Passage A: External Recruiting (1) External recruiting is the attempt to attract job applicants from outside an organization. External recruiting may include recruiting via newspaper advertising, employment agencies, and online employment organizations; recruiting on college campuses, soliciting recommendations from present employees; and conducting «open houses». The biggest of the online job-search sites is Monster.com, which has almost all the Fortune 500 companies, as well as small and medium-sized businesses, as clients. In addition, many people simply apply at a firm's employment office. (2) Clearly, it is best to match the recruiting means with the kind of applicant being sought. For example, private employment agencies most often handle professional people, whereas public employment agencies (operated by state or local governments) are more concerned with operations personnel. We might approach a private agency when looking for a vice president but contact a public agency to hire a machinist. Procter and Gamble hires graduates directly out of college. It picks the best and brightest – not those «tainted» by another company's culture. It promotes its own «inside» people. This policy makes sure that the company retains the best and brightest and trains new recruits. Procter and Gamble pays competitively and offers positions in many countries. Employee turnover is very low. (3) The primary advantage of external recruiting is that it brings in people with new perspectives and varied business backgrounds. A disadvantage of external recruiting is that it is often expensive, especially if private employment agencies must be used. External recruiting also may provoke resentment among present employees. Passage B: Internal Recruiting (1) Internal recruiting means considering present employees. Among leading companies promoted from within. In the companies that hire CEOs from outside, 40 percent of CEOs are gone after 18 months. (2) Promoting from within provides strong motivation for current employees and helps the firm to retain quality personnel. General Electric, ExxonMobil, and Eastman Kodak are companies dedicated to promoting from within. The practice of job posting, or informing current employees of upcoming openings, may be a company policy or required by union contract. The primary disadvantage of internal recruiting is that promoting a current employee leaves another position to be filled. Not only does the firm still incur recruiting and selection costs, but it also must train two employees instead of one. (3) In many situations it may be impossible to recruit internally. For example, a new position may be such that no current employee is qualified, or the firm may be growing so rapidly that there is no time to reassign positions that promotion or transfer requires. Unions are culturally specific to countries other than Saudi Arabia, so test takers may not be familiar with «union contract».
According to Passages A and B what is the benefit of promoting within a company?