Leaders face a decision when filling senior positions: promote from within or hire externally. Promoting internally rewards loyal employees and leverages institutional knowledge, but these individuals may lack necessary skills. Conversely, external hires bring fresh perspectives and potentially more experience, but they also carry risks and can disrupt company culture. The Fast Company Impact Council members shared their approaches to this dilemma.Many leaders assess each role individually, considering required skills, experience, and alignment with company values. Some emphasize defining necessary skills and providing upskilling opportunities for internal candidates. Balancing trust and capability is crucial, with some favoring loyalty and integrity over immediate technical expertise. The focus is often on the person's potential, ambition, and cultural fit rather than just filling a vacancy.Institutional knowledge is highly valued by those who lean towards internal promotion, often preferring capable internal candidates with 75% of required skills over external hires claiming 100%. However, a balance is sought, with some aiming for a mix of internal and external hires. External hires are seen as carrying risk, not only in their learning curve but also in potential cultural disruption. Thorough vetting and training are deemed essential for internal promotions to ensure success.The stage of the company and the specific needs of the role at that moment are also key considerations. Some leaders assume senior candidates possess baseline technical skills and prioritize interviewing for curiosity, authenticity, and judgment. Evaluating whether the business needs acceleration through external expertise or optimization through internal development is another perspective. Ultimately, the goal is to find the best person for the role, whether they come from inside or outside the organization.