Are We All Wrong About Internal Hiring?

Employers often underestimate the time and effort taken by a new hire to get upto speed. Small tasks such as, not knowing whom to ask a question, or whether to wait for approval on something, play on the efficiency a new hire may bring. It takes time to develop routines, and for an employee to find a rhythm that suits their personal as well as organizational needs. Although a promoted individual can sometimes take time to adjust themselves to new responsibilities – they do have the basic foundations to thrive in the business’ culture and environment. According to Bidwell, internally promoted individuals successfully fulfill their roles 23% faster than external hires.

A huge part of an employee’s success in an organization is dependent on the relationships they form – with managers, colleagues, customers, and everyone invested in the business. A new hire will take time to adapt to the corporate culture, which is key to forming relationships, and to succeed. Internal candidates on the other hand, already know the ropes. They have proven they fit in with the company culture, do not disrupt team dynamics and have the skills and experience necessary to succeed within the company.

Bringing in someone new to the organization also equals time and cost in the training and development. It’s most likely, that others in the department too will have to pitch in to bring the new hire up to speed, thus affecting the performance of the whole unit. Additionally, hiring externally can affect the morale of existing staff, and reduce loyalty. Employees are more likely to stay with a company that they feel offers them opportunities to move forward in their career or learn new skills. When your employees watch their coworker move up the ladder of success within the company, they are more likely to work toward the same goal. In all, you not only increase employee loyalty but their motivation to be successful as well.

So, knowing as much as we do, are companies still preferring to hire externally? Apparently yes. External hiring has grown much more frequent since the early 1980s, especially for experienced high-level positions and especially in larger organizations.

One reason for this, Bidwell explores is that external hires often have more education and experience than internal employees. Hiring managers often approach the process with a ‘grass-is-greener-on-the-other-side mindset.’ However, while it’s easy to be tempted by a fresh perspective or a prestigious résumé, it’s time managers understood the cost to bringing in talent from the outside. It’s time all of us understood that it pays to nurture and promote from within, than hiring those that look good on paper.