If your company is growing, you are part of the lucky minority that has adroitly navigated the past few years and emerged successfully through to the other side. However, this is where your true work begins.
Finding the next addition to your team has enormous consequences for the future of your business. Every manager has the essential responsibility of motivating their employees while leading by example. Similarly, every new hire changes the entire dynamic of their team, adding their unique skills, experiences, and personality to their work.
The age old question of whether to hire externally or promote internally is always at the forefront of managers and supervisors’ minds. Which produces better results? Let’s break down each option.
Internal Mobility: The Breakdown
When seeking to fill a position, promoting from within can be an attractive option. For one, it allows for individuals familiar with the company, its systems, and its people to slide into a new set of responsibilities. This often entails less training time and ensures a relatively seamless culture fit. The hiring process for filling a role this way can be swift and easy, since the performance history of the internal candidate can be verified simply by connecting with their past supervisors or viewing their previous work. A shorter hiring process means fewer man-hours spent in interviews, helping the bottom line.
Most importantly, hiring from within can help build morale by showing other members of the firm that performance is rewarded. Everyone likes to envision a successful future for themselves, and demonstrating that there are advancement opportunities right here at the firm is a great way to foster retention.
On the other hand, keep in mind that hiring internally can have a few drawbacks if not executed properly. For one, it could breed resentment if there are several similarly-qualified candidates for the same role. Personality wise, the dynamics of how that person may lead their former peers should also be considered. Additionally, just because the employee understands the firm does not mean they are qualified to assume any open role within it.
Finally, be cognizant of the vacancy the internally promoted professional leaves behind. Will you be conducting an external search for this position, or will their previous responsibilities be absorbed by the team? How will that new workload impact productivity and deadlines?
Hiring Externally: The Breakdown
As we can see, promoting from within is not always the answer. Hiring externally, especially when conducted with an executive search firm, can allow your team to grow sustainably. By adding fresh perspectives and more diverse experiences to your staff, you equip your firm to better serve your clients in the long run.
The added muscle also allows you to scale your operation as you hire, with current employees being assisted and bolstered by additional talent.
However, you should take several key considerations into account. Firstly, the hiring market is incredibly competitive, with top candidates having their pick of several positions. What can you do to attract new talent to your firm? What benefits or incentives can you offer to candidates to help them choose to further their career with your team?
In general, executive searches also take more time and resources than internal assignments. While a strong investment for the future, you must be prepared to be patient in securing new team members.
The Bottom Line: Choose the Best Candidate
Whichever approach sounds more appealing at the moment, be aware that the best course of action is likely a combination of both. For those roles that represent an increase in responsibility over a team, but carry similar day-to-day duties, perhaps an internal promotion is an intelligent course of action. For new positions that have been carved by management in an effort to grow and innovate, an external hire may be the way to go.
Your business is unique, as is every hiring situation. When determining how to attract new talent, consider the points detailed above, and choose the more qualified and well-suited candidate – wherever they come from. If you follow those guidelines, you’ll be set up for success.
Attract New Talent with Unity Search
The Dallas-based recruiting agency Unity Search is chock full of trained recruiting specialists who can help you find the right addition to your growing team. We focus on forming long-term partnerships with our clients, helping them to navigate the entire process from initial executive search to final candidate selection. We’d be happy to help you evaluate your business needs and establish a path forward. Connect with a search partner at Unity today to learn more.