There is probably not a hiring manager reading this who hasn’t asked this question: should we hire from outside the organization or promote from within? Our question to you: why would you ask that question first?
We all know the statistics – over 50% of people we hire don’t work out as we planned. (Of course, the 50% can go higher or lower depending on who you read, but the success rate for new hires is far from impressive for most companies). They quit, get fired or do not meet expectations, but we keep them around anyway because they are performing just good enough and they are filling the seat. Unfortunately, no business we have ever seen is successful when its employees are performing just good enough.
Why would any hiring manager want to play roulette (bet on red or black – 50% chance of winning or losing) with building their organization’s talent? Talented people create successful companies. It’s really that simple. Yet every day, hiring managers sabotage their chance for success by asking the third question first. Correct, this is not a typo, should we hire from the outside or promote from within is the third question we should ask.
The first question determines the need: What needs to be done? And in that, what are the essential functions and requirements of this position now and will it be the same or change a year from now? Here are additional questions related to determining need: Is it different from what needed to be done in the past or what will need to be done in the future? Who says so and how do you know? How is it possible to recruit someone if you don’t know what they are supposed to do? As an example, are you recruiting for a manager to run a department that is operating well? Are you recruiting for someone to dramatically improve departmental performance? Are you recruiting for someone to implement a new direction for the company as defined in the strategic plan?
The second question is: What skills / competence (often referred to as KSA’s – knowledge, skills and abilities) and attitude do you need for the job. Skills / competence are the ability to do the job, and attitude represents the passion, dedication and cultural fit for the job. Each of the examples provided above requires a different skill set and attitude. Very few leaders can do it all under any condition. General Patton was an outstanding WW II wartime general; not so outstanding as a peace time general.
Unless you can answer these questions, you have just spun the roulette wheel.
We believe organizations should hire from the outside and promote from within. But who is hired from the outside and who is promoted depends on how the first two questions are answered.
Copyright 2009 Kubica and LaForest
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