One of the biggest changes that a company can go through is the departure of a manager. When this happens, the company has one of two options: hire someone to take over the role, or promote from within. Sometimes promoting from within can seem difficult because it appears that there needs to be a lot of shifting around: regional supervisor leaves, plant manager moves up, production manager moves up, production lead moves up, etc. And even after all of that, you still need to hire someone to fill in the empty spot.
Some managers may say that directly hiring someone outside of the company to fill in the empty management position would be easiest. At the moment, it probably is; but look at the long-term effects. First, hiring a new manager means that employees are now working for someone who has no rapport and needs to earn respect. This does not happen overnight. Employees who move up already have a reputation. Second, you have to teach this new manager the ways that your specific company functions. While they are used to doing things a certain way, promoting from within would be saving training time because the person is already accustomed to the company policies. Finally – and potentially most importantly – hiring / promoting from within shows that you actually care about and appreciate your employees. Too many times, a company will “allow” employees to apply for a job but the management already has an outsider in mind for the position. Note this: Your employees know! They absolutely know if employees are only being offered the opportunity because the company requires it. Hiring from within shows that you recognize the hard work of your employees, as well as value their work ethic, leadership, and teamwork.
I am dumbfounded by how many companies refuse to see the benefits of internal promotions. Keep in mind that you show more faith in your employees – the ones that you claim to have hired for a reason – when you grant opportunities like this. That in itself will give you more respect and the company more loyalty.