You’re probably quite familiar with the strategy of promoting from within. Is it a process your company uses? If not, it’s time to reconsider. Promoting current employees up the corporate ladder has several benefits for your business.
More Motivated Employees
In many jobs, the bare minimum is enough to get by. As long as they clock in on time, complete their tasks, and maintain an acceptable attitude, employees can enjoy job stability. Goals and incentives will motivate your team to go above and beyond. In the United States, nearly a fourth of employees will engage in extra tasks for a promotion.
Jim Bernhard doesn’t just promote within his company, but he also congratulates each promoted staff member. Public recognition isn’t necessary, but it is another way to inspire motivation. Each member of the staff will see the real payoff for hard work.
Higher Employee Retention
To retain your employees, they must feel appreciated. Raises and promotions show that management is paying attention to the staff. While other forms of appreciation such as casual Fridays, work parties, and words of affirmation are wonderful, most employees work to pay their bills.
If you don’t promote your employees, someone else will. Entry-level positions are for beginners. The pay, benefits, and hours may be less than ideal, but workers earn experience. Once your employees have the experience, they are going to seek out better opportunities at your company or another.
Lower Cost of Training
When you hire externally, company training starts at the beginning. The new employee has to learn company policies, product details, the chain of command, and the client base. Those basics take time, and time costs money. Internal candidates move into their promotions with solid groundwork.
Individuals who are fresh to the company may lack loyalty. If they decide the workplace isn’t for them, it is easier to walk away. Losing a new hire means all the training pay was wasted, and another employee must be paid to repeat that training.
Consider the staff relationships at your company. You know who works best together, is respected, acts as a leader, and maintains balance. Those are the employees that would transition easily into a promotion. When you introduce a new individual to a position of power, there can be an adjustment period. Interviews can screen for skills. However, it is more challenging to predict social dynamics.
An internal applicant will be able to forgo much of the onboarding process. There will be no need for introductions, tours, excess paperwork, or a settling-in period. The transition into the new, everyday work life can happen quickly and easily.
Promoted individuals are more likely to reach their full potential sooner. According to research, the productivity level of external hires can take years longer to mature than internal promotees. Teams also show a higher level of productivity when working under someone they know. That means external hires may leave more cash on the table for your company.
If you have an advanced position to fill at your company, reviewing your current staff is a great place to start.