When you are seeking out employees for a new position in your company, it is good business policy to promote from within first. Outlined below are seven reasons to consider giving a new opening to a seasoned employee on your team.

1. Hiring from within recognizes hard work on the part of a good employee. Being recognized for producing quality work helps employees take pride in the jobs they do and encourages them to be more productive. Promoted employees are happy, and happy employees achieve more results.

2. Promoting from the inside creates more incentive for employees to work hard. Workers who know they will be personally rewarded will try harder, in an effort to be next in line for the newest promotion. They have good incentive to achieve a reachable goal. This helps combat the boredom and stagnation they may encounter from doing the same job year after year.

3. Especially in lean years, promotion from within can save you money on payroll. If your company pays workers an hourly salary with overtime, promoting them to a slightly higher-paying salaried position may prove less expensive for your business, while recognizing productive workers with a new, prestigious title.

4. Inside promotions are also attractive to new hires. It gives them the hope that with hard work, they can climb the corporate ladder, without having to dust off resumes in two or three years to seek a better post.

5. Promoting from within and teaching employees additional skills gives them a broader base of knowledge about your business. The increased knowledge make them more valuable to your company and gives them a knowledge to pass on to other employees.

6. Employee retention increases in companies that promote from within, because the employees feel appreciated and have hope for better positions over time. After spending several months and plenty of cash training a new employee, keeping them in your business helps reduce the cost of that training over time.

7. Experienced employees benefit the boss. Employees who have worked in several positions within the company become flexible multitasking resources who can also train others. This will cut down on payroll and can free up your time for other important business.

Case Study:

A small pipeline inspection company in Grande Prairie Alberta known as 20/20 NDT does a very specific kind of work: inspecting industrial structures for any flaws that could result in costly future damage. Much of the company’s work is done out in the field, and the team isn’t very large. So how can a small business like this find the room to help their employees feel like they are progressing professionally? By giving employees a structured latter to climb:

Employees begin employment in a mentored position, shadowing and assisting a company senior in inspecting welds of various industrial equipment.

After three months, the company opens up the door to a variety potential promotions. The company rewards skill and know-how with higher pay grade and more benefits. In addition, the company entrusts their more experienced employees to train the incoming employees.

Overall 20/20 NDT invites their employees to get ahead in their company and it pays off in how employees view their employer. Small businesses looking to boost their employee loyalty could learn from the principles of this business model.

Promoting from within will help you retain happy and productive employees. It will give them self-esteem and a sense of pride in their workplace, which saves you money and training time. This is a win-win scenario for employer and employee alike.

Do you have a story about how promotions changed the way you or an employee worked? Don't be shy, share!