HR Challenge: Hire From Within or Outside?

Talent is getting harder for organizations to attract and retain, and employee turnover is very costly. But there is much more lost than that. Today, teams collaborate and cooperate with each other to develop and complete projects, and support customers in business-to-business operations. Internal promotion programs are among the most important attributes of a powerful and recognizable retention effort. Upward mobility is essential to the hopes and expectations of many employees of the organization. Internal opportunities for promotion show a clear commitment by the organization to the development and retention of its employees. In this assessment, the SHRM behavioral competencies of Leadership and Organizational Navigation and the HRM content knowledge area Employee and Labor Relations will support your recommended course of action for an important hiring decision in a workplace scenario.

Introduction
Scenario
You are a newly hired HR professional in a small private sector company that provides a broad spectrum of products for the cruise ship industry. The company repackages standard personal grooming products, perfumes, and lotions into smaller gift packages appropriate for customer appreciation gifts. There are 300 employees in the firm and the organization has a history of a stable workforce with very limited turnover. Recently, the company gained over 200 employees and there are a number of supervisory and managerial positions that need to be filled. The CEO has asked you to work with him to fill positions based on an organizational structure he has just created. It is rumored that the CEO has spoken discreetly to two internal candidates about the position and feels no need to take any action to announce the position internally. It should be noted that the employee manual specifies that all vacant positions be announced both internally and externally. New supervisors and managers are needed in sales (one), marketing (one), operations (two), and security (one). Each of these areas has seasoned employees eager to compete for jobs though some may not be as qualified as external candidates.
Your Challenge
You are now in a situation with a tough call to make. As the responsible HR professional, you must consider and decide which course of action will provide the greatest benefit for the company and its employees, and how to make a persuasive argument for your recommendation. Your options are to support the CEO's guidance, or to take a hiring position that protects the organization's legal posture and maintains an ethical work environment.

Instructions
Prepare a 3–4-page plan that states your recommended course of action. Along with your recommendation, include the following:
• Analyze how your proposed HR solution to an HR challenge contributes to organizational goals and strategies.
• Should you just follow the guidance of the CEO, or discuss the consequences of placing unqualified people in managerial roles?
• What might be the implications to you and the organization, if you remain silent without any further discussion?
• What is the potential opportunity cost of ignoring outstanding external candidates?
• Describe key legal factors you considered in the formulation of a proposed HR solution.
• Explain the role of the HR practitioner in advancing a proposed HR solution.
• Explain briefly the role you will take to influence the eventual outcome. Consider aspects of leadership, negotiation, and consultation.
• Include the pros and cons for promoting internally versus externally. Consider the implications to the organization and its operations when selecting from both of these populations.
• Discuss the application of any SHRM behavioral competencies to the process of solving an HR challenge.
• Which SHRM behavioral competencies are most directly applicable to a successful resolution of this challenge, and why?