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As your business grows, you will have to make specific hiring choices, including whether to promote from within or hire an external candidate. Both options come with distinct advantages and disadvantages, and only you can decide what is right for your enterprise. In this post, JDC Group walks you through the pros and cons of each of these methods.

Promoting from Within

Promoting from within, or internal recruitment, brings current members of your team up the ranks instead of hiring someone new. This promotion strategy can be advantageous to your organization. After all, you already know the individual and how they work. Because the candidates know your business, culture, and practices, you spend less time training them, saving time and money. Knowing the opportunity for advancement exists can also be a strong motivator for employees.

There are a few downsides to promoting from within. First and foremost, you may not currently have the best candidate for the job on staff, which may harm your operations in the long run. Internal promotion can lead to newly promoted managers offering the same stale, recycled ideas they offered in their previous position instead of infusing new life into the position. You may also see more instances of inner-office political positioning as employees compete amongst themselves to be the next promoted.

Hiring Externally

Hiring externally, i.e., from a pool of candidates outside of your organization, offers your business more choice when you need to fill a position. You have a significantly larger talent pool to select from and may find candidates with unique skills or perspectives that may diversify your organization. New employees bring new, fresh ideas to your organization, which may lead to overall improvements in operations.

Just as with promoting from within, hiring externally also has its share of disadvantages. New hires are untested within your company. They need more training than current employees when they join your organization, which costs more time and money than hiring from within. You also may see issues with employee morale if current employees are not considered for promotion.

The course of action you should take is the one that ultimately benefits your organization the most—there is no “one size fits all” solution here. Some of the most successful organizations have a carefully calibrated balance between hiring new employees and promoting employees from within. This strategy opens up the opportunity for existing employees to apply and interview (thus keeping employee morale high) while allowing decision makers to see what sort of external talent pool is available for the position.

If you do consider hiring externally, partner with a reputable search firm that works closely with your company and has a good relationship with your managers. Great search firms will learn the ins and outs of your company to offer you the very best candidates for your needs.

Each of the business development experts at JDC Group prides themselves on their ability to forge close relationships with our clients in order to meet their business goals. If you are looking to expand your candidate pool by hiring externally, make an appointment with one of our business development experts today.


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