Organizations often overlook their current workforce when restructuring teams and instead focus on hiring external talent. However, an intentional approach to internal talent mobility can create an agile workforce capable of responding to rapid change. Cultural barriers such as a lack of employee awareness about available roles and hesitation to pursue them need to be overcome for this concept to be fully embraced. Despite this, more employers are recognising the benefits of internal mobility, with role changes within organizations increasing by 10% over the past five years and 76% of C-suite executives rating it as important according to the 2019 Deloitte Human Capital Trends report.
Prioritizing internal talent mobility can boost employee retention, productivity, and overall business success. Here are the benefits of leveraging internal talent pools to enable internal mobility:
Reduced Recruitment Costs
Internal mobility reduces recruitment costs by minimizing the need for external hiring. According to a study by the Society for Human Resource Management, the average cost-per-hire for external candidates is $4,129, while the cost-per-hire for internal candidates is $1,642. By promoting internal mobility, companies can save on recruitment costs while retaining valuable employees.
Increased Employee Satisfaction
Internal mobility increases employee satisfaction by providing opportunities for career growth and development within the company. Employees who feel that they have opportunities for advancement are more likely to be satisfied with their jobs and less likely to leave the company. According to a study by LinkedIn, 59% of employees who are satisfied with their career opportunities are less likely to look for a job elsewhere.
Enhanced Employee Loyalty
Internal mobility enhances employee loyalty by demonstrating that the company values its employees and is willing to invest in their career growth. Employees who feel valued and supported by their employer are more likely to stay with the company long-term. According to a study by the Harvard Business Review, employees who are promoted internally have a 70% chance of staying with the company for at least five years.
Reduced Onboarding Time
Internal mobility reduces onboarding time by allowing employees to transition to new roles or departments more quickly. Internal candidates are already familiar with the company culture, policies, and procedures, which reduces the time needed for training and orientation. According to a study by the Aberdeen Group, companies with strong internal mobility programs have a 60% faster time-to-fill for open positions.
Faster Time-to-Productivity
Internal mobility leads to faster time-to-productivity by allowing employees to leverage their existing skills and knowledge in new roles or departments. Internal candidates are already familiar with the company’s products, services, and customers, which reduces the time needed to get up to speed. According to a study by the Corporate Leadership Council, internal hires reach full productivity two months faster than external hires.
Improved Knowledge Transfer
Internal mobility improves knowledge transfer by allowing employees to share their skills and knowledge across different roles or departments. Employees who have worked in multiple roles or departments have a broader perspective and can bring new ideas and best practices to their new positions. According to a study by Deloitte, companies with strong internal mobility programs have a 34% higher rate of knowledge transfer.
Improved Succession Planning
Internal talent pools improve succession planning by identifying and developing potential leaders within the company. 
By promoting from within, companies can ensure a smooth transition of leadership and maintain continuity in their operations. According to a study by the Corporate Leadership Council, companies with strong internal mobility programs have a 29% higher rate of leadership bench strength.
Increased Organizational Agility
Internal mobility increases organizational agility by allowing companies to quickly adapt to changing business needs. Employees who have worked in multiple roles or departments have a broader skill set and can be redeployed to different areas of the company as needed. According to a study by McKinsey, companies with strong internal mobility programs have a 2.5 times higher revenue growth and a 1.8 times higher profit growth than companies with weak internal mobility programs.
Improved Diversity and Inclusion
Internal talent pools improve diversity and inclusion by providing opportunities for employees from underrepresented groups to advance within the company. By promoting from within, companies can ensure that their leadership reflects the diversity of their workforce. According to a study by the Center for Talent Innovation, companies with strong internal mobility programs have a 30% higher rate of women and minority representation in leadership positions.
Conclusion
Prioritizing internal talent mobility can boost employee retention, productivity, and overall business success. The benefits of internal talent pools include reduced recruitment costs, increased employee satisfaction, enhanced employee loyalty, reduced onboarding time, faster time-to-productivity, improved knowledge transfer, improved succession planning, increased organizational agility, and improved diversity and inclusion. Internal marketplaces are the future of talent management, and companies that prioritize internal mobility will have a competitive advantage in attracting and retaining top talent.
Skill Beyond Boundaries offers an agile Internal Talent Management Platform that can help you maximize your workforce potential and be future ready.
References:
https://www.investopedia.com/financial-edge/0711/the-cost-of-hiring-a-new-employee.aspx