Five Benefits to Training Staff for Management Positions
When there are management openings at a company, your first instinct may be to hire someone with prior experience from outside of your business. However, there are many benefits to training and promoting good employees from within your organisation. These benefits may include:
- Saving money on hiring process.
- Saving money on compensation.
- Saving time on training.
- Increasing company morale.
- Lowering turnover rates.
Save on Hiring Process
An important consideration for promoting someone within the company is saving money on hiring costs. It takes time and money to advertise, sort through resumes to find qualified candidates, hire a recruiting firm, and then interview all of the possible prospects. By the time you go through all of those steps, a well-qualified member of your staff could have been found, promoted, and started management training for the open position.
Save Money on Compensation
By hiring from within your company, you can also save money on compensation. Studies have found that external hires are usually paid about 18% more than someone would be if promoted from within an organisation. External candidates will demand to be paid the market value of the position, but by hiring from within, you can bump up the pay for the new manager but at usually less than market value.
Save Time on Training
Even the most experienced managers who are hired from outside of a company will need to be trained in the business. Learning how it operates, getting to know its line of products, or learning the ropes of a new industry can take several weeks, if not months. You will save time on getting someone up to speed by promoting from within your company because that person will already be familiar with your business protocols.
Increase Company Morale
When a business offers the chance to be promoted from within, the morale of its staff increases. People want opportunities to advance within a company, so they will be more productive in order to get the chance to be promoted. Offering management training should bring a lasting change to your company. You can have a training programme customised for your needs for every level of management.
Lower Turnover Rates
Although an outside hire may be an experienced manager, it doesn’t necessarily mean that he or she will be a better employee. Statistics show that 61% of external hires are likely to be fired due to their on-the-job performance. People promoted from within an organisation do better on performance reviews because they are already familiar with the organisation. They also work more efficiently because they know where everything is located and who the decision makers are for projects.
It is important for organisations to offer both promotional opportunities and advanced training to their staff. Most people want an opportunity to grow with a company they have dedicated themselves to and it can be disheartening watching people get hired from the outside. If you want a productive and happy staff, you should offer programmes to train them for management positions and then hire them as positions become available.