Despite difficult economic times, with rising energy and supply costs alongside growing concerns of a stagflation crisis, the present moment can be a strong time for business growth. With the right approach, and the right team, growth is a serious possibility even without the capital to fund significant expansion. However, having the right team is a much more important part of the equation than it might initially seem.
Hiring can be a costly endeavour, and sometimes an unknown quantity. To be done effectively, it needs to be done correctly – and internal promotion strategies form a powerful way to forge the right forward when it comes to building a team. Here are some good reasons to consider focusing on internal promotions.
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Time and Cost Efficiency
Hiring from within your company, as opposed to soliciting external applications, has key benefits with regard to efficiency. Firstly, the pool of interested applicants within your business will be far smaller than without, meaning less time is spent sifting through potential recipients of the position. Secondly, the promotion process is vastly streamlined in comparison to a conventional hiring process, with training and handover undertaken ‘on the job’.
Not only does promoting internally save on time, but it can also save on costs. Larger businesses might use intermediary recruitment companies to orchestrate a job search on their behalf, which can result in upfront or ongoing costs. Even handling a new hire directly can cost money, whether in the form of advertising or industry-specific security checks.
Strengthening of Company Culture
Cultivating an internal promotion strategy can ensure the cultivation of a positive company culture, and more direct control over its direction. The hiring of new staff can be useful for introducing new perspectives to a role, or for a fresh face to stimulate new connections in-office. However, continued external hires can result in a loss of control over the ‘feel’ of an office – especially if your staff churn is relatively high.
Promoting from within selects for the best all-round staff working in the business, enabling you to form a strong team of experienced staff who have also been with the company for some time. These factors together ensure a cohesive and productive working team.
Lastly, and perhaps most importantly of all, adhering to a robust promotion strategy can improve the morale and productivity of your existing staff cohort. A clear path for progression can incentivise better performance – and conscientious use of leadership development services can help you create a meaningful program by which the best candidates receive the right support in inheriting management roles.
As such, selecting for the best candidates internally can have a powerful effect on productivity within their team. Employer dedication to talent is tangibly demonstrated, while the role receives the best possible candidate – encouraging overall growth as a result.