CEOs Say Internal Hiring’s Critical. Employees Say, 'Really?'

The C-suite says internal mobility is a top priority. Employees aren’t seeing it. 

That’s the conclusion reached from two recent reports. The first, a survey conducted by LinkedIn and YouGov of 2,929 C-suite executives around the globe, found that leaders’ second highest priority — after “keeping employees motivated and engaged” — was “giving employees opportunities to move into different roles within the business.” 

But the LinkedIn 2023 Workplace Learning Report tells a different story. The data from that report shows that only 14% of employees say their organization has helped them build a career development plan, while a mere 15% say their company has encouraged them to move into a new role.

Why the disconnect? 

Although a robust internal mobility program seems to rank high on execs’ “nice-to-have” list, it can take time, money, planning, and commitment to carry out. In other words, it’s not for the faint of heart. 

But internal mobility is a lot more than nice-to-have, especially now that companies are making do with less. LinkedIn data shows that employees who move into new jobs internally are 3.5x more likely to be engaged than those who stay in their current jobs. And employees stay 41% longer at companies that have a lot of internal hiring than those that don’t. 

So, roll up your sleeves. Here are four ways to make internal mobility more of a reality.

4 ways to improve internal mobility within your organization:

1. Start small 

One of the biggest mistakes companies can make when they tackle internal mobility, said Teuila Hanson, chief people officer at LinkedIn, “is trying to do it all.” At a breakout session at the LinkedIn Talent Connect 2022, she suggested that companies instead zero in on one group of roles that can make the biggest impact. 

One of Teuila’s previous companies did just that. They first tried to tackle internal mobility on a company-wide basis, she explained. But when that proved overwhelming, they pivoted to focus almost entirely on technology roles. Technology felt like the obvious choice because the roles changed quickly, were in the greatest demand, and were among the most difficult to fill. After they succeeded with these roles, they then applied their knowledge to the company on a larger scale.

2. Get buy-in from managers 

The No. 1 obstacle to internal mobility is managers who hoard talent. It’s understandable that leaders would want to hold on to their top performers. But if an employee moves within the organization, it’s still a big win: The employee has kept their talent within the company instead of taking it elsewhere. 

If you’re faced with resistant managers, spell out the reasons why internal recruiting is a good idea. Share data and anecdotal evidence that show internal mobility is good for the company. Remind them that they can look for talent internally too. 

You could also follow the lead of LinkedIn, which looks at the transformation rate of its managers, measuring how much talent they export to the rest of the company — and then celebrate those who score high. It can also be helpful to offer incentives to managers who support internal recruiting instead of trying to block it.

3. Build an internal talent marketplace 

When an employee is eager to move within the company, they need to know about open roles. A recent report from Cornerstone People Research Lab and Lighthouse Research & Advisory found that 73% of employees want to know about roles available within their organization and that employees are much more likely to quit if they aren’t made aware of internal job opportunities. 

To help current employees find new roles, it’s a good idea to consider a technology platform that functions as an internal talent marketplace. Ideally, this would also track and even assess employee skills and provide information on mentors, training, gig projects, and rotations. 

Uber has gotten this right with its internal jobs marketplace, where all the company’s open roles globally are posted and easily accessible by current employees. Uber has even created a centralized talent marketplace for gig jobs, where employees can explore and apply to assignments that interest them. The effort has paid off: Employees who have made any kind of internal move have stayed at Uber twice as long.

4. Encourage TA and L&D to work together

For the new Workplace Learning Report, L&D professionals were asked to list their top program areas for 2023. Internal mobility came in 10th out of 10 — dead last. What?!!

For internal mobility to be successful, L&D needs to be fully engaged and working hand in hand with talent acquisition. Talent teams need to assess the skills they need in their workforce and develop a culture and process for internal hiring. In turn, L&D can provide the training and employee development needed to build a rich pipeline of internal talent. 

Trimble, an industrial tech company, exemplifies how to do this well. To help employees gain the experience they need to advance in the company, Trimble offers both rotational development and gigs programs. 

The rotational development program focuses on helping recent graduates become leaders at a faster pace than other employees just starting in the company by having them rotate through four-to-six-month assignments in various departments. Over the last 12 years, 113 employees have gone through the program, resulting in an 85% retention rate of participants.

Trimble’s gig program is also key to their internal mobility strategy. It offers part-time, short-term assignments that last one to three months and that take less than 30% of an employee's time. Employees can gain exposure to different parts of the company and learn new skills. The company, in turn, builds the skills they need and a pipeline of future leaders.

Final thoughts: The C-suite can lead the way

There’s a pretty straightforward fix to the disconnect that CEOs and employees feel about internal mobility: The C-suite can walk the walk. Even if they start small, they can commit time and resources to building an internal mobility program. They can model a culture in which people are encouraged to look internally for new opportunities and challenges. They can reward managers who help team members land jobs elsewhere in the company. 

“When you step back and think about all the goodness the organization can gain from having robust career paths,” Teuila told the Talent Connect audience, “it’s a no-brainer.”

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