Why Promoting From Within is the Best Way to Retain Talent
Hiring and promoting from within your own company offers many benefits. Employers should highly consider looking at their existing employees to promote.
Your hiring plan is one of the most important elements of your HR strategy. A business is nothing without its people after all! And the right people will deliver new levels of growth and innovation for your organization.
But what if we told you it’s not all about hiring new talent?
That’s right. Often, the best hires are already working for your business. They have the experience, inside knowledge, and mindset that makes them best placed to take on new business challenges and deliver the kind of results you’re looking for.
Keep reading to find out why you should be promoting from within.
Why Promote From Within?
Although often overlooked by HR managers, the benefits of promoting from within are endless!
Companies that promote from within typically have happier employees, higher levels of innovation, and higher rates of growth.
Employees want to be rewarded for their work and challenged with interesting tasks. Knowing they have the opportunity to do both via an internal promotion, motivates them to perform at their best.
The organization benefits too. External hires are paid on average 18-20% more, despite the fact that your internal colleagues are likely to be a better fit for the role and have proven their loyalty to the company. There are also training costs to consider, as the learning curve is much steeper for someone new to the business.
And that’s before we consider the implications of the COVID-19 pandemic. Companies currently have no choice but to interview remotely, making it even harder to get to know new candidates. With internal promotions, you’ve already built up trust and rapport, so you’re fully aware of what that individual can bring to the role.
When Should I Consider External Hires?
That’s not to say there’s never a time to bring external talent into the organization. There are occasions when bringing in an external candidate is the right decision. For example, you may have a knowledge or skills gap that needs to be filled or you may believe an external perspective is needed to redefine business processes.
On the flip side, numerous studies have shown that external hires cause more problems for businesses. Despite being paid more, they’re more likely to score poorly on performance reviews compared to internal hires. Use your external hiring to complement your internal recruitment practices and you’ll avoid these negative repercussions.
Promoting From Within Retains Exceptional Talent
When planning your hiring strategy the best approach is to first consider the talent you already have in your business, evaluate whether they have the skills required to step up, and then consider external hires if there’s a skills gap. This helps internal colleagues feel engaged and rewarded for their hard work and makes sure you reap the financial rewards of internal recruitment.
JSK is more than just a recruitment firm. We can help your business develop a succession plan that focuses on promoting from within to retain your high caliber talent. Contact us today to find out more.