Many firms choose to post open positions within their companies. While this will create a pipeline of candidates via employee referrals and employees looking to move into a new role, the smaller the business the greater the potential pitfall with this process. The main concern is situations where someone applies for a position that you do not want to promote and then you are forced to address why they are not being considered. Many managers / companies are not prepared for such a confrontational discussion. Give some forethought as to the wisdom of internal postings with this possibility in mind.