Between Hiring a Strong Internal Candidate and an Impressive External One: Your HR Manager Decision

When benchmarking between a highly recommended internal candidate and an impressively qualified external candidate for a newly vacated HR manager position, various factors come into play. This essay explores key considerations to assist in making an informed decision. Whether cultural fit, experience, potential for growth, team dynamics, or the urgency of hiring, these elements collectively guide the selection process.

Factors Influencing Your Choice

Cultural Fit

The internal candidate likely possesses an in-depth understanding of the company culture, which is a critical asset for an HR role. This understanding enables them to navigate and foster a positive organizational environment. Additionally, their reputation among peers can speak volumes about their suitability for the position, suggesting a high degree of alignment with company values.

Experience and Skills

Reviewing the specific skills and experiences of both candidates is essential. An external candidate may bring fresh perspectives and a variety of diverse experiences to the organization, potentially introducing innovative ideas and practices. On the other hand, an internal candidate may already have the required expertise and may not need as much onboarding time.

Potential for Growth

Consider the long-term growth and adaptability of both candidates. An internal candidate who has demonstrated the ability to learn and evolve within the company could be a strategic investment for future developments. Conversely, an external candidate may offer fresh perspectives but may require more time to integrate into the team.

Team Dynamics

Maintaining smooth team dynamics is crucial. An internal candidate may bring existing relationships and a pre-existing rapport with the team, whereas an external candidate might bring new ideas and perspectives that could disrupt the existing dynamics but also introduce fresh approaches.

Recommendations and References

The strength of the internal referral plays a significant role in the decision-making process. If multiple colleagues endorse the internal candidate, this determines the level of trust and reliability in their capabilities. This can outweigh the positive aspects of the external candidate, who may not have as strong a recommendation.

Diversity and Inclusion

Consider the external candidate's ability to bring diversity and inclusion to the organization. An HR manager plays a crucial role in promoting equity, and an external hire with unique experiences and perspectives can enrich the team's diversity and inclusion efforts.

Immediate Needs vs. Long-term Strategy

Determine if the organization needs someone to hit the ground running or if there is time for longer-term development. An internal candidate might be the immediate choice, especially if there are urgent needs that need to be addressed quickly. However, hiring an external candidate could be beneficial if the organization is looking to make a strategic investment in the future.

Empirical Observations on Internal Hiring

Surveys and research indicate that many companies favor internal hiring for HR manager positions. This preference stems from the reduced risk and paperwork involved. Internal candidates are often familiar with company policies, culture, and procedures, making them less risky from a compliance and operational standpoint.

Risks of Hiring External Candidates

Though external candidates may offer fresh perspectives and diverse experiences, hiring them poses certain risks. Interviews provide an initial insight into a candidate's suitability, but they only reveal a fraction of the person’s true nature. Hiring someone based on limited information is akin to entering into a long-term commitment after a brief courtship, which can lead to unforeseen challenges.

Exceptions to the Rule

Not all companies adhere to the preference for internal hires. Some organizations actively seek external candidates due to specific advantages. For instance, external hires can bring down the overall wage bill. Companies that rely on internal promotions typically provide modest cost-of-living adjustments annually, while external hires demand market-rate salaries.

In addition, external hires can benefit from a legal strategy known as corporate espionage. By offering existing employees competitive compensation and the opportunity to work for a new company, employers can legally gain insights into best practices and techniques without incurring the risk of retaliation through wrongful termination lawsuits.

This method, while not entirely legal, falls under the category of de facto legality, as courts generally discourage attempts by former employers to restrict their former employees from making a living through their skills.

In conclusion, the choice between hiring an internal candidate and an external candidate for an HR manager role should align with the organization's immediate needs and long-term strategic goals. Both options have their own merits, and the decision should be guided by a thorough evaluation of all relevant factors.