You have been working hard for your company for years, hoping to get promoted to a higher position. During that time, you have proven your skills, abilities, and loyalty, and you have received positive feedback and recognition from your managers and peers. You have also invested in your professional development, taking courses, attending seminars, and reading books to enhance your knowledge and expertise.
However, one day, you find out that your company has hired someone from outside to fill the role that you have been eyeing for. Not only that, but this person is getting paid more than you, even though they have less experience and knowledge about the company, the industry, and the market. You feel betrayed, disappointed, and angry. And you wonder why your company does not value or reward your contributions and potential. You question the fairness and logic of external hiring practices.
If this scenario sounds familiar to you, you are not alone. Many employees face the same situation when their companies prefer to hire outsiders instead of promoting from within. External hiring is a common phenomenon in many organizations, especially in highly competitive and dynamic industries. However, it is not always the best strategy for your company’s long-term success and growth.
Here are the reasons why external hiring hurts your business and employees. Additionally, there are some actionable items that can be done to advocate for internal promotions.
External Hiring Costs More Than Internal Promotion
One major way external hiring damages your business is through the exorbitant costs it incurs. As per a recent study¹, external recruits receive 18% to 20% higher pay than internally promoted employees, despite delivering the same level of performance. This is due to their inflated salary demands and strong negotiation tactics. Furthermore, there is a need to compensate for the risk and uncertainty associated with changing roles.
External hires can cost a lot of money. This includes things like finding and hiring them, helping them move, training them, and paying them if they leave. A big HR group says it usually costs about $4,000 to hire someone new. This can change based on the job and where it is. But, they show how much time and money goes into hiring from outside the company.
Internal promotions are cheaper and quicker than hiring from outside. Internal candidates already know company culture, policies, and procedures. They have existing relationships within the organization and have proven their skills through previous performance. They require less training and orientation compared to external hires, and there are no relocation or severance costs. Internal promotions also boost the morale and motivation of existing employees, showing that loyalty is rewarded.
External Hiring Lowers Your Employee Performance and Satisfaction
Another reason external hiring can harm your business is that external hires often produce lower quality and quantity of work compared to internal promotions. They face a steep learning curve and pressure to perform, as they must acclimate to a new environment, culture, and expectations. They may also struggle to justify their higher salaries and benefits. This can lead to lower productivity, quality, and satisfaction, as well as higher turnover rates.
Internal promotions, on the other hand, can enhance employee performance and satisfaction by leveraging their existing experience and knowledge within the organization. They already possess the necessary skills and confidence to succeed in their new roles and benefit from the trust and support of colleagues and managers. This can result in higher productivity, quality, and satisfaction levels, and lower turnover rates. They also bring more impact and influence to your business goals and objectives due to their familiarity with the company, industry, and market, as well as their alignment with the business vision, mission, and values.
How to Advocate for More Internal Promotion Opportunities
Now that you know why external hiring hurts your business and employees, you may wonder how you can advocate for more internal promotion opportunities for yourself and your colleagues. Here are some tips that can help you:
Share your career goals and aspirations with your manager and HR department. Let them know the roles and responsibilities you are interested in, and the skills and qualifications you have or are willing to acquire. Ask for feedback and advice on how to prepare for future opportunities.
Participate in training programs to enhance your knowledge and skills, and show your commitment to your professional growth. Look for online courses, webinars, podcasts, books, and articles to learn new things and stay updated in your field.
Volunteer for projects to showcase your abilities and potential. Seek mentors and sponsors to guide and advocate for you within the organization.
Build positive relationships with your co-workers, managers, and stakeholders. Be a team player, a leader, and a contributor. Share your ideas and help others.
Keep track of your achievements and document them in your resume and reviews. Highlight your contributions to the company’s goals and demonstrate desired competencies.
Apply for internal promotion opportunities that match your interests and skills. Prepare well and showcase your strengths, achievements, and fit for the role. Address any concerns that may arise.
How to Cope with the Challenges and Frustrations of External Hiring
Even if you follow the tips above, you may still face some challenges and frustrations when it comes to external hiring. You may not get the promotion you want, or you may have to work with or under an external hire who is less qualified or experienced than you. Here are some ways to cope with these situations:
- Don’t take it personally or negatively. External hiring is not a reflection of your worth or abilities, but a result of various factors and circumstances that may be beyond your control. Instead of feeling angry, bitter, or resentful, try to focus on the positive aspects of your situation, and look for the opportunities and lessons that you can gain from it.
- Don’t give up or settle. External hiring is not the end of your career or your chances of advancement. There may be other opportunities that will come your way, or you may create your own opportunities by exploring other options within or outside the company. Keep working hard, learning new things, and growing your network, and you will eventually find the right role and the right place for you.
- Don’t isolate or alienate yourself. External hiring is not a reason to withdraw or distance yourself from your colleagues, managers, or the company. Instead of being hostile, indifferent, or passive-aggressive, try to be supportive, cooperative, and proactive. Get to know the external hire, and offer your help and expertise. Learn from them, and share your knowledge and experience. Build trust and rapport, and find common ground and goals. You may discover that they are not so bad after all, and that you can benefit from working with them.
Summary
External hiring hurts your business and employees. You can advocate for more internal promotion opportunities. Additionally, there are ways on how to cope with the challenges and frustrations of external hiring. Here are the main points to remember:
- External hiring costs more, lowers your employee performance and satisfaction, and reduces your employee loyalty and retention than internal promotion.
- Internal promotion is cheaper, improves your employee performance and satisfaction, and increases your employee loyalty and retention than external hiring.
- To advocate for more internal promotion opportunities, you need to communicate your career goals and aspirations, seek out and participate in training and development programs, volunteer for projects and assignments, build and maintain positive and productive relationships, keep track of your achievements and accomplishments, and apply for internal promotion opportunities.
- To cope with the challenges and frustrations of external hiring, you need to avoid taking it personally or negatively, giving up or settling, and isolating or alienating yourself.
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