Organizations are acquiring talent externally to fill vacant positions. A few companies treat internal recruitment as a priority. As per a survey, 83% of recruiters experienced challenges in talent acquisition during the pandemic.
Internal mobility has become critical due to rising external hiring costs and the changing work-life scenario. A recent survey found a 20% year-on-year increase in internal mobility since the onset of the pandemic, with talent management treating internal mobility as a ‘must-have’ than a ‘nice-to-have.’
The challenges of Internal Recruitment
Talent management teams still face challenges in implementing internal recruiting programs.
There is a massive difference between intent and action
As per a survey, 60% of the talent management teams say their company has a clearly defined and well-documented process for internal recruiting. About 40% did not have a formal program, standard policies, or processes for internal recruiting.
Though talent management teams in companies of all sizes know that the effort is necessary, internal mobility is not practiced. Large-budgeted companies spend advertising jobs on platforms than invest in training and promoting their workforce.
Internal recruiting is aligned with short-term hiring needs
76% of new hires stay with an organization for a year on average which drastically drops to 45% who remain with the company for three years. Internal recruiting is aligned with short-term needs. About 31% said they recruited internally to replace backfills or departed employees.
Hoping that the right employee with the right skills will apply for the right opening at the right time is not an effective I. Only some talent management professionals design jobs considering employee experience and expertise.
Companies make internal hiring tough
Talent management teams subject employees to the same hiring process as an external candidate. It discourages employees and pushes them out of the company. Besides, most companies do not market open positions to current employees.
Creating an employee job portal or periodic notifications can make a big difference in internal recruitment. Sometimes employees would not dare ask their managers to refer them for a different role.
Companies Must Hire for the Future, Not for Today
Talent management must diversify their teams’ skills and bring in new vantage points to take the company where it wants to go.
Map out a hiring strategy
Talent management can use the yearly planning or shifts in corporate strategy to drive change in the talent acquisition strategy required for the new vision. This vision can lead to conversations about upskilling employees.
Identify departures and promotions as an opportunity for change
Both positive and negative disruption is an opportunity to consider a new approach. Rather than filling a role with the same kind of worker, talent management can flag the opportunity and determine if a non-traditional hire could help accomplish goals.
Bringing talent with different skill sets often creates short-term pain and could require additional reorganization to support gaps. However, it can also give a team the missing abilities.
Maximize competencies of newer workers
Newer workers have precious competencies in spades but are often underutilized. Talent management teams can tap into abilities such as digital prowess, collaboration, and learning with a workforce-wide skills audit by implementing the required learning and development programs.
It could meet the organization’s emerging needs, provide internal mobility opportunities for current staff or encourage participation in special projects.
How to Build a Roadmap to Close the Future Skills Gap
These five steps will put your team management practices on the right path.
Take advantage of data benchmarking
Build a data baseline to evaluate skills gaps and formulate a holistic reskilling strategy. Attain data on future skills prevalence, workforce mix, automation risk, and future skills pay gap, then develop consistent definitions and reporting standards.
The framework helps firms understand the shape of their future skills profile and the direction for the future. Talent management must create custom benchmarks and develop a score to assess the shape of the firm’s future roles.
Define future requirements
In some cases, organizations have employees with skills needed for the future, including behavioral competencies and hard tech skills. If talent management harnesses these skills, it will lay the foundation for a resilient and agile workforce, create a compelling employee experience for current and prospective talent.
Additionally, they must plug the skills gaps with reskilling and upskilling, improve a firm’s reputation for prospective employees, and boost retention. The talent management team could list the skills required to possess so the workforce could participate in lateral or vertical hiring processes.
Draup’s analysis of the Product Management role highlighted the list of skills required for the future. The below graphic lists the skills individuals may need for the role’s responsibilities.
Strategize your total rewards
The rewards strategy should ensure high-potential employees are valued for their future skills so that organizations recognize and adequately value job roles with future skills. There are multiple ways to reward future skills.
One way to think about it is through rewarding skills in the short, medium, and long terms through a combination of reskilling and organic growth. Talent management must also address future skills with a diverse workforce, pay equity, and provide coding and technical skills.
Focus on reskilling process design
Talent management must design a reskilling process by including an organizational perspective or targeted interventions that enable a more holistic approach that fosters an internal talent marketplace and skill-based workforce planning.
Measure your progress
Measure your firm’s progress to ensure you stay informed and adapt to talent and workforce changes. Continuous benchmarking is needed based on defined KPIs to track improvement.
- Create a data gathering concept across all HR systems.
- Structure available data against your capability framework, which looks at future skills – tied to business strategy, skills, and competencies.
- Inform workforce strategy and provide a high-level view of where to focus efforts by displaying on an interactive dashboard.
Though there are challenges, talent management teams must find opportunities and use learning and development to create leaders and establish credibility as a career resource rather than a professional inhibitor.
Draup’s talent intelligence and reskilling platform provides talent management insights on its dashboard. It shows the entire ecosystem with bird eye’s view of its internal situation. They can create a plan to fulfil companies’ needs for emerging skills with a robust learning and development plan.