The downsides of hire from within strategies
However, this approach to hiring and promotion is not without its fair share of drawbacks as well. The biggest one is the fact that employees are often hired in the first place because they possess a certain skill set. However, those talents and experiences may not necessarily be suited for the new job that people are assuming, which can lead to more issues down the line.
Jacob Shriar, growth manager of Officevibe, recently noted that many companies have problems with management not being adequately equipped to lead people because of hire from within policies. These are tremendously talented individuals, but they are often not given the support they need to take on the new responsibilities assigned to them in their new roles.
“People are promoted based on their current performance, for their current role, and often are put into a new role that they’re not good enough to perform,” Shriar explained. “A very simple example, and something that happens often, is a software developer that’s not very good at dealing with people, and just likes to code alone with some headphones on, gets promoted to be the manager of the IT team.”
A lack of leadership skills can have a dangerous effect on employee engagement levels – Shriar wrote for Business 2 Community that as many as 75 percent of workers quit their jobs because they do not get along well with their bosses. Organizations want to avoid this at all costs, simply because retention can be a huge expense if it becomes a problem. Having to hire new people because of management issues can be a huge resource sink, both in terms of downtime during training processes and because of the loss of talented, experienced individuals.
Giving talented employees the leadership training they need
Fortunately, being a successful leader and manager is not a natural-born talent – it is something that can be taught and developed. What businesses need to do is invest in their managers and help them along the path. So often, companies simply drop people into their new roles and expect them to learn through experience how to become a better manager. This is far from ideal and it could even hinder their development as an effective leader.