Internal Promotion and External Hiring, Essay Example

Promotion is the reassignment of an employee to another job level which can be as a result of recognition of his/her past performance as well as future promise. External hiring is where an organization recruits new employees outside its workforce. This can be fresh graduates or experienced people from other organizations (Weiss, 2002).

Benefits of Internal Promotions Compared to External Hiring

Increased performance: The existences of a very strong process of internal promotion lead employees to perform or deliver their service at a higher-level; they tend to be more innovative and avoid mistakes to keep good record which is used in the promotion process.  Hiring externally adds a lot to the firm, the workforce hired comes in with new skills and knowledge which improves the quality of work, simplifies management and the company’s performance goes up. Therefore, external hiring is more valid due to changes that come helpful to the firm and makes company exceed its expectations.

Internal recruiting is cheaper in terms of advertisement and less time wasted in trying to get employees you do not know and type of skills they have in filling the applications for the job. For a person already employed in the organization, employer already knows his/her capability and the employee know the main objectives and aims of the firm. For external hiring it’s more beneficial than internal promotion since the organization by advertising for the job it will be in a position to reach wide audience, thus the firm will be able to recruit the skills they need while from internal some could be incompetent to hold such position. This cost the firm to train two individuals, the one promoted and the one replacing him/her, thus increased costs (Jonassen, 2003).

Through internal promotion, The management may feel that their employees have already reached to a level where they feel satisfied and they lack what we can say a sense of urgency, this redundancy can be reduced or eliminated by external hiring of employees who are concerned with their performance

Contrast of Risks

Where promotion policies are not applied or are ignored, and an organization opts for external recruitment, employee’s loyalty to the organization diminishes and individual motivation decreases. Where upward mobility is not possible employees do not get satisfaction. Where promotion is implemented, its risks posses more threat to a firm, those not promoted are affected negatively where their morale is killed and encourages competition for promotion at the same time, this can affect employees cooperation and relationship. This internal promotion also posses a threat to a firm since lack of recruiting externally hinders new ideas as well as approaches which can stand as strengths of a firm against its competitors.

Internal promotion is more risky in that, employees can get promoted to their stage of incompetence, relatively instead of improving the organization workforce during promotion, the firm could be in the state of weakening its existing position. Additionally during rapid growth times, employees are normally promoted despite of their qualifications and it does cover the managerial deficiency that the promoted employee might have. This will automatically lower the management performance resulting to firm performing below the set standards. Though external hiring is more expensive in terms of advertisement and training, it turns to be worth since the new employee will learn and perform well for the company.

Measures to Harmonize Internal Promotion and External Hiring

Skills and knowledge; where the skills needed by the organisation are very competent, the organisation should first inform the employees so that they can apply, if they don’t its then advertised to the public. By giving them a chance to apply eliminates the doubts about the management. This makes them become more royal to the organization, boost their morale and enhance their interpersonal relationship. Remarkably, the team work spirit will grow and invetion of new ideas improving the organization performance.

The firm can also intiate the programme of development and training for their employees. This training should be carried out with a purpose of improving their skills and knowledge. The main objective being keeping them ready for high position which they will be assigned in future through promotion. This measure will avoid managerial deficiency from the employees (Stroh & Johnson, 2006).

The organsation should encourage employees to advance their education, this can be through self and company sponsor, study leaves etc. Therefore, when a vancancy arise in their organisation, they can apply together with outsiders and go through the recruitment process. This will give employees chance to rise upward through their own efforts making them feel being part of the firm. Employees will acquire new ideas and approaches which lack when internal promotion is applied using performance appraisal.

References

Appleton, B. & Berczuk, S. P. (2003). Software configuration management patterns: effective teamwork, practical integration. New York: Addison-Wesley.

Jonassen, A.M. (2003). Configuration management principles and practice. New York: Addison-Wesley.

Stroh, L. M. & Johnson, H. H. (2006). The basic principles of effective consulting. New York: Routledge.

Weiss, A. (2002). Million dollar consulting: the professional’s guide to growing a practice. 3^rd Ed. New York: McGraw-Hill Professional.