Is It Better to Recruit Internally or Promote Within?

I got an email last week from Fred, an HR manager of a medium-sized company requesting my advice. His company for some time now always preferred hiring from within instead of new hires. They now felt that this was no longer working for them and were looking forward to changing their strategy this year. I set up a meeting to understand their needs and this is what he told me.

‘’ Hiring internally has its advantages. I found that we spent less money as compared to what we would have spent hiring externally. People who got promoted had the company knowledge and history and it was easier to transition and less time was spent onboarding. Sometimes, these employees were less qualified and so we invested in their training. It also encouraged others to work harder as they could see they were a chance for growth in the company.

As much as this worked, we faced several challenges. Every time a position was advertised internally, we did the recruiting process internally sometimes to ensure that the process was fair. However, there was conflict among employees who felt that they were better qualified for the job which affected their morale. The employees promoted also left a gap in the previous position which meant others split some of the responsibilities leaving some overwhelmed.

The other thing is we still do things the same way we have been doing in the past which is not good for business. We have also been missing out on opportunities to get a fresh perspective. We want your advice. What do you think we should do?’’

Most of my clients have experienced this before they hired us to recruit for them.  As much as internal hiring has its advantages, it has its gaps that external recruitment can only solve. I advised him to consider this as it would bring in the following benefits;

1. Bring In New Ideas and Fresh Perspectives

When Fred mentioned that the company was doing the same things the same way, it was a result of not having any need for new perspectives.

Sometimes, all we need are fresh eyes to see what is missing and suggest a better way to improve. It helps us do things much better.

2. You Get Access To More Qualified Candidates

For instance, they promoted internally and trained the person to do the job. External recruiting would instead get a person that is an expert and qualified for the position.

Having someone that is an expert in the field brings efficiency in doing the work and new recommendations that would work best from having the experience.

3. It Helps Reduce Internal Conflicts

Like the above client, this happens a lot in organizations. I worked for a company where there was a position open for promotion. In that department, at least 3 people met all the requirements.

However, one was selected which led to conflict because they felt that his promotion was high because of his good relationship with the manager. A month later, they both left.

Hiring externally reduces the chances of such situations in the company as it is usually fair.

4. It Helps the Business Stay Competitive

Having the same business strategies all the time does not promote growth for either employees or the business.

For instance, during the pandemic, different businesses continue to close and others have been innovative and invested in other areas outside their comfort zone.

Sometimes staying competitive means hiring someone who has diverse experience from working in other industries or even for your competitors.

This helps your company get insight into what others are doing and how better to do things.

5. It Improves the Company’s Efficiency

For most companies like Fred’s, when there are different employees qualified for a position internally, they go through the internal process of recruiting to ensure they are fair. This takes time and resources because training keeps in mind that the candidate may not necessarily be qualified.

Other times, the gap left may need to be filled to avoid employee burnout.

Instead, external hiring helps improve efficiency with the fact that you will not only get the best-qualified people for the position but using recruiters like ourselves helps you free up that time to focus on growing the business and in the end get the best talent.

Conclusion

With the above in mind and when you look at your business needs, what option would best work for you?

If you consider external recruitment, feel free to reach out to us and we will offer you our premium services.