Promoting From Within Vs Hiring From Outside

         You may find yourself in a position of growth and change within your business. You want to increase the size of your staff or someone has just announced their resignation and you have an important position to fill. Hiring is always an extensive process, and one of the first decisions you are faced with as the head of a small business is to promote an employee you already have or to hire from the outside. The approach you take on this decision can be different depending on what position you need to fill and how your company is doing. What are some factors to consider that will help you decide?

If you promote someone from within the company, that person has already proven they are valuable or they wouldn’t be there. This can save you the time of countless interviews and the money you would have spent on advertising the position. Promoting an internal candidate can result in a more efficient workflow. Some argue that anyone can “buy” talent, but it takes a truly skilled leader to develop it. Promotions mean that people feel like they are being rewarded for their hard work and in some cases, it may motivate all other employees to work harder so they may be promoted in the future.

 However, hiring an external candidate can bring in a new set of skills that no one in your current staff has. You can avoid the resentment the rest of the employees may have felt towards the person who got the promotion. If they previously worked for a competitor, they could give you good advice on how they got ahead of you or what mistakes the management at the competing company made. You may decide a fresh perspective will give your business the changes that it needs, which can “save” the company. But you will need to take the time to train them on company policies, products, software, and the general way of doing things—internal candidates already know all these things. You can also expect to spend more money (giving them a higher salary) than you would for an internal candidate—the average is 18% more. Even though outside hires get paid more and sometimes have more education and experience, their review scores are often lower than those who get promoted. They are also 61% more likely to get fired from the position than someone who has already been with the company. Also, there will be an adjustment period for the new person and everyone else because they won’t know how to act around this person initially, especially if they are their new boss. Finally, if the company is involved deeply in the community, it may be best to consider someone with connections and knowledge of that community.

The bottom line is no one way is better than the other. There should be a balance between the two and the decision should be made on a case-by-case basis. You can also open up both options for the same position to see what will work out best. Keep making informed decisions. Make it happen!

© 2012 eMarketing 4 Business LLC

Ways to Save Money on Your Business Trip

Business trips are a great way to network with other businesses and if you have the privilege of traveling for your company, congratulations—you have made it. While these trips can be stressful and enjoyable at the same time, budgeting for travel and finding ways to spend less will make things easier for you in the long run.

Be sure to create a customized budget for each trip according to the destination. It’s going to be significantly more expensive to go to Los Angeles than Detroit. Don’t just come up with an arbitrary number; research the place you are going and plan accordingly. You may want to temporarily hire a travel expert to set up a lot of the accommodations for you. There are also business travel plans out there that are packaged in a way that is more affordable than booking everything separately. Use discount travel companies; often you can do everything online.

 Try to book air travel for the middle of the week when the rates are the lowest. Avoid luggage fees by only using a carry on (if possible) or flying with airlines that don’t charge a luggage fee. Save any unused tickets and apply them to future travel.

Consider using alternative transportation while you’re there such as subways and bus systems. If you do need a rental car, ask for one with a full tank of gas and fill it up before you return it—that way you are only paying for the gas you use. Waive the insurance if your personal auto insurance or credit card can cover it as these policies tend to be very expensive and the need to actually use the insurance policy is rare.

You can decide to have lunch with your clients instead of dinner. Lunch menus are generally less expensive than dinner menus and a restaurant that is outside your price range for dinner may be affordable for lunch.  Focus on and plan the leisure part of the trip. You don’t want to be bored to tears when your meetings are over and if you plan activities in advance, you will spend less money. Stay in a hotel with a kitchen and buy ingredients for some of your meals at the grocery store to make them yourself. You can also take advantage of free breakfasts at the hotel. Finally, you should plan business trips as part of your yearly budget so you don’t overlook these costs and wind up in debt. All these tips will make business trips easier to manage and more relaxing. Make it happen!

© 2012 eMarketing 4 Business LLC