Global HR expert Josh Bersin discusses the benefits of internal development and the financial advantages of prioritizing internal mobility. The podcast explores the advantages and disadvantages of internal hiring, including the challenges of reskilling employees and the trend of recruiting people who already have jobs.
Companies that focus on internal development out-perform those that primarily look for talent externally.
While promoting internal talent has benefits, it also has drawbacks, and managers need to carefully evaluate internal candidates and assess team needs.
Deep dives
Promoting Internal Talent
The knee-jerk reaction in most organizations is to look for talent externally rather than promoting internal talent. However, research shows that companies that focus on moving people around inside the organization are out-performers. The philosophy is that every employee is capable of doing more under the right conditions. Companies like Unilever and Microsoft allocate a significant portion of their learning and development budgets to internal development and career pathways. Developing workers leads to the improvement of the company's overall performance.
Pitfalls and Considerations
While promoting internal talent has its benefits, there are also drawbacks. Hiring internally may leave vacancies elsewhere in the company, and there is no guarantee that an internal candidate will be successful in a new role. Managers need to carefully assess what their team needs and be rigorous in evaluating internal candidates. Companies must fundamentally believe in developing their workforce as part of their mission for internal hiring strategies to be successful.
Individual Responsibility and Hiring Trends
Employees who want to progress within their company should engage in conversations with their employer about developing skills and seek support for funding. In a tight labor market, employers are increasingly recruiting people who already have jobs, focusing on expertise from other companies instead of developing employees internally. This trend reflects the desire for novelty and the appeal of bringing in external expertise.
January is peak hiring season, as workers reconsider their jobs and managers look to bring in fresh talent. But before you advertise a job to the big, wide world, ask yourself: could somebody already on staff move into this role? In this episode, host Isabel Berwick speaks to global HR expert Josh Bersin, who explains why companies such as Microsoft and Unilever emphasise internal development, and the benefits it can bring for employers and employees alike. Isabel also speaks to the FT’s deputy work and careers editor Bethan Staton about how workers can prime themselves to get that big internal promotion.
Presented by Isabel Berwick, produced by Mischa Frankl-Duval, mixed by Simon Panayi. The executive producer is Manuela Saragosa. Cheryl Brumley is the FT’s head of audio.