Hire or promote managers from within? Full guide 2023

hire or promote managers from within

Promote managers or hire from within?


Most businesses want to expand their companies. But with growth, there is an increasing need for managers who serve as a bridge between different layers of work. You would want to redistribute the tasks so that they do not hinder the proper functioning of your company.  Should you go for outsourcing and hire a new manager or hire or promote managers from within the position? It is a question that is frequently asked. How should one determine whether your employee is ready for management-related duties?


Is it better to build or buy?


In case a business experiences any type of growth – and, let’s face it, every company wants to grow – you’ll eventually need to appoint some managers. You have two options: hire an experienced manager from another company (buy) or promote one of your own employees to a managerial position (make). So, which is the best option? Of course, both options have superiority and drawbacks.


promote employees or hire from within



Pros and Cons of promoting managers from within


Internal promotion makes a couple of things easier. One of the positives is acquaintance with existing employees. You are already aware of their strengths and weaknesses. The current employee already knows your company and understands how it operates and what needs to be done for it to function properly. There are different grounds for internal promotion, and here are a couple of those examples:




Sense of familiarity with your employee. Internal hiring might be a better solution if the new position requires comprehensive knowledge and details of your product or service. Our company encourages internal hiring. Recently, we internally hired new candidates who already had a superior understanding of business, thus making it much easier for the company to move forward without losing time on teaching and training. 


Existing employees know and fit the work culture much better There must have been a situation where you hired someone who had quality skills but did not fit the organization’s overall culture. Most likely, these types of candidates are lacking something or cannot really find something that is compatible with the company’s work ethic and cultural environment.


Your best workers, who are looking for career advancements, will leave if they do not receive a worthy offer. Lack of career advancement is one of the main driving points for staff outflow. These types of workers are competitive and constantly looking for the betterment of their position.  Internal advancement can make them feel more motivated and worthy of their skillset, even though not everyone is going to look for career advancements such as becoming a manager, as some people are less career-oriented and are just looking for a stable job.


Lack of focus on career development is leading to less engagement among employees. Aside from internal promotion to managerial positions, it is crucially important to have a boost for employees within the organization. Otherwise, they will leave the company for further advancements which your company could not give.




It has the potential to raise failure rates. Not every internal recruitment is preferable to an external hire. Indeed, the probability of failure for internal promotions is higher than one might expect. While still less than the rate of failure of an outside hired employee, it has been discovered that approximately one-quarter of internally recruited top management fail in their new role. A promoted employee may face challenges in their new position for a variety of reasons, including having excelled in one role for a long time and not being ready for new commitments or having difficulty managing people who were once their peers.


It may restrict outside expertise or innovative professional skills. External hires may have more specialized training than internal promotions and can now bring that to your company. They may also have more awareness of industry advancements and a fresh perspective on solving long-standing company problems. In these cases, an outsider’s perspective may be more valuable. To broaden your enrollment net, consider using social media to find external candidates and allow both internal and external candidates to complete the interview process.



The pros and cons of hiring managers


One could look to outsourcing when hiring experienced managers and top performers. It will save you time from having to spend time on teaching and training on how to operate properly. However, this decision comes with several shortcomings.




Business requires refreshments. New candidates can breathe fresh air into the company and give them new ideas and perspectives on things. It is helpful for those who want to expand the scope of their company.


External hiring is broader on the scale and offers up a much bigger pool of candidacies from which a company can choose.


Candidates might have other skills that can be helpful for the company.



Culture fit will always be concerning since the newcomer is unfamiliar with the environment and you, as an employer, are unsure how this person will fit into the established culture.


A vast HR department, as with any other growing department, must be supervised to make sure that it is connected to the overall goals and objectives of the company. There is a risk that the goals of an in-house HR team will diverge from those of the company, which could have far-reaching consequences for other aspects of the company.





Newly promoted workers should get the same treatment as they would get during external hiring. There will be no need for a formal introduction or getting to know each other. Internal or external hiring completely depends on what the business is looking for. Is stability, a new perspective, and fresh ideas your goal? On the face of it, it does not sound complicated, but the practice has different things in store. So, what is better: to hire managers or promote from within? You decide.