Talent Management: Choosing Internal Promotion or External Hire?

Recently, a client sought my professional opinion on a critical decision – whether to promote an internal candidate or hire externally, expressing concerns about their current employee handling a new challenge. After thoroughly reviewing the credentials of the existing team member, it became evident that they possessed the skills needed for the role. I recommended promoting internally, emphasizing the value of recognizing and nurturing existing talent.

“According to Gallup, the cost of replacing an employee can range from one-half to two times the employee’s annual salary.”

In my earlier days as a desktop technician, I aspired to transition to the engineering team. However, my IT Director deemed me too valuable in my current role, expressing concerns about losing me. While the recognition was flattering, it hindered my professional growth, prompting me to seek new opportunities elsewhere.

This experience highlights a crucial conversation often overlooked by HR/Recruiters, especially within larger firms. Many have qualified candidates without clear pathways for internal growth, resulting in talent loss to competitors.

Recruiters should explore company culture, inquire about projects and teams, and seek candidates who can contribute to long-term success—even if it means passing on an immediate job placement opportunity. Ultimately, clients appreciate honest opinions more than a mere sales pitch in the long run. This approach cultivates trust, strengthens client partnerships, and ensures long-term relationships between recruiters and their clients.