When it comes to hiring, the stakes are high. A bad hire can cost your company more than $50,000, while the right hire can increase your company’s performance.
So is it better to hire externally or promote internally? Should managers devote more time to finding external candidates or invest in their teams so they can be promoted some time down the line?
The answer is: it depends. Here is an overview of the benefits of promoting internally and the benefits of hiring externally, as well as some particular circumstances that could make one or the other better for your company.
The benefits of promoting internally
The benefits of promoting internally read like a checklist designed to please managers. Lower costs? Check. Better performance? Check. Better morale? Check and check.
It’s true. Promoting internally has a lot going for it, including: