Hiring a new executive is a defining moment for a company, especially if the role has been occupied by the same person for quite some time. Given the significant impact an executive has on a company’s culture, employee satisfaction, and bottom line, employers are extra critical of who they choose to fill the position. When an executive role becomes vacant, the hiring committee is often at a crossroads: should they promote an existing employee or open the position externally?
First, let’s cover the pros and cons of internal hiring for an executive role. On the one hand, promoting from within can be a cost-effective and time-efficient solution. The professional who is advancing to the higher position would also feel valued at their workplace, which can have a positive impact on employee engagement and retention. However, internal promotions also present challenges. The organization needs to address how to fill the position that the promoted employee left. Backfilling lower-level positions can be particularly challenging due to higher turnover rates or a limited talent pool, especially for companies based in less desirable locations. Our search firm has also engaged with companies that need to hire externally when a promoted employee is struggling in their new role and cannot meet expectations.
READ THE FULL ARTICLE BY BENJAMIN FARBER IN THE SUMMER 2025 EDITION OF GAMING & LEISURE MAGAZINE.