A recent study by executive search firm Xpheno shows big changes in top-level corporate jobs over the last 5 years. Around 52% of companies saw new leaders taking charge, with most preferring internal promotions over outside hires.
Key Findings:
- 67% of companies promoted internal employees for leadership roles.
- Only 33% hired external candidates for top positions.
Why Companies Prefer Internal Leaders?
- Faster Adjustment – Insiders already know company culture & goals.
- Cost-Effective – No need for expensive external searches.
- Boosts Employee Morale – Shows growth opportunities within the company.
When Do Companies Hire Externally?
- Need fresh ideas for major changes.
- Lack of skills internally (e.g., tech transformation).
- Crisis management requiring outside expertise.
What’s the Best Approach?
- Balance is key – Train internal talent but stay open to external hires when needed.
- Strong leadership programs help prepare future leaders.
Final Thought
Companies must grow their own leaders but also bring in outside talent when necessary to stay competitive.
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