Does your organization prioritize external hires, or do internal talent promotions lead the way for employees to ascend to higher roles? Bringing in new talent can certainly infuse some fresh energy into your organization, but promoting internal candidates may be better in the long run.
Promotions can be extremely tricky, considering the many risks of elevating a candidate to a new and unfamiliar role. Many leadership positions have recently been filled by external hires, however, there’s a good case to be made for internal talent promotion at an organization. This is particularly true considering the job market today, where employees remain unsure about their career prospects and the possibility of growth. Promoting internal candidates allows employees to feel more certain about their future at the organization, making retention much easier for the business at large.
When it comes to choosing between hiring or looking internally for promotions to leadership roles, the benefits of the latter outweigh the cons. (Image: Pexels)
Prioritizing Internal Talent Promotion Can Be Key to Building a United Workforce
Selecting a leader is a very delicate task. Making the wrong choice can result in incompatible policies and disgruntled workers protesting their decisions with growing frequency, particularly when their own well-being is affected by the fledgling leader. The right decision maker at the top can not only understand the goals of the organization and how to get there, but also motivate workers to collectively row towards the goal.
Struggling to carry the weight of this decision, many organizations look outside for leadership hires, certain that their success with another business may mean success for them as well.
While there are many CEOs and other C-Suite executives who have stepped into new shoes with great ease, not all of them have had as easy a time convincing the rank-and-file workers that they can pull it off. A report from consulting firm DDI found that around 60% of CHROs believe in tapping into existing talent when leadership opportunities arise, developing talent internally until it’s the right time to promote them.
Hiring vs Promoting Internally: What Are the Benefits of an Internal Candidate?
Championing internal promotions offers many benefits for an organization, leaving the business with a leader whose capabilities come with greater guarantees.
Employees are Assured They Have Earned Their Keep
Whether a leader is hired or promoted internally, you can be certain that the general leadership has some certainty that the candidate is qualified to fill their role. Still, many employees see internal promotions as a sure sign that a candidate has worked their way up the organization, proving their skills are worthy of a leadership role. This increases the faith in the leader right from the start.
Workers Feel Familiar with their Leadership Styles
Leadership promoted from within leads to greater time spent at the organization, allowing employees to work with them on different projects and understand how they operate. When such candidates eventually make it to higher leadership roles, the change is not jarring for employees who know what to expect from their new overseer.
Experience With an Organization Smoothens Their Learning Curve
One of the key differences between hiring vs promoting internally is that employees have enough time to understand the organization before responsibilities are thrust upon them. From understanding the clientele and the industry to the various departments within the organization, they gain a sense of familiarity and have years to develop their own strategies for the future of the business.
Potential Candidates Gain Training On the Job: The Transfer of Knowledge Is More Seamless
Internal talent promotion offers CHROs the opportunity to mold existing talent into the leaders the business needs. Delegation, communication, problem-solving, and other essential leadership skills aren’t easy to master in a heartbeat, but internal promotions allow existing leadership to invest in succession planning, slowly ensuring candidates are ready for their future positions.
Employees Feel More Optimistic About Their Own Careers
Another one of the top benefits of internal promotions is that it reassures employees that the organization is supportive of career growth. A 2021 Pew Research survey found that 63% of employees who left their jobs did so due to a lack of significant career growth. Most employees seek to ascend to higher roles, gaining new titles, responsibilities, and the perks that come with these positions. Witnessing their colleagues make these transitions allows them to trust that they will find support in their own career journeys.
The Pros of Internal Hiring Outweigh the Cons
It would be shortsighted to suggest that there are no downsides to internal talent promotion over hiring external talent. Organizations that want new ideas, instead of having to rely on tried and tested methods, can seek innovative thinkers from outside. Similarly, when a new position opens up abruptly, there may be no internal candidates who are fully qualified for the role. Hiring an external candidate can be a more optimal choice in such a situation.
Lack of direct experience with an organization does not mean that a candidate will be incapable of leading. All things considered, when it comes to the overall considerations of hiring vs promoting internally, there are a considerable number of benefits that come with a culture of rewarding dedication and loyalty with career-centric success, not just for the employee who gets the promotion but all those employees who watch it happen.
Businesses will have to look at their individual situations to determine what the best strategy is for a business, but a culture of support and internal success often triumphs over other considerations.
Do you believe in the benefits of internal talent promotion or is it better to hire external talent for leadership roles? Share your thoughts with us. Subscribe to The HR Digest for more insights on workplace trends, layoffs, and what to expect with the advent of AI.