Why Should You Consider Promoting From Within? 💭

[Fit Small Business | ]( HR Insights from Our Experts Welcome to this week's HR newsletter. We’re so happy to have you! As your business grows, you’ll likely find yourself needing to fill positions you previously had no need for. When this time comes, you may find yourself considering whether you should look externally for potential candidates or promote from within. Promoting from within your organization can have a huge impact on employee morale and is often the most cost-effective approach. Keep reading for evidence that backs this up in addition to some statistics that will help you see the big picture.   Embracing Growth: Top 3 Reasons to Promote From Within   Promoting employees from within your company is a strategic approach to talent management. By identifying and nurturing existing talent, businesses can foster a culture of growth, loyalty, and empowerment. While [external hiring]( may have merits, let’s take a look at the top three reasons promoting from within can be a priority for organizations seeking long-term success. - Foster employee morale and motivation: Promoting from within sends a powerful message to employees that their hard work and dedication are recognized and valued. When employees witness their colleagues advancing through the ranks, it creates a sense of possibility and ambition within the workforce. Such internal promotions [boost employee morale and motivation](, encouraging others to strive for excellence and contribute to the overall success of the organization. - Capitalize on internal knowledge and expertise: Existing employees have already acquired an understanding of the company's culture, values, processes, and objectives. Businesses can leverage this internal knowledge to drive innovation, maintain continuity, and ensure a smoother transition into new roles. Employees with a deep understanding of the organization can also bring fresh perspectives, adaptability, and critical insights when tackling new challenges. - Cost-effectiveness and reduced onboarding time: [Hiring a new employee]( often entails significant costs, including recruitment fees, advertising expenses, and onboarding expenditures. Additionally, it can take months for new hires to fully adapt to the organization's unique dynamics and expectations. On the other hand, promoting from within significantly reduces these costs and saves valuable time. Promoting from within is a powerful strategy that yields numerous benefits for organizations. By embracing this practice, organizations can unlock the full potential of their employees while building a sustainable foundation for long-term success.     Internal Promotion Statistics: Top Reason to Grow Your Current Employees   Most businesses know that it is cost effective to promote from your own staff. It saves you time and money on [posting job ads](, [reviewing resumes](, [interviewing candidates](, and [onboarding new hires](. Your current employees already have knowledge of the workings of your business and have learned the skills necessary to make your business successful. Internal promotions can also boost employee morale and increase [employee retention](. With the benefits we covered above in mind, we found a few statistics that reinforce why you might want to consider promoting from within. According to a [Joblist survey](: - 1 in 5 employees have either quit or considered quitting when passed up for a promotion in lieu of an external hire. - More than 65% of entry-level workers would prefer to be managed by a seasoned company vet who was internally promoted to their managerial position. - Over 50% of current employees believe hiring from within is better for the company due to increased morale and employee loyalty and greater productivity. Employees were asked whether being promoted from within vs hired externally made a difference in their loyalty to their job, their morale for their role and the organization as a whole, etc. Check out the difference between the two when employees were asked: When surveying internally promoted managers vs external hires, the study found that managers that were hired from within felt more supported by their team and showed increased employee productivity. Based on these statistics, it is clear that the majority of current employees prefer internal promotions to external hires. It has proven to increase employee satisfaction and a desire to perform well and often provides the ability for employees to see a long-term career with your organization.     Once you’ve hired the right candidates to help you run your small business, you’ll need to onboard them to your payroll software so they can be paid easily and efficiently. QuickBooks Payroll offers a simple-to-use platform, plus 401(k) plans and health benefits for your team—all incredibly valuable tools that you can leverage to attract top talent. [Visit Intuit QuickBooks Payroll](     What’s Hot In HR This Week Check out some of our latest HR content:   [What Is Buddy Punching & How Can You Prevent It?]( Buddy punching is when an employee clocks in or out of an employer’s time-tracking system for a coworker. Essentially, it’s payroll fraud and costs employers millions of dollars each year. Check out our guide that walks employers through everything you’ll need to know to both detect and prevent buddy punching. [READ MORE]( [What Is a Stay Interview?]( Stay interviews can add significant value to your company's employee management process, allowing you to identify the qualities of your business that positively or negatively impact overall employee satisfaction, productivity, and turnover. [READ MORE](     Meet Fit Small Business’ HR & Payroll Experts   [-Jennifer Hartman, HR Staff Writer & Human Resources Expert] Throughout her career, Heather has worked to help hundreds of small business owners manage many aspects of their business, from bookkeeping to accounting to HR. Her experience has allowed her to learn firsthand the payroll needs of small business owners. Heather Landau [-Jennifer Hartman, HR Staff Writer & Human Resources Expert] Jen has more than 20 years of writing and content experience, working with small businesses and Fortune 100 companies. She worked as an HR generalist for over a decade, providing accounting, payroll, and HR expertise. Jennifer Soper [-Jennifer Hartman, HR Staff Writer & Human Resources Expert] Robie is a payroll and HR expert at Fit Small Business, focusing on software. She has more than five years of content writing experience. Before becoming a writer, she worked as an HR specialist at several multinational companies. Robie Ann Ferrer [-Jennifer Hartman, HR Staff Writer & Human Resources Expert] Juvy has more than 10 years of experience writing product reviews and providing online content for small businesses. Juvy was also a college instructor. She believes that her teaching background, writing experience, and supportive team members are crucial in providing the best answers to readers. Juvy Vallescas [-Jennifer Hartman, HR Staff Writer & Human Resources Expert] Genevieve has more than 13 years of writing experience, working with different clients in various industries. She has ghostwritten several books and ebooks on marketing and leadership. Genevieve also worked as an HR Head of a local manufacturing company and has helped small businesses set up their business and HR processes. Genevieve Que     Are you looking to tackle running payroll for your team yourself? If you or some of your internal team members are looking to run payroll for your staff, it’s vital that you obtain the proper training. Check out next week's newsletter for our guide to everything you need to know about payroll training. Until next time, Heather Landau, Jennifer Soper, Robie Ann Ferrer, Juvy Vallescas, and Genevieve Que   For more quality resources on growing your small business: [Marketing]( | [Financing]( | [Accounting]( | [HR]( | [Retail]( | [Ecommerce]( | [Sales]( [Facebook]( [Twitter]( [LinkedIn]( [Alternate text] Want to change what you receive in your inbox? [Update Your Preferences]( [Image]   We spend hours researching and writing our articles and strive to provide accurate, up-to-date content. However, our research is meant to aid your own, and we are not acting as licensed professionals. We recommend that you consult with your own lawyer, accountant, or other licensed professional for relevant business decisions. Our business model allows us to bring you the best answers to your questions, without editorial biases or cluttering the site with banner ads that everyone hates. 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