Are You Wasting Time and Money on Hiring Efforts?
In today’s job market, the case for internal recruitment is easy to make. In the US, job openings outnumber unemployed individuals by 4.6 million. The race to acquire and retain talent has intensified, increasing hiring costs. To add salt to the wound, one-third of new hires quit within six months! Increased turnover rates place added pressure on teams, elevating employee stress levels and threatening morale.
Internal recruitment provides a clear solution to many hiring pains. Though it saves company resources, improves culture, and reduces turnover, some leaders have not committed to its adoption. Why are they hesitant, given the benefits? When is it appropriate to recruit internally versus externally? Let’s explore the angles of internal mobility strategy and how to get the most from it.
From a financial standpoint, internal recruitment saves time and money.
- Attracting and hiring external candidates is costly and time-consuming.
- New hires require onboarding and increased training.
- Position salaries average 18% higher for external recruits.
- External hires are 61% more likely to be fired than existing employees.
- Extended vacancies cause productivity loss and customer retention challenges.
From a cultural standpoint, promoting advancement opportunities improves employee engagement and loyalty.
- Lessening the duration of vacancies relieves the team of added workload.
- Turnover influences the retention of existing employees.
- Employees are more likely to invest in organizations that invest in them.
- Over a third of workers feel they aren’t living up to their career potential.
- Three-quarters of employees who left their organization report that they would have considered staying with improved development opportunities.
With this knowledge, is it reasonable to challenge internal talent strategies? Good decision-makers think critically and ask the right questions. It is also important to challenge our assumptions and approach options with an open mind.
Let’s consider three common reasons why leaders oppose internal mobility.
They assume that greater diversity lies outside of the org.
Sometimes, an organization may have to search externally to acquire the needed skill-set for a position. Knowing when it is necessary is key to making an informed decision. Seeking first internally will help leaders ensure that they are not overlooking qualified employees. Does your leadership team have the means to identify team members with relevant skill-sets quickly? Are employee skill and performance data updated and accessible to the hiring team?
They believe promoting from within still requires hiring externally to backfill.
While this is a valid point, replacing a lower-level employee who has advanced internally costs much less than replacing a higher-level employee. Additionally, a reputation for welcoming entry-level talent and providing growth opportunities can attract ambitious junior employees and improve retention rates.
They believe it’s too time-consuming to adopt an internal recruitment strategy when hiring is urgent.
Tools such as the Built Org Chart allow leaders to search their current workforce for specific skills, licenses, and certificates, which aids short-term coverage needs and internal recruitment. In the case of an unexpected vacancy, employees with relevant skill-sets can be quickly identified and brought in to assist. With the Built Succession Planning module, leaders can prepare to fill open positions ahead of time. Evaluating and comparing internal candidates is made simple and easy with documented plans and a 9-box matrix.
In the race to fill open positions and retain talent, internal recruitment saves time and money while improving culture. Leadership buy-in is essential to implementing or enhancing an internal mobility strategy. To maximize outcomes, leaders should use position management data to set clear goals and monitor results, making incremental improvements.
Schedule a demo today to learn more about how Built provides efficient solutions for internal recruitment.