1) Reduction in Turnover Costs
The most measurable benefit of investing in internal talent mobility is a decrease in turnover rates. When employees leave a company, that company doesn’t just pay for the cost of hiring a replacement. They must also shoulder the lost productivity, connections, and knowledge of the departing employee. A talent mobility strategy can greatly reduce these costs: a recent LinkedIn study showed that such a strategy would encourage 41% of employees to stay longer at their current job.
A strong sense of loyalty among employees also inspires interest from outside candidates. As Robert Erickson, Denise Moulton, and Bill Cleary wrote for Deloitte in 2018, internal mobility helps managers “create a powerful magnet for people outside your organization who seek professional growth.” All workers, but Millennials in particular, value the ability to rise and grow within an organization. When that opportunity is prevalent in a company, they will be more likely to stay—and their peers will want to join them.
2) Higher Employee Engagement
Retaining and developing top talent means consistently providing them with new options for growth and evolution. When a company invests in coaching and cross-training in the service of internal mobility, it can drastically increase employee engagement. Employees are eager to maximize their existing skills and develop new ones; they also want to know that their career development is a priority to their company. Implementing systems that aim to match employee skill sets with ongoing opportunities is therefore an important way to increase worker satisfaction and efficacy. With a transparent talent mobility program, employees understand that their interests and needs are valued. And they are able to focus on their own growth, learning, engagement, and communication.
Providing agile career models is an important factor in maximizing employee engagement. Opportunities for internal hiring and lateral movement allow employees to feel a sense of ownership over their career path. Knowing that their own goals align with those of their employer will help employees feel valued and motivated. And management gains a better understanding of an employee’s skills as they move between roles.
3) Overall Improvement to Productivity and Satisfaction
Prioritizing internal hiring can significantly cut the amount of onboarding time required by a new hire, especially in crucial leadership positions. This leads to higher workforce productivity and satisfaction. It also encourages better management practices. When management is invested in worker satisfaction and attuned to the skills and needs of its employees, managers are better equipped to support those workers. The communication required of a talent mobility strategy also develops meaningful connections between employees and management.
Another important aspect of talent management is global mobility. In order to succeed in understanding and supporting their workforce, companies need a centralized database that locates their global workforce and allows for strategic mobility. Mapping talent is the first step in leveraging its potential.