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Few hire from within

Wednesday February 18, 2015 Written by  American Management Association
Only one in three companies focus on developing and retaining current employees rather than recruiting outside hires.

Instead, a majority of organizations (55 per cent) have no prevailing policy on recruitment, letting shifting business needs determine whether to fill a position externally or internally, according to a new survey by the American Management Association.

Eleven per cent of the leaders surveyed reported their organizations expect high turnover and recruit aggressively.

"With only 34 per cent of organizations committed to developing and retaining employees it's easy to see why employee loyalty has declined," said Sam Davis, vice-president for AMA's customized consulting solutions. "The same survey found that 52 per cent of companies report their employees are less loyal than five years ago. So many companies seem to discount internal candidates and just call a recruiter to fill an opening. But this sends an unfortunate signal to employees, who are usually eager for promotion and advancement."

That being said, Davis conceded that in certain situations, external recruitment is unavoidable. "Sometimes there are skills gaps where no internal candidate is the right fit or when an infusion of outside expertise is sought. Nevertheless, management should at least explore the talent that's on board before searching outside."

The survey was completed on Dec. 1, 2014. Respondents included 1,213 senior level business, human resources and management professionals and employees drawn from the AMA database of contacts.

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