The Importance of Promoting Within and How it Can Benefit Your Business

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As a recruiter, one of the most frequent things we hear a hiring manager say when we start a partnership is how difficult it is to find qualified employees. Unemployment has declined to extraordinary lows and has created a challenge for recruiters and hiring managers to fill positions with quality candidates at a fast rate.

When it comes to filling vacancies, the hiring team has one of two options: offer to an external hire or create an internal opportunity with a current employee. There are certainly pros and cons to both decisions, but below are some reasons why promoting within your organization can be a huge benefit to the company and employee retention.

Promoting within can save time and money.

Greg Chansler, Senior Manager of HR at Kawasaki Motors Corporation stated, “Advertising for the position, sourcing candidates, interviewing and conducting background checks – all before hiring someone (will add to the time and additional expenses for the company). “Some positions are more difficult to recruit for and require the use of outside services, which adds even more to the overall cost of the external replacement”.

On average, external hires are paid more than promoted workers (18% more), yet performance over the course of the first 1-2 years is typically learning the business, getting to know the team, and familiarizing themselves with the organization.

There is less risk involved with internal promotions.

A recent survey done by JobVite suggests that 30% of job seekers leave a position within the first 90 days of starting the role. External hires are also more likely to be laid off or even fired within the first 2 years of employment. When you hire within, you know the work style, ethics, and person you are investing in. You can speak with other people within the organization and get insight from other parties to get a real sense of who they are and how they’ve impacted the company.

Internal mobility can help with retention and motivation.

Lack of career growth is one of the top reasons people leave their jobs. When screening candidates, the majority of the folks looking to make a move from a current employer are due to poor pay, a bad manager, or because internal growth isn’t/hasn’t been communicated as an option. According to a survey conducted by Engage Employee, 63% of employees said a lack of career development opportunities is enough for them to leave their current employer. That same national survey found that 77% of employees feel that developing their careers within their current company is on them. Well-respected employees are leaving employers because of the lack of learning and growth/development offered to continue to advance their careers.

“When you promote from within, people see opportunity and become less likely to move around in their careers,” Chansler explains, also stating “It’s great for morale when employees can see an opportunity to grow within their organization. That ripple effect can be overwhelmingly positive.”

As you think about a new requisition or an opportunity to fill a role within your organization, think about the needs and wants of your current employers and how you can help keep people for the long haul.


Employee retention: The real cost of losing an employee (

3 Unmistakable Benefits of Promoting From Within (

2018_Job_Seeker_Nation_Study.pdf (