Gone are the days of businesses always looking outwards when they need leadership, hoping to find an external talent who’s the perfect fit on LinkedIn or job boards. A lot of business owners have realised that the best leaders could already be fully immersed within the business, ready to take their current role to the next level. Though external candidates do have a lot to offer, internal talent has been attending meetings, navigating business processes on a day-to-day basis and contributing to its success for a long time, making them a leadership choice worth considering.
There’s a common misconception that cultivating internal talent is all about saving money – after all, hiring internally tends to be a lot more cost-effective than searching further afield – but the benefits go beyond that. Though you’re likely to find cultivating internal talent to be a more affordable approach to crafting leaders, it benefits the business in a number of other ways too.
The Benefits of Finding Leaders Within Your Business
There’s nothing wrong with hiring externally, and it’s not something to rule out completely, but new hires don’t have any context or experience within the business. Their experience is likely to be industry-specific, rather than business-specific, meaning it doesn’t quite match the business understanding that an internal candidate is likely to have. They already understand your business’ culture, the ins and outs of your products and services, and have formed professional relationships across the team. They’re ready to hit the ground running, needing less time to settle in and get up to speed.
They’re Immersed in the Business Your current team members live and breathe your business every day. They understand the business’ mission, tone and values, and they know how to put that into practice. This familiarity allows them to make decisions and lead with authenticity, using tried and tested techniques, with less guesswork required.
Proven Loyalty and Reliability Internal candidates have already demonstrated commitment to the business. Promoting leaders from within is a way to show your team that hard work and dedication are recognised and rewarded, and they could follow suit and grow their career in the future. This fosters engagement and reduces turnover by giving employees a reason to stick around.
Understanding of Systems and Processes Learning curves are shorter when you’re promoting internally, as existing employees already know the tools, workflows and processes that keep your business running. They can hit the ground running in leadership roles, without having a big learning curve to get their heads around.
They Know the Team Already Relationships are everything in leadership, and having a good relationship with a team makes it a lot easier to achieve success, work productively and reach goals. Internal hires have already built trust, rapport and collaboration with colleagues. These existing connections can boost team morale and communication, as there’s no need for them to start from scratch with getting to know everyone.
They’re Aware of the Business’ Past Existing employees have knowledge of the business that can’t be fully conveyed in a handbook or onboarding guide, such as why certain decisions were made in the past, how previous challenges were overcome and how the business got to where it is today. This context is invaluable for thoughtful, informed leadership that really makes a difference.
How to Transform Internal Talent Into Leaders
Once you’ve identified the employees with the potential to be great leaders, you need to cultivate that potential. This means focusing on their individual growth and development, making sure they’re ready to take on a leadership role when the time’s right.
Create a Clear Leadership Pathway Employees need to see where they can go before they’ll be motivated to develop professionally. Create clear career maps that outline how individuals can move into leadership roles, and what’s expected of them at each stage. This will give them something to aim for.
Invest in Learning and Development You’ll find it a lot easier to cultivate internal talent if you have the learning opportunities and training in place for them to develop. Give your team the chance to succeed with the skills they’ll need in future roles, including strategic thinking, communication and decision-making.
Encourage Ownership and Autonomy Give employees opportunities to lead projects, lead initiatives and manage small teams. This builds their confidence, improves their leadership skills, and helps to identify those ready for more responsibility. It’s a great way to see potential leaders in action, whilst giving them an insight into what being a leader is really like.
Provide Regular Feedback and Mentoring Leadership is an ongoing journey, a role that people develop and grow into. Ongoing feedback and constructive mentorship will help individuals to reflect, grow and continuously improve in how they lead a team. Celebrate their wins, but also guide them through mistakes and towards solutions.
Create a Culture of Trust and Empowerment To create leaders, not just followers, you need to create a culture that encourages initiative, experimentation and learning from failure. Leaders are a lot more likely to emerge when they feel safe to lead. You don’t want to miss out on finding the perfect leader simply because they were afraid of making a mistake.
Sign up to our newsletter to get the latest from Business Advice.
There’s a common misconception that cultivating internal talent is all about saving money – after all, hiring internally tends to be a lot more cost-effective than searching further afield – but the benefits go beyond that. Though you’re likely to find cultivating internal talent to be a more affordable approach to crafting leaders, it benefits the business in a number of other ways too.
Provide Regular Feedback and Mentoring Leadership is an ongoing journey, a role that people develop and grow into. Ongoing feedback and constructive mentorship will help individuals to reflect, grow and continuously improve in how they lead a team. Celebrate their wins, but also guide them through mistakes and towards solutions.
Create a Culture of Trust and Empowerment To create leaders, not just followers, you need to create a culture that encourages initiative, experimentation and learning from failure. Leaders are a lot more likely to emerge when they feel safe to lead. You don’t want to miss out on finding the perfect leader simply because they were afraid of making a mistake.
Sign up to our newsletter to get the latest from Business Advice.
