1. Considerable savings can be made. Individuals with inside knowledge of how a business operates will need shorter periods of training and time for 'fitting in'.
2. The organisation is unlikely to be greatly 'disrupted' by someone who is used to working with others in the organisation.
3. Internal promotion acts as an incentive to all staff to work harder within the organisation.
4. From the firm's point of view, the strengths and weaknesses of an insider will have been assessed. There is always a risk attached to employing an outsider who may only be a success 'on paper'.