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What better new hires? Stop hiring.
Hiring strategies of the past decades believed that external hiring would bring better, fresher talent with more innovation and drive. Research has proven this to be false. It turns out that while hiring outside talent can bring in new skills, it’s hard to hire for the critical skills that really make the team successful. These include loyalty, creativity, relationships building, and innovation.
In our latest eBook, we break down the six pillars companies need to master to stay competitive in the age of automation and AI. Internal Mobility (or “Internal (R)Evolution,” as we like to call it) is one of those pillars.
Here are some of the reasons why Internal Mobility is so effective at improving business outcomes:
Employee engagement is hard to come by these days. The latest Gallup Polls find it lingering precariously around 35%. That means 65% of your workforce could be (a lot) more engaged.
Internal mobility has many benefits; the biggest one is the immediate and ongoing boost it gives to your employee engagement. Promoting from within demonstrates to your team that you invest in them. Plus, it often goes hand-in-hand with other workforce amplifiers, such as diversity and development. 54% of organizations that invest in learning technology see immediate improvements in employee engagement and productivity.
Now, let’s go back to those skills money can’t buy: creativity, mission, relationship building, etc. All of these skills are people skills. They don’t rely on technology but on people feeling their best, and that’s where your current staff has the edge.
Prolonged talent searches damage your team’s morale and cause stress. Of course. But the more significant damage comes from losing relationships and industry knowledge, which some estimate can take up to two years to replace. But don’t take our word for it.
Studies show that external hires receive worse performance reviews for up to two years before they catch up to internal promotions. This lower performance leads to a 61% higher likelihood of being laid off or fired in their first year of employment. Talk about a potentially expensive mistake, especially when most external hires cost more than promotions.
OK, so we’ve finally persuaded you that your best workforce is the one you already have. So how do you capitalize on that?
First, break free from traditional roles and titles-based thinking. Job titles silo employees, limit their potential growth and engagement and are generally biased. To maximize your workforce’s potential and interrupt bias, consider focusing on their skills and capabilities rather than current titles. This not only simplified and amplifies your workforce planning and professional development efforts. It also allows every team member to contribute to the team and grow in a meaningful way.
So let’s dive a little deeper into unconscious bias and how to stop it in its tracks. In addition to shifting from title and skills, Talent Intelligence and Workforce Intelligence technologies can help you instantly extract insights into the skills of your workforce and its employees. This data-driven approach to hiring and promotion not only nips bias in the bud. No, it can help highlight past instances of bias and discrimination. Such as women or people of color who were skipped for promotion but have the skillsets and experience to tackle bigger challenges.
While technology does an amazing job at amplifying internal mobility, getting it off the group is up to you. Yes, you.
Make sure you post job opportunities internally, encourage managers to promote from within, and discuss career paths in performance reviews. The studies show that all companies have gems hidden in their ranks. And with good policies, the right support, and maybe a tech assist (Censia does offer some great Internal Mobility Matching functions), you can save time and money, stop churn, and create a greater business impact.