Hiring internally improves retention, but it also has other benefits for companies that spend time developing their talent. Promoting employees saves you money in hiring but keeps historical company knowledge intact over time. If employees know there are opportunities to advance in your company, they will likely stick around. But how can you develop internal talent in a way that provides them with clear opportunities to move up the ladder?
Why Develop Internal Talent?
There are three key benefits for employees when they develop programs to help advance their internal talent:
- Internal candidates know the company culture and are already a fit.
- Internal candidates are already onboarded.
- Internal candidates are more likely to stay in your company long-term.
Yet, ironically, only 37% of employers encourage internal employees to pursue openings in their company. Perhaps that’s because only 6% of employers feel like their current employees have the skills necessary to advance. We would suggest the fault for that rests in part with the employer. The benefits of promoting employees from within are clear. But what is your organization doing right now to move your workforce up the ladder?
Tips for Internal Promotions
Harvard Business Review (HBR) came up with some ways employers can update their employee management, retention, and promotion efforts:
- Plan ahead. We often ask candidates what their five-year plans are. When was the last time you did that for new hires? Managers should plan a talent strategy to develop internal talent with potential. Give thought to new hires and how they fit with long-term business strategy. Then sit down with new employees and ask them (again) what their long-term goals are. A manager’s job should be to find the best way to nurture these talented employees so that they have a place in your business.
- Focus on the right employee characteristics. HBR points out that the jobs of yesterday are evolving as technology changes. So, evaluating employee traits that matter shouldn’t necessarily concentrate just on prior performance. Look for traits like adaptability, emotional intelligence, and ability to learn. Then develop upskilling training that prepares your best employees for the jobs of the future, not of the past.
- Turn your managers into better coaches. This is key for employee retention but also to make sure key talent is not only spotted, but nurtured. Managers must learn the art of giving critical feedback and matching it with rewards that matter to their employees. HBR says, “In sum, being a great manager is, in large part, about being an expert in talent matters.”
Contact Us Today!
The reality of your current workforce is that you likely have a lot of the talent you need right under your nose. It’s hard to stay on top of best practices that can help you improve employee retention and time to hire. That’s where FoxHire can help. As an employer of record (EOR), we offer our clients a turnkey service to manage your employees. Contact our firm today about how we can help your company develop internal employees and bring on new ones.
