have the skillset needed to do the job well. Research has shown that promoting from within increases employee performance and reduces the chances of turnover. While your newly promoted employee might still need a little time to adjust to their new position, at least you know that they are passionate about their work and they are driven to succeed.
It Improves Company Morale
If employees know that promoting from within is commonplace in the company, the opportunity to climb the corporate ladder is a strong incentive to work hard. Your employees will appreciate the opportunities to advance their careers without having to switch to another company. They also feel encouraged when they see the efforts of their peers being acknowledged by promotions.