Brian Walch weighs hiring external leaders against promoting from within. External hires bring fresh perspectives but risk cultural disruption. Internal promotions cost 18-20% less and employees stay 41% longer at companies that promote internally, but require building a strong talent pipeline first.
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You have a leadership position that you want to fill. And the question is, should you hire somebody from the outside or do you promote an internal candidate? Now, there's a lot of reasons why you might want to consider hiring externally. Maybe you want to have a fresh perspective and bring in somebody to challenge the status quo. There might be somebody that has some experience that you want to bring in, that they've done something that you're looking to do. And maybe you can skip or shorten the learning curve. It might be that you want to bring in somebody that is neutral, not tied to the history of how things have been done or the internal politics, or maybe just a catalyst for change. Somebody that can say, hey, we want to change how things are being done. All valid reasons, but they all come with some risk. Fresh perspectives that somebody brings in might not land and cause disruption. Experience that seems like it would be so valuable might be overstated or might not be able to be applied to your business context. That neutral person can also come in and create their own alliances and make their own kind of political baggage. And a change maker may actually trigger resistance and disenfranchise them and your team at the same time. Now, when you think about hiring an internal candidate, there are some really compelling reasons why you should consider promoting from internally. Internal hires know your culture, they know your processes, and they're going to get up to speed faster and start delivering results sooner. Internal hiring hires already fit your value, so they're going to be less likely to detonate the culture and kind of blow things up. You don't have the recruiting fees and the onboarding costs, and you can limit some of the lost productivity. In fact, SHRM Society for HR Management estimates that external hires cost 18 to 20% more on average than promoting internally. And I actually think it could be higher. And when you hire internally, it shows that there's opportunities in your organization and that can increase engagement and reduce turnover. In fact, LinkedIn's Global Talent Trends report shows that employees stay 41% longer at companies that promote internally. Now, I'm not suggesting you never hire from the outside. There are times when bringing in a new perspective or getting specific experience is very valuable and exactly what you need. But we just need to make sure it's. We're aware it's not without risk and cost. What I am suggesting is you create a leadership pipeline so that you have options. See, when you have qualified internal candidates, you can make strategic decisions. It's going to allow you to be more competitive, to maintain your momentum, and that that leadership pipeline. That talent pipeline does become a strategic asset. So if you're not sure where to start or you want to improve what you already have, I have a framework and a process that helps you and your team develop people from new hire to high performer, and then it prepares them to take on the most important leadership roles in your organization. So if you want to learn more about that, you can schedule a strategy call with me today. Simply go to shiftfocus.com strategycall and book a time that's convenient for you for us to talk. Look forward to hearing from you and we'll see you on the next video. Thanks.
