If an employee feels appreciated and cared for by an employer, he or she is more likely to perform at peak potential. Happy employees, on average, are 12% more productive than unhappy ones. Companies with motivated employees also have 35% greater productivity than those that don’t. If your applicant tracking system is full of external applications only, here’s why it’s a good idea to look internally for top talent instead.
Increase Employee Retention
Companies that make employees feel valued, research shows, have a 69% higher retention rate within the first three years. Hiring internally instead of externally also reduces the turnover rate, and it means that you spend less money on employee compensation. While you’ll need to create a base salary for a new hire, hiring from within simply entails a raise. This amounts to substantial cost savings, and your employees will be motivated to work harder knowing they’re getting a raise. Another advantage of internal mobility as a recruitment solution is that it offers holistic benefits for the company. By hiring from within, companies free up lower-level positions, which are easier and less expensive to fill.
Promote Internal Talent
One advantage of internal hiring is that it can boost brand image. Studies show that employees have more power over influencing brand image than ever before. Through social media and online review tools, employees can share their positive workplace experiences. This, in turn, can strengthen your company’s reputation and public image. Internal mobility also creates a skilled and talented workforce as employees who see potential for advancement are more inclined to stay and grow with the company. Finally, internal mobility can diversify and strengthen your company’s knowledge base and skill set. Continuous engagement that makes employees feel valued is key. Recruitment systems, especially those that enable personalized messages, help employers see where the employee’s strengths and weaknesses lie. This insight is tremendously valuable when a job opens internally as a qualified employee can be easily selected for the role. If you need to fill a position that requires a high level of specialization, current employees are more likely to have the experience and knowledge required to succeed in those roles.
Save Time and Money
Along with boosting morale, internal mobility saves time and money. Studies show that hiring candidates internally can cut interviewing time by 25 to 50%. Instead of spending time posting job vacancy notices and scheduling interviews through applicant tracking software, you can simply put up a notice in the lunchroom or spread the word of a job vacancy through a company-wide email. Since your employees are already familiar with the organization, they’ll require less training time, and they won’t need to meet the staff. Internal mobility is a win-win solution for everyone. Along with keeping employees happy, internal mobility boosts brand awareness and morale. Satisfied employees will tell their friends and families about their positive experience, which in turn makes customers and clients more trusting of your company. This positive response attracts prospective candidates and makes any necessary external hiring easier, too.