Why SMEs should promote from within
Content provided by a guest contributor.
These days, not many people stay with the same company for the duration of their career. People leave for a variety of reasons and sometimes it’s simply because a better opportunity arises. So, how do you get your employees to stay?
Well, one way is to offer the opportunity for career growth. This means, when a senior position opens up, you look at promoting from within before you try to hire someone from the outside. Besides encouraging employee loyalty, promoting from within also has some great benefits for your SME.
They know the business
The problem with hiring from outside the company is that they don’t know the business. They can do their research and they can be trained, but they don’t understand the way things work like an existing employee does. Someone who has experience with the company knows the clients and the customers. They know the processes and the staff. You already know they fit in with the company culture.
The trust is already there
When you run your own SME, you get to know your employees quite well. Your workforce is small so you probably deal with each of your employees on a daily basis. This means you get to know how they work and what their strengths and weaknesses are. Ultimately, you know whether or not you can trust them (and if you don’t trust them, they shouldn’t be there in the first place). If you hire someone from outside the company, you don’t know how they operate and you don’t know if they’ll work out. That’s why you have probation periods. But, by promoting from within, you don’t have to worry about that.
It inspires employees
If employees know that they can be trained up and there is the possibility of growth, it will inspire them to work harder. They’ll want to prove they have a good work ethic and will want to improve their skills so that one day they can move up in the business. If your staff think that there is no way for them to grow in the business, they won’t think twice about leaving when a better offer arises.
High staff turnover is not good for an SME. You want employees who know what they are doing, you can trust and who are inspired to work hard. That’s why promoting from within is so important. You don’t want your best workers moving to a competing company because they’re promised career growth.
*This article was brought to you by Kwelanga, which provides a finance course for non-financial managers.