Why Employers Hesitate to Hire External Talent for Mid-Career Leadership Roles – And What It Costs Them
In the world of recruitment, there’s a recurring issue that’s often overlooked, particularly for mid-career professionals seeking leadership opportunities.
Employers tend to focus on filling senior roles with candidates from within their organisation or from familiar networks, rather than looking outward for fresh talent.
This internal-first mindset can be a barrier for ambitious candidates who are looking to take on greater responsibility but find themselves locked out due to company preferences or an unwillingness to consider lateral moves.
For candidates in their mid-career stages, this can create a frustrating disconnect.
They’re ready for the challenge of leadership and eager to step up, but they face rejection not because of their qualifications or experience, but because employers are unwilling to look outside their current workforce for growth opportunities.
This reluctance to hire externally or the tendency to only engage when there’s an immediate vacancy is not only detrimental to these candidates but also to the employers themselves.
The Problem: Only Hiring When There’s a Vacancy
One of the most common issues employers face is the reactive approach to hiring — especially when it comes to leadership roles.
Companies often only engage external candidates when there’s a vacancy to fill. It’s an understandable, though limiting, strategy.
When a key role opens up, organisations scramble to find someone who can step in immediately, often prioritising internal candidates or familiar faces over fresh external talent.
This hiring approach can be detrimental, especially when companies rely heavily on internal promotions or lateral movements to fill leadership gaps.
As a result, mid-career professionals seeking growth opportunities are often left stuck in their current roles, unable to progress despite their readiness for the next step.
“External candidates, such as those I’m currently working with, often find themselves excluded from leadership opportunities—not because of a lack of experience, but because they’re seen as ‘too junior’ for the role or ‘too senior’ for a lateral move.” — Richard Duke, Search Consultant
For candidates looking to make the leap into leadership, this reactive hiring approach creates a barrier to entry. Companies wait until a role becomes vacant rather than proactively engaging with talent.
External hires bring unique insights and diverse ideas that are crucial for leadership positions. (LinkedIn - Chapman)
As Chapman highlights in her article on LinkedIn, embracing diversity in hiring allows industry outsiders to bring fresh perspectives that can drive innovation and open new opportunities for growth.
Why Employers Aren’t Hiring External Talent for Mid-Career Leadership Roles
The hesitation to hire externally for leadership roles, especially at the mid-career level, often comes down to a few factors.
First, there’s the comfort factor:
Employers are often more inclined to promote from within or hire candidates they know, rather than taking a chance on an external candidate.
There’s a certain familiarity and perceived security in hiring someone who already understands the company’s culture and operations.
This internal preference can be especially limiting when companies don’t have a clear strategy for onboarding external candidates or haven’t invested in proactive talent acquisition.
Mid-career candidates who are looking for leadership roles often find themselves stuck because employers are hesitant to bring in someone who might need to be “trained up” on the specifics of the company, even though their leadership potential and experience would be an asset.
As McKinsey & Company highlights in their article, many organisations need help to balance internal promotions with external hiring, especially when talent is scarce.
They suggest that proactively hiring critical talent ahead of demand, rather than just filling vacant positions, is essential for long-term growth.
External hires bring fresh perspectives and innovation that internal hires may lack, which is crucial for a company’s strategic growth. (McKinsey & Company - Talent Strategy)
The Lateral Move Dilemma
Another issue many mid-career professionals face is the reluctance to take a lateral move.
A candidate may be highly qualified for a leadership role in another organisation but refuses to move laterally in their own career, as it doesn’t align with their long-term career aspirations. This hesitation often comes from a desire for growth, recognition, and more responsibility.
Lateral moves can seem stagnant to candidates who want to make a jump in their careers, not just shift sideways.
However, when companies reject candidates who are seeking growth, they risk missing out on talent that could bring a fresh perspective and invaluable experience.
As Gallup discusses, companies that foster a culture of innovation and encourage employees to take risks and learn from their failures are more likely to see success.
By creating an environment where employees are empowered to try new things and fail fast, organisations open the door to fresh leadership approaches. Companies that fail to create this environment may stifle the growth of potential leaders, particularly those from outside their organisation who are seeking growth opportunities. (Gallup - Innovation and Agility)
For a company, this can be costly. It risks losing out on a capable, motivated candidate and stifles internal talent growth by creating an environment where opportunities for advancement are limited.
Which company isn't facing headwinds with Reimbursement, Prosthesis List Reforms and other cost pressures impacting their once-envied margins?
When companies fail to engage with potential leaders from outside their organisation, they miss the chance to bring in new leadership approaches and ideas that could help the business thrive in a competitive market which the MedTech industry globally and in Australia certainly is.
How to Make External Leadership Hires Work
The solution to this issue lies in proactive hiring and a shift in mindset.
Instead of waiting for a vacancy to arise, companies should build relationships with external recruiters and talent pools, identifying potential leaders before a vacancy emerges.
External talent can be especially beneficial during times of transformation, whether through a market shift or organisational change. These candidates bring fresh perspectives, innovative strategies, and specialised knowledge to tackle complex challenges.
External hires can introduce new insights and ideas that internal teams may not have had exposure to, particularly if a company is navigating changes in leadership, technology, or culture.
By broadening your approach and seeking leadership from outside your organisation, you can gain the critical skills necessary to drive long-term success and transformation.
Conclusion
The hesitation to hire external talent for mid-career leadership roles isn’t just limiting for candidates — it’s also holding businesses back from discovering fresh talent that could drive innovation and growth.
Companies should take advantage of highly qualified, driven professionals ready to step into leadership roles and help move the business forward by focusing only on filling vacancies or promoting from within.
For candidates, it’s a reminder that the right opportunity may require seeking out a company willing to invest in your growth and give you the leadership responsibility you deserve!!
If you’re seeking a leadership role, remember that growth often comes with persistence and patience.
The search for the right opportunity can be challenging, and rejection doesn’t reflect your capabilities—it simply means the right fit hasn’t come along yet.
Managing stress and staying focused on your long-term goals will keep you resilient during this journey.
Know that your ideal opportunity will align with a company ready to invest in your growth and offer you the leadership role you deserve.
Don’t let the process discourage you; it’s not about you—it’s about finding the right fit for your skills and aspirations.
Ready for your next career move:
Take the next step by exploring our Career Readiness Assessment and discover how prepared you are for leadership opportunities.
Let’s map out your growth strategy today. Take the assessment now.
Alternatively, if you’re feeling stuck or need guidance, check out a popular article that has done the rounds since it was published on Managing Stress and Patience in Your Job Search for tips on staying focused and positive while navigating the recruitment process.
Key Takeaway for Employers:
For a more in-depth look at potential pitfalls in your hiring process, check out my article on 7 Common Mistakes MedTech Hiring Managers Make When Building Their Recruitment Process to ensure your strategy is primed to attract the right leadership talent and avoid common missteps.