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.