It's simple really...look internally.
Hiring is costly, and job-seekers are requiring more demands now such as working for a company that shares their values, provides a stable right work-life balance, remote opportunities, with mental health to name a few. With these factors going on recruiting can be expensive, and that is why NOW is the time to refocus on hiring within.
SHRM mentions that companies should rethink the way they work because the old ways are not meeting the needs of the employees or the demand of productivity. Employees will work harder for a company they are dedicated to. Internal mobility provides the solution that increases employee engagement, loyalty while decreasing recruiting costs.
It's so affordable, companies forget to do it.
"A promotion is not just beneficial for employees but is also highly crucial for the employer or business owners." (Cleverism)
1. Increase Productivity:
Employees love feeling like their work is appreciated. It's really what motivates them to work harder, and sometimes longer strictly for the benefit of the company. Each time an employee is promoted internally, they develop more loyalty to the company and will go the extra mile.
Think of that one person who loves their job so much they do not even consider it work, dedicated motivated employees feel this way,
Internal promotions increase the energy and willingness of an employee to work selflessly and responsibly.
2. Promotion Increases Morale:
Getting promoted ultimately increases employees' responsibility.
When an employee's efforts are valued and appreciated, it motivates them to move forward with full zeal and zest. Encouraging & Rewarding your top employees with promotions provides the extra benefit of increasing their overall daily morale. Which is also a boost in employee engagement.
3. An Increase in Salary Benefits an Employee:
Yes, promotions also assist employees with financial benefits, "According to Paychex, Employees of all generations agree that being underpaid is the top factor motivating them to leave their jobs."
A promotion gives employees the rewarding feeling of accomplishment and enhances their loyalty to the company.
4. Saves Money on Recruiting
Not only does internal mobility save the company money by refocusing on the hidden talent within the CURRENT organization, but it also saves recruiting time.
Recruiting is 6 times more expensive than hiring internally. "Having a talent pool with skills and knowledge relevant to your business is important in filling up vacant positions within your company faster, easier, and more importantly, less costly," Josh Bersin of Bersin & Associates. Internal mobility gives the company the comfort of knowing that during times of crisis they have a pool of talent to utilize without the costly recruiting cost.
Internal mobility is a crucial aspect of employee engagement. Internal hires understand the structure of the organization and produce quicker than external hires. When employees see an opportunity to move and grow they tend to stay longer resulting in a win-win for both employee and company.