Sourcing Talent Internally vs. Externally
When asked whether a company should look inside the organization or outside to find the talent it needs, my answer is always “it depends.”
As with any good succession plan, to determine which type of talent you need, you must first determine your organization’s current risks, needs and gaps in your people strategy. But promoting internal talent and introducing external talent shift a company’s dynamics in unique ways.
Here’s a look at the unique benefits organizations get from sourcing talent internally and externally.
The Benefits of Internal Sourcing
Looking for the talent you need within your own organization has several benefits. First, your internal talent has proven experience; you’ve seen these employees in action and you understand their skills. On top of experience, they probably possess a fair amount of institutional and historical knowledge of your organization. This means they have a good understanding of the organization’s vision and goals, and have already acclimated and integrated into the company culture.
These common characteristics of internal hires typically mean you can transition them into new roles more quickly and less expensively than new hires. Promoting from within also serves as a way to reward employees’ hard work and achievements, and also helps boost morale. Focusing on developing internal talent shows employees their hard work will open up opportunities to move in and around your organization.
Internal Sourcing Takes a System to Succeed
Every organization has talent, but if you don’t have a means to track and communicate who’s working for you and what skills and potential they possess, it will be difficult to know if you have the talent you need. To successfully source talent from within your organization, you must put good processes in place for developing your employees. You also need good systems for knowing where the talent is within your organization. And you need a culture that develops people as they grow in their careers.
The Benefits of External Sourcing
When an organization chooses to source talent from outside of the organization, typically, it’s because it has a void to fill. There may be vital skills or a level of experience that employees currently within the organization don’t possess.
External hires bring unique benefits to an organization and they can be a real shot in the arm. That is, they bring in new energy, knowledge and experiences, and have the capacity to be agents of change. New energy and perspective can encourage thoughtfulness around processes, goals and methods of operation.
One thing I always encourage companies to do is to use these employees’ fresh eyes to gain awareness of their organization’s strengths and weaknesses. Take advantage of these individuals’ fresh perspective by asking: “What do you think we could do better? What do you think is and isn’t really working?” People quickly lose their fresh eyes. If you don’t ask, chances are you’re going to miss out on some valuable information.
Strong Succession Plans Include Both Internal and External Talent
Comprehensive succession plans generally include both a list of potential internal candidates and a list of potential external candidates. These external candidates can be theoretical options for positions to be filled or real external candidates a manager or leader is keeping an eye on.
Whether you’re looking to source talent from within your organization or outside of it, most recruiters and companies will tell you their best talent comes from their referrals and networking. Companies still like known candidates.
Need help with your organization’s succession planning? Success Labs can give you a hand.
Success Labs is a full-service, strategic organizational and leadership development company located in Baton Rouge, La. For more than 25 years, our expert team of consultants has worked with hundreds of companies to explore their business potential and improve their company and cultural performance. Contact us to get proactive about your people strategy.
