The Advantages of Hiring from Within

I am pleased to present the first guest post on RollerCoasterHR by Erin Palmer and the folks at Villanova University.  As one who tries to promote from within first, this post certainly fits with my own HR philosophy and I happy to have the post appear here!

The Advantages of Hiring from Within

In a tough economy, companies still have to expand their workforce, but need to do so as cost-effectively as possible. Hiring from within is one way to create a win-win situation for everyone involved. Internal promotions generally cost less, produce more loyal employees and can help boost your competitive edge. Consider the following:

Internal Promotions Cost Less

When promoting from inside the company, the burden on HR resources is generally much less. After all, the employee is already on the payroll, needs minimal training regarding corporate culture and will need less overall monitoring. Through hiring from within, HR is already familiar with the employee’s work history, reviews and work style. This makes transition times faster for everyone involved.

Internal Promotions Motivate

When employees see that internal promotion is a possibility, they will work harder to reach the goals that might lead them to similar success. Camaraderie will often already exist between the promoted and other employees.  As a result, even if there are changes that need to be implemented, the newly promoted person will already have a working relationship established which may also contribute positively to workforce motivation.

Internal Promotions Attract a Dedicated Workforce

Seeing examples of how one’s career can unfold within a company over time is a strong selling point for potential new hires seeking long term stability. When HR invests resources into strong and dedicated employees so that they can develop skills to fulfill long range needs, everyone wins. Developing a current workforce is a cost-effective business strategy. Employees who know there is a future for them in the company will be more satisfied with the company and more likely to invest in the company for the long haul.

Internal Promotions Help Retain Current Employees

In a time where job hopping for opportunity is more common than ever, highlighting your company’s growth opportunities will help build employee confidence and loyalty. Making the process for advancement transparent and accessible can help to retain the best employees. Announcing promotions in a newsletter or on your website can show clients that you invest in your employees and care about the advancement of your workforce. Such good PR also builds client confidence.

While increasing your workforce during a tough economy has its inherent challenges, promoting from within is one way to meet current needs and boost employee satisfaction. Motivating employees with the possibility of promotion is one way to also build employee loyalty. Creating programs and incentives for workers to reach new heights can help you meet current HR goals and retain the best employees over time. Hiring from within not only saves resources but also demonstrates to your potential clients and your competition that you invest in your greatest resources of all – the people who build your success day after day. It is a powerful HR tool to maintain a competitive edge and build a cohesive and loyal workforce.


This guest post was provided by the online programs from Villanova University. Villanova offers an HR masters online program and other human resource courses to help HR professionals succeed.

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