Should You Hire Internally or Look Outside?
April 28, 2025
Should You Hire Internally or Look Outside?
If you’ve ever had to expand your team or fill a key position, you’ve likely wrestled with the question: “Do I promote someone already on board, or do I bring in someone new?” The answer, of course, depends on everything from your company culture and budget to your long-term goals. Below are some key considerations to help guide your decision-making process, so you can land on the right approach for your organization.
Outline
Cultural Fit and Team Morale
One of the biggest advantages of hiring internally is that your existing staff already understands your organization’s values, processes, and objectives. They know the team and realize what’s expected of them—so there’s almost no guesswork regarding cultural fit.
- PRO: Promoting from within often boosts employee morale because it shows that hard work pays off. People see a clear pathway for growth, which can improve retention.
- CON: If you always look inward, you might overlook fresh skills or insights that could spark innovation. You could also risk creating a bubble where everyone thinks and acts the same.
Learning Curve and Onboarding
Bringing in an outsider often means they’ll need to be ramped up on your company’s processes, tools, and protocols. An internal hire, on the other hand, is already up to speed on many of those details.
- PRO (Internal): Less training time. They’re familiar with workflows, team members, and the day-to-day rhythm of the business—making the transition quicker and smoother.
- CON (External): A new hire might require a longer learning phase, but can also bring valuable experience from other companies and industries. Sometimes, that fresh perspective helps refine or reinvent standard practices.
Professional Development and Growth
Another factor is your commitment to developing talent from within. Do you want someone who has grown under your company’s umbrella and is ready to step up, or is the position so specialized that an external expert is more appropriate?
- PRO (Internal): When you give existing employees a chance to move up, you’re signaling that the organization invests in people—this can be a huge motivator and retention booster.
- CON (External): If the role calls for a niche skill set or leadership style no one in-house currently possesses, hiring externally may be a faster way to get the expertise you need.
Financial Considerations
Costs go beyond salary alone. Think about recruiting fees, onboarding time, and potential relocation expenses.
- PRO (Internal): Promoting internally could save on some recruiting overhead and help you avoid the steep learning curves. There may also be greater predictability in compensation discussions because you’re elevating someone who already understands your financial structure.
- CON (External): While you’ll likely face more initial expenses, a new hire might be more equipped to tackle challenges immediately—especially if they’ve handled similar roles at other companies.
Long-Term Strategy
Ultimately, whether you hire internally or bring in someone new is a strategic choice that aligns with your company’s vision. If you’re looking to evolve your business or enter a new market, an external hire might offer a broader network and fresh ideas. If you value continuity and prefer to bolster your current team’s capabilities, an internal promotion can boost loyalty and maintain the organizational DNA already in place.
Final Thoughts
In the end, there’s no one-size-fits-all answer. Each approach—internal or external hiring—has pluses and minuses. What matters most is that you weigh your unique needs, resources, and team dynamics. If you remain unsure, a recruiting professional can offer valuable advice on labor market trends, candidate availability, and the best routes for finding talent. After all, the right choice is the one that best serves your goals, your team, and your company’s future.
Ryan Nead
Ryan has served in the Staffing and Recruiting industry for over 10 years. As an independent recruiter and business owner Ryan partners with decision-makers to attract, hire, and attain top-tier professionals to succeed and grow their companies. Ryan consistently implements new tools to help the needs of both clients and candidates until they are satisfied. With years of direct experience and knowledge from scaling and disrupting other major global industries. If you don't see Ryan with his family he is hard at work finding the right fit for your organization's open roles.
Latest posts by
Recruiting Trends for 2025: What Employers Need to Know
April 18, 2025
How AI and Automation Are Changing the Hiring Process
April 16, 2025