COVID-19 has increased pressure on businesses, resulting in staggering unemployment statistics worldwide. Organizations have consequently been forced to carefully re-examine their people strategy. In a more nuanced manner, however, it has simply accelerated a broader trend, inching its way towards business leaders’ doors before the epidemic: the need for companies to overhaul their people strategy and internal mobility structures.
- Internal mobility is cost-effective: internal hires are on average 18% less expensive than new hires (Wharton Business School 2012)
- It’s more efficient: external hires require an average of two years to catch up to the level of competency that an internal hire would exhibit day one (Wharton Business School 2012)
- Internal moves are good for company performance: “the fastest-growing organizations… are twice as likely to have excellent talent mobility programs than organizations that are not growing at all” (Deloitte 2019)
- And, it’s the right thing to do: why lay off employees if they could be re-skilled and retained in the business in other roles?
We know however, that internal mobility is difficult to implement in practice. It’s been on the backburner for a reason: Employers don’t have the right data to make Internal Mobility decisions. HRIS systems often host skills information on employees that is far out of date with the fast-paced change in employee’s jobs, and the data often siloed across behemoth people management systems, making it difficult to access by leaders looking to make strategic workforce decisions.
- We use an evergreen dataset, based on years of neuroscience research to help companies understand their employees’ mobility. Not only does this data stand the test of time, but it is also more predictive than stated job experience. A study in Harvard Business Review has shown multi-measure test to outperform past job experience as a predictor of future job success by a factor of 25x (Source: “Effectiveness of tools predicting job performance” – Harvard Business Review)
- It’s more fair than biased processes -- our matching algorithms are tested for gender and ethnic bias, meaning clients are tackling internal mobility while ensuring workforce inclusion at the same time.
- It’s easy -- we can take in data on your workforce from any variety of sources, to break down the silos, and allow you to see data in one central place.
1. On a team by team basis, from where you can source for talent within your business
2. On an individual level, who is a good fit to move from role A to role B
3. Where to focus L&D by surfacing the biggest skills and abilities gaps to close when making a move
1. Increase retention
2. Increase ROI on external recruitment, by focusing this on areas for which there is no internal supply -- ultimately reducing external recruitment costs.
And, Mobility Insights can be applied for succession planning (vertical moves within the same function), to assess who to train into management positions, or between functions. Increase retention, increase productivity, and increase your ROI on external recruitment by turning your employees into your internal talent pool.
Get in touch to see Mobility Insights today.