The advantages of internal hires

Just read an interesting article ‘Why External Hires Get Paid More, and Perform Worse, than Internal Staff – Knowledge@Wharton‘ It’s less of a learning experience than confirming a conviction that I’ve had for a long time – it pays off for organisations to promote and develop their internal staff. My reasoning so far has always been that training up and helping internals ease into the micro-culture of their new role is much quicker and cost effective, and that it fosters loyalty. Having had the experience to have to job hop to progress – as the article states a typical feature of higher education organisations – I would have very much preferred getting the recognition internally and progressing myself at my places of work, which I have generally felt both loyalty and affection for. With the general trend among many organisations to make the employee responsible for their career progression rather than leading them through a structured career plan, I think many employers are indeed missing a trick – rewarding and developing internal talent is a cost-effective way to create loyal employees and an efficient and effective workforce.

March 29th, 2012 by