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Employee Promotion - Internal or External? Featured

Employee Promotion - Internal or External? two people shaking hands

Promotion is one of the human resource’s core tasks that determine the direction of an organization. As simple as it may sound, it is one of the difficult undertakings that keep human resource managers hoping that the decision they make will help the organization achieve its goals. The hardest part is choosing one person to fill a vacant position from a large stack of resumes from many potential applicants, some of whom have been within the organization and those who have never worked there but have impressive CVs. Which would be the best choice? The person who has worked within the organization doing a great job, working hard to help the organization achieve its goals or a new face with an impressive CV but has not worked within the organization and has not been tested before? The reality here is, you have all these options at your disposal. Here are the benefits of promoting employees internally that might help you make the right decision:

  1. Existing employees know your business well

For many small businesses and startups, some employees have been there since the day the operations began. Some of them have been there through difficult moments that threatened the existence of the business and have been loyal since the first day. They have proven to be resilient, determined, and persevering. That is precisely what has kept your business running. As a business, these are the kind of people you need and should keep in your circles as much as possible. Why not promote such people to the highest positions in your company because they have what it takes to steer you through turbulent times?

  1. Internal promotions are good for the health of your company

While there are good employees who have not worked for your organization out there, hiring new employees who  have not been oriented to your operations can be daunting and expensive. It is also risky because there are many things you must consider for you to determine whether a person fits your organization or not. It is hard to know if the recruit will suit your company culture. People within your company are like a family who wants to see your business thrive. One way you can appreciate this “family” is by promoting a few of them to upper management roles. Doing this will boost their morale and will keep others motivated and hardworking. This will increase the success of your organization and the production of the employees.

  1. Internal promotions cost less

Unlike the external promotions, internal promotions entail engaging people who you already know. On the other hand, external promotions can cost as much as 1.7 times that of internal hiring according to research. You do not need to incur all this cost, at least if you consider promoting internally. By just informing internal candidates about job openings through emails or company newsletters, the cost can be reduced substantially. Printed ads on bulletin boards can also serve the purpose well.

  1. Internal hiring shows loyalty to employees

One of the secrets of retaining employees is by recognizing top talents and rewarding them with promotions. Doing this is a perfect way, mainly if your team is not so committed to your business. It gives members of your organization a feeling that they are appreciated by their employer. Furthermore, it assures them of career progression, that all members need. Promoting some of your best employees proves that you are willing to help them progress professionally.

In summary, although the internal promotion is good for your business, it does not suit all occasions. Some positions might require you to get someone with the qualities and expertise you need from outside. Regardless of the method of promotion you choose, first, study the advantages and downsides well before deciding which one to use.

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Scott Koegler

Scott Koegler is Executive Editor for PMG360. He is a technology writer and editor with 20+ years experience delivering high value content to readers and publishers. 

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