Workforce Planning: Promoting from Within
By: Dakotta J.K. Alex
Internal promotion seems like such an easy way to fill empty positions, but why are so many companies still reluctant to train employees that already work for them and promote from within instead of looking outside? This question is more complex than it seems, however. If we look at current statistics, the labor shortage that many companies are experiencing is growing and shows no sign of stopping any time soon.
Promoting those from inside a company is one way to help reduce the number of open positions and maintain low company turnover.
CURRENT OUTLOOK
According to a US News.com study from 2006, the demand for talented college graduates increased 13%. While hiring those straight from college has always helped fill positions in the past, many college students aren't as willing to go to work for larger corporations. Instead, some are opting to start their own businesses, work for family owned businesses, or join smaller companies. This leaves many large companies with gapping holes as the baby boom generation begins to retire.
Other factors including specific qualifications to perform certain jobs, an increase in employee turnover, and fewer qualified candidates has led recruiters to consider other options.
TAKING A CLOSER LOOK AT CURRENT EMPLOYEES
The workforce is still filled with many who are between college age and retirement age who work very hard at their job. Promoting from within seems like a logical choice when trying to fill upper management and executive positions. If your company does not promote from within, you run the risk of:
· Not filling open positions with key candidates
· Losing current employees to other companies who can promise promotions
· Begin to see profits decrease because of a lack in talented management
· Build a poor reputation for advancement which will scare away potential candidates who may want to work for a larger company
Therefore, it is beneficial on many levels to begin looking at the potential you have in those who already work for your company.
It has been estimated that in 2008, one-third of all companies will lose at least 11% of their workforce because of retirement, according to a Deloitte Consulting survey.
Taking a closer look right now at your current recruitment trends, rate of success, and the number of positions you will have to fill in the future can help you develop better strategies for recruiting and retaining employees, as well as training present employees when additional positions become available.
DETERMINING YOUR COMPANY'S NEEDS
As technology advances , IT talent, programmers, chain management, and other positions that were not as necessary ten years ago will become more important to the survival of your company in today's competitive market. Learning more about your company's present needs and forecasting future needs can help in many ways when recruiting for these positions:
· You will be able to screen candidates easily by knowing more about what skills are needed to fill positions
· Hiring managers may be able to combine open positions in order to have fewer to fill
· HR and management can out together a training program that helps train those who already work for the company
· You will be better able to fill positions with innovative people who will be able to enhance areas of production and who will want to remain with your company because advancement is possible
Company needs will always change. Being able to forecast these needs and having a plan in place when it comes to meeting these needs is essential in today's workplace. Working closely with hiring managers, upper management, and the CEO of your company is necessary in order to do this.
One of the best ways to get everyone on board when it comes to changing your company's hiring strategy is to create a Talent Acquisition Strategy that outlines specific changes, policies that are currently effective, and ways that all levels of management can participate. Your strategy should contain the following:
· Executive summary
· Outline of what you are proposing
· Current HR research that backs up your proposal
· Examples of strategies that have worked in the past
· Potential obstacles
· Metrics you will use to determine success
· Specific areas where changes will be implemented
· A brief conclusion
· Additional data (charts, statistics, other important information mentioned in the report)
Getting others in HR involved will only strengthen your case. Submitting a Talent Acquisition Strategy accomplishes several tasks:
· Lets upper management know that specific issues are being addressed in the HR department
· Gives hiring managers a chance to think more about the possibility of hiring from within
· Creates the feeling of a team enviroment, which is crucial if changes are to be made
· It is a way to generate new ideas
Always ask for feedback or set up meetings with mangers and others so you can get a sense of how accepting they are of the changes you are proposing.
THE COST OF PROMOTING EMPLOYEES
One reason that companies are wary of promoting from within is the cost involved in additional training, schooling, internal adjustments, and filling the position employees are leaving. In your Talent Acquisition Strategy, you should address these concerns and back them up with any research you have about other positions in your company that have been filled through internal promotion, the overall cost, and how the promotion affected the employee and the company.
You should also include in your strategy a comparison of hiring a new employee versus promotion from within.
Another concern for companies is choosing the right employee for positions that are available. Hiring from within has several advantages:
· You already know how well the employee performs through evaluations, raises, and length of employment
· You already have an idea of their skill level and if they have received additional training since being employed with the company
· You already know how well they can work with others on team projects and maybe in a management role
· You can decrease turnover by hiring from within
These factors will cut your screening and interviewing time in half as long as you have accurate records. You will also be able to discuss which employees are ready for promotion with hiring managers. These are factors you need to include in your strategy.
The cost of promoting from within will depend on how much additional training the employee will need, and if you need to fill the position they are leaving by either hiring someone from the outside or promoting another employee and providing training to them as well.
Each position should be treated differently. In some cases, hiring from the outside is more cost effective. Making use of both hiring methods can help lower turnover, and increase your chances of filling positions quickly with innovative people.
CONCLUSION
Don't overlook any hiring opportunity when it is available. In this market, you have already found it difficult to fill certain positions. Assuming this is just a passing trend is a mistake. Developing sound hiring strategies and working with management is a great way to find those who have the potential for advancement in your company. After all, employees need to be challenged in order for companies to retain their services. Internal promotion offers all employees a chance to prove themselves and are a larger asset to the company.
