Recruitment of staff, especially if large numbers are involved, may be time consuming and a drain on resources. Additionally, the expertise may not exist within the organisation, requiring the organisation to seek suitable candidates outside.
a) Internal promotion describes the situation where an organisation has an explicit policy to promote from within and where there is a clear and transparent career structure. This is typical of many management and administrative staff and of certain sectors of the economy such as the public services.
The advantages of internal promotion include:
I. it acts as a source of motivation and provides good general morale amongst employees
II. staff seeking promotion are known to the employer
III. inexpensive in terms of time and money
IV. training and induction costs are minimised
V. further training can be product and organisation specific
VI. the culture of the organisation is understood by the individual
VII. illustrates the organisation’s commitment to encouraging the staff
VIII. the individual will already be familiar with the other members of the organisation