The Tribune

In our ever-changing and fast-paced corporate world, strong leadership is paramount in steering teams towards sustained growth and success.

We typically define leadership as an individual’s ability to foster relationships and nurture talent in an effort to accomplish goals and objectives. This widely-accepted definition provides some challenges for many who have been given leadership roles. Some seem deficient in building trust-centred relationships, while others have issues with teaching and training. If these dilemmas coalesce, accomplishing key tasks in the workplace is almost unachievable.

With the difficulties we face in identifying and cultivating great leaders, businesses are forced to determine how best to source those employees who are suited for management positions. The question of whether to promote from within or hire from without is a widely debated issue that many senior executives still wrestle with today.

Dr John Sullivan, a well-known author, has provided some insights on this important topic, and offered many suggestions about the benefits of promoting from a company’s existing talent pool. These are:

1. Jobs can be filled faster because internal candidates generally require less skills assessment, and less time, to make their decision

2. The break-in period will be shorter because of their familiarity with the firm and its terminology.

3. It can be cheaper, due to the reduced need to undertake expensive advertising and to orient an outside hire.

4. Internal candidates generally have no other external offers, so there is less likelihood of a bidding war. They are less aware of market salaries, so they are less likely to demand a higher pay rate than what was offered.

5. There can be a more accurate assessment of internal candidates because they are ‘known’, due to ‘inside’ references and performance assessment records.

6. Because internal promotions know the culture already, there will be less chance of them failing due to a poor ‘company fit’.

7. An internal placement could result in multiple inside promotions. As a result of so many people moving up to fill each vacancy, this acts as a motivator for each of those that are promoted.

8. Promoting from within gives the company an opportunity to do almost all of the external hiring at the ‘entry level’. Entry-level jobs are cheaper to fill, have a larger candidate pool, and provide more time to train and assess those that aspire to reach higher-level positions. If companies make a ‘bad’ hire, the dollar consequences are lower for entry level hires.

9. Providing inside hiring preferences bolsters the firm’s image of offering long-term employment security. This may also increase retention and help attract those wanting security.

10. Internal hiring reinforces the corporate culture, and sends a message that loyalty and performance will be rewarded with a promotion.

11. In periods of high employment, there may be few external candidates to consider, so internal hiring is the only available choice.

12. The performance level of an internal hire is generally better than external hires in firms that are successful and stable.

The task, then, for every company looking to make this the new culture is to ensure that relevant training, coaching, succession and mentorship programmes are in place to adequately equip willing and capable team members who are ready to take the leap.

• NB: Ian R. Ferguson is a talent management and organisational development consultant, having completed graduate studies with regional and international universities. He has served organsations, both locally and globally, providing relevant solutions to their business growth and development issues. He may be contacted at tcconsultants@coralwave.com.