I’ve seen far too many organizations that hire the majority of their open leadership positions from outside the organization. The few that don’t are the ones that gives me hope. This is not to say that organizations should never hire externally. In fact, many organizations need to do some cleanup that requires outside help. However, there needs to be a balance of new and old, internal and external.
Some organizations do huge overhauls of management by bringing in almost entirely new management teams, thinking it will solve all of their problems. It often backfires on them when it hurts most. By doing this, organizations usually create a lot of turmoil and distress, two factors that are detrimental to workplace culture and productivity.
Definitely coach or eliminate poor management but replace them with internally-grown leaders. Why buy new leaders when you can grow your own? It can actually be more expensive to hire new leaders than to promote strong ones from within your organization. Know that this is not an exhaustive list but here are some costs to hiring externally for leaders:
- time and salary spent in re-writing the job description and going through the proper review and approval processes
- time and money spent posting the job
- time and resources spent sourcing and recruiting
- time and salary spent on interviewing candidates
- time and money spent on hiring and onboarding
- time and money spent on training
- time and money spent on development and retention
- On top of all this, you still don’t know if the person is going to be a good fit for your organization or even the job.
It’s not to say that investing in your own people won’t cost anything. It takes time, resources and training and development but it’s an investment worth taking. If you invest in growing your employees into strong leaders, your organization will never be short leadership. Plus, growing employees within your organization is a great morale booster and retention strategy. Why risk letting another organization take your strong performers away when you can keep them?