Promoting from within pays off

External hires often paid more but perform poorly: Study
By Sarah Dobson
|Canadian HR Reporter|Last Updated: 07/17/2012

In 2010, 56 per cent of the hires at Mountain Equipment Co-op (MEC) were internal. The following year, 65 per cent were internal. The increase is partly explained by a culture and philosophy that encourages internal promotions, according to Julie Robb, manager of recruitment and training at MEC in Vancouver.

“We strongly encourage hiring managers to promote from within wherever possible. So, if they’re in a situation where they’re hiring and they’ve got an external incumbent and internal incumbent that are bringing comparable skills and experience, we definitely advocate for the internal.”

Also making a difference was a leadership framework rolled out in 2010 that included training and the promotion of a coaching culture, she said.