Sometimes, what you’re looking for ends up being right in front of you. Many businesses are struggling to find the best talent to fill roles at their companies. They might be looking far and wide, conducting national or even international searches to find the person who’s the best fit. In many cases, employers are missing out on opportunities that may be inside their offices. Often times, the best fit for a position isn’t at another business on the other side of the country. They’re right there, working for the company already. Promoting from within doesn’t only give businesses the chance to hire the best people for the right roles. It can also help them retain employees, lowering the costs of turnover.
When your company promotes from within, it doesn’t have to move employees up the ladder vertically. For some workers, a lateral or horizontal move to a new department or position can be an ideal opportunity.
The Costs of Employee Turnover
Every time an employee leaves a company for another position, it costs businesses about one-third of the worker’s salary. It can cost a company around $15,000 to replace an employee who had an annual salary of $45,000. The costs of losing an employee don’t only include the cost of putting up new job postings, sifting through resumes and cover letters, and scheduling interviews. The costs also include the loss of knowledge that occurs when a person leaves a company and the loss of productivity that occurs in the time it takes to find, hire and train a new person.
High turnover rates also cost a company in terms of overall morale. When people feel that the only way they can move up the ladder is by leaving or if they leave because they feel that their skills aren’t being used fully, it can have a negative effect on other employees at a company. They might feel that they need to leave to find “greener pastures” or that their skills aren’t fully appreciated.
How to Create Opportunities for Internal Mobility
Tapping into your company’s existing talent network doesn’t necessarily mean that you need to promote people from one rung of the ladder to the next. For some employees, moving to a new department or to a new role might prove to be the best option. To make the most of the people who work for your business, you can create progression paths so that people know exactly what they need to do to move from one role to the next. The progression paths can be upwardly focused, such as how to move from a junior role to a senior role. They can also focus on ways an employee can move laterally. For example, a graphic designer who wants to move into video content creation might need to complete some additional training.
Businesses with more than one location can also provide their employees with information on how they can move from one location to another. For example, an employee hired to work in the office on the East Coast might want to relocate to the West Coast. If your company has in-house recruiters or headhunters, they can be given permission to look at the profiles and resumes of current team members to find someone who might be the best fit for a role and retain talent.
Retain Talent Helps Your Business Grow
Hiring from within not only helps your company save money by avoiding the process of having to refill positions whenever employees leave for better opportunities. It can also provide your business with a chance for growth. When you keep your best employees, you’re building a company that is staffed by the best and the brightest. Those team members will help plan for the future.Keeping your team members around for years also boosts your business’ reputation. When people find out that the employees of a company are happy, they are more likely to want to do business with that company.
New Direction Capital’s virtual CFO services can help your company put together a plan for growth and success in the long term. If you’ve been facing a challenge that is keeping your business from growing, contact us today.