“There is a balance to be struck through all hiring processes,”says Michelle Joseph, Founder and CEO of PeopleFoundry. “It is crucial for those in charge to understand exactly what the purpose of the hire/promotion is and the void that is meant to be filled. From there, an educated decision can be made to find the most qualified candidate for the job.”

Michelle delves into the main factors that should be considered before promoting internally.

Beneficial Factors

Culture
As a key contributor within the company, the internal hire will have a strong grasp of the company’s mission and culture. Also, because of their recent promotion, these people can play a major part in disseminating the message that the business wishes to display to all of its employees. Poor cultural fits into organizations are extremely costly no matter how qualified an outside candidate performs.

Cost
The necessary overhead of promoting and training from within will generally be lower than what it would take to bring in outside talent. People promoted from within carry less risk as they are already acclimated to the product/service, culture and methodologies of the organization. If all else is equal between an external candidate and internal candidate, the person inside of the organization should hold an edge over the external candidate due to the cost benefit.

Better Quality of Performance
When employees are aware that positive results can bring on more responsibility with higher pay, they will be better incentivized to work towards that goal. Also, an employee who feels that a company is putting their faith in them and giving them a chance to rise to the occasion can become a very valuable asset.

Areas to Consider

A Fresh Perspective
By adding new people with experience and expertise, different skillsets and ideas weave their way into the fabric of the company. Throughout the life of a business, there are many times when a fresh perspective is necessary to advance the culture and drive innovation. When this becomes the case, looking outside the company to fill a new void is integral to future success.

Great Workers are not Always Great Managers
The people who are going to be up for promotion are naturally going to be the best assets a company has at their particular position. While this is not always the case, often these hard workers and valuable players in the business are best suited for their current roles. The best worker is not automatically the greatest fit for a managerial position. Some people are better at executing roles within a company than taking on the role of leadership and management. Promoting these role players to leadership positions can be costly if they do not possess the skills needed to drive the bus.

Smaller Talent Pool
Hiring can be a numbers’ game. A larger talent pool to choose from yields a higher likelihood of finding the best fit. Limiting the search to people already within the company can hinder a company’s ability to hire the most qualified candidate for the position. If an organization has an internal employee they feel has strong potential to succeed in a new role, it is also beneficial to have outside candidates equally qualified. By doing so, companies can get a comprehensive look at who is available to fill the role.

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