Tuesday, May 29, 2012
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