Four Reasons to Groom Talent On the Inside
By Lee Hecht Harrison on May 17, 2012
Is an increase in turnover on the horizon?
The “quits” rate – or the measure of an employee’s ability to voluntarily change jobs – held steady at 1.6% in March, relatively unchanged from the 1.6% registered for February, but 168,000 quits more than March of last year. Source: BLS
Industry-specific increases in quits from February 2012 to March included the following: construction quits grew from 75,000 in February 2012 (1.3%) to 81,000 in March (1.5%); leisure and hospitality quits increased from 425,000 (3.1%) in February to 468,000 (3.4%) in March; and trade, transportation & utilities (including retail) quits rose from 461,000 (1.8%) to 469,000 (1.9%).
March manufacturing quits remained at .9% (the same as February) while professional and business services quits remained at 2.1%. The Southern region registered the biggest increase in quits month over with 825,000 (1.7%) in February 2012 to 916,000 (1.9%) in March.
Despite the fact that quits haven’t been increasing dramatically, companies want to avoid complacency. The same BLS report revealed that the March 2012 job openings total of 3.7 million was the highest since July 2008. This figure indicates that hiring will increase over the next few months, possibly affecting turnover and quits.
As hiring ramps up, ward off the departure of key talent by first taking a close look at mission critical roles and who may be a flight risk. Then consider innovative ways to retain and engage these employees, such as internal mobility programs. Implement processes to help your employees identify new opportunities within the organization, helping to re-energize these employees by moving them into new roles that broaden their skills and offer them new ways to contribute.
What are some of the benefits of grooming talent on the inside?
- Retain institutional knowledge. Internal candidates understand your products, processes, and services — helping them to quickly assimilate into a new role and become productive in a short amount of time.
- Reduce turnover. Redeploying employees into new roles can boost engagement while signaling the company’s commitment in the employee. It also cultivates stability and loyalty throughout the organization.
- Develop bench strength. Growth and learning are key drivers of employee engagement. Offering opportunities within enables employees to continually improve their skills and inspires motivation. Make it part of the culture and provide managers with an incentive to share valuable talent across the organization.
- Mitigate risk. Hire proven talent. Internal candidates already know the company and have proven success within your culture. Invest in the development of your employees and promote from within.
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