How Hiring Internally Can Benefit Your Company

Save time and money by offering an employee a promotion

  • 12 June 2019
  • Author: Sheena Roman
  • Number of views: 194

statistics of the true cost of a bad hire based on a $100,000 salaryHiring new employees can take a lot of time, effort, and of course, finances. Having an unfilled position can put a strain on your employees causing a negative impact on your company. There are only two options when filling a position: hiring internally or hiring externally. There are many factors to consider when doing either of the two; however, there are a plethora of benefits from promoting an existing employee that can save you a lot of resources.

Promoting internally saves a lot of time. Your current staff is already familiar with the existing work culture, rules, and procedures. Less training is required and can solely be focused on the expectations for the new role and what it entails. It also creates a good rapport with the rest of the staff who then discovers that there is room for growth and real career opportunities. This encourages the other employees to be more productive which increases the company’s overall success.

Trust is essential in a successful business. When hiring an external candidate, your knowledge of them is limited to their resume and the brief encounter the interviewer had with them during the interview process. An internal candidate is already seasoned and their strengths and weaknesses are already known by the hiring manager. This typically means a lower employee turnover rate and higher success rates. It also opens the possibility of getting a new perspective from a diverse standpoint. The internal candidate would be able to view obstacles from two or more positions and produce innovative results that are compliant to the company’s policies.

If a company chooses to hire externally, a number of employees such as the hiring manager and HR, have to dedicate time and effort into finding the perfect fit which ultimately costs the company money. Countless hours are spent creating ads across multiple websites, reviewing resumes, and interviewing candidates. There is typically a waiting period for the prospective hire to go through a background check, drug test, as well as, give their current job two weeks’ notice. To avoid the time gap and delay in daily production, internal hiring is the most effective way to fill a position.

Written by Sheena Roman