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screen-shot-2016-12-07-at-16-55-31When staffing for open positions, the first decision always is to hire internally or externally. Many companies prefer internal hiring because they want to promote people from within and to nourish a culture of advancement. This requires a lot of focus on formal and informal development programs to ensure that you have the right talent pool to also be able to fill your leadership positions. Furthermore, companies that have hiring freezes due to tough economic circumstances, might not be able to hire externally but just fill open positions internally.

However, no matter how much value you place on growing your talent from within, there will be a point where you outgrow your talent pool or where your company requires new insights and experience that can´t be obtained from current staff. And that´s where you should include external hiring into your staffing strategy.

And, even if you don´t outgrow your talent pool, hiring external candidates can be a great way to get a fresh perspective to your business and to challenge your status quo. The biggest danger for any kind of business is to keep doing things the way they have always been done and to stop innovating. In these times of digital transformation, not innovating and not keeping up to date is simply no an option anymore. If you keep working with the same people you have always done, per definition, it will be much harder to innovate and change your ways of working. Hence, no matter how strong your internal talent pool, sometimes adding “fresh blood” to the team will give that extra push you need to get more creative and innovative.

Here is why every company should consider hiring externals to get some new energy and fresh perspective to their business:

  • External hires don´t just bring in new ideas and different ways of thinking, they also stimulate current staff to think differently.
  • Hiring trained specialists in specific areas will give you instant access to know-how and expertise that might not be available within your company
  • Employees coming from outside don´t know internal politics and are not bound by already established office politics. This will allow them to implement new ideas or new ways of working without taking into account possible political battles from the past.
  • If your company is a bit stagnant, hiring external candidates can be a great way to shake things up and to introduce new ways of working
  • Usually hiring externally adds more diversity to your workforce than merely promoting internally. More diversity means different ways of thinking. Different ways of thinking mean more creativity and innovation.
  • For international offices, it is usually much more cost efficient to hire external locals than sending internal expats. In addition, locals will have more knowledge about the business culture and practices in a specific country.
  • Employees coming from outside can provide “instant input” to new projects or business lines that you´re launching for which in-house knowledge might be limited.
  • New members in the team can also help to remind your internal employees to step it up a level. If they are not only competing with their direct colleagues for that promotion but also with an external market, they will really need to show they are the best candidate for the job.

In summary, external hires are much more likely to question the way things are done and the argument “we have always done things like this” doesn´t exist for employees coming new into the business. This is a great way to challenge the status quo in your company and to determine whether there are better ways to do certain things.

Why did you decide to hire externally versus promoting internally?

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