Promoting from Within or Not

As Entrepreneurs build up their management teams while they grow their companies, they are often posed with a dilemma – should open positions be filled from within the organization or should they hire from outside? This is a critical issue.

The immediate needs of the organization have to be balanced with motivating, developing and rewarding high-potential individuals internally. 

My general philosophy is to identify, train and develop loyal, internal people for the long-term management team of the organization. This is what I call Entrepreneurs  “Doing the Right Things.”

However, when the company is growing, all the necessary skills to build the company might not be available internally. In these cases, knowledgable and experienced executives should be hired from outside to fill the void.

This dilemma can only decided on a case by case basis depending upon the specific situation.Formulating an optimal balance between internal promotions and external resources is the blueprint for long-term human capital management for Entrepreneurs.

Ravi Patel

www.patelCFOservices.com

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