Internal recruitment, career development, and upskilling are all absolutely in demand right now. People are willing to learn more within their current organization and even their current role. People are actively looking to grow and develop and are seeking opportunities to move forward in their careers.
TAs explained in our Best Practice Guide to Internal Talent Mobility, "Driven employees want transparency into opportunities to learn new skills, take on different assignments, shadow on projects, find mentors and volunteer opportunities, and work with different teams and managers -- looking internally for personal growth journeys and new challenges."1
Here is what we know about why internal talent mobility is high on the agenda for organizations everywhere. 55% of employees said they are likely to look for a new job in the next 12 months,2 with social networks being the #1 source of hires, followed by job boards.3 And only 29% of HR leaders said employees were exploring career paths internally.
50% of employees said it is easier to find a new job outside their organization than inside. Plus, less than 33% of organizations have the technology to see their talent, despite over 75% having strategic priorities to improve their internal talent mobility initiatives.
The business benefits of internal recruitment and talent mobility are incredible. Internal hires cost half as much, take half the time to onboard, and are typically promoted faster. Plus, they have increased engagement and productivity and are far less likely to leave. On the other hand, external hires are 61% more likely to be fired, are paid up to 20% more, and take almost 2x longer to onboard. Not to mention they cost well over 2x as much as internal hires to recruit.
About This Report
An organizational culture that doesn't encourage internal mobility. 22% of respondents said that lateral moves are not encouraged in their organization. When exploring how organization size affected responses, 38% of organizations with more than 10,000 employees stated the culture of their organization does not support internal mobility, versus 18-21% of organizations of varying sizes below 10,000 employees.
A lack of positions for employees to move into. 40% of respondents stated that their organization lacks positions for employees to move into. When exploring how organization size affected responses, 52% of organizations with less than 100 employees said they lack roles for people to move into, versus 30% of organizations with over 10,000 employees. This finding is intuitive as we would anticipate smaller organizations to be leaner in roles and opportunities.
Poor processes for managing internal mobility. Our research found that 37% of all respondents said their organization lacks effective processes for managing internal mobility and 35% of HR leaders said their employees face challenges moving into new positions when there is an opening and/or learning opportunity.
HR do not have visibility to talent bench strength. A quarter of respondents said their HR teams do not have visibility to the talent bench strength across their organization. When exploring how organization size affected responses, 17% of organizations with between 1,000 and 10,000 employees said that HR does not have visibility to the talent bench strength across their organization, versus 28% of organizations with less than 100 employees. Ironically, smaller organizations appear to have less visibility to their internal talent.
Anne Fulton - Research Director Anne Fulton the author of The Career Engagement Game (a blueprint for workforce agility), worked 20 years as an Organizational Psychologist, and is currently founder and CEO of Fuel50. Josh Bersin, Global HR Industry Analyst, describes Fuel50 as the leader in its thinking, conceptualization, and execution of the Talent Marketplace. Anne is recognized as a talent futurist, with her team supporting some of the world's leading organizations and brands like United Nations, Verizon, HPE, Coca-Cola and CVS, and many more who are innovating on the employee career experience. Anne is a true thought-leader in the HR space - and has been described by SIOP as "one of the best keynotes I have heard over the last three decades of attending conferences in our field."
Marija Potter - Research Leader Marija is an Industrial/Organizational Psychologist and leads Fuel50's team of Workforce Architects. Marija is responsible for Fuel50's career architecture design approaches, and ensuring they drive business outcomes. Marija supports across Fuel50's clients, leading the design and delivery of career architecture. Marija's experience spans over 15 years of high impact consulting working in organizations such as IBM (London & Auckland), Kenexa, Imperial Tobacco and more. Marija is a sought-after speaker in the well-being, career management and organizational change space.