One necessary ingredient to keep the human spirit alive is hope—hope that tomorrow will be a better day, and hope for the future. By adopting a policy of promoting from within, you afford your all-star employees the hope, inspiration, and opportunity they need to go above and beyond, and earn the opportunity to move up. At the same time, you can lock yourself into a self-made prison by making absolute promises about promoting from within.
From the founding of IBM (International Business Machines), Thomas Watson followed the policy that IBM would promote from within. For decades IBM did exactly that. Then, in recent years, as it’s had to reinvent itself to stay alive in the market, it brought in three people from the outside. ...