When it comes to filling financial management positions, management tends to look outside the company. According to a study by the Robert Half firm, less than one third of candidates are promoted from internal recruitment.
After surveying 270 financial managers in companies with more than 20 employees, it appears that 29% of those recruited to financial management positions were already part of the company. Financial managers are therefore more likely to recruit externally. According to the Robert Half firm behind this study, this solution may in some cases be advantageous, such as when the company is seeking a manager with specific skills and experience that are not already present within the company.
However, the inability to recruit internally and to promote certain employees also reveals some problems, such as inappropriate training or lack of knowledge transfer from leaders to employees. The consequences may be detrimental to the company: disinterested employees, departure of some talents and loss of knowledge. To maintain a system of promotion within the company and take care of future managers, the Robert Half firm offers some advice.
1. Everything starts at the interview – evaluating a candidate’s management abilities right from the job interview may be a good start.
2. Expanding sources of evaluation – interviewing by other departments that an employee will work with can provide a better knowledge of their skills and how they interact with their colleagues.
3. Managing expectations – informing employees better about the opportunities for advancement and advising them on the skills to be acquired to get there.
4. Investing in training – continuing professional development is a must in companies that take internal promotion and retention seriously.