In January 2024, the US economy created 353,000 new jobs. For the past two years, the unemployment rate has been below 4%, now at 3.7%. Although this is generally good news for job seekers and the economy, it might make it difficult to hire nonprofit employees. So, why not look internally? Promoting existing personnel is often less expensive than external hiring because the prospects are already familiar with your organization. Let’s have a look.
Save Money and Time
If you recruit internally, you can expect to save on expenses like job board advertising and hiring recruiters. Internal promotions can also happen more quickly. Identifying and interviewing staff is typically faster and easier than finding and scheduling appointments with outside candidates.
In addition, promoting staff can raise morale and retention. One reason some employees leave their positions is that they do not perceive opportunities for advancement. Staff may be less inclined to feel this way if they see colleagues promoted to higher positions. You likely already have a sense of internal candidates’ strengths, limitations, personalities, and performance skills. Even if a promotion leaves a lower-level staff post vacant, it is typically easier to obtain external individuals to replace entry-level positions.
Not Risk-Free
However, keep in mind that elevating current employees is not risk-free. Some people are simply not suited for management and other high-level positions. Furthermore, there may be animosity among employees who were not promoted and must now report to someone who was once a peer. Shifting the emphasis to internal promotions should not entail abandoning outside hires. Although it is smaller than it once was, the overall job market still has a much wider pool of individuals. Also, new personnel may bring new perspectives and inventive ideas for strengthening programs or shifting the organization’s strategic direction.
Depending on the position, outside hiring might bring new talents and experience to roles, perhaps leading to more efficient processes and better financial performance. Recruiting outsiders could decrease animosity among employees who were passed over for promotion, as well as the unhealthy rivalry that can occur when employees compete for the same position.
Budgeting for Staff
Due to today’s tight job market, you may need to employ a variety of hiring tactics. Consider starting your search for candidates within your organization. If there is a qualified match, pursue that internal prospect. Otherwise, look elsewhere. Keep in mind that with more employers pursuing fewer people, you may need to offer a higher salary or better benefits to attract the talent you desire. Contact us to explore how to stretch your budget to cover necessary staffing resources.
© 2024
