In the midst of the pandemic, companies leaned heavily on internal hiring and mobility programs to fill workforce gaps. This led to a surge in internal recruitment, jumping from the usual 30% to a whopping 40% of all hires. It was hailed for enhancing company culture, retaining talent, saving costs, and speeding up hiring. However, the latest stats show a shift. Internal hiring has plummeted to 24%, the lowest in recent years. With the talent crunch and skill gaps, overall hiring has dipped too, making the time to hire longer across industries and roles.
This shift away from internal hiring might spell trouble. It could reduce long-term retention, restrict employer flexibility, and extend hiring timelines, as per a report by The Josh Bersin Company and AMS. Josh Bersin, CEO of The Josh Bersin Company, believes companies need to rethink their hiring strategies in this talent-scarce era. He emphasizes the importance of creating a culture of movement within companies, be it through part-time, project-based, or full-time roles.
To boost internal employee mobility, companies might need to tackle talent hoarding – where managers cling on to their top talent, hindering internal hiring opportunities. There’s talk about incentivizing managers to think beyond their teams, fostering a broader talent culture.
Tools like LinkedIn Recruiter’s spotlight on internal candidates might help in identifying talent internally. Moreover, companies could explore new ways of internal hiring. Strategies like upskilling employees for new roles, converting part-time gigs into full-time positions, or bringing in contractors to complement internal work and nurture talent pipelines are becoming more critical.
In this evolving landscape, adapting hiring approaches, fostering internal mobility, and encouraging lateral moves within organizations seem crucial to navigating talent scarcities and evolving skill requirements.
