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Internal Mobility Benefits Employees and the Business

Hiring from the inside

Research has shown that internal mobility, the movement of employees from one position to another within an organization, is good for business – in terms of lower talent acquisition costs, faster time-to-productivity and higher retention rates than external recruiting.  While external recruiting is necessary to brings new ideas and talent to an organization, more and more companies are looking for ways to ramp up their internal hiring efforts. 

Employees, especially Millennials or Generation Y workers, want to stay in a company that provides a range of professional opportunities and career paths where they can grow their careers. Research results from a recent Hudson global report, “The Great Generational Shift,” reveal that those in Generation Y (born between 1980 and 1994) are 32 percent more ambitious than their fellow Baby Boomer workers. Generation Y is also 19 percent more ambitious than their Generation X colleagues (born between 1964 and 1979).

In fact, lack of career advancement opportunities is one of the main reasons that desirable, high-potential employees leave a business. According to a recent LinkedIn “exit survey” of 7,350 members across five countries, the top reason workers left their jobs was because they wanted greater opportunities for advancement. 

Embracing internal mobility also greatly reduces the time and training costs organizations spend onboarding external hires since internal candidates do not need new-hire orientation and tend to only require training on specific tasks related to the responsibilities of the role. Some studies even suggest a link between internal mobility and better financial performance.

Another advantage that internal hires have over external hires is that they have company knowledge and an established network, know the company’s processes and fit well within the culture and values of the organization. Internal hires are often found to have a number of transferable skills that are applicable to various business areas.

Understanding the appropriate mix of skills, personal characteristics, and experience required for employees to step into pivotal roles – through promotion or lateral moves or transfers – is a key element to any internal mobility program.  

As a first step, it’s important that organizations define the competencies needed for different types of roles. Competencies are defined as the measurable or observable knowledge, skills, abilities, and behaviors characteristic of high performance and success in a given job. Identifying the competencies for key roles within an organization allows employers to recruit and select the best employees, manage and train them effectively and develop staff to fill future vacancies.

The next step is to assess current employees against these competencies, usually those identified as “high potential” through current job performance, to determine if they have the aptitude, cognitive ability and personal characteristics to be successful in a particular role or roles – basically, answering the question, “Does this person have potential to do well at this job if provided the right technical training?” 

Professional development in the competencies associated with successful performance can assist in filling any gaps that may exist. Personal development plans geared to an individual’s specific strengths and weaknesses identified through the initial assessment can help prepare the employee for the next level. 

Hudson can assist organizations in developing an internal mobility program by developing a competency framework for critical roles and performing assessments of employees against those competencies using our proprietary tools and methodologies, such as competency-based interviews and psychometric testing, as well as role-play and work simulation exercises. Once the gaps are identified through the assessments, Hudson can create individualized development recommendations for employees, which may consist of coaching, mentoring, and specific instructional learning recommendations.

Clearly, the research indicates that it makes sense for organizations to mine their internal talent pool to fill open positions in addition to external recruitment efforts. Hudson experts can help ensure that companies select the right internal talent, and, if they are not right “right now,” can assist in developing them to be ready in the future.


Talent Strategy Drives Business Transformation

A vast majority of US multinationals are making changes, with 93 percent of respondents to a recent KPMG survey saying their companies are at some stage of undergoing or preparing for transformation. According to the survey report, “Business Transformation and the Corporate Agenda,” business transformation has taken hold across the broad corporate landscape due to the confluence of several important triggers, including a tipping point in globalization, a major slowdown in Western economies, significant shifts in technology and energy costs, and the challenges of regulatory compliance.

As people are any organization’s greatest asset, business transformations usually require the support of a strong HR function skilled in workforce planning and talent acquisition, development and retention to achieve business goals and optimize performance.  But many organizations are finding that their talent strategies, policies and processes are coming up short in these areas. 

Talent Strategy Survey Results

According to Deloitte’s survey series, “Talent Edge 2020,” talent was high on the priority list for many surveyed company leaders. 

  • 83 percent of survey respondents acknowledged that significant improvements are needed in their talent programs
  • 71 percent of survey respondents expressed “high” or “very high” concern about retaining critical talent over the next 12 months
  • Developing leaders and succession planning was cited as the most pressing talent concern

Traditionally, an organization’s talent management solutions were handled separately from its business strategy. However, the Deloitte study, “Global HR Transformation,” contends that HR needs to be more tightly linked to corporate strategy and to create business value through services that address a company’s key strategic challenges. 

Talent management solutions such as workforce planning become even more important in the midst of a business transformation. Workforce planning systematically identifies and analyzes what an organization is going to need in terms of the size, type, and quality of workforce to achieve its operational performance objectives. It determines what mix of experience, knowledge, and skills is required and allows businesses to get the right number of right people in the right place at the right time. Having a strong workforce planning process in place enables scalability, flexibility and performance in changing operating environments. 

Leaders are able to make well-informed decisions by quickly accessing data that otherwise would come from a number of disconnected spreadsheets, making analyzing information across all business functions extremely difficult and time consuming.

When properly executed, workforce planning allows recruiters to source, contact, screen and interview candidates, and submit the best among them to a hiring manager in a relatively short period of time. Sourcing the best candidates requires that the recruiter be aware of current workforce trends and have a strong knowledge of the available talent pool, both external and internal.  In fact, in many cases, internal recruiting is often the most expedient and least costly means to fill open positions, especially in the tight timelines required by a business transformation. 

Assessing the skills and abilities of an organization’s internal talent pool, particularly those deemed “high-potential” by their performance, is the first step. Once employees’ strengths and weaknesses are determined then development plans can be created to address and fill any gaps that were identified through training, coaching and mentorship.

With so much on the plate of the HR function, and the need for it to be “more tightly linked to corporate strategy,” as the Deloitte study argues, smart organizations often look to recruitment process outsourcing (RPO) and talent management providers to develop and implement talent solutions on their behalf. Especially in times of transformation, businesses need the quick turnaround, objective advice and effective follow-through that third-party resources can provide.

Hudson RPO & Talent Management can deliver both RPO and talent management services, and can take an organization’s talent strategy to the next level.  For more information, visit


Strong Employer Brand Key to Recruitment Process and Attracting Millennial Workers

This is an excerpt from “Launching a Successful employer Brand: Building on the Practices of top employer brands” by Hudson RPO and HRO Today magazine. To download the full report, visit

Millennials – also known as “Gen Y” and born roughly between the early 1980s and the early 2000s – are not only different from those who have gone before them, but their differences are many compared to the soon-to-retire Baby Boomer generation. In fact, statistics show that Millennials already form 25 percent of the workforce in the United States. By 2020, Millennials will form 50 percent of the global workforce. As such, recruiting the best of these Millennial workers will be critical to the future of any business. 

The unique characteristics of Millennials demand a different strategic approach to the recruitment process. First, companies need to do a better job of understanding what’s important to potential hires. Candidates today, especially Millennials, want to understand the totality of a role – what their experience will be at an organization and what it has to offer them. That’s why documenting and communicating a strong corporate brand is so important, according to a Hudson RPO/HRO Today magazine survey of 324 HR executives on their corporate branding practices. 

A corporate brand is much more than an explanation of the company’s strategy, markets and products – it’s an expression of an organization’s corporate culture and work environment. It defines the organization’s value to potential hires and informs them about what it is like to work there. It’s not enough anymore to have a good consumer brand. Companies need to specify why a candidate would want to join their organizations, and building their reputations as employers is an important place to start. In fact, according to a recent LinkedIn study, “The State of Employer Branding,” 83 percent of global recruiting leaders agree it’s a critical driver of their ability to hire top talent.

With the growth of technologies such as social media and text messaging, how Millennials communicate is vastly different from previous generations.  Now, candidates give more weight to employee reviews on websites such as Glassdoor in forming an opinion about companies.  As such, there cannot be a disconnect between how you present the company to the outside world, how your employees view the company and what it is actually like to work there.

Clearly, while a strong employer brand can help with recruitment, the brand must reflect the reality experienced by current employees. Bridging the image-reality gap is a key challenge for many organizations that struggle to meet their brand promise. The Hudson RPO/HRO Today magazine study stresses that an employer brand must be closely tied to a company’s Employee Value Proposition or EVP. 

An EVP is defined as the rewards and benefits employees receive in exchange for their performance. It is critical to workplace culture, career management and retention. According to the Hudson RPO/HRO Today survey, nearly half of the top brand companies stated that they have a defined EVP (versus just 20 percent for other brands).

A truly authentic EVP requires the input of employees across departments, geographies and seniority levels. The goal is to acquire a more honest, well-rounded view of the employer brand. Documenting employee impressions guides a richer, more authentic Employer Value Proposition. Plus, demonstrating to employees that their voices are valued and heard is a key part of the employer branding process. Employees, especially Millennials, will feel a strong sense of employer brand ownership and will be more likely to promote the brand to their wider community via social media. 

As noted, positive word-of-mouth from employees in an organization means a lot to Millennial candidates. In fact, organizations with top employer brands actively engage their employees in promoting the brand – 75.7 percent for top employer brand companies versus 51 percent among other brands, according to the Hudson RPO/HPO Today study.

To discuss your employer branding strategy today, contact a Hudson RPO representative and download the complete report by visiting





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Hudson (NASDAQ: HSON) offers highly specialized professional recruitment, recruitment outsourcing, talent management and related staffing services and solutions. Hudson RPO manages the people, processes and technology associated with recruitment on a fully outsourced or project basis. A global force in talent solutions, Hudson RPO designs, implements and manages custom recruitment process outsourcing programs for mid- to large-cap multi-national companies. Hudson RPO was named in HRO Today’s 2010, 2011, 2012 and 2013 Baker’s Dozen list, recognizing the top recruitment process outsourcing providers worldwide.