Why promote within the company

Plus, it can be months before any productivity is enjoyed from an outside recruit. With an internal promotion there is little if any additional cost to the company.

Therefore, it only makes sense that you choose promoting within, instead of taking a chance on a new hire who may decide not to stick around. Loyalty is a valuable commodity today, with so many professionals jumping ship for other opportunities on a frequent basis. Show how loyal you are to your hard working staff by offering internal promotions and employee development.

This is a huge loss of productivity and time spent on trying to transition someone into new tasks. A group of employees may take months, even years, to get comfortable working with each other in a team setting. To more effectively staff for higher positions in the company, you must honor the company culture and how well each employee fits into the greater scheme of things.

Only through planned team building and proper job matching, will your company be able to grow and flourish. Choosing hires from the outside can upset the corporate culture, leading to breakdowns in team cohesion and efficiency. Therefore, internal promotions are a better way to develop your teams within the corporate culture.

As you build your company and add new roles to handle additional tasks and projects, keep in mind all the advantages of succession planning by promoting from within. Take a careful inventory of the employees you have now, their skill sets and gifts, so that you can design a plan that helps honor the people who work hard for your success every day.

If employees understand that promoting from within is company policy, the opportunity to move up the ladder is a strong incentive to work hard and stay in place as a member of your team. Your employees will appreciate the opportunity to advance their careers without moving to another company or another state. Employees already know each other.

Employees enjoy greater job security knowing that their efforts will be recognized and rewarded. Your company maintains its investment in employee skills and knowledge. You hire a school graduate, train him in real-world business practices, invest time in continuing education and higher degrees of certification — and then the competitor across the street poaches one of your biggest business assets — a knowledgeable, trusted employee.

The competitor is enjoying the benefit of all of that training and client care experience. Make your investment pay off by keeping that valuable employee at your company and advancing them up the management ladder. First of all, find out if you have someone on staff who could be promoted into the vacant position. If not, your choices are obviously limited. You want your best employees to stick around, right?

Show them working hard pays off. Study after study after study from the likes of PwC, Gallup, Deloitte, and Google all show that employees want growth and development. This often becomes an issue as early as 25 employees.

A lot of founders I talk to demand loyalty from their people only one way. When you recognize people for their loyalty and demonstrate your loyalty for them, you keep your part of the social contract as their employer. Showing your people you have faith in them to tackle new challenges is a great win-win in the loyalty department.

For executive leadership, this gives you a way to show to everyone what matters and what you want to see more of. How are you rewarding your most loyal people? Further Reading: If you decide to reward the loyalty from some of your team with promotions, keep these pitfalls in mind:.

Want to help your people grow, while making your managers more effective? Then click here to learn how Lighthouse can help bring great leadership habits to every manager in your company. Beyond preserving your culture and growing your people, when you promote from within you ensure key company knowledge sticks around.

Can you expect the same from brand new hires? Unlikely, unless they have someone to guide them who has been around. Walking out the door with them will be all kinds of valuable knowledge. One of the most important ones is good management and a strong culture. Hiring and promoting the right leaders is a huge part of that. There are so many reasons people leave managers, not companies.