Why Promoting from within is Good for Your Call Center Business

The question of whether it’s preferable for organizations to prioritize internal hires over outsiders when filling a job vacancy has long been settled for years now.

And the general consensus is this: internal hires trump external hires almost every time.

What settled it was a 2012 study made by Wharton assistant professor Matthew Bidwell, who came out with these findings:

• Internal hires perform much better on the job in the first few years following a promotion than outsiders who were recruited for the similar job.
• External hires have higher exit rates than internal hires.
• External candidates are offered higher salaries (up to 20 percent%) than internal hires.

All results point to the same conclusion: promoting those belonging to the existing employee base is far more recommendable than hiring from outside.

While there’s no study similar to Bidwell’s that exclusively applies to call center organizations, logic dictates that the same rule still applies.

Here are five reasons why call centers will do well to prioritize internal recruits over external candidates in their recruitment efforts.

1. It’s cost-effective

Call center organizations spend quite a hefty amount each year in recruiting new hires.

On top of paying for advertisements, the HR team also has to allocate expenses on pre-screenings and interviews before deciding to hire a new employee.

And don’t even get started on the training expenses. Do you know that the average call center spends nearly 2,000 dollars training each new recruit in a span of 4 weeks?

In fact, this Tenacity article has been kind enough to do the math for us.

Considering the high employee turnover rate in most call center organizations, there’s no question that prioritizing internal hires over outsiders is the more attractive route.

Besides, all the money expended on advertisements, screenings, training classes, etc. would be better spent on empowering your current employee base and boosting their morale.

2. Saves you time

As if the hiring process isn’t strenuous enough, the company also has to invest some time in orienting new employees to the company’s vision, values, technologies, and processes as soon as they are hired.

In addition, new recruits also have to go through a steep learning curve before they can get acclimated to their new environment.

In contrast, promoting an existing employee allows you to do away with all that. Considering the call center industry’s fast-paced environment, time is a luxury you don’t have.

3. Boosts productivity and morale

Rewarding productive employees with a promotion is an excellent way to foster a culture of loyalty, growth, and stability in the organization.

When employees feel that their hard work and dedication are rewarded by the company, they are more likely to feel more motivated to give it their best at work.

Moreover, unlike external recruits, existing employees are already familiar with the organization’s policies and procedures, and as such will be much more productive right from the get-go following a promotion.

4. Improves employee engagement

By promoting deserving employees, you are giving them a sense of growth and direction in their career within the organization.

This, in turn, motivates them to take ownership of their roles within the company and as a result, will give it their best efforts.

Conclusion:

While external hiring has its own merits (for example, new hires are more likely to bring new ideas to the company), studies and current sentiments show that internal hiring is far more preferable as a recruitment strategy.

When existing employees feel that they can count on the company to provide them career opportunities that they worked hard for, it gives everyone a better sense of stability.