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Are you tired of hearing about the great resignation? Are your labor shortages costing you millions?

You are in the last quarter of the year, and the holiday season demands are on you. Are you concentrating on keeping the employees you have? Stop thinking about that wellness competition with the Fitbit for your employees. I challenge you to dig deeper and find out what will retain and grow the employees you have.

Promoting from within costs less. Matthew Bidwell at Wharton found that it costs around 18% more to hire from the outside. There is a lot to be said for an employee who already understands the company, the culture, and the company-specific skills that are needed in a role. In addition, it takes time and money from a human resources perspective to hire and train an outside job candidate.

Second, the existing employee has proven a degree of loyalty to your business. Bidwell found that 21% of external hires were more likely to leave on their own accord than those who had been promoted from within.

Third, transitioning to a new role with an existing employee takes less time, and productivity remains at a higher level. An internally promoted employee already has knowledge of the business goals, structures, and routines.

Last, as an employer, you already have an established relationship with your internally promoted employee. An internal hire is more of a proven entity. Promoting from within isn’t problem-free, but doing so has been proven to improve productivity and retention and provide a better return on investment.

As you consider your open positions, know that an employee you are thinking of promoting may be living in daily instability, making decisions for today, and living paycheck to paycheck, and know that their mindset is likely one of relationship and survival. Learn more about working more effectively with those employees you want to promote. For those living in an unstable environment, life shows up in the workplace. Figuring out how to deal with this is your first step, and, in the process, you will retain and promote from within. That is a win-win for this holiday season.

About the Author: Ruth K. Weirich, MBA is an author, trainer, and management professional experienced in business operations efficiency and profitability. She is also a past president of aha! Process, an education and training company specializing in economic class issues. Contact: rkweirich@ahaprocess.com; ahaprocess.com.