Dive Brief:
- Oftentimes, HR overlooks very capable employees and opts to hire outside of the company due to above-average attrition rates, Harvard Business Review reports. The LinkedIn Talent Trends study, conducted in the first quarter of 2016, showed that 25% of professionals today have their eye on a promotion. Yet, another 24% are happy to take another job due to lack of internal opportunities.
- There are a few factors that put the focus on attrition rather than on training internal employees for promotion, HBR reports. Recruiters think that internal candidates simply don't have the right skill sets, they are more likely to hire candidates who have the desired skills for a faster return on investment, and company cultures restrict the movement of employees from one department to another.
- According to a study conducted by the Center for American Progress, it costs around 20% of an employee's salary to replace that employee, but an endless cycle of replacing employees rather than training them adds up for most organizations. It makes more sense to train employees and hope for the best.
Dive Insight:
It's been said that the current workforce is all too ready to jump ship at any moment for a better salary or work experience. This has been attributed to millennials who are looking for the latest and greatest thing. But there is a growing consensus among HR professionals that this is not 100% the problem.
There are loyal employees at all age levels within companies and many are simply seeking a promotion and a chance to show off their chops. When employers invest in their current workforce development, there are some risks involved, but new technology and management techniques are enabling better use of "internal talent." Training employees for their own jobs — and in other skills that interest them that may be applicable to other jobs within the same company — is a growing sphere within HR, and is one way to both ensure company flexibility and build security for when employees must take leave of absence or leave the company entirely.
