It is a proven fact that those hired from outside of an organization fail at a much higher rate than those who are promoted from within. To add further to this dilemma consider that external hires usually cost more than homegrown talent. In fact, their annual salary is 18% to 20% more than an internal promotion. This changes dramatically after 2 years when they become more productive than their peers who they joined when hired by the organization. They get promoted faster too. All of this courtesy of the Center for Creative Leadership and the Wharton School of Business.
So what is the secret hiding here? Is it to never hire from outside the company? Is it to only promote from within? Is it something else entirely?
Employers who hire anyone from outside need to work toward ensuring the new hire is successful. After the time and effort to bring new blood, new ideas and new energy into your company it makes good business sense to do what you can to ensure success.
Describe the job accurately during the hiring process.
Successful job seekers are connected, educated and highly experienced. The good ones will research your company thoroughly during the hiring process. They can find, from many different resources, just about anything regarding your company. Consequently, if you want top external talent….tell the truth about everything.
Hire for “Fit” and that Includes the necessary skills
You need to look at the whole person. Skills and competencies are incredibly important but do not base your decision solely on those. If you know your company, its values and desired traits you can also seek those in your skilled and competent candidates. Pairing these together will help you ensure that the new hire belongs in your company. Give consideration to using assessments and other tools to help with your decision making. Don’t just purchase anything because it is inexpensive or you had a coupon. You must ensure that the tool is properly used, appropriate for your intent and that the individuals using the tool in your company are trained, educated and experienced with it. Tools are not for amateurs or slick salespeople. Tools improperly used can cause serious damage to your company.
After hire consider mentoring the new person or obtaining an internal mentor for them. This will help them transition more rapidly into your company and become successful more quickly.
Embrace the new hire; Welcome them completely
Give your new hire a true sense of belonging. Ensure that they are included in as many formal and informal activities as possible. They are new, a stranger in part to your workforce. Giving them an opportunity to become visible and known is a critical step. As these activities progress your new hire will develop the internal relationships necessary for quicker impact and greater performance. This also can significantly reduce turnover in the early stages of the new hires time with you.
While these activities are not all-inclusive nor will they 100% guarantee success, they will significantly improve the odds of new hire success.
Hiring from the outside can bring great benefit to an organization. Ensuring the success of that hire helps ensure the success of your business.