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To promote internally or to hire externally?
5 min | Jessica Smith | Article | Leadership Managing a team People and culture Staff engagement
I strongly believe that a business is only as powerful as its people. When taking on a new senior role, my first priority was to build a bright and bold global leadership team, setting the foundation for success.
But before launching job postings for new roles, I needed to review the most efficient recruitment strategy. Internal hiring could inspire existing company advocates to share their vast experience, whilst external hiring offered an opportunity to bring in fresh perspectives.
As I saw it, both routes have their advantages. Before engaging with recruitment agencies or hiring managers, you may want to consider the following pros and cons of internal hiring, which I explore in the blog below.
Internal hiring means selecting candidates from within the organization to fill open roles. While interviews and internal assessments may still be conducted, evaluating cultural fit isn’t necessary.
External hiring is probably the most common and familiar form of recruitment. By advertising job descriptions and hosting interviews, companies hire new professionals from outside of their organization. External hiring is one of the most common recruitment methods, allowing companies to bring in new professionals through job postings and interviews. But did you know that employee referrals are among the most effective ways to attract external talent? They streamline the hiring process, as internal colleagues already understand the qualifications and cultural fit needed for success. According to Equo Refer, 34% of employee referrals who apply are hired, a significant jump compared to the typical 2-5% application-to-hire rate from job boards.
At Hays, I focus on delivering consistent, world-class resourcing solutions to clients, regardless of geographic location. My plan is to build a globally aligned strategy that supports evolution and growth. This approach combines investment in people, processes, and technology.
Establishing a strong senior leadership team is essential for driving business development. Getting just one individual wrong would have threatened the whole recruitment strategy. One bad hiring decision is all it takes to affect the positivity and productivity of the entire team. I needed to make sure that everyone would be pulling in the same direction and supported by the wider business from the start.
The first question I asked myself was whether I wanted to use internal hiring or external hiring when sourcing candidates. As I saw it, both routes have their benefits and drawbacks. Here’s what I found when comparing internal hiring and external hiring.
I’m a huge advocate of internal promotion. After all, internal promotions have got me to where I am today. The advantages of internal recruitment include:
By hiring externally, you give yourself access to a far larger talent pool. This is particularly important if you are looking to fill an immediate skills gap. A popular approach is to first look within the business for employees with the relevant skills. Only broaden your search to include externally qualified candidates if you cannot hire in-house.
Both team-building methods have clear benefits. Having considered both approaches, I decided to use a mix of external and internal candidates.
A mix of the two would provide for the most diverse and dynamic team possible. I hosted a thorough assessment process for each position to identify the perfect candidate for the role. Having now completed the process, I feel we have a great team to support our future business growth.
The team members that I promoted internally have helped to embed external hires into our company culture and processes. The new blood brought in from outside has contributed fresh perspectives and suggestions to the team. Bringing together individuals from diverse backgrounds requires careful coordination. The next step is ensuring everyone’s priorities align and that the team works toward collective goals.
Need more advice on your recruitment strategy? Check out these other resources from Hays or get in touch to discuss how we can help.
Jessica Smith Senior Vice President, People & Culture, Hays Americas
An accomplished HR executive with a proven track record in overseeing and managing HR operations and talent strategy, Jessica Smith is renowned for her ability to drive efficiencies and bolster employee engagement and satisfaction. With a robust background in developing and implementing a strong, flexible HR infrastructure, Jessica serves as a trusted advisor and business partner to the Executive Leadership Team.
As the SVP for People & Culture at Hays Americas, Jessica continues to set the standard for excellence in human resources, championing innovative strategies that align with the company’s dynamic growth and evolving needs.