• Contact Us
  • Member Login
  • Get Listed Today
Print Posted by SMEA Posted on 11/09/2017 in Hiring

Should you promote from within or hire externally?

Should you promote from within or hire externally?

Your small business is thriving. You have a great team with good managers. A position has become available, either to someone leaving or temporarily departing for maternity leave, for example. Whatever the reason, you have a position to fill. But do you promote from within, or bring someone new into the business?

Both have their advantages and disadvantages. The path you choose is dependent on what is best for your business. If you find yourself contemplating which path to take, let’s take a look at some the pro’s and con’s for each.

Promoting Internally

"You only lack experience if they want it done the same old way!" - Robert Brault

Pro’s
Con’s
  • They understand the business, the culture and how things are done and you know them.
  • You have firsthand knowledge of how they work and their strengths and weaknesses
  • They have established relationships internally and externally
  • They know the job
  • It boosts morale across the business by exhibiting real opportunity for advancement
  • May cause resentment amongst the team where there was competition for the position.
  • May not contribute any new or progressive ideas as have been too close to the business for too long.
  • Not as qualified as external applicants
  • Their current position needs to be filled
  • Do not have the respect of the rest of the team or are too close to them to be an effective manager


Hiring from outside

"Never tell me the sky's the limit, when there are footprints on the moon!" - Anon.

Pro’s
Con’s
  • Wider selection of applicants
  • New skills and ideas
  • Avoids internal hostility when one employee is promoted over another
  • Avoids disruption to the current workplace
  • More training
  • Don’t know the business
  • Resentment internally
  • Expensive hiring processes
  • Their performance is unknown

Of course there are many more, but what you need to ask yourself when you are pondering this question is – who is the best person for the job?

If it is an internal employee, then your decision is made. But if you are even asking yourself the question about whether to hire internally or externally, haven’t you already answered the question? If there was someone internally you felt were right for the position, would you even need to look elsewhere?!

The SME Association of Australia provides a comprehensive platform for the collaboration of businesses, organisations, associations, schools, higher education bodies and government to ensure SMEs are equipped to connect, grow and prosper. Find out more at http://www.smea.org.au/. Join our SME Community, follow us on Twitter | Facebook | LinkedIn and subscribe to our podcast SME Radio

Enter Your Comments

Join Our Newsletter - Today