Do you often find yourself at a crossroads- trying to decide whether to hire a candidate from within or look to the outside? This is a common dilemma for hiring department heads and managers.
While there are pros and cons to both options- This article will inform you why hiring from within will create the greatest benefits for your company.
1. Less Training
When you hire internally, you already have capable employees who understand the ins and outs of your company structure. They have a grasp on your goals and visions overall. Therefore, less training is required to bring them up to speed on your inner-workings. Paul Slezak from Recruit Loop says, “The average organization spends over $1,000 a year on training for each employee; a cost that includes the time spent by managers and experienced co-workers in teaching and demonstrating the requirements of the job.”
2. Save Money on Recruiting Process
When you look within your company to hire for new positions, you save a lot of money. There are many expenses that add up and promoting internally will create a low-cost hiring strategy for your company. Steven Burrell is a writer for Aabaco Small Business, he points out, “From the cost of advertising and training to the time it takes to screen, interview and take the new hire through their orientation, it can be months before any productivity is enjoyed from an outside recruit.”
3. Save Valuable time on External Recruitment
It takes time searching for great employees, when you may have the people you need under your roof. Beyond just finding and interviewing capable employees, the training needed after the hire will take up a lot of valuable time.
4. Improves Loyalty
When employees believe that there is a good opportunity for growth, they will want to work hard to stay with your company. Recruit Loops says, “People are always looking to better themselves, so if you offer them the opportunity to do so within the organization, they are less likely to look elsewhere and you avoid a costly ‘brain drain’ on your manpower resources.”
5. Enhances Overall Leadership Development
When you take the time to teach and grow employees, they will become the best they can be within your company. Take Procter & Gamble for example, “This commitment to development allowed P&G to create a leadership funnel, which has led it to fill many management positions with internal candidates. It’s also landed the company at the top of Chief Executive Magazine’s list of the best overall companies for leadership development for the past three years.”
6. You Know What Your Candidate is all About
You understand their strengths and weaknesses and know how to work with them. You know how their skills can align with the new position. Less risk is involved on your end. All Business discusses, “When a company hires from within, it has the advantage of being familiar with the employee. Having already evaluated the person’s strengths and weaknesses while on the job (and having observed him or her in action over the years), employers are in a better position to know if the employee will be a good fit or not”
7. Seamless Fit with Company Culture- Improved Teamwork
Company culture is a driving force behind progressing as a group. It isn’t anything that can be taught, but it can be learned through experience and time spent in one environment. When you hire within, your candidate already understands and embraces the goals and beliefs of your company. This can improve teamwork and morale because it will be evident to your employees that you care about their growth and development.
Burrell discusses that “Choosing hires from the outside can upset the corporate culture, leading to breakdowns in team cohesion and efficiency. Therefore, internal promotions are a better way to develop your teams within the corporate culture.”
8. Less Likelihood of Bidding War
When you break the status quo and hire externally, it creates room for negotiations and possibly a bidding war. New recruits may believe they are worth more than you can provide. While you may find some superstar talent by looking outside of your company walls, it could eat up valuable time and money to negotiate the details of the position.
By hiring within, your new recruits will appreciate the opportunity and be more willing to work with you through the process.
9. Allows for New hires to Begin at Entry Level
As you promote within, open positions at lower levels will result in external hiring. This process shapes the overall movement of the company upward. Showing employees that your company is a place to stay and grow within will be a huge asset to you. Show them that hard work and dedication will be noticed and appreciated. Dr. John Sullivan discusses this method and its benefits. “
10. Bolsters your Company Image
If your company is known for rewarding employees for long-term dedication, you will have a favorable view and improve morale. A great company image will attract the best talent out there. Applicants will do their research on a company before committing to them. When you are transparent and back up your company values, you will bring out the best in your employees. Investing in your employees will keep you competitive in the job market.
Now that you have heard ten reasons why hiring within will benefit YOU, check out the wide variety of training programs that ProSky offers. These programs will take some of the stress of training off of you. Don’t waste any more of your valuable time, schedule a demo with ProSky today!