Recently I was asked my opinion regarding the hiring of IT professionals in regards to the option of hiring new IT employees versus promoting internally for IT positions.
After thinking a little more about this question regarding staffing, specifically pertaining to promoting internally verses new employees; I think my answer to this question is that it truly depends on the situation. However, in most cases I would side with promoting internally.
The key factors in this decision should be based on a company/department’s current values, culture, attitude, and existing priorities. For example if a company values retaining all of its hard earned business knowledge then they would tend to promote existing employees internal over hiring a new employee. Moreover, the company will have to pay to train an existing employee to learn a new technology and the learning curve for some technologies can be very steep. Conversely, if a company values new technologies and technical proficiency over business knowledge then a company would tend to hire new employees because they may already have experience with a technology that the company is planning on using. In this scenario, the company would have to take on the additional overhead of allowing a new employee to learn how the business operates prior to them being fully effective.
To illustrate my points above let us look at contractor that builds in ground pools for example. He has the option to hire employees that are very strong but use small shovels to dig, or employees weak in physical strength but use large shovels to dig. Which employee should the contractor use to dig a hole for a new in ground pool? If we compare the possible candidates for this job we will find that they are very similar to hiring someone internally verses a new hire. The first example represents the existing workers that are very strong regarding the understanding how the business operates and the reasons why in a specific manner. However this employee could be potentially weaker than an outsider pertaining to specific technologies and would need some time to build their technical prowess for a new position much like the strong worker upgrading their shovels in order to remove more dirt at once when digging. The other employee is very similar to hiring a new person that may already have the large shovel but will need to increase their strength in order to use the shovel properly and efficiently so that they can move a maximum amount of dirt in a minimal amount of time. This can be compared to new employ learning how a business operates before they can be fully functional and integrated in the company/department.
Another key factor in this dilemma pertains to existing employee and their passion for their work, their ability to accept new responsibility when given, and the willingness to take on responsibilities when they see a need in the business.
As much as possible should be considered in this decision down to the mood of the team, the quality of existing staff, learning cure for both technology and business, and the potential side effects of the existing staff. In addition, there are many more consideration based on the current team/department/companies culture and mood. There are several factors that need to be considered when promoting an individual or hiring new blood for a team. They both can provide great benefits as well as create controversy to a group. Personally, staffing especially in the IT world is like building a large scale system in that all of the components and modules must fit together and preform as one cohesive system in the same way a team must come together using their individually acquired skills so that they can work as one team. If a module is out of place or is nonexistent then the rest of the team will suffer until the all of its issues are addressed and resolved.
Benefits of Promoting Internally
Internal promotions give employees a reason to constantly upgrade their technology, business, and communication skills if they want to further their career
Employees can control their own destiny based on personal desires
Employee already knows how the business operates
Companies can save money by promoting internally because the initial overhead of allowing new hires to learn how a company operates is very expensive
Newly promoted employees can assist in training their replacements while transitioning to their new role within a company.
Existing employees already have a proven track record in regards fitting in with the business culture; this is always an unknown with all new hires
Benefits of a New Hire
New employees can energize and excite existing employees
New employees can bring new ideas and advancements in technology
New employees can offer a different perspective on existing issues based on their past experience.
As you can see the decision to promote an existing employee from within a company verses hiring a new person should be based on several factors that should ultimately place the business in the best possible situation for the immediate and long term future.
How would you handle this situation? Would you hire a new employee or promote from within?
