The Talent Management Handbook: Creating a Sustainable Competitive Advantage by Selecting, Developing, and Promoting the Best People, 2nd Edition

Chapter 12Determining Every Employee’s Potential for Growth

Murray M. Dalziel, Ph.D., Professor of Management and DirectorUniversity of Liverpool Management School

GROWING EMPLOYEES AND DEVELOPING A CULTURE OF SUCCESS GO TOGETHER. AS organizations grow, they often need more people, new skills, and different perspectives. This generates a dynamism that fuels growth. But depending on outside hires for your next growth spurt is fraught with danger. This tactic produces great headlines for sports teams but does little for business.

Consider the CEO, most popular role that companies feel compelled to hire from the outside. There is evidence that insiders produce superior returns to outsiders. In an extensive time series analysis of corporate performance ...