Not only do internal promotions make staff twice as likely to put in extra effort at work, but companies that follow this type of policy triple industry average returns on their stock price and half the staff turnover of their peers.
However, the added benefits of pursuing a policy of internal promotion does not just benefit the businesses themselves, it also benefits their employees.
Internal Promotions Provide Clear Career Trajectory
By committing to a policy of promoting from within, businesses can provide clear direction to their employees in terms of what’s required to make the next level, even as early as the onboarding process.
This allows new recruits to see potential for growth within their new surroundings and increases their motivation from the get-go. Not only does this foster above average-productivity, but it also improves morale.
Both new and existing employees are focused on working together to achieve both the individual and team goals necessary for progress. Helping to reduce counter-productive practices (such as absenteeism) that can so often contribute to creating a toxic work environment.
Beat Employee Boredom and Increase Retention
Promoting employees from within an organisation gives your employees the chance to continually upskill and develop themselves, staving off any sickness symptoms (such as chronic boredom and apathy) associated with mental health conditions such as burnout.
By giving your employees the chance to move to different departments and areas of your business as part of a promotion, you can give them fresh challenges with different aptitude requirements.
This helps to build a better all-round employee who is better prepared for the more senior roles within your organisation when the time comes. Conversely, hiring externally to positions of high-levels of responsibility can lead to stress management problems for candidates who are not well-versed in your company’s cultures and values.
By constantly offering up a new challenge on the horizon, employees are much more likely to stay within your company. For those that get it right, companies often see employees stick around for 20, 30, or in some cases, 40 years.
Internal Promotions Often Perform Better
Internal hires are up to 18 times more effective as a candidate source than external hires are.
This is not entirely surprisingly considering an internal candidate who has been with the company for an extended period of time will know exactly what’s expected of the role and will therefore prove more adaptable to the needs of your company.
What’s more, if you continually overlook internal candidates for roles by favouring outside appointments, then you will slowly lose those candidates to other companies. They’ll feel that their contributions will be valued more elsewhere.
Whilst a few key external appointments can aid business growth, it always makes sense to look at your own internal talent first, before making the decision to cast your net further afield.
Get Expert Help On Human Resources Issues
Committing to an internal promotion policy is just one of many factors human resource managers have to consider.
Employee sickness rates, workplace wellness programmes, employee engagement platforms, and mental health provisions are all on the radar of HR personnel who have to adapt to the constantly changing attitudes towards the workplace.
Here at DocHQ we can help you to deliver tailored solutions to your employees that keep them both healthy and happy at their place of work. Whether you want to introduce annual health checks, or create custom-made employee benefits packages, we are on hand to deliver what you need.
Why not get in touch with a member of our team to discuss your needs today?
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