Avoiding Mistakes when Promoting from Within

Whenever a vacancy opens in higher levels of an organization, it quickly becomes the center of attention for people below it on the org chart. Employees see the opportunity, and some may step forward for consideration. While it is commendable for employees to want to move up the ladder, the next rung up is not always the best fit. Therefore, for managers and those in charge of hiring, it presents a tricky and delicate situation: Balancing the desires and emotions of an internal employee with the true business needs for that position.

I recently coached a COO at a large company through the internal candidate process with a VP. The new VP, and previous internal candidate has, so far, been a success. These are the steps we used to navigate the process and avoid the pitfalls of internal candidates:

Formalize the process. The temptation with any new vacancy is to just “wing it.” It would be simple for whoever next in line to step up the ladder. However, according to the Peter Principle, we will rise to the level of our own incompetence. Meaning, an employee who is an individual contributor might not be a great manager. These are different skill sets. So, while an internal candidate might be waiting for their chance. Do not wing it. Formalize the process. It is important to outline the key requirements for the role, including experience, education, temperament, without regard to the internal candidates who are interested.

Relationship does not mean performance. Your organization already has a relationship with the internal candidate. Since they are currently employed by the organization, we can assume that they are a culture fit for your company. Culture fit is incredibly important, but it is not the only decision maker, nor should it trump performance. Outline key performance metrics for the position that everyone, regardless of internal or external, will be held accountable to. This will help with the interview process. Ask all candidates on how they would address these metrics, and what steps would they take to deliver the performance needed for this role.

It is important during the interview process with an internal candidate to ask what the next steps would be if they do not get the promotion. Would they leave, and find a similar role somewhere else, or are they still satisfied with their and simply taking advantage of the opportunity?

Outsource the process. Especially when dealing with internal candidates, relationship can convolute the decision-making process. Leaders who are outside of the department or the organization can assist in the decision-making process. Internally, invite a senior leader from a different department into the interview process for all candidates if they do not have a relationship with the internal candidate. If your organization is small, this might be a challenge. In this case, you should consider a recruiting firm or consultant. These outsiders can evaluate all candidates against your specified criteria and give you the objective comparison. If that is the case case, you should consider outside hires and make it clear to the candidate, why they will not be considered.

Any mistake with hiring and promoting can be costly for organization. What are other steps you can take to avoid mistakes that happen with an internal promotion?