The practice of hiring “from within”, or insourcing, refers to looking within the business already-existing tools and resources to continue the original mission of the corporation. The purpose of insourcing is to maintain the vision of the group by keeping products, production efforts, employees, supervising positions, and every other operational procedure housed inside the same business family. Although controversy always comes up regarding the true benefit of outsourcing versus insourcing, several research articles suggest that insourcing is more beneficial because it provides local employment, lowers costs of shipping merchandise, and keeps alive the “family” sense that strengthens a business. With insourcing there are also less chances of what is called “cultural confusion”. This has nothing to do with ethnicity or heritage, but about the culture of the company’s as it is created from its philosophy. Hence, when everybody is like they say colloquially “on the same page”, there is more productivity.
This being said, the statement “An organization should follow a promote-from-within policy” can be interpreted as a positive move because it shows an effort from the leadership to empower employees. Moreover, promoting “from within” suggests that all employees within the organization are equally suited to lead, hence implying that there is great trust placed on them. Although not ALL organizations can enjoy the peace of mind of having very capable employees, having such a policy may inspire employees to work at their optimal level so that they can be considered for a promotion. Contrastingly it certainly would be denigrating for a hard-working employee to learn that only people from outside the company, someone who has no connection to the company culture or history, has a better chance of getting a better job.
Therefore, depending on the at-the-job atmosphere and the capacity of all workers to lead within a business, promoting from within, just like insourcing, are promising ways of strengthening a business from the inside out.