Hiring The Right People—The Pros and Cons of Internal Hiring

Posted by Chuck Kocher
On December 14, 2018

Hiring the right people

Pros And Cons of Hiring Internally

There Are Pros and Cons of Internal Hiring, But the Ultimate Goal Is Hiring the Right People

As a business leader, you’re probably well aware of the importance of hiring the right people for the right positions if you want to scale up your business for dramatic growth. We sometimes refer to that as, “Getting the Right People On the Bus.”There is a natural tendency to look within your company for the talents you need. There is, however, more to the process than simply matching skills to specific needs. Sometimes hiring from within can cause unforeseen problems. Let’s take a quick look at hiring the right people and the pros and cons of internal hiring.

The Pros of Hiring The Right People From Within

In our current economy, it can be tough to hire for new positions. There is a trend among employers to fill jobs from within their ranks. There are often compelling reasons to take that approach.

  • You’re Starting with a Known Entity: When you hire from within you are dealing with people you already know. You’ve (hopefully) already screened and vetted these people. On top of that, you have a history of their performance. You know their work ethic.
  • Current Employees Know Your Culture: In many cases, you won’t have to bring these people up to speed on your mission, vision, and corporate culture. They know how things work and don’t have a big learning curve when it comes to getting things done.
  • It’s Faster and Cheaper:If you find qualifies people within your ranks, you can move forward more quickly (because of the reasons listed) and it saves time and money with HR issues.

The Cons of Hiring From Within

There is, however, a flip side to internal hiring. Sometimes the very things that make hiring from within attractive may have hidden problems.

  • You Can Cause Internal Tension: What happens when you have two internal candidates for the same position? Sometimes resentments can surface (even if there isn’t open hostility). This can hinder progress if someone feels like they’ve been slighted.
  • Internal Hires May Be Too Comfortable:While there is definitely some benefit of having someone who knows your mission, vision, and procedures you can also lose the advantage of someone who brings a new perspective to the table. If your company needs to transform the way it thinks and acts, hiring someone from within may be simply doing more of the same things you’ve always done. You don’t get different results by doing the same things over and over.

The real issue isn’t whether you should hire from within or without, whether you’re hiring the RIGHT person for the right job. That can be tough when you’re dealing with people you already know—and even trust. And while loyalty is important, it’s not enough—by itself—to compensate for knowledge, skill, and vision.

This is where the independent, unvarnished insights of a business coach can help. One of the things I do as a business coach is to help management teams evaluate whether they have the right people in the right positions so that the can scale up their operations and take things to the next level—or if they need to make personnel changes to get where they want to go.

If you’re interested in the tools and insights a business coach can bring to your hiring process for key players, contact me and let’s talk about how we can work together to get the right people on your corporate bus.