Hiring from Within: Which Position Should You Really be Filling?

by Vanessa Noble, Client Service Manager, Acclivity Healthcare

If you’ve found yourself with an open job position to fill, you might want to hold off from posting the vacancy on public job boards. Instead, you may want to consider whether that opening is the one you should be posting at all. In some circumstances it is often easier to promote from within and then look externally to fill a lesser position.

Promoting internally has its advantages, especially for higher-up positions. Data has shown that hiring externally endures a much higher rate (61 percent) of ending in termination or layoff than when hiring internally — and a 21 percent higher rate that external hires will voluntarily exit. When considering these odds, the safer external hire may be for a lesser position than your current vacancy.

Here are a few positives to consider:

Costs associated to hiring
It’s important to keep in mind that advertising for a higher-up position can be costly. Not to mention the extensive interview processes that must take place to make sure the applicant is truly qualified. It’s almost always cheaper to fill a lower-level position rather than a higher one.

The salary for the promoted employee may also end up costing the company less. Hiring from the open market means having to present a possibly inflated, competitive wage, while an employee being promoted can often fill the roll and would be happy to get a sizeable pay raise. The raise, though, may amount to significantly less what it would have cost to bring in a new hire.

Filling the lower, now vacated position externally should be easier and more cost effective. There will be a wider pool of eligible candidates and a lower starting salary to negotiate.

Institutional knowledge
Detailed assessment records relating to your internal workers will make it simple to identify which ones are qualified candidates for the open job position. You probably won’t have access to this information on external hires. With this information you can make sure you promote the type of worker that has qualities the company covets. This person can also transition into the roll quickly and use the knowledge they’ve learned on the job to succeed.

Meanwhile, you can look outward to fill the lesser position. Bringing people into the company on a lower level will let you develop them into productive employees. After a few years, they may become eligible for promotion also.

Company attitude
Inside promotion usually comes with the benefit of proving to your workers that you want to see them succeed. As they climb the ladder, this helps motivate all workers to give their best in everything that they do. For the new employee hired into the lower position, they will see immediately that if they do their job well, they will be rewarded. They will also have the promoted employee to talk to if they are having trouble with any of the positions requirements.

As with everything, there are also some negatives to consider:

Fresh perspective
It is not uncommon for companies to stagnate. Eventually, all of the good ideas are gone and an injection of fresh ideas can help restart the creative and productive process in a work group. This is where new hires can be great. Outside perspectives can sometimes provide the vision to help the company move forward.

Office politics
Good managers know that strong teams are vital to a productive work place. Many companies invest greatly in team building exercises, job training and office parties to develop a solid company base. Unfortunately, a promotion received by one employee may sow jealousy in another. While office politics may seem like a trivial reason to forgo an internal promotion, in companies with a more volatile environment, it may be enough to look outside the company for talent.

Is there anyone eligible?
While promoting from within and filling a lesser position can be a great strategic move, it won’t work in every situation. Sometimes, there just isn’t anyone qualified. Promoting someone who isn’t ready can be damaging to the company and damaging to the employee’s career. Before making the move, ensure the employee can handle the responsibilities.

The takeaway:

The bottom line is, you are going to fill a vacancy with a new hire from outside your company. In some circumstances, though, you may have a choice of which vacancy you want to fill. Taking stock of your human capital will give you options when it comes to hiring time and may save you time, stress and money.