You’re in the trenches every single day. You know your business inside and out. But there’s this one problem that keeps popping up, and it’s exhausting.
Someone quits. Or business is booming, and you need a new role. What’s the first thing you do?
You probably jump on LinkedIn, post a job ad, and start the horrible, draining process of sifting through resumes. You’re looking for a superstar from the outside. A knight in shining armor to ride in and save the day.
I’m here to tell you something that might be hard to hear.
If every single time you have an open spot, your first and only move is to look outside your company… there is something fundamentally wrong with your team.
It’s like having a car that gets a flat tire every week. You could just keep putting on new tires. Or, you could take a look and realize there’s a giant nail stuck in your garage door that you keep driving over.
Constantly hiring from the outside is a symptom of a much bigger problem. It means your company isn’t growing its own people. And that’s a huge missed opportunity.
The “People” Piece of the Puzzle
You might have heard of a business framework called EOS (the Entrepreneurial Operating System). It’s a set of simple tools that helps businesses get their act together. One of the core ideas in EOS is called the “People Component.” It boils down to a brilliant but simple idea:
You need to have the right person, in the right seat.
Let’s break that down because it’s the key to everything.
The Right Person: This is someone who shares your company’s core values. They get it. They fit in with the culture. You trust them. They’re not just good at a task; they’re a good human being for your team.
The Right Seat: This means they are in a role that uses their unique talents. They have the skills to do the job well (or the ability to learn them quickly). They are passionate about the work, and it doesn’t burn them out.
When you have the right person in the right seat, magic happens. Work gets done efficiently. People are happier. Your life as the owner gets easier.
But when you constantly hire from the outside, you’re admitting something: you don’t believe you have any “Right People” who can move into a “Right Seat.” And that, my friend, is a leadership problem, not a people problem.
The Vicious Cycle of Outside Hiring
So, why is it so bad to always look outside? It feels like the fastest solution, right? Well, it often creates a vicious cycle that hurts your business.
1. It Kills Morale and Motivation.
Imagine you’re one of your current employees. You’ve been working hard for two years. You’ve learned the ins and outs of the business. You’re loyal.
Then, a manager position opens up. You’re excited! You think you have a shot. But what happens? The boss brings in some outsider. Someone who doesn’t know the customers, the systems, or the inside jokes.
How would you feel?
Unappreciated.
Invisible.
Stuck.
That feeling is a cancer for company culture. Your best people—the ones you really want to keep—will start updating their resumes. They’ll leave for a company that actually values their growth. And then you’ll have another position to fill, starting the whole miserable process over again.
2. The “Superstar” Illusion.
Hiring from the outside is a gamble. A resume and a few interviews can’t tell you the whole story. That “rockstar” from another company might have had a great support system you don’t have. Their culture might have been totally different.
You’re bringing in a puzzle piece from a different puzzle and hoping it fits into yours. Sometimes it works. Often, it doesn’t. The cost of a bad hire is enormous—in time, money, and the disruption it causes your team.
3. You’re Ignoring Your Greatest Asset.
Your current team is a goldmine of talent that you’re not digging into. They already know how your business works. They already live your culture. They already have relationships with their coworkers and your clients.
Training them for a new role is almost always faster and cheaper than training a complete outsider. You’re building on a foundation that’s already there, instead of starting from scratch.
How to Break the Cycle and Start Growing from Within
Okay, so we’ve identified the problem. What’s the solution? It’s time to be more intentional about your people. It’s time to start looking at your team not just as workers for today, but as your future leaders.
Here’s a practical plan you can start using right now.
Step 1: Get a GWC on Every Role.
This is another powerful EOS tool. GWC stands for: Gets It, Wants It, Capacity to Do It.
For every single role in your company (including yours!), you should ask these three questions:
Gets It: Does the person fundamentally understand the job? Do they get the responsibilities and what success looks like?
Wants It: Do they want this specific job? Do they have the passion and desire to do it well? (Hint: Just wanting a promotion or more money isn’t enough).
Capacity to Do It: Do they have the time, mental bandwidth, and natural talent to do the job well?
Before you even think about hiring for a role, look at your current team. Is there someone who has a GWC for that seat? Maybe they’re in a different seat right now, but they have the potential. That’s your first and best candidate.
Step 2: Create a “Who Chart” (Not a “What Chart”).
Most business owners have an org chart that shows what everyone does. It’s a list of roles and titles.
I want you to create a “Who Chart.”
Take a whiteboard or a piece of paper. Write down every key role in your company. Then, write the name of the person who is in that seat. Now, for each person, ask yourself:
Are they the right person for this company? (Do they share our values?)
Are they in the right seat? (Do they have a GWC?)
This will give you a brutally honest picture of your team. You’ll see where your strong players are. More importantly, you’ll see the gaps. You might realize, “Wow, Sarah is an amazing right person, but she’s totally in the wrong seat. She’d be a much better customer service manager than she is a salesperson.”
Step 3: Talk to Your People! (The “Huddle Up”)
You can’t know what your people want if you don’t ask them. Most owners are scared to have these conversations. They think, “If I ask Joe if he wants to be a manager, and he says yes, but I don’t think he’s ready, it will create drama.”
Trust me, not knowing is worse.
Schedule a one-on-one meeting with each of your key people. Make it casual. Get a coffee. And ask them some real questions:
“What do you love most about your job right now?”
“What part of your work feels like a drag?”
“Where do you see yourself in this company in two or three years?”
“Is there another role in the business you’re curious about learning?”
You will be shocked by what you learn. You might discover that your quiet, behind-the-scenes bookkeeper has a hidden talent for and interest in marketing. You might find out your star salesperson is actually burning out and would love to move into a training role.
This isn’t a promise to promote them. It’s a conversation to understand their goals. This information is pure gold for your “Who Chart.”
Step 4: Invest in Skill Development.
Once you know what your people want, you can help them get there. This is where most small businesses drop the ball. They expect people to already have all the skills.
But if you want to promote from within, you have to be willing to train.
This doesn’t have to be expensive! It can be:
Sending them to a local workshop or an online course (like on Coursera or Udemy).
Having them work alongside another employee to learn new skills (this is called “cross-training”).
You mentoring them yourself on a specific topic.
Buying them a book about leadership or a new skill.
When you invest in your people, you send a powerful message: “I believe in you, and I want you to grow with this company.” That builds loyalty you can’t buy with a paycheck.
When is it Okay to Hire from the Outside?
I’m not saying you should never hire from the outside. That would be crazy. There are times when it’s the absolute right move.
When You Need a Brand New Skill: Your company is moving into digital marketing, and no one on your team has any experience? That’s a great time to bring in an expert.
When There’s Truly No One Ready: You’ve looked at your “Who Chart,” you’ve had the conversations, and you genuinely don’t have a right person who wants or has the capacity for the role.
To Inject Fresh Perspective: Sometimes, bringing in one new person can shake things up in a good way and introduce new ideas to the team.
The key is to make it a conscious choice, not a default habit.
The Bottom Line
Building a business that grows from within is a slower burn. It takes more upfront work. It requires you to be a coach and a mentor, not just a boss.
But the payoff is a thousand times better.
You’ll build a team of incredibly loyal, skilled people who are invested in the company’s success because the company is invested in their success. You’ll have a stronger, healthier culture. You’ll save a ton of money and stress on constant recruiting.
So, the next time a position opens up, fight the urge to immediately post a job ad. Take a breath. Pull out your “Who Chart.” Huddle up with your team.
Find your next superstar. You probably already hired them years ago. You just need to give them a chance to shine.
Grab my book! https://amzn.to/45Cm2ky
Hi, I’m Heather.
Let me help you scale your Utah $1M+ biz to $20M+
My credentials:
- Built & sold Queen of Wraps (yep, that’s my face on the side of I-15)
- Learned 1,769,230+ lessons so you skip trial-and-error
- Zero Ivy MBA (just pioneer grit + market-tested tactics)
Let’s talk if you’re:
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