Promotions: They’re part of the American Dream. The mail room clerk who became the CEO tells us that if we work hard and remain loyal to an organization, we will be rewarded and rise in the ranks. Yet, a promotion is more than an indicator of the passing of time; it is the selection of your organization’s next leaders.
In a study conducted by the Management Department at Wharton University in Pennsylvania, results showed that external hires can be taxing.
- External hires take longer to “get the hang of things,” (up to two years for their performance reviews to equate to those who were promoted from within.)
- External hires are 61% more likely to be fired
- External hires are more likely to be laid off from their new jobs.
- External hire positions are generally more expensive to fill
The following info graphic explains and highlights some the benefits of internal promotions. For an more in-depth analysis, please see our White Paper, entitled: “Promote Promoting.”