Most companies prefer to hire from within, this is a great concept if the employee meets the qualifications. When you already know the candidate and their strengths and weakness the training process is likely to be quicker rather than bringing on a new employee. This also sends a message to other employees that there are opportunities to grow with the company.
Recruiting from within can also have its draw backs. Hiring externally can introduce a fresh perspective and outside-the-box thinking. It can also alleviate employees feeling overlooked or undervalued which can breed jealousy and friction within the workplace.
When all said and done, a company that demonstrates a policy of hiring from within, it is likely to foster greater employee loyalty. In the interim, not only are you reducing the cost involved in hiring and on-boarding a new team member, but the workflow is also uninterrupted, and you have a lower turnover rate and higher job satisfaction rate.