Companies fill vacancies either by hiring someone from outside of the company or performing an internal promotion. While the new perspective external hiring brings can reinvigorate a company, the pool of qualified candidates for many positions is shrinking. The labor market is actually at its tightest point in recent history right now and there are benefits of promoting from within.
The potential to avoid a hiring standstill by promoting from within their ranks needs to be considered. In fact, there are plenty of benefits that come from choosing this option. If you're having trouble finding the right external employee, here are three reasons you should consider internal promotion.
Hiring someone who is not a part of your company can get expensive. Some workforce intelligence companies claim that you can actually lose a lot of revenue through this process. After all, you need to pay for the advertising, calling candidates, interviewing them, and conducting necessary background checks before hiring someone. On top of that, you may have trouble finding the right candidate and have to hire an external company to find one for you, adding to the cost.
Each day that this position remains unfilled, the cost will rise, so you naturally want to hire quickly. However, the competitive atmosphere can leave positions open for close to two months before they are filled. That means you can spend two months channeling your extra funds into the hiring process. Meanwhile, the employees you already have are sacrificing their time and effort to help cover the duties until you find a hire.
Today, employees want the chance to advance their careers. In fact, a lack of opportunity for an internal promotion is one of the biggest reasons workers leave a company. This is especially true in career fields where other companies are actively recruiting employees. The good news is that giving your employees the opportunity for advancement encourages them to remain part of your company.
Similarly, many companies are not motivated to improve themselves. One way this is combated is by giving employees opportunities for advancement, which will encourage them to continue growing and improving upon their skillset. This will also help you recognize the rising stars in your business.
Whenever you hire someone who hasn't worked at your business before, there is always a chance they could be a bad fit for your atmosphere. Actually, almost one-third of employees leave a job within three months of starting it because they don't like the company culture. On top of this, external hires are more likely to be fired due to incompetence or another issue within the first two years they work for a company. You can avoid this by hiring internally since you already know what you are getting.
Promoting from within employees provides noticeable benefits. Therefore, this method of hiring is becoming increasingly popular. However, next time you need to fill a position, consider opening up an internal communication line first. This can get you hooked up with a reliable, motivated employee and ready to start work without training.