Is the right candidate for your job opening within your ranks – or is it someone from beyond company walls? It can be tough to resist the allure of a brand new superstar. But, the cost of bringing talent from the outside is significant and it may be better to promote from within…
Unfortunately, there’s no simple answer. Every hiring decision is different. Study your specific situation to determine which path to take. Base your decision on facts and needs, not emotions. Acknowledge that you can’t make everyone happy, then use all the information at your disposal to make the choice that’s best for your company and its future.
Promoting From Within
Never underestimate the power of your current staff. Post new roles internally first. Communicate to internal applicants why they didn’t get the job if another candidate is selected. Then work on an action plan to help in-house talent get it the next time. Hiring should be a competition between your current team and the outside world to make your organization better.
- External hires are paid more and are more likely to leave. They typically earn lower marks on performance reviews and are 61 percent more likely to be terminated. In addition, they’re 21 percent more likely to leave of their own accord. At the same time, they earn an average of 18 percent more than those who are promoted from within.
- They don’t know the ropes of your organization. Even though they may have more education and experience, they don’t know who to ask for business-critical information, when to file reports or other key steps that come naturally to veterans. And everyone has to work harder to bring them up to speed.
- It boosts morale. Hiring from within shows your employees that their hard work pays off and that you’re the kind of employer who appreciates them and pays attention to their contributions.
Hiring From the Outside
Sometimes, promoting from within hurts more than it helps. For instance, you may promote a salesperson from the floor into management. Unless their replacement performs at the same level, your profits could nosedive.
- A great worker doesn’t necessarily equal a great manager. You may take a stellar front-line employee and move them into management, then neglect to give them the tools or resources they need to succeed. If you don’t have those resources, then look outside for someone who can successfully step in without them.
- New people bring new ideas. Solely doing things “your way” will eventually lead to limitations. If you don’t bring in fresh talent, you’ll miss opportunities to keep your culture fresh and your business growing.
- Spark needed change. It may be time to steer your company or one of its functions in a new direction. For instance, your marketing team may have extensive success with traditional advertising but needs help coming up to snuff with social media tactics. A fresh perspective and new blood can be one of the best hiring decisions you’ll ever make.
Whether they come from within or outside your organization, the best person for the job is… the best person for the job!
For additional resources to drive your hiring and talent management success, contact the expert team at Contemporary Personnel today.