3 benefits in promoting internal employees than employing new external executives

[Augusta]

Some people or business owners like to hire new hands from outside when they need hands for an executive position. It is good to get qualified hands no doubt but it is a lot better to recruit from the in-house employees already because this method will also benefit the company and the owner.

Promoting workers in the company already to executive positions will afford the company the following benefits

• It will save the company’s money and time. This is because the business will need to start wasting money on advertising for new employees, paying recruiters to employ and generally, just going through the external hiring process which can be very high
• Promoting the existing employees to this position will bring internal mobility. This will make the workers to be motivated and there will be staff retention since they know they can be promoted than leaving for another employment
• There will be lesser risk involved as you know you would be using the right candidate since you have studied the internal worker and know the person ability. It can be financially draining getting an external candidate and it turns out the person wasn’t just right fir the position

What do you think?

 

[Good-Guy]

Most of the companies actually promote their internal employees instead of preferring new employees. This makes sense because by the passage of time, the old ones have gained a lots of trust and experience in the company as compared to new executives or employees. However, only a few companies actually do give chance to new employees. This is because who knows that the new employees might be more talented than the new ones? As far as secrecy is concerned, I do not think that the senior managers should unveil the secrets of companies regardless of whether or not an employee is old or new.

 

[Caramelle]

Much of the decision to hire internal or external employees depends on the availability of the right person for the job among the current employees. Companies don't promote people for the sake of promotion. You may have many existing employees but if none appears qualified for the range of roles that the position demands, a company will have to resort to external resources to find the right person for the job.

Executive positions do not just require mastery of the job. It calls for excellent communication and interpersonal skills. In some cases, a company hires an outsider to help build its reputation. An employee who is seeking growth must demonstrate these abilities, among others, to be considered for promotion. While it is true that a forward-looking company provides training and opportunities to help its employees develop various skills for growth and mobility, employees must show their abilities and potentials to perform well in a higher position.​

 

[sincerem]

What you've said is true, is better to stick with the old employees and offer them promotion for the ones who merited it. Instead of handling the role to new employees. They might not live up to the hype after employing them and thinking they'll offer what they've started on paper. I believe in reputation, having seen the input of the old employees, it will offer me insight that they can simply do well and their is no need offering the job to outsider who is enrolling for the first time. That will be a gamble and a risk to the company's welfare, when I've overlooked the old employees and seeking for fresh new workers to take over the lead role.

 

[Bookwormlux]

When you promote existing employees and increase their payments, they would get motivated to work better and deliver top notch results always. Employing new ones would be as though you don't value the existing ones.

 

[Kingsley]

I quite agree that is good to and highly beneficial to promote the existing staffs of an organization than recruiting new high ranking staffs to managerial positions. Because the existing staff would have been very familiar with the systems both internally and externally, they would have seen the rise and fall and rise again of the business organization. They would have also gathered enough experience on the Job and they will be very used to their customers and understand their customers desires and behaviour.

All of that is actually a very big plus to upgrading internal staffs rather then bringing in New legs to the top managerial levels. Infact the organization stands alot to benefit from the long time those existing staffs would have spent in the organization, if it were to be in a school business there are cases whereby if a school management decides to fire an existing and experience staff from their school, their will be a very sharp reaction from some parents who is most likely going to withdraw their children from the school. Let alone from managerial position. Hence it is far better to train and retrain them and promote the internal existing staffs .

 

[Abigael]

Those are very good and true benefits you have mentioned of promoting existing employees than hiring new ones for executive positions. It is indeed very expensive to hire new employees as it takes the process of advertising, taking interviews then putting people on probation. It wastes so much time and money. Plus it demoralize the existing employees as they see that their efforts and qualifications are not appreciated. This may make them quit the job and work somewhere else.


Internal mobility is also enhanced for sure whenever these promotions happen within. The workers give their best job because this will determine their promotion. As for those who are promoted, they will offer their best job because they are more motivated for being recognised.

I also agree with you that this for sure reduces the risk of hiring incompetent employees. This is due to the fact you already know the abilities of your workers hence you can trust them. Most of them already have the experience and expertise on how the company works.

Moreover, I would like to add that promotion from the inside helps maintain the number of workers you have. Therefore, you will not need to increase the amount you pay for salary for the new employer. You just give salary increment to the one you promoted.

 

[Alexandoy]

With the present employees who are qualified for promotion especially those with a long tenure is obviously a big benefit for the company. The employee has already cultivated the loyalty to the company much more if the employee has been with the company for more than 10 years for sure the retirement will be a big factor to hold the employee. However, the biggest bank here has been doing the opposite. They have been hiring executives from the outside instead of promoting their own employees. The executives are in the level of senior vice president that bypassed the vice presidents who were long time employees. The biggest bank is led by the richest family in our country so I cannot question their wisdom on hiring executives from the outside.

 

[Holicent]

There are many benefits to promoting internal employees than hiring external executives. The following are advantages of promoting internal employees:

Promoting internal employees is more cost-effective. A new executive can cost hundreds of thousands of dollars in salary, benefits and relocation costs. This can be a huge drain on your company’s resources, especially if the employee is only with you for a few months or years before moving on to another job. Promoting an internal employee takes less time as well. It can be done quickly and easily, without having to spend weeks searching for candidates that meet all of your criteria. Internal employees also bring with them their own networks and connections that they can use to find other jobs or relevant opportunities within your company. This means that they may already have some experience in the industry and know people who could help them advance within it quickly after leaving their current position at your company (even if they were just hired).

Internal employees are generally more motivated and loyal than new hires who are brought in from outside companies due to their familiarity with the organization and its mission.