Introduction
An organization’s natural tendency is to go outside the company for candidates when a position needs to be filled. Nevertheless, a change of viewpoint may be helpful. One method that is sometimes disregarded but should be considered is exploring internal talent. Internal promotions have many benefits. However, companies often need more support to implement them. Yamagata and Tajika (36) agreed that internal promotion entails elevating present workers to fill roles rather than posting job openings externally. There is a conundrum when choosing between internal advancement and external recruitment. Determining the right course of action for the organization’s expansion and success requires careful consideration. Effective promotion management is an efficient technique for leaders to promote success. A survey conducted by Arnold et al. (2198) among 400,000 workers depicted that employees are twice as likely to put in extra effort, make long-term plans, and have faith in the integrity of their leaders if they believe that successful promotion procedures have been used. In this regard, it is worthwhile to explore the significance of internal promotion to enable Human Resource (HR) personnel to integrate such a strategy into their recruitment process.
Key Message
Internal promotions provide several advantages for an organization. First off, the strategy greatly speeds up the hiring process. Arnold et al. (2200) argued that internal promotion expedites the entire process and saves time by eliminating the need to generate job advertising, sort through resumes, interview external candidates, and perform background checks. Making decisions is expedited even more when one knows internal candidates’ trustworthiness, capabilities, and shortcomings. Besides, internal promotions are more economical. According to DeVaro et al. (985), the approach is less expensive than external recruitment, which involves costs like advertising and agency fees. The lack of counteroffers or pay disputes also makes the financial side simpler. Redistribution of current talent through internal mobility helps to reduce business operations disruptions even further.
Organizational dynamics are at risk due to the inherent uncertainty of external hiring, even with excellent applications and interviews. On the other hand, internal staff offers a more dependable choice because they are already well-known figures in the company’s culture. According to Yamagata and Tajika (39), adopting internal promotion improves the brand’s reputation. Fairness and inclusion are demonstrated when career growth within the company is prioritized rather than continuously favoring outside personnel. When it becomes necessary to hire outside individuals, this strategy draws in prospects of a better grade. Besides, internal promotion has a positive impact on worker engagement. According to Georgakakis (677), developing the potential of current employees creates a sense of worth and support, which raises morale and engagement. Internal promotions are a smart move that helps organizations succeed in the post-pandemic era when employee engagement is crucial.
However, critics have argued that there is always a chance that internal promotions lead to manager and employee animosity. Georgakakis et al. (655) agreed that when several people compete for a single promotion, the ones who lose frequently experience resentment and fury. Besides, managers could experience unhappiness as they lose important team members, even if they know their advancement to better chances. Nevertheless, internal promotion only sometimes results in hostility. According to Haryono et al. (2112), effective communication and clear procedures can help reduce resentment, even while competition may cause disappointment. Supervisors who are aware of developments can facilitate and encourage a smooth transfer.
Call of Action
Internal promotion has various positive effects on the employees, including higher productivity, an upsurge in morale, retention, and overall success through motivating employees. DeVaro et al. (1006) contended that acknowledging and promoting internal talent promotes a positive workplace culture. Human Resource (HR) professionals may find this strategy inspiring as it highlights the financial benefits, increased productivity, and good effects on business cultures from internal talent development and advancement. As a result, HR should embrace the strategy and integrate this approach into their recruitment process.
Conclusion
Internal promotion is becoming recognized as a beneficial and strategic technique for business, as it promotes productivity, economy, and a happy work environment. Notwithstanding worries about possible hostility, these problems can be minimized by clear protocols and efficient communication. The numerous advantages, such as increased output and enhanced morale, highlight how important internal promotion is. HR experts are urged to use this method to create a successful and peaceful hiring process, motivated by the financial benefits and favorable cultural influence.
Works Cited
Arnold, John D., et al. “Welcome back? Job performance and turnover of boomerang employees compared to internal and external hires.” Journal of Management 47.8 2021: 2198–2225. https://doi.org/10.1177/0149206320936335
DeVaro, Jed, Antti Kauhanen, and Nelli Valmari. “Internal and external hiring. Ilr Review 72.4(2019): 981-1008. https://doi.org/10.1177/0019793919842810
Georgakakis, Dimitrios, Peder Greve, and Winfried Ruigrok. “Differences that matter: hiring modes and demographic (dis) similarity in executive selection.” The International Journal of Human Resource Management 32.3 (2021): 650-679. https://doi.org/10.1080/09585192.2018.1496126
Haryono, Siswoyo, Supardi Supardi, and Udin Udin. “The effect of training and job promotion on work motivation and its implications on job performance: Evidence from Indonesia.” Management Science Letters 10.9 (2020): 2107-2112. http://dx.doi.org/10.5267/j.msl.2020.1.019
Yamagata, Kohei and Tajika, Tomoya, Dynamics of Internal Promotion and External Recruitment (April 16, 2023). http://dx.doi.org/10.2139/ssrn.4420385
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