Need to fill an open position? Before you post a job description or hire a headhunter, take some time to look at your most valuable resources: your current team. While you may be tempted to bring in someone new with a particular background or skillset, promoting from within can actually have a range of residual benefits for both your company and your employees.
Boost Employee Morale
One of the biggest causes of employee turnover is from individuals feeling as though they do not have a future within the company, or that their talent and effort are not being appreciated. By passing up one of your current team members for a promotion, you may soon find that their position also becomes available when they decide to move on to another company.
When you promote from within, you tell your employees that you see their individual contributions and that you are personally invested in their career growth and skill development. By doing so, you also strengthen a strong and positive company culture.
Ensure Smooth Onboarding
Bringing in someone new to your company is a big investment – and a big risk. There is always the chance that you discover a couple months in that they just are not a good fit with the rest of the team, or that they do not actually have the skill set that the position requires.
Every company does things differently. It takes time to mentor new employees so that they can get up to speed with the particular way that your company operates. In business, time is money, and by promoting from within you save both. Your existing employees already have the valuable knowledge about your unique company processes – as well as your company culture – so there are far less unknowns and chances of failure.
Invest in Your Company
If employees know that they have the opportunity to grow within your company, more often than not they will rise to the occasion. This shows loyalty to your team, and your team members will reward you with loyalty in return. Companies that promote from within generally have a lower turnover rate and a higher rate of employee retention.
When your team members know that their manager is actively thinking about what their career path could look like in the company, they are also more likely to take advantage of opportunities and participate in training that can further grow their skills and expertise.
When You Promote from Within, Everyone Wins
Forgetting to look at your existing resources when it comes to an open position is one of the greatest human resource errors a company can make. Not only does it encourage increased motivation and productivity within your team, but it can strengthen your company’s culture and knowledge base – all of which has a substantial impact on your bottom line. So, the next time you find yourself with an open position, you know the first place you should look: right in front of you.