When asked whether a company should look inside the organization or outside to find the talent it needs, my answer is always “it depends.” As with any good succession plan, to determine which type of talent you need, you must first determine your organization’s current risks, needs and gaps in your people strategy. But promoting internal talent and introducing external talent shift a company’s dynamics in unique ways.
Here’s a look at the unique benefits organizations get from sourcing talent internally and externally.
The Benefits of Internal Sourcing
Looking for the talent you need within your own organization has several benefits. First, your internal talent has proven experience; you’ve seen these employees in action and you understand their skills. On top of experience, they probably possess a fair amount of institutional and historical knowledge of your organization. This means they have a good understanding of the organization’s vision and goals, and have already acclimated and integrated into the company culture.
These common characteristics of internal hires typically mean you can transition them into new roles more quickly and less expensively than new hires. Promoting from within also serves as a way to reward employees’ hard work and achievements, and also helps boost morale. Focusing on developing internal talent shows employees their hard work will open up opportunities to move in and around your organization.