Promoting from within a company boosts morale and helps keep productivity high.
New employees can see the potential for growth. If your employees know there is a potential career path within the organisation, you are less likely to lose promising staff to another organisation. Employees are more likely to take advantage of organisational training and educational opportunities if they know these activities can improve their chances of promotion.
To be honest, it happens less and less now. We have grown substantially and many times I find the benefits of taking an experienced manager for a specific role. But I haven’t changed my core: If I believe in the talent, whether I’ve known the person for six years or six months, I’m not afraid to make mistakes. The only thing I care about is if the person is real and has a heart. The rest just falls into place.