In today’s fast-paced industries, organizations often overlook the wealth of potential within their ranks when seeking to fill new roles.
A study by talent executives has shed light on a compelling truth: internal hires consistently outperform their external counterparts.
Not only are they 61% less likely to face layoffs, but they also tend to accept compensation that is, on average, 18% lower.
Promoting internal role transitions is not merely a financial consideration; it’s a strategic move that pays dividends in terms of employee engagement and morale.
When high-potential talent is recognized and nurtured, it creates a symbiotic relationship where both the individual and the company thrive.
Furthermore, a robust internal mobility program empowers companies to allocate resources where they are most needed, all without the costs and delays of external recruitment.
The advantages extend beyond the financial profits, including lower attrition rates, reduced talent acquisition costs, fortified intellectual property protection, and the cultivation of more robust leadership teams firmly rooted in the company’s ethos.
The question arises: How can organizations systematically identify and develop high-potential employees, aligning their aspirations with the strategic interests of the business?
Let’s explore the answers.
What Does Career Pathing Mean to Organizations?
Career pathing involves the alignment of employees’ career goals with the strategic goals of the organization. This not only sets companies apart from competitors but also brings a positive impact on employee loyalty.
It becomes a vital component of retention plans, aiding in the identification and mentoring of talent crucial to the execution of business strategy.
Career pathing plays a pivotal role in retaining experienced workers, particularly in the aftermath of economic downturns.
What Does Career Pathing Mean to Employees?
From the employee’s perspective, career pathing is an empowering journey that allows them to take control of their career development.
It involves understanding personal career goals, assessing skills and competencies, and identifying gaps that may require training.
It transforms into a collaborative process between employees and talent teams.
Facilitating Career Pathing Through Workforce Planning
Effective workforce planning is integral to facilitating career pathing. By providing employees with a clearly defined route to their next roles, organizations encourage engagement and the recognition of high-potential individuals.
This involves the creation of career ladders, encompassing various progression forms such as traditional vertical ladders, dual career ladders, horizontal career lattices, and career progression outside the company.
With AI-powered workforce planning, the process of charting career paths has become more streamlined.
AI-powered tools enable HR teams to gain an eagle’s eye view of the talent ecosystem, forecast trends, track competitor strategies, extract global talent insights, and estimate costs while tracking workforce plans.
Using Workforce planning, HR can identify high-potential employees and chart career paths necessary for their growth.
Step 1: Acknowledging the Potential
Distinguishing between high performers and employees with high potential is crucial. While high performers exceed their assigned responsibilities, those with high potential go beyond the expectations set by their managers.
This includes a willingness to learn new skills, adapt to disruptions, and accept constructive criticism.
However, in case the workforce size is huge and micro-targeted analysis of each employee is hard, companies can try AI-powered workforce planning.
Here’s how AI-powered workforce planning can help:
- Analysis of current and future business and workforce requirements.
- Assessment of current workforce skills, competencies, and demographics.
- Identification of future workforce needs and skills gaps.
- Strategies to address workforce gaps, including recruitment, training, and retention.
- Implementation of workforce plans and ongoing monitoring and evaluation.
With AI, HR can identify high-potential talent, including those who may lack specific skills in the future, and bridge the gap before it appears.
Step 2: Developing High-Potential Employees
Identifying high-potential employees is just the first step. The next step involves powering their growth through reskilling.
Organizations can achieve this through a comprehensive reskilling strategy:
- Assessing Skills Gaps: Identify existing skills gaps or potential for learning and align them with future business needs.
- Personalized Learning Approach: Tailor L&D programs to individual employee needs for maximum engagement and knowledge retention.
- Leveraging Technology: Embrace digital tools for flexible learning experiences, especially considering remote work scenarios.
- Collaboration and Mentoring: Foster a culture of collaboration and mentorship to accelerate the learning process.
With these strategies in place, high-potential employees not only thrive but contribute significantly to organizational success.
It’s a journey of growth that benefits both individuals and companies quick enough to recognize and nurture their internal talent.
The unlocking of potential within an organization is not just a buzzword; it’s a strategic imperative for long-term success.
The journey involves recognizing the talent within, creating pathways for growth and continually investing in the development of high-potential individuals.
When organizations commit to this approach, they foster a culture of innovation and excellence while positioning themselves as employers of choice in a competitive market.
With Draup’s AI-powered Reskilling tool, talent managers can easily map out a journey from a current role to a target job role. Assisted by our proprietary AI algorithm that suggests optimal pathways to reskill, including course recommendations, internal career mobility objectives can be met in the least amount of time with minimal investment.