My previous two posts on hiring a manager for small business received interesting feedback from the readers. Some made arguments both for internal promotion, while others said external candidate is the best choice. To recap, the first post focused on why you should promote a manager from inside . I believe this is the best course of action when small businesses need to fill in the manager vacancy. However, there is a case to be made for hiring an outsider as laid out in the second post based on suggestions received from the readers.
It appears which candidate will be a better choice depends on your particular situation – what state the business is and how the newly hired manager fits in that situation. Instead of looking at this choice in black and white, you need to take a step back and look at your needs and see how the manager will help you fulfill them. So here are my thoughts on when to hire each type of candidate.
When should you promote an internal candidate?
- When you already have an eligible employee ready to take over. If you have been planning in advance you already have a well groomed employee ready to transition to the manager position. If this is the case it’s a no brainer to promote him. Even if the employee is not 100% ready to take over it’s better to give him an opportunity and train as long as he has the capability and willingness to learn.
- When you need to fill the position quickly. As I mentioned in earlier post hiring an outside candidate is both expensive and time consuming. Promoting an internal candidate overcomes this problem.
- When your business is doing well and doesn’t need major changes. Promoting an internal employee will help you maintain business continuity and culture without ruffling too many feathers. When your business is in need of it, it is both desirable and advantageous to not bring an outsider in the mix.
- When the internal candidate has good relationship with other employees. If the employee under consideration had good relationship with fellow employees in the past they will rally after him to make him and the business successful. On the other hand, if the employee under consideration had issues with others they will only get worse when you make him a manager.
When should you hire from outside?
- When you do not have strong internal candidate. This is a pretty obvious. If you do not have an employee who is not ready to take over the helm there is no point trying to find diamond in the rough. It’s not there. Better get a suitable manager from outside.
- When you need to introduce changes. If your business is not doing well and is in need of changes you must hire an outside manager. Promoting from within will only propagate the complacency and continue to hurt your business.
- When you can afford the cost and time it takes to fill the vacancy. Hiring an outside candidate is both expensive and time consuming, but it’s worth it if you can afford it and have a strong need for an outside candidate.
- When your business needs fresh ideas. When your employees have been with your business for long they are less likely to bring out-of-the-box thinking to the table. This is when you need someone who has worked in a different company or even different industry to bring fresh perspective.
What do you think? What other scenarios warrant internal or external hiring?
