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Business

Hiring Outside or Promoting Within?

By Tomas Gomez // August 29, 2020

A proven fact: mentoring and developing potential leaders is a sound investment for any company. Employees who feel valued deliver better results.

An organization needs team members with talent, and unfortunately, employee rotation is an everyday and significant challenge for any business, which means we need to become experts at hiring the right people in the first place, and at creating an engaging work environment to reduce turnover.

The question is if you have an opening, should you hire external talent or promote from within?

Not an easy answer. You might have a better opportunity to promote within if you have more than just a few employees, and if you are lucky enough to have the kind of employees you can count on – those you “can’t live” without.

On the other side of the coin, you have a situation in which the opening requires special skills, so you need to find those abilities outside of your company. This is very common when you want to develop your own internal capabilities; for example, when you have enough workload where you no longer want to hire external experts and want to have in-house experts full time.

There is also the situation in which you have immediate needs that present themselves in the form of a new business opportunity, so it would be easier to bring someone with the experience and knowledge to take full advantage right away and hit the floor running.

Whatever the case is, please remember the following, every time you have an open position, it means you have an opportunity. Hiring or promoting, think beyond your immediate needs and hire with a longer vision in mind. Similar to a sentimental partner, you want to try your best to choose someone for a lasting, nurturing, and healthy relationship.

In business terms, it is immensely more profitable to hire a person with potential, talent, and the personality traits that resonate with you and aligns with the culture you are working so hard to develop in your organization.

The wrong hire can be a living nightmare and can take your hard-fought achievements back to square one or worst. Yes, it can be that bad, please trust me on this one.

That is why promoting within can be an excellent choice – again, if you have the option.

For starters, it is an indescribable feeling to help someone grow and reach their goals and dreams. To mentor an employee who has shown potential to lead, and when the time comes, to challenge their limits with more significant responsibilities and watch them figure it out and succeed is tremendously gratifying.

Be proactive and plan for it.

The youngest baby boomers right now are somewhere around 56 years old, they will be retiring soon, and they will have to be replaced; look at your staff, who do you think has the characteristics and abilities needed to occupy those positions? Identify those people and coach them to become the next generation of leaders.

When team members feel that the organization is investing in their career, they respond with loyalty and gratitude; they know that their hard work pays off and that they have a future in the company. They feel part of something much more meaningful than just a job.

Right now, millennials comprise half of the nation’s workforce and guess what is at the top of their list when considering a job? …. Skill development and growth opportunities. Invest in your people, and they will invest in you. When feeling appreciated, team members, push harder and exceed performance expectations.

About the author

Tomas Gomez // Founder and CEO of TheIncFramework.com