What is a potential drawback of hiring from within?

Hiring from within can indeed present potential drawbacks, and one significant concern is the limitation of the candidate pool. When organizations choose to hire exclusively from their existing employees, they may restrict the diversity of ideas, experiences, and skills brought into the company. This can hinder innovation and the introduction of fresh perspectives that external candidates might offer. A narrower candidate pool can also mean that the best talent for a specific role—who may possess unique qualifications or experiences that are not represented among current staff—might be overlooked.

By focusing only on internal hires, companies may miss out on the opportunity to bring in new talent that can help address gaps in skills or drive significant changes necessary for adaptation or growth. This limitation can potentially impact the company's long-term success and ability to remain competitive in a fast-evolving market.