If you promote an unsuitable person, there is a negative ripple effect through the ranks and your bottom line. If you put a superstar in this role, he/she could launch your team or even the entire company to the next level. Thus, you have two options to fill this vacated position: promote someone internally or should you outsource a suitable candidate? HR professionals face this question all the time and we both know that at some point outgrowing your company’s internal pool of talent or looking outside has its own pros and cons. Today’s post will discuss whether it is better to hire from within the company or to hire externally.
1. Internal hire when you know the person well
It is undeniable that hiring internally is quicker as the candidate has already been a current employee with the company. They know the organizational landscape, they know best practices at your organization without a long learning curve, they are already familiar with operations and business methods. There is no cost for training or introducing them from the beginning. As for an employer’s side, you have a good understanding of their abilities and skills, you know the person’s strengths and weaknesses. As a result, you save valuable time not screening multiple external candidates and remove risk of getting someone different than you thought. Moreover, this is a way for HR team to improve retention rate.
However, on the flip side, this kind of hiring creates a domino effect. That’s to say, you may be filling one position while opening another, then limited with other internal options. Not to mention, advancement opportunities may cause other employees displeasure when they are not being considered for the role, thus, this increases the competitiveness, causes interpersonal conflict and negatively impact culture and team performance.
2. External hire will bring a fresh perspective:
According to SHRM notes, "Employers also use external recruitment to attract individuals with the necessary skill sets, especially when seeking to grow the business or take it in a different direction." Looking for someone from outside your company means access to a larger, more diverse talent pool. New candidates from external avenue can be a breath of fresh air, who bring new ideas to the company and could diversity to the existing team. Thus, this leads to overall improvements in operations.
However, like promoting within your company, external recruitment also has its share of disadvantages. It costs more time and money when they need more training than current employees as they take over the role in your organization.
There is no right answer for the question above: “Whether it is better to hire from within the company or to hire externally”. As an employer, we always looking at the benefits of client to make the decision. While you give opportunities to develop leaders throughout your organization, don’t hesitate to hire someone from outside when there is no one suitable for the job internally. At this point, partner with a reputable HR firm like Faro which learn ins and outs of your company to offer you the best candidates for your needs.