There are a lot of advantages of hiring people inside the organization but at the same time a number of problems may arise if recruitment within the organization is taking place.
The drawbacks of recruiting from within are the following:

1. You will probably have to replace the person who has been promoted. So there still might be a need for external recruitment.

2. An insider will less possibly make the necessary criticisms needed to get the  organization acting more efficiently.

3. Promotion of one candidate within the organization may sadder someone else.