Promote from Within Vs. Hiring from Outside
When you need to fill a position or have a job opening, should you promote from within or hire fresh talent? There are pros and cons when choosing either option. In this article, first, we will explore how the hiring process changes when you hire from within. Then, we will discuss the pros (benefits) and cons (drawbacks) of both choices. It will help you make an informed decision on what is best according to your situation.
Understanding Promote from Within in the Hiring Process
Internal promotion, i.e., choosing to promote someone from within the company, is a unique way of the hiring process. This process is actually simpler than bringing in someone from outside because the pool of candidates is smaller. It also means that you don’t have to go through a stack of job applications to review.
However, when you promote from within, the whole process differs from hiring from outside. From posting jobs to tracking applicants and conducting interviews, it is not the same as hiring from outside.
The information you get from internal candidates is also different. You will wonder how a resume for an internal position differs from a standard resume. Well, you will scrutinize your current employees even more deeply than a new hire. You can tell whether they truly understand the new job role requirements based on how they tailor their resume to fit the position’s needs. Also, you must pay attention to whether they commit to the company in their summary or objective.
Finally, knowing the candidate from before can be an advantage. You are aware of their strengths as well as their weaknesses. But you also need to be careful not to let favoritism or personal feelings, positive or negative, become an issue and influence your decision.
Pros of Promoting from Within
The pros of promoting from within are as follows.
➔ Reduced hiring and onboarding costs
Time is money, and evaluating potential hires, onboarding, and training takes time. When a company hires someone new, reviewing applications and conducting interviews takes time. The company has to pay those conducting the evaluations and those involved in the training process. If the position is unfilled, the company loses the time and costs they input into this process. Thus, hiring from within streamlines shortens these processes, saving time and money.
➔ Employee engagement and morale
No one wants to feel like stuck in a dead-end job. When employees see opportunities for advancement and know a clear path to success in their company, it boosts their morale. This can motivate employees to excel in their work. Employees may also be more committed and loyal to the company, taking pride and a sense of ownership in their work and reducing their chances of searching for other jobs.
➔ Institutional knowledge
Those employees who are promoted from within already understand the company’s procedures and culture. Knowing how a company works is called institutional knowledge. This is an advantage over new hires who need time to adapt and learn about the company.
➔ Better teamwork
Employees who know and trust each other are in a better position to work well together. Internal promotion will cause less disruption in work compared to bringing in new employees.
Cons of Promoting from Within
Let’s explore some cons of promoting from within.
➔ Lack of required talent
The needed talent or required skills may not be available.
➔ Unhealthy competition
Internal promotion may lead to competition among employees for the same role. It can cause internal conflicts in the organization.
There is a risk of groupthink, meaning the same ideas and perspectives will dominate and recirculate in decision-making. It will potentially hinder new ideas and innovation.
➔ Potential for Bias
Internal promotions might introduce biases. The existing relationships or favoritism between employees and employers or hiring managers will include the hiring process.
Now, let us look at the pros and cons of hiring fresh or outside candidates.
Pros of a Fresh Hire
Onboarding new talent also has benefits. These may include:
➔ Expanding the talent pool
Sometimes, employees with the needed skills for a role may not be available within the company. So, looking outward will allow searching in a broader pool and bringing in the right and needed skills, fresh perspectives, and innovation.
➔ Overcoming favoritism
If there is office politics, hiring from outside can be a smarter solution. It will help reduce the tensions and conflicts between internal employees competing to fill the same position. Also, it will reduce hiring employees from favoritism or bias.
➔ Increasing diversity
The company with different backgrounds and experiences will develop a good work culture and benefit them in many ways. This prevents the workplace from becoming an “echo chamber” where everyone shares similar ideas.
Cons of New Hires
Now, let’s explore the drawbacks of bringing in new hires.
➔ Training costs
The hiring process and training of new employees come with additional expenses to the company.
➔ Onboarding time
It takes time to post job advertisements, receive applications, select people for interviews, and conduct interviews. All these processes require manpower, consume time, and depend on the company’s work culture.
➔ Potential mistakes
Sometimes, inexperienced hires might make mistakes that can affect project productivity or cause delays in submitting projects as they are new to their roles.
➔ Uncertainty of fit
There is always a question about whether the new hire fits well into the company’s work culture.
If time, money, or finding the right fit is a concern, reconsidering internal promotions might be a worthwhile option.
To conclude, there are pros and cons to both promote from within and hire new employees. When considering what is best for your team or business, consider factors such as morale, expense, time, and the knowledge or skills needed. There is no one-size-fits-all solution; each situation requires careful consideration of the benefits and drawbacks. This way, you can balance the best options and hire the suitable candidate for your needs.
We hope this article on “Promote From Within or Hire Fresh Talent” was informative. You can also refer to the articles below to learn more about related topics.