Internal Promotion Or External Recruiting Of Jobs


Organizations continue to debate whether to promote current employees or to hire from outside the organization. But, the major challenge is selecting the applicant that best fits the position and the organization's culture.1 As is often noted, the one constant throughout an organization's existence is change. Arguably, changes dealing with human capital are the most impactful. Organizations must take into consideration the potential impact to their immediate needs and strategic goals when making decisions concerning hiring and or promotions. This department is in need of a major adjustment that apparently reflects the occurrence of recent turnovers. The Respiratory Care Department suffers from a lack of stability and firm leadership and at "higher levels, i.e., management, the organization experiences greater disruption and the higher the position to be filled the greater is the potential for disruption."2 The first step is to establish a strong manager that will establish a positive working relationship with the staff. Next, create a stable unit and boost morale of therapists. When these things are accomplished, the Respiratory Care Department will experience less attrition. Recruiting externally and promoting within an organization both have certain advantages.

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Several key benefits to recruiting external candidates are a new perspective on how to achieve the organization's mission, obtain needed skill-sets, diffuse issues with internal politics, and lastly, reinvigorate an organization with enthusiasm.

External candidates brought on-board could potentially introduce new and innovative ideas and solutions. External hires are not pre-disposed to maintain the status quo. They must become familiar with how business is currently conducted, but they often inquire why something is done in a particular manner. Depending upon the position to which recruited and hired, they may recommend or implement changes that have the potential to quickly improve business practices and or processes. Initial changes are usually simple to implement, but often overlooked by existing staff to avoid change, tried before without the proper support or due to complacency. The very nature of their status in being external recruits gives credence to the fact that they are not resistant to change.

The introduction of an external hire may be driven by the need for a specific skill-set or ability. The organization may wish to implement a new business process for which they don't have the expertise. An organization can gain a competitive advantage or at least keep pace with the competition. Instead of trying to develop the ability over time through training and trial & error, it more cost effective in the short term to bring on staffing that can immediately implement the desired process. Changes in industry standards may require professional qualifications. By recruiting externally, you can target exactly what you need. Existing staff might have the required skills, but you have a broader choice of options in which to consider.

Another advantage, of external candidates is that they are not enmeshed in intra-office politics. If the position being filled is supervisory, it is sometimes difficult for former peers to transition into supervisor-subordinate roles. This proves harder based upon the type of relationship the newly promoted person had with his peers. The perception by those co-workers not interacted with on a regular basis, had a dispute or conflict, may feel that they will not receive equal treatment as those they view as the favorites; Conversely, those closest might expect to benefit from their previous relationship. This is negated by an external hire.

And finally, a new employee typically brings new energy, a sense of purpose and enthusiasm to an organization. The experiences of an external recruit may serve as a catalyst in influencing others to support their ideas or offer solutions of their own. As the new employees become engaged, established employees are spurred into action to keep pace. Healthy competition often improves the working conditions (efficiencies) and or work environment of an organization; which in turn could have a positive effect on the organization's morale.

The benefits of an internal promotion are increased morale and productivity, reduced turnovers, seamless transition, and it provides employees an opportunity for advancement in the same organization. Hiring internally benefits the organization best due to the fact that this department is experiencing a high attrition rate with both staff and management over the last year. Employees leave voluntarily or involuntarily for various reasons. Dissatisfaction in management about staffing issues (understaffed, workload, scheduling) and employee appreciation (compensation, respect) or terminations contribute to the overall morale of the department. A significant increase in call-ins, as well, as an increase in the use of Personal Time Off may occur during these times. Attrition affects the entire staff. Employees suffer with the questions, "what is happening with the hospital, has the hospital been bought by someone else, and how will the change affect me?" Research suggests that high attrition rates result in the decline in employee productivity and morale in the public and private sectors.2, 3

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A study in the, Journal of Business and Psychology, they "examined the relationship between overall management turnovers and performance improvement"2. Turnovers not only accrue tangible cost (advertising, recruitment, selection and hiring) but, it also intangible costs (declining morale, the disruption of communications). The effect of turnover on subsequent performances in organization is one important issue and the effects of turnover at different levels in the organization. These may be a result when an employee intends to leave and becomes less efficient, when an experienced employee leaves or when time is lost while attempting to find a replacement. The study also examined the relationship between turnover and performance at multiple organizational levels and the effects of shared value.

Starting with the new manager's position, the new manager needs to fit into the culture of the Respiratory Department with a strong sense of what the issues are concerning the therapists. An internal employee who currently works in the environment would already be integrated into the hospital's culture. The level of shared organizational values is the arbitrator to the negative effects of performance in the relationship between management and employees. If the Management and employees feel the same about the importance of the organization's values; they both may perceive and interpret the situations (occurring in the department) similarly. And this common thread, "reduces the uncertainty, role ambiguity, and conflict allowed for the prediction of other's behavior and make successful interpersonal interactions more likely"2. Shared values help increase a sense of investment in the mission of the hospital, increase the ties to the hospital and makes communicating and cooperating with coworkers easier. They (employees) are found to be more committed and satisfied with improved attitudes. Thus, promoting from within might create a stronger department resulting in lowering the attrition rate, and contributing to the success of the department.

Overall Management Turnovera

a Kristen M. Watrous, Ann H. Huffman, Robert D. Pritchard2

If This Paper Were Submitted For Publication, Copyright For Reproduction Of This Table/Figure Would Have To Be Obtained.)

To re-establish the confidence and morale from the department, hiring an employee from within the organization would be a good gesture towards restoring the morale. Most employees are pleased when one of their peers is promoted. When there is an increase in morale, increase in productivity will usually follow.

Recruiting and hiring has become an important priority with Human Resource executives.4 A survey of Corporate Leadership Council Members found that approximately three-fourths of companies worldwide are not confident in their capability to effectively staff strategic leadership position during the next five years (Corporate Leadership Council, 2000). The stability relays heavily of the success of the new Respiratory Care Manager. An internal hire will allow for success because of the accurate decision made based on the information available regarding the performance records and information available to assess future performances. This eliminates the organizations guesswork relating to the quality of the internal applicants qualifications which increases the chance of a success rate of the mangers position. The success rate for middle-management positions differs vastly. Organizations that rely on external hires almost double the turnover of for the organizations that rely on internal promotions. 4, 5

Promoting a Respiratory Therapist from within the hospital, would also provide a wonderful opportunity for a current staff member to further their career. If the internal applicant is considering a flight from the hospital, this could be a great way of keeping the employee from leaving. Internal hiring also fosters greater employee loyalty; employees are more likely to challenge themselves when they know there is potential for job advancements within an organization; and when staff members see fellow employees excelling and growing, it naturally produces a leadership culture. It also can communicate a level of caring about employees. This lowers the turnover rate and increase job-satisfaction rate, both of which are good for the hospital.

The Respiratory Therapy Department has experienced high turnover in management and staff in the last year. To reorganize the department and increase morale, the need for an applicant that understands and agrees with the hospitals culture and values, has the ability to lead the staff and makes the adjustment with a seamless transition. Australia survey of 223 hiring managers found that 90 percent believe recruiting for cultural fit is impoartant6 and positional fit. With the primary goal being, the applicant fit the organization, the benefits would include:

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The increase in employee satisfaction; better performance, productivity and longer tenure; a right fit for the position and ensures continuity; avoid the increase in turnover.

Although, the knowledge of individuals and their skills may be important, the reality is that current knowledge and skill become redundant; this is why culture is so important. It provides an anchor for individuals and organizations. All these attributes will be accomplished with promoting the internal applicant for the position as Manager for Respiratory Care Department.