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Insights

Not Hiring Within Is Costing You Big Time

By

Jene' Liddell

Did you know there is employee feedback in the desire for employees to advance within your company?

Did you know there is employee feedback in the desire for employees to advance within your company? Are you listening? If employees want to stay with your company longer and make better use of their skills and talents, then you have good work culture and employee morale, right?!?!? However, when you hire outside of the company to fill these roles first, without even posting these jobs within, then you will have toxic work culture, decreased employee morale, increased quiet quitting and increased employee turnover.


When employees leave your company because they feel like they can't advance, there is profit loss. Now you have to hire for that position that employee wanted to advance to and the position that employee held. Paying for Job Posting, Recruiting, Hiring, and Training for two people instead one now is the consequence. Not retaining employees costs companies 1-2 times an employee's salary. So, if an employee made $30,000 a year, he/she wanted to advance to a $60,000 position, but was denied and quits. You will have to pay $60K to replace that employee, but you could have saved $30K, by letting them advance instead. Maybe you can afford to keep paying to replace people instead of retaining talent.


Nevertheless, in my 25-year corporate career, I tried to advance within a company a time or two. In this one company, I was able to successfully advance up two positions. Great, right!!!! However, when I was tried for my third advancement, I was shut down. I was shocked because I helped this other department out part-time and I just wanted to take on a full-time role there to better utilize my new skills. However, they hired outside the company for the position I wanted and denied my advancement. The newly hired employee didn't work out long, only a month, so I tried to apply for the position again and was denied. So, I quit!


I am not sure if it was a glass ceiling issue or not. Maybe they didn't want me to have the flexibility to work from home a couple days a week or they didn't want to pay me more money. Either way it made for a toxic work environment because I felt resentment and so did my co-workers. My employee morale went down after being there for 2 years, I didn't trust the company anymore. So, I quietly quit for months because of it before I formally quit.


For more information on reducing profit loss.


Listen in here to my podcast Reducing Profit Loss on Spotify, Amazon Music, iHeart Radio, Castbox, and Radio Public.

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