Quality of Staff

• When your company focuses on developing employees and promoting from within, there is a general improvement in the quality of the workforce, says Patty Hampton, writing on the Center for Association Leadership website. The company becomes interested in developing each employee for a possible move into a position of more responsibility, and that requires a broad training program that affects the entire staff. Entry-level employees and administrative staff are given the same opportunities to advance their careers as any other employee. This creates a more prepared and well-trained staff, increasing the strength of the company.
  
  

Costs

• The cost of continually recruiting and training new employees can create a problem for the company's bottom line. When a company promotes from within, it retains all of the time and money that was invested in entry-level employees, and realizes a higher return on that investment when those employees take management positions.
  
  

Retention

• A company that develops a reputation for promoting from within becomes a desirable employer for quality talent in your industry, according to Kristina Meyer on the HR Tools website. The company benefits by receiving a steady stream of qualified candidates to fill entry-level positions, and it also sees a high level or retention among current employees. Employees understand that the company rewards hard work, and that will have a positive effect on employee productivity.
  
  

Culture

• One of the negative effects of employee turnover is that the company culture is difficult to maintain. Existing employees that have been trained to take pride in their work and conduct business in an ethical manner leave the company, taking those ideas with them. The process of replacing those employees can be difficult. Retaining and promoting employees from within helps create a consistent interaction with clients and business partners, and it also maintains smooth communication within the company.