What are the advantages or disadvantages of hiring internally? Is it better to promote within for employee well being or purely chase outside experience?
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Internally - faster ramp time, knows the product and company process.
External - may have more experience, potentially bringing over book of sales and has relationships with target accounts.ย
At my company, the internal promo will typically outperform the external hire about 60-70% of the time, but know that is not always the case.ย
External - may have more experience, potentially bringing over book of sales and has relationships with target accounts.ย
At my company, the internal promo will typically outperform the external hire about 60-70% of the time, but know that is not always the case.ย
No definitely, but thatโs a really good point- I personally believe that companies hire too much externally sometimes because they believe itโs a safer option, even when you have great people already at the organization hungry for success.ย
Builds better culture for sure.ย
Internal tends to be better from a pure economic perspective because there's quicker ramp up and less training necessary so you're not paying for as much time spent learning.
Think how expensive it is to higher externally compared to promoting someone who already has industry and product knowledge as well as knowing the internal structure to get shit done. You can't teach that. If an external candidate has 'more experience' but an internal candidate has all of the above minus experience, they can get it. Unless the external is a rainmaker, it often times makes more sense to higher internally.
Cash...the cost is way different to bring someone on externally from a cost to hire standpoint.
It is wayyyy better to promote internally unless you canโt find someone with the skill set to do the job. My last company went from 80/20 internal promotions to 40/60. Itโs resulted in lower morale, higher turnover, and slower growth because it takes 6 weeks to ramp someone they hire externally to full quota production. Huge mistake to focus mainly on outside hiring.
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