It is a proven fact that those hired from outside of an organization fail at a much higher rate than those who are promoted from within. To add further to this dilemma consider that external hires usually cost more than home grown talent. In fact, their annual salary is 18% to 20% more than an internal promotion. This changes dramatically after 2 years when they become more productive than their peers who they joined when hired by the organization. They get promoted faster too. All of this courtesy of the Center for Creative Leadership and the Wharton School of Business.
So what is the secret hiding here? Is it to never hire from outside the company? Is it to only promote from within? Is it something else entirely?