When a small business begins to expand, it can be very tempting for business owners to recruit established professionals to take on managerial positions. After all, many leaders value experience, and they reason that seasoned veterans will perform better in a high-ranking role than greener individuals. However, this is not always the case. In fact, there’s a strong argument to be made that promoting from within is the better option in almost every instance. Here’s why promoting from within can be such an effective tactic:
It Maintains Chemistry
It’s difficult to overstate the importance of team chemistry in regard to business success. Professionals who get along with each other and can successfully collaborate are indispensable to a developing business. Bringing in an outsider to manage a branch or department will invariably change that team dynamic –– often in negative ways. Promoting from within, though, allows professional teams the ability to maintain the synergy they’ve cultivated over time. Also, it should guarantee that you don’t see a dip in customer service at any point!
It Boosts Morale
Not only will promoting an individual employee do wonders for their confidence and productivity, but choosing to promote from within sends a positive message to the rest of your staff as well. For example, if you run a road cleaning service company, (say) winter snow removal, then try crediting your service team as a whole rather than focusing on the upliftment of a specific individual of the team. People will naturally feel more engaged in their work if they have the opportunity to advance their career in a meaningful way.
It’s Cheaper & Faster
If a business owner is adamant about convincing an established pro to join their organization, they’ll likely have to pay top-dollar for their services. Keep in mind also that in addition to base salary and bonuses, executive employees may also ask for stock options or require the company to cover moving costs. Furthermore, any new team member will need time to adjust and learn the ropes of a new position. Yet, while entry-level employees can assimilate with relative ease, it usually takes managerial hires some time to get going in their new role. These are factors you will want to take into consideration when budgeting the onboarding process, consider using a cost of employee calculator to do the groundwork for you, whilst you can weigh up the longer term costs of enticing an external hire versus the cost savings that could be made by promoting someone internally.
It Will Help You Make Hires in the Future
Want to make sure that your business will always be able to attract bright and ambitious professionals? Then start by promoting from within. Make it a point to highlight your employees’ success stories and let the rest of your industry know that your company values staff contributions and rewards them accordingly.
The Bottom Line
Life in the business world changes quickly. One day, a professional may be going through an employee training program –– watching an active shooter training video, figuring out how to work the copy machine (etc.) –– and within a span of a few short years they could be overseeing an entire division. It’s imperative for business owners to give their up-and-coming employees a chance to succeed. Because if you don’t, someone else will.