Vickie Rodriguez, Manager of Corporate Recruiting, Insperity
For small business owners, promoting from within could be a good thing, or it could be a disaster. When an employee expresses interest in an open position, how do you know he or she is qualified?
The decision to promote from within or hire from the outside should be made based on what kind of expertise is needed for the position. Employers should first assess whether they have someone internally who has the necessary skills, experience, perspective, aptitude and desire for the position.
One advantage to promoting from within is that it provides a career path for employees and shows that your company cares about its people. Many small companies have fewer opportunities for advancement than a larger organization therefore promoting from within helps build a strong foundation for succession planning.
Promoting from within also allows you to cash in on your human capital investment. Promoted employees tend to require less time to become effective in their jobs than outside hires since they are already familiar with the company culture, vision and mission.
Additionally, promoting from within typically costs less than hiring from the outside because, there are less costs for recruiting and training.
Promoting current employees doesn’t come without risk however. Employers may not gain the perspective or fresh ideas that could typically be brought into the company by hiring someone from outside. In addition, promoting from the inside may hurt the productivity of the promoted employee while he or she learns the new role, while continuing to perform the duties of the previous position. Finally, the company will have to devote time and resources to fill the backfill position.
Employers who are considering whether to hire from within their company or to look outside should:
- Have a succession plan in place for determining who in the organization is fit to be promoted.
- Promote from within when possible without sacrificing the skills and experience needed.
- Be aware of the skills and experience of current employees.
- Consider the impact not promoting would have on the current workforce.
- Analyze the cost of recruiting and training
- Encourage employees to grow by attending workshops and/or seminars, individually or as a team. Invite them to share with the organization what they have learned and how it could benefit the company.
Based on these factors, if employers decide that hiring an employee from outside the company is best for the position, they should maintain employee moral by communicating the promotion policy and decision made.
Any employees who have been considered for the position should first be told that their interest in the opportunity was greatly appreciated and that after much assessing of the skills needed for this job, management has decided to hire who they believe is the most qualified candidate. It’s important that the internal candidates be made aware of the management decision, as well as how important it is for them to support the decision.
To help preserve the self-respect and morale of passed-over employees:
- Be clear of why the decision was made and articulate the reasons.
- Meet with passed-over employees before announcing the outcome.
- Be very honest with your feedback. It’s important to specify the job requirements and the capabilities needed for the job.
- Talk to candidates about the areas where he or she struggles or has not demonstrated the skills needed for the job.
- Allow them the opportunity to discuss and ask questions.
- Know that they will be disappointed, and exercise empathy.
- Express appreciation for their work and the importance their contribution is making on the organization.
- Be careful not to offer empty compliments or false encouragement.
- Discuss what they can do to prepare themselves for the next opportunity and help them develop an action plan to help develop the skills needed for the next opportunity.
Make sure you follow up with your commitment and monitor their progress with regular evaluations.
Legal Disclaimer
The information contained in this document is for general, informational purposes only and is not intended to be legal advice. This information is not a substitute for the guidance of a professional and should not be relied upon in reference to any specific situation without first seeking the advice of a qualified HR professional and/or legal counsel regarding applicable federal, state or local laws. HRTools, Insperity and their respective employees make no warranties, express or implied, and make no judgments regarding the accuracy of this content and/or its applicability to a specific situation. A reference or link to another website is not an endorsement of that site or service.