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Ideally, it's best to promote from within, at least for the leadership roles assuming the leadership pipeline can supply the right leaders in the right roles at the right times. Often, this is not the case.
Companies need to prevent the departure of high potentials and carefully groom their future leaders. In fact, every organization should have a strategic, thoughtful succession plan, ensuring it has trained, experienced leaders ready to move up when high-level positions become available.
Companies can’t get current references if their external hire is employed, which makes it challenging to determine the candidate’s real competencies. And it has been proven repeatedly that effective leadership is often situational. Leaders successful in one organization may not be as successful in similar roles elsewhere.
As long as you have people to fill in the shoes, you should promote the people from within. That's right thing to do because it shows employees that company gives priority to the employees when there are opportunities. Hire from outside should be the last option, when you really don't think there is someone who can replace the person who left, or there is a need of a critical skill that is not available in-house.
Good luck.
I agree with a lot of folks on these answers that you should always try to promote within if a successor has been already vetted and identified through the company's performance evaluation process. But, in cases where the traditional wisdom didn't seem to work (my best example I always give to people is Ford Motor Company bringing in Alan Mullaly from Boeing Corporation), then the board of directors of the company/shareholders of the company have a fiduciary obligation to bring in an outsider that is willing to shakeup the organization and not worried about losing his/her job. When you are in a job by fear or intimidation, the potential of the individual is not completely realized.
Promoting most qualified employee if he/she meets the quality and eligibility criteria is the best option. However, simply promoting a person to the managerial level for the only reason he has been with the organization for a long period of time may not be a right decision. If there is a person who has knowledge, skill and ability to take up the job and manage the department or BU, there is nothing else to surpass the decision. Bringing in a new blood stream to clear the clots will also be a good choice if and and only if there is no right person to be promoted.
Yes it will be suitable decision to promote a qualified employee within the organization. but before promoting first know you ex boss his competence level and his working methodology.
promoting employee within the organization is always useful for the company because he know know company's policies, its market, its customers and most important his identity with company.
The process of hiring new employees is crucial to an organization's success. The recruiting process does not simply begin with interviews and end with job offers. Instead, it involves planning and consideration prior to an interview. Managers and job recruiters need to consider key aspects of the vacant position prior to advertising, interviewing and selecting new employees to fill the opening. It is important to consider the job and the candidate.
Advantages of External Recruitment
Recruiting externally brings new ideas and talent to the organization. External recruiting opens up opportunities to find experienced and qualified candidates and may also help develop a diverse team of employees. Hiring a skilled and experience external candidate may also reduce training costs and give the organization a competitive advantage. External recruitment also can provide new, innovative ideas for management strategies, creating a forward-thinking approach that stimulates both advancement and growth.
Disadvantages of External Recruitment
Organizations need to consider both the advantages and disadvantages of hiring externally. Recruiting externally may result in misplacements and may increase the organization's recruitment costs. Morale problems may also arise for internal candidates who feel they should be offered the job and not someone from outside the company. However, external recruitment might also motivate current employees to achieve more and set higher goals, so next time a job is open, they will be considered.
Internal Recruitment
The advantages of promoting or hiring employees within in the company include existing company knowledge and improved morale. Employees already in the organization are more knowledgeable of the organization's needs and goals, as well as the industry as a whole, and will approach the new position with this added perspective. Just as there are disadvantages to hiring externally, there are also disadvantages to hiring internally. Recruiting internally can produce organizational inbreeding, resulting in a limited perspective and stale ideas. It may also cause stress and conflict between other existing employees who feel they should have gotten the job.
Advantages and Disadvantages of E-recruiting
In this day and age, many things are done online, and employers are turning to e-recruiting to find qualified new employees to fill in the vacancies. Online recruiting is cost-effective; it is much more affordable than advertising in newspapers or other media forms. E-recruiting also can save time, since resumes can be sent electronically and interviews can be performed right online with no intermediaries. However, checking the authenticity of thousands of applicants can become excruciating and time-consuming. Organizations should not rely solely on online recruitment, as it may cause the real talent to be untapped due to low penetration of Internet or lack of access.
A clear and sensible succession policy where sheer merit can bypass seniority should be the best option. However, as in the Ford example (by Chenna Chakka) above, an injection of fresh blood into the system may be required. The thumb rule of seniority many a time leads to complacency in attitude and may lead to frustration among more capable junior staff leading to attrition.
Promote the qualified employee from within and keep the succession plan going with career development plan in place. if there is no one qualified then of course hire a new manager
