Look Inside: Identifying Employees You Should Be Promoting From Within

How to identify internal employees who are ready for a promotion

When you have a job opening, whether because someone left the company or a new position was created, evaluate your internal resources first. Here’s how to pinpoint employees who may be excellent candidates to promote from within your company.

• Post the open position internally. Let ambitious employees apply for the role before posting it to the general public. Internal job postings bring motivated professionals to your attention so you can evaluate them further.
• Review performance evaluations. Examining recent performance reviews shows who excels in their current roles and exceeds performance goals. Additionally, reviews may contain notes indicating an employee’s interest in advancing or switching departments — a sign they’re ready to take on more responsibility or explore a new path.
• Solicit peer and manager feedback. Talk to managers and team members to find out who’s consistently viewed as a strong leader and conscientious team player. If the opening is in a specific department, gather input from those individuals. You may be able to promote someone with expertise in that area. Also, if a respected manager is leaving the company, ask if they have a successor in mind.
• Look for voluntary self-improvement efforts. Employees who invest time in gaining new certifications, pursuing professional development opportunities or volunteering for stretch projects are often preparing for the next step in their careers. These employees typically prefer an internal promotion, but if that’s not available, they may start looking elsewhere.
• Conduct a stay interview. When you identify a high-performing employee, consider conducting a stay interview. Ask what they like or don’t like about their job and where they see themselves in the short and long term. In addition to uncovering promotable candidates, stay interviews can improve employee retention and engagement.

Once you’ve identified potential internal candidates, the next step is to evaluate whether they’re truly ready for a promotion.

“When considering candidates for promotion, companies should look beyond technical skills and focus on key characteristics,” advised Renee Frey, president of TalentQ. “These include a strong track record of performance, leadership potential, adaptability, effective communication, alignment with company values, and the ability to learn quickly and take on new challenges.”

Signs employees should be considered for a promotion

Employees who are ready for promotion will likely exhibit the following characteristics: 

1. Promotable employees take responsibility proactively.

Employees ripe for promotion are often the ones who volunteer to spearhead projects or ask for more responsibility. They’re the staff members who consistently do what it takes to get the job done, and they don’t make excuses.

These employees don’t necessarily skip lunch or stay late; it’s more about those who consistently go beyond a task’s exact specifications. Also, keep an eye out for employees who refer to things as “ours” instead of “mine.” This kind of phrasing is a strong indicator that they’re focused on shared organizational goals, not just their personal wins.

Employees who are ready for promotion demonstrate a consistent ability to take responsibility for themselves and their team even before they’re officially in charge.

2. Solution-oriented employees may be ready for a promotion.

When identifying employees who can handle greater responsibility, look for solution-oriented people. Employees who consistently approach you with problems but no proposed solutions likely aren’t ready to be promoted.

While it’s OK — and even healthy — to raise concerns, employees with leadership skills will begin brainstorming independently and take the first steps toward solving the problem.

During your performance management process, look for team members who bring potential answers along with their questions. They may not always have the perfect solution, but they’re willing to try to resolve issues rather than relying on others to do it for them.

3. Co-workers already respect promotable employees.

Promoting from within isn’t just about identifying people your team likes — it’s about recognizing those they respect. While being respected and well-liked often go hand in hand, there’s an important difference between respect and popularity.

Respect is the foundation of effective workplace collaboration and teamwork. Without the respect of their peers, a leader can’t build trust or foster cooperation across departments.

Employees tend to respect level-headed, professional colleagues who don’t shy away from work and consistently go above and beyond.

4. Potential internal hires support others.

Good leaders help others grow and succeed. Many successful leaders attribute part of their own career development to mentors or managers who supported them along the way.

Your strongest internal candidates are often known for being helpful to others and committed to developing talent within the organization. They take the time — and have the desire — to improve their peers’ performance through feedback and coaching. You’ll see this when they proactively offer assistance or when others consistently seek them out for help and advice.

5. Promotable employees handle stress well.

Stress is an inherent part of managing and leading. Whether you’re filling a management position or promoting an employee to a more demanding role with increased responsibilities, consider their ability to handle ambiguity and stress in their current position.

A ZenBusiness survey found that nearly 25 percent of managers reported extreme stress. The survey also found that 68 percent reported moderate stress related to maintaining a work-life balance, managing employee conflict, taking on additional responsibilities and more. Even more challenging is that many managers reported feeling the need to hide their stress and emotions. 

When assessing potential internal hires, consider how they handle conflict and stress, and how increased responsibilities might impact their performance.

6. Promotable employees consistently overperform.

If an employee consistently exceeds challenging goals or benchmarks, it’s probably time for a promotion. High performers demonstrate that they’re ambitious, interested in the company’s success and have high standards for themselves.

If you don’t promote this high performer, they’ll likely grow dissatisfied with their current position and may look elsewhere for career advancement opportunities.

Benefits of promoting from within

Promoting from within brings many benefits to an organization, including the following:

• Promoting from within can save money. The Wharton School at the University of Pennsylvania found that external hires get paid nearly 20 percent more than internal employees for the same job but consistently receive lower performance reviews. Additionally, an organizational science study found that internal hires significantly outperformed external hires. As a bonus, the hiring process is less expensive when promoting from within.
• Promoting from within boosts employee retention. Organizations experience higher employee retention and lower turnover when employees are engaged and happy, something promotions can foster. Outside hires may be let go more frequently because their personalities and abilities are largely unknown. Existing employees, on the other hand, have already demonstrated their skills, and upper management has had a chance to get to know their work habits and personalities.
• Promoting from within means less onboarding time. Samantha Rosenberg, chief people and governance officer for ADLM, noted that internal hires are already familiar with the company’s goals and mission. “When hiring internally, organizations may need to provide additional training and professional development, but they will gain by having an employee who already knows the organization, their co-workers and customers,” Rosenberg explained. “This will likely lead to shorter ramp-up time.” In contrast, new hires are starting from scratch.
• Promoting from within ensures a cultural fit. Existing employees have already figured out the company’s culture and unwritten rules. They’ve carved their niche and are comfortable operating in this environment. They are also familiar with the other employees and managers and how everyone operates, so they’re much less likely to be a bad hire. 
• Promoting from within boosts morale. When employees see team members and co-workers getting promoted, it lets them know the organization values its internal talent and shows them they have an opportunity to advance. This realization can motivate them to work harder and take on more responsibility.

When is it better to look externally for new hires?

When you have an open position, it’s always wise to consider your internal talent pool first. However, this isn’t always possible or ideal.

Sandy Fiaschetti, Ph.D., founder and managing partner at Lodestone People Consulting, noted that if no one internally is ready for the next role, the business can’t afford to wait — in that case, an external hire is the right move.

“Sometimes, bringing in fresh perspective is precisely what the organization needs, particularly if a cultural reset or new thinking is required,” Fiaschetti explained. “External candidates can challenge assumptions and accelerate change when thoughtfully selected.”

You may decide to recruit new employees externally when your company finds itself in need of the following:

• Fresh ideas: It’s easy for teams to fall into a routine. If you want to shake things up and spark creativity, a new hire might bring a different perspective to the table.
• New skills: You may be transitioning to new technology or evolving how your business operates. External candidates may offer the experience and specialized training needed to jump-start that shift.
• Reduced workload: Your company may be growing faster than your current team can handle, causing overwork and burnout. Hiring from outside the organization can relieve pressure and balance the workload.
• A more qualified candidate: Sometimes, no one internally has the right mix of education, experience, skills or even interest to step into the role. That’s when it makes sense to expand your search.

An internal promotion won’t be the best fit for every open role. Still, in many cases, it presents a valuable opportunity for both your business and your employees. The key is to identify the right internal candidates and give them the support they need to succeed.