Promoting from within is a great motivational tool for your team – and a fantastic way to retain your best people.
But, when taken too far, it can create a culture that is insular and nepotistic.
Striking the right balance between promoting from within and bringing in outside talent with fresh ideas is key to any business’ success.
Here, I’ve covered my top five reasons why looking beyond your in-house talent pool can add value, whether you’re looking at a new hire, or working with expert contractors on a regular basis.
Fresh perspective
External hires and contractors, such as trainers and business coaches, can bring fresh ideas and perspective. Likewise, hiring leaders outside your business can have many benefits. University of Missouri-Columbia research found that while 78 per cent of new CEOs are hired from within an organisation, external hires “spend more money on research and development” and showcase a greater commitment to innovation. This is particularly important where a business is struggling or in need of rejuvenation. Let’s be honest – regular, constant rejuvenation is a reality for any business that wants to be relevant and grow into the future.
Multi-industry expertise
When sourcing outsider talent, choose experts with experience across multiple industries. The scope of their expertise is a major value-add. In fact, outsiders with expertise far-removed from your industry can offer more value still, since like for like expertise often does not allow for new idea generation.
Challenging the status quo
Outsiders bring new insights – and can challenge group thinking that can come from knowing each other too well and feeling too comfortable. When done right, outsiders will challenge the status quo, including relationships and team behaviours that inhibit growth and innovation.
This is particularly true of business coaches. The right business coach will immerse themselves in your business to gain a full picture. This might include interviewing staff and observing your business in operation. Working with outside experts also brings a level of accountability that can see ideas be executed rather than merely spoken. This minimises waste and, in turn, can increase morale and staff buy-in.
Cost-effective support
In addition to their expertise, working with contractors is a cost-effective approach for many businesses. In-house help in areas such as business coaching, finance or marketing may be cost-prohibitive to many small to medium businesses. At the same time, uneven workflows may make working with outsider talent a more attractive approach.
Cultural shake-up
Outsiders – and hiring outside leadership – can also be useful when a business is in need of a cultural shake-up. One prime example is the banking sector, with the big four currently under intense scrutiny as a result of the royal commission that is underway. Hiring outside leaders to overcome a culture of mistrust is one effective way to signal a new beginning in the eyes of the public.
So whether you’re after a fresh perspective, in need of a multi-disciplinary expert to bring external expertise and challenge the status quo, or it’s time to reset and refresh your business, outsider talent can add huge value to your organisation that should not be overlooked when it comes to your hiring practices and contract work.