3. Hiring costs:

Whenever you are hiring a new candidate, there should be a thorough checking of their documents, have to fix the payroll for them according to their experience, and have to create various incentives and other administrative setting up costs. In the case of promoting an employee who is already working in the company in a different department, the company has an opportunity of reducing the cost of hiring process. Apart from that these employees would have already been entitled to all the incentives and other benefits that they deserve when they joined the company.

If the company hires a new candidate from outside, the company needs to take care of their relocation charges many times, if the company has any such policies. But, this can be avoided when the company just transfer or promote an employee who is already working in that company.So, by this there can be a big difference, in hiring a fresh or an experienced candidate from outside the company and transferring or promoting an inside worker to a different position.