The article that I will be discussing is called Pros and Cons of Hiring outsiders. This article is all just based on what we discussed in class. In class, I recall that this is a very serious decision that managers just make. There are many benefits to hiring from the outside, along with many disadvantages.
I will start off by discussing the benefits from hiring from the outside. When some companies seem to be stuck in old traditional work places, it get boring and sometimes business doesn’t really improve. This is why companies look to hire people from the outside. They do this because they are looking with people who will bring unique skills to the company. Also, it can give the company new ideas and new energy for the work place. The article states that “the thought processes are common among workers and bosses, and a new study shows how they play out. The study, by Matthew Bidwell, an assistant management professor at the Wharton School of the University of Pennsylvania, found that external hires, on average, make around 18 percent more money than internal employees with similar positions.” I found this statement to be a very interesting point when it comes to the debate on whether or not to hire or not from the outside. It definitely shows that the numbers are better for profit, so that is definitely a big positive when it comes down to the question for managers who ask should they hire externally? However, later on in the article it states that in that same study, they perform less well in the first two years and are also more likely to leave or be let go. This is why companies don’t hire from the outside, because it takes to long for the employees to get use to the company they were hired at, rather then the one they were doing well at previously, this is one con of hiring from the outside.
There are many other disadvantages about hiring from the outside as well. One of these factors would be it increases...