Everyone knows that training your employees to be effective leaders is good for your team. But did you also know that it’s a great recruiting practice? Prioritizing the learning, training, and development of your employees will be a valuable investment when it comes time for hiring. In this article, we’ll explore the benefits for both your employees and your organization.


The Benefits of Internal Hiring

Previous studies have shown that the majority of employees who were likely to leave their roles said they were not satisfied with how their leadership skills were being developed. If employees don’t see plenty of opportunities to advance their careers by staying at your company, long-term retention will suffer.

Internal hiring is a great way to reward employees for their hard work. Promoting valuable employees increases morale both for the person being recognized and also for other employees who want to see the potential for upward mobility in your company.

While hiring a brand new person has its perks, it also brings new risks. Internal hiring ensures that you already know your new hire’s personality, work style, and drive. External hires can also take considerable time to train, as they’re unfamiliar with your company’s procedures and programs. More importantly, a new hire costs your company thousands more on average.

Internal hiring promotes employee satisfaction while keeping your new hire cost-friendly.


Giving Employees the Tools to Succeed

So you understand the importance of investing in your employees- but what exactly does that entail? The following are examples of actionable steps you can take to set your employees up for success when it comes time for internal hiring:

  • Offer formal leadership training to all staff to assist with skills like management, conflict resolution, leading innovation, and problem-solving 
  • Pair new or low-level employees with high-level employees who can act as mentors
  • Write an official internal hiring policy to communicate clear standards and expectations for internal hiring
  • Organize your job posting system so that all employees know when a new position opens
  • Have managers encourage employees to apply to new roles within the company 
  • Take caution to keep your interview process fair- some companies even hire external interviewers to ensure personal bias isn’t at play
  • Consider hiring a human resources manager if you don’t have one already
  • Provide clear expectations for employees- both in their current roles and in your open roles

Making the decision to prioritize internal growth for your employees means constantly reevaluating your hiring process. Don’t be afraid to send surveys or otherwise ask for employee feedback.



Internal hires consistently outperform external hires, so don’t overlook the value of your current employees. Giving your employees the tools to succeed and move upwards in your company is good for employee satisfaction as well as overall company performance.



Interested in learning more from professional recruiters? Contact Lucas James.


This article was originally published on February 10, 2022 ; it has since been updated and republished on October 12, 2023.