A job recently opened at your company and some employees are already vying for the position. Is the right candidate already underneath your nose, or should you be searching elsewhere to fill the position? There is no blanket answer to this question, as every company and situation is unique. Hiring decisions aren’t easy ones and it’s important to evaluate what your organization really needs. Here at High Profile we have designed this post to help you answer the tough question, “Should you promote from within or recruit new talent?”
When cost matters and you are working with a limited budget, hiring from within is the best way to go. A study recently published in the Wall Street Journal stated that external hires get paid 18 to 20 percent more than internal employees for the same job, yet get lower marks in performance reviews during the first two years. This same study also said that external employees are 61 percent more likely to be laid off/fired and 21 percent more likely to leave the position on their own terms. These numbers show that external hires are more costly, and the numbers are working against your organization.
It’s also a good choice to hire within if you have current employees that have experience in the tasks they would be performing with the new job. When employees already know the ins and outs of the job, you won’t have to do as much training. Plus, it’s a good boost in morale showing employees that if you work hard you do have the opportunity to be promoted.
Of course there are also times when searching externally is the way to go. An employee may be excelling in their current role, but might not do as well in a different position. Say you have a really great salesman, promoting him to manager will in turn take him off the sales floor and may decrease profits. You want to keep employees in the positions that suit them best.
Another reason you might want to hire someone outside the organization is when you are looking for fresh perspective. If your organization needs a change, hiring someone who isn’t already invested in the company is the best way to go.
When it comes to filling an open position, hire based on what your organization needs. There is no size fits all when it comes to hiring internally versus externally, so gather all of your facts before making a decision. Contact us today for more hiring tips.