Here are a few reasons why promoting internal growth and development over external hiring will pay off:
#1. Streamline onboarding
No matter how qualified the talent you bring into your organization is, getting them up to speed will require significant time and effort. Deloitte estimates that it takes two years for an external hire to gain the same level of insight into an organization that an internal hire has.
In contrast, your current employees already know how your organization works, so they’ll be able to step into critical roles more quickly. That’s why visionary enterprises like Seagate chose to prioritize internal mobility while shifting their business priorities. Rather than looking for external talent, the data storage leader harnessed its talent marketplace to launch a large-scale redeployment. Within four months of prioritizing internal mobility, the enterprise unlocked more than 35,0000 hours, leading to a savings of $1.4 million.
#2. Save on hiring, replacement, and freelancer costs
Prioritizing internal mobility won’t just save you time; it’ll also reduce hiring costs. Between recruiting fees and onboarding expenses, bringing new team members into your business isn’t cheap. And neither is watching the talent you’ve trained leave because the on-the-job training and organizational knowledge they’ve accumulated goes with them.
The overall cost of replacement hovers around 85% of your existing employee’s salary. Rather than watching hiring and replacement costs skyrocket, internal mobility helps businesses keep talent acquisition expenses low. Since employees are empowered to move into new roles within their organization, the knowledge they’ve accumulated will continue to be put to use throughout the business.
#3. Boost retention and engagement
It’s going to be a lot harder for your people to leave a business that supports their growth and empowers them to build the skills they need to achieve their goals. That’s why companies that prioritize internal mobility, like Seagate and Schneider Electric, are safeguarded from the devastating costs associated with today’s turnover tsunami.
When discussing how her organization is fairing during the Big Quit, Schneider Electric’s VP of Digital Talent Transformation, Jean Pelletier, explains, “What I will tell you, especially with the Great Reshuffle and the Great Resignation, is that we’re holding steady. And that’s super important to know.”
Seagate’s Chief Human Resources Officer, Patricia Frost, expressed a similar sentiment, noting, “We haven’t seen the Great Resignation at Seagate. The game-changer for us is this journey we’ve been on with Gloat. Employees have their careers in their hands and they can see vertical and lateral movement possibilities.”
