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Companies that want the best results need the best employees filling their ranks. This makes recruiting efforts an essential part of a business' strategy, as excellence starts with attracting the best possible candidates to your door.

But what if the best possible candidates are already right under your roof? Hiring internally is a somewhat divisive practice in the business world. Some companies swear by it, while others refuse to jump on board. Can hiring and promoting from within your own ranks lead to benefits down the road? Here are a few things to keep in mind.

Employers slow to catch on
Looking inward instead of outward when it comes time to fill a position is a practice that relatively few companies have latched onto. In fact, Human Resource Executive Online cited a survey from the American Management Association revealing that while 55 percent of companies indicated they had no preference in terms of where their candidates came from, only one-third noted a specific desire to hire more staff members internally.

Hidden costs?
It may seem like a fairly minor decision, but consistently turning to recruiters and other outside sources to fill positions can actually have a detrimental effect on your company in the long run. If managers and HR services never promote from within, employees may get the message that career opportunities within the organization aren't as robust as they would like. If not addressed, this can even lead to increased employee turnover, which costs companies lots of money and may further exacerbate the hiring situation. On the other hand, companies that make a habit of looking to their existing talent first send a message that they're dedicated to the professional development of the employees, which can drive higher engagement, better results and lower turnover.

Know what you're getting
Another reason more companies may wish to consider hiring from within is that when it comes to new candidates, the resume can only tell you so much. While qualifications are important, there's more to new-hire success than that. Personality issues and company fit can have just as much of an impact on how a worker performs, especially in a team environment. In contrast, managers who promote from existing employees can avoid that issue. Everyone working for them has, presumably, already demonstrated himself or herself to be a good cultural fit. These people skills may be unquantifiable, but they're undeniably important.