Is it true that keeping staff is better than training a new employee?
The time has come for someone to fill the shoes of an important position in your company. Will you search for the perfect new employee from outside the company or will you choose an existing employee to step up to the task?
Different business owners will have varying opinions. Some will appreciate the fresh eyes on the operation, while others will want someone in the know. So let’s look at it. Is it better to promote from within than to hire from the outside? In short, the answer is yes, but let’s look at it in a bit more detail.
Experience in the company is beneficial
One of the major bonuses of promoting from within the company is that the employee will already have a thorough understanding of the business’s culture, expectations, and goals. This means it could be easier for them to settle into this new role. Onboarding new employees alone can cost around £400, a cost easily avoided by sticking with existing staff.
Doing this will also boost morale. Promoting an existing employee sends the message to the rest of the team that they could progress too and that you’re invested in them and their development. Research shows that 79% of people who quit their jobs cite ‘lack of appreciation’ as their reason for leaving. So what better way to show you appreciate them by letting them know you care about their growth?
Hiring can be expensive
If you decide to recruit for this new role, there will be costs associated with it. If you have the funds, you could get the help of a recruitment agency. Recruitment agencies will do everything for you, which is helpful if you don’t have the time or resources to go through the recruitment process yourself, but will cost an average of £5,000.
On the other hand, you can do the recruiting yourself using job websites and social media; to use one job site and LinkedIn should cost around £200-£400. But this method will rely on many hours spent reading CVs and conducting interviews, which is less than desirable when small business owners already spend 40% of their time on tasks that don’t generate income.
All in all, to bring in that perfect candidate, you could be looking at a cost of around £50,000 for their first year of employment. Bearing cost and morale in mind, it’s plain to see that, in most cases, promoting from within is the better option.
At Big Hand, our experts can handle any of your business needs for you. Get in touch with us now on 0161 327 2911.