Improving Employee Retention Strategies: Making the Most of Internal Talent
Before your organization embarks on a protracted external talent search, look internally first. A strong internal mobility program drives retention and empowers the workforce of the future.
Understanding the potential of internal talent and upward mobility opportunities
Internal mobility is more than backfilling open roles with capable internal candidates. Organizations must first have a specific internal mobility strategy that deliberately facilitates ongoing employee development and creates tangible opportunities for employees to transition to different roles, departments, or locations within the organization while ensuring they are equipped to succeed and thrive in their new capacities. A critical enabler to creating effective cross-functional movement is to develop a full mapping of capabilities between all the major functions in the organization.
Internal mobility can be lateral or vertical, with each offering unique benefits and opportunities:
Role-to-role mobility encourages employees to explore different positions within the organization to gain diverse experiences, broaden their skills, and develop a holistic understanding of the business.
Transfers provide employees with the opportunity to work in different departments or locations, exposing them to new challenges and perspectives. This can be instrumental in fostering cross-functional collaboration and breaking down silos within an organization.
Upward mobility empowers employees to progress within the company and assume higher-level roles. It also ensures valuable institutional knowledge and expertise are retained and utilized effectively by rewarding employee tenure and loyalty.
Project-based mobility allows employees to participate in cross-departmental or cross-functional projects where they can showcase their abilities, contribute to strategic initiatives, and build stronger peer relationships.
No matter the nature of the mobility, tapping internal talent for new opportunities sets a precedent for success benefitting both the employer and employee. Organizations remain agile and employees are validated in their efforts to further their careers.
Internal mobility is crucial to business success
What do organizations gain when they prioritize internal mobility? Aside from easing the challenges and costs of an increasingly competitive talent marketplace, there are a bevy of additional benefits to consider:
Reduced hiring costs. When you promote from within, you avoid the cost of posting job ads, conducting extensive interviews, and onboarding new hires. Additionally, internal candidates typically require less training and have a better understanding of the company's processes and culture, leading to faster ramp-up times.
Better use of time and resources. Internal mobility allows you to identify and elevate talent more efficiently. You already have a thorough understanding of your employees' capabilities, performance, and potential, making it easier to match the right individuals with the right opportunities.
Healthier company culture. When employees see opportunities for growth and advancement, for everyone and at all levels, they’re more likely to stay engaged and committed to their roles. This fosters a positive, inclusive, and ambitious work environment, where employees feel valued and appreciated for their contributions.
Improved retention. Internal mobility with talented employees as an improved employee retention strategy provides a clear progression route for ambitious individuals, reducing the risk of top talent seeking opportunities elsewhere. When employees know their hard work and achievements can lead to advancement, they’re motivated to stay committed to the organization's long-term goals.
Internal mobility optimizes the resources you already have. You spend less time preparing to fill a role and more time capitalizing on the talent already present within your organization.
The right tools matter: PI Hire & Inspire
Creating an internal mobility strategy requires extensive forethought and planning, including identifying the best tools to facilitate positive results. A software tool or assessment can help you gain personal insights into employee strengths and skills – at scale. This can help employees identify and seize mobility opportunities. At Fitch Consulting, we use the Predictive Index (PI) to enable and empower our clients.
PI Design
It’s important to design a mobility strategy where everyone gets to make the best use of their strengths, and teams are strategically designed for effective performance. PI Design provides a powerful framework that ensures executives and teams are tightly aligned on business strategy priorities, and then helps design the teams that are best equipped to deliver the agreed strategic goals.
PI Hire
Predictive Index talent assessment tools are useful for far more than identifying quality candidates. They can play a crucial role in promoting career mobility within an organization by enhancing employee transparency and employer accessibility. When you capture the right metrics, career recommendations are automated — aligning the right jobs to the right individual work styles. The tool also keeps talent mapping up to date without the need for manual input.
PI Inspire
By providing every employee with career and personal insights tailored to their individual strengths and work styles, organizations inspire a sense of growth and progression within the company. PI Inspire includes components such as the Personal/Manager Development Chart, Management Strategy Guide, and 1:1 Relationship Guide. These resources serve as a foundation for employees to articulate their needs and share management techniques, improving both manager/managed and peer/peer relationships.
Integrating tools and resources into your strategy means employee mobility decisions are no longer based solely on opinion or limited observation. This shift ensures career growth opportunities are aligned with individual strengths and preferences, creating a more personalized and effective approach to talent development within the organization.
Now is the time to begin cultivating a thoughtful internal talent mobility strategy — opening the door to incredible opportunity — for both organizations and employees alike.
To learn more about building a meaningful internal mobility strategy that supports both leaders and employees, contact Fitch Consulting today.