Research shows that it is best to promote employees from within your company, but, how do you find the right employee to promote? The Society for Human Resource Management reports that internal hires offer the advantage of already having company knowledge, which reduces ramp-up time new hires would require. It also increases employee engagement both with the promoted employee and with other coworkers.
The Wharton School of Business issued a report, which shows that, on average, external hires get paid nearly 20 percent more than internal employees for the same job, but consistently get lower performance reviews. Furthermore, the study found that external hires were 61 percent more likely to be fired vs. internal promotions, and 21 percent more likely than internal hires to quit.
Hiring from within your company can also save you on the time that it takes to get a new employee up to speed. Knowing the advantages an internal hire can offer you and your company are key so here are a few things to consider.
- Solution Oriented — Look for leaders that are solution oriented and can handle problems efficiently.
- They are willing to expand their knowledge base — They ask questions, they take it upon themselves to find out what they need to know, no matter what it takes.
- They ask for feedback (positive or negative) — Asking you about the level of their performance, how they can improve, and what they should be doing differently, they’re showing initiative and the desire to grow within their roles.
- They are proactive in taking on new tasks — They often are the ones that either volunteer to spearhead projects or those who proactively ask for more responsibility.
- Their co-workers respect them — The respected candidate on your team should be respected and a team player. This is not to be confused by someone who is well liked. There is a huge difference.
- They are Leaders — They will look to help others on your team without asking, offering advice and assistance on getting a job done, even if it is not their responsibility.
- They support the others on their team — A good leader will support and develop their fellow employees.
- They handle stressful situations well — There will be stress at some point so you want to know they can handle it before you promote them.
- They are vocal about wanting to advance within your company — They may not approach you directly but they may make comments or even jokingly mention wanting to move up the chain. LISTEN!
These few tips are a good starting point to get you onto the path of finding your next manager. The #1 thing that I can recommend is to simply be aware of with your current staff is always be listening to what and how your employees speak about their employment with you. Good luck out there!