Promoting from within has many perks. Here are 5 reasons why both companies and employees benefit from it.

1. Companies know what they’re getting. You’ve seen this employee’s potential and are banking on her delivering in more advanced ways based on what she’s already proven she can do for you.

2. The employee has a pretty informed sense of what she's getting herself into. Since she has insider’s knowledge about the people on her team and the culture of the organization she is more informed when making the decision to accept the job. Therefore, there is less of a chance that she will bounce quickly from the company due to not fitting within the team and culture.

3. Loyalty is rewarded. Promoting from within is a very explicit way to demonstrate a company’s practice of recognizing loyalty and its commitment to professional development. It’s an act of gratitude and hope.

4. On-boarding takes a lot less time because an internal person already has a base level of knowledge about the organization and how things are done. Therefore, the rate of learning is accelerated and she requires less training time and is able to become valuable in her role very quickly. This saves the company time and resources.

5. Other employees (and potential employees) understand that internal growth is possible. Promotions set the tone that with hard work and a demonstration of the ability to do a higher level of work, all employees have the chance to grow here too. That’s a very promising thing. From the outside, your company gains a reputation of investing in its employees.

What benefits have you experienced from getting promoted from within? Share your experiences in the comments below.