The Importance of Hiring From Within Your Business


Your business is growing, and that’s great! You have even decided that it is time to hire a new manager or supervisor. However, if you are considering hiring, before you put an ad on a job site, you should look within your company. If you weren’t thinking about this already, you should – here are some reasons why this is so important.

It Is Faster (and Cheaper)

Hiring from within means you don’t have to go through the trouble of creating a sales operations job description, then carving out time for interviews, and then wading through references. Then, of course, there is the expense of a background check and the time it takes to onboard a new manager and get them up to speed about their new job.

Besides the expense and time taken to hire a new person, as you probably well know, hiring someone from outside the company that you don’t know is always a risk, especially in an advanced position. They may have excellent credentials and a long list of experience, but that doesn’t mean they will truly be good at their new job or fit in at your company. If they aren’t a good fit, that means the search has to start all over, which means more time and money spent, not to mention that your company’s growth is stalled while you look.

If you hire from within, you already know the person you are hiring. You know you can trust them, you know their work habits, and you know what special talents they will bring to their new job. And, it won’t cost as much to train them, since they already know the basics of how things work within the company.

It Is Good for Morale

Nothing can crush a worker’s spirit more than when they are passed over for a promotion that they have worked hard for and truly deserve. It can make a worker feel unappreciated, make them lose morale, and may discourage them so much that they eventually take their talents to another company altogether.

And it’s not only bad for the worker who may have wanted that job. Other people in the company see what goes on. If someone they admire and enjoy working with is passed over for a promotion they deserved, they may think their talents are undervalued, as well, if the company is so quick to look outside when it’s time to hire for a more advanced position. They may start to feel like there is no room to grow in the company, so why bother staying around?

It Is Good for Your Company

Hiring from within means that your new manager already understands the company culture. And, since they have been on the “front lines,” they also have a pretty good idea of who else in the company has potential and should be moving up so that everyone gets the benefit of their talents. Their coworkers already know (and hopefully like) them, which also makes for a smoother transition for all.

It is also good from a standpoint of hiring and keeping new entry-level workers. People talk, and if your company becomes known as one that doesn’t want to promote workers and has no career path or way of advancement, you might lose out on some great candidates in the future. Some people won’t bother to start at a company when there is no way to move up there.

You Have Several Options

Beyond just your full-time employees in your department, don’t forget about the cache of talent you have in other positions. Don’t forget about freelancers and contractors, part-timers, and people from other departments. They have an understanding of your company as well, and you already know them and enjoy working with them (hopefully).

If your business is growing, at least part of this is due to your great employees. Use them to their full potential, keep valuable employees, and keep morale high by hiring for positions from within the company.

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