Hiring a brand-new employee is one way to fill a vacancy within your organization. But it’s not the only way. There is also internal hiring; identifying someone who already works for your company that could fill that open job. Promoting from within has many benefits – and it also has its challenges. For most organizations, internal hiring is a great way to fill crucial openings without going through the lengthy and complex process of external hiring.
Let’s take a closer look at the benefits and challenges of internal hiring, how your organization can build a strong talent pipeline within your company, and how to keep your best people around for the long term.
The Case for Promoting from Within: The Benefits and Challenges of Internal Hiring
There are plenty of benefits to promoting from within versus hiring a brand-new employee. They include:
- Cost savings – Data from the Society of Human Resource Management (SHRM) shows that the average cost of replacing a salaried employee is around six to nine months of that person’s annual salary. To put it simply, external hiring can get expensive. The longer your search for a new employee drags out, the more expensive it gets. Hiring or promoting from within eliminates this expense.
- Faster hiring – If your company is like most, you don’t have time to wait around while a position stays vacant. You need that position filled sooner rather than later. When you hire from within, the talent is already there. You don’t need to search for it, speeding up the hiring process dramatically.
- Increased productivity – The faster an open role gets filled, the faster your organization can get back to being productive. Putting the right people in the right roles in a timely fashion equals more work getting done on time.
- Less risk – A bad hire can cost your organization financially and otherwise. There is always some risk involved when bringing on an outside candidate. But when you hire from within, you already know the person you’re putting into that role.
- Boosted morale – When other employees see their peers promoted from within, it boosts morale because they see that you, their employer, truly cares about their success. In fact, employees are likely to work even harder because they know that opportunity is there.
Promoting from within doesn’t come without its challenges. First, your organization might not have someone already employed with the skills or experience needed for the opening. Plus, other team members may need to be utilized to upskill or train the internal hire, taking them away from their own tasks. And there is the obvious challenge: Promoting an employee means their old job is now vacant. Depending on the position and type of work, you may need to have other employees cover that work, or hire someone else to fill the gap.
How to Build a Strong Talent Pipeline: Strategies for Identifying and Developing Future Leaders
Although internal hiring comes with a few challenges, the benefits far outweigh them. So, how can you identify and develop future leaders within your organization?
The first step is to promote a culture of learning and development company-wide. Ensure that your existing leadership team acts as mentors for less experienced workers. They should be imparting wisdom and advice whenever possible. Depending on your industry, setting up an ongoing education program to keep all employees current on their skills is another great approach.
Another way to identify future leaders is to ask pointed questions during the initial interview process. When you screen for leadership capabilities at the outset, you’re set up to identify who might make a good future internal promotion.
The Importance of Retention in Internal Hiring: Best Practices for Keeping Top Talent
Remember: Internal hiring only works if employees have the desire to stay with your company. Retention efforts play a huge role when it comes to promoting from within. Some best practices to boost your retention include:
- Offer competitive salary and benefits. Good pay, comprehensive benefits, and nice perks are always a good way to keep employees happy and retain your best people.
- Recognize contributions and hard work. Whether it’s a company-wide shout out at the next team meeting or a simple “thank you” from the boss, a little recognition goes a long way.
- Weed out toxicity. A toxic workplace drives people away. Take time to recognize toxic supervisors or workers and address the issue before it causes more problems.
- Prioritize work-life balance. Check in with your employees to make sure they’re not getting burnt-out. Offer PTO and other ways for employees to recharge when necessary.
- Connect work to a purpose. Remind your employees why they do what they do. Connecting their work to a greater purpose is key to retaining talented individuals.
Need to Conduct Background Checks?
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