INTERNAL HIRING: THE RICHEST SOURCE OF TALENT YOU RE NOT USING
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1 INTERNAL HIRING: THE RICHEST SOURCE OF TALENT YOU RE NOT USING Employees are today s hottest commodities and there aren t enough to go around. It means the same old recruitment strategies will no longer be sufficient to fill positions. To remain successful, employers will have to look to new places for the talent they need.
2 RECORD-SETTING JOB OPENINGS Job openings have been climbing steadily for more than ten years. Skills are becoming outdated in as little as five years 1. And the demand for new skills is rising in inverse proportion to available hires. 5.8 million Number of unfilled U.S. jobs 2 2 million Number of U.S. knowledge-work jobs created per year 3
3 Jobs With the Steepest Growth in the Last 5 Years 7 TOUGHER TIMES AHEAD The existing talent pool is shrinking. Boomers are retiring at the rate of 10,000 per day 4, and Gen Z is entering the workforce too slowly to replace them 5. A new report confirms there are widening gaps in many high-skill specialties that organizations need the most 6. Machine Learning Engineer: 9.8x Data Scientist: 6.5x Sales Development Rep: 5.7x Customer Success Manager: 5.6x Big Data Developer: 5.5x
4 WHERE EMPLOYERS SHOULD AND SHOULDN T BE LOOKING Creative strategies are a must. So why are so many organizations missing one of their most promising and creative sources for recruitment: their own employees? Less than 20% of positions are filled by current employees 8
5 A COST-EFFECTIVE RESOURCE Current employees are already familiar with your culture, demand lower salaries than external hires and are more likely to stick around. External Hires Cost 18-20% more than internal hires, on average 9 Are 61% more likely to fail in the role 9
6 A SUSTAINABLE SOURCE OF TALENT Smart employers already see the value of their internal pipelines and are adapting accordingly. They re not only refocusing energy on recruiting and training from within; they re also building robust cultures of learning that support talent mobility. CREATING new internal talent marketplaces ENCOURAGING managers to support employees' moves to new internal roles CELEBRATING all forms of talent mobility, from promotions to career changes
7 HITTING ON ALL FRONTS Employers are redesigning tuition assistance programs to support internal development: Educational Pathways: Programs that define precise jobs and skills and guide employees toward them, giving employees confidence about continuing their education Flat-rate programs: Lower-cost agreements with colleges and universities that allow more classes under an employer s tuition reimbursement cap, and that make degrees faster and more affordable Adding Certificates and Certifications: Short bursts of learning that inspire employees to explore new areas while still in their current roles
8 FILLING OPEN POSITIONS AND MORE Employers are effectively moving existing employees vertically and laterally throughout their ranks which adds up to skills as well as retention. That s because today s employees are actively looking to grow their careers, prioritizing new skills over even benefits and pay 10. Such programs address the major reasons employees look for a new job 11 : 44% lack of career advancement 36% unhappy with senior leadership 30% unhappy with compensation/benefits
9 THE EVOLUTION OF SKILLS 12 60% of all occupations in the future will require more people to work with technology SUPPORTING TODAY S GOALS AND TOMORROW S Just as important, these employers are laying the groundwork for sustained success in an increasingly volatile skills market. 1/3 of new jobs created in the United States in the past 25 years did not exist, or barely existed, before that point
10 MATCHING EMPLOYEE AMBITIONS WITH BUSINESS NEEDS Mining existing employees presents both a solution to today s talent shortage and an enormous opportunity for the future. Empowering existing employees to train for new skills does more than fill critical roles it fills them with highly motivated and engaged people. And organizations that are doing so are efficiently and costeffectively growing the skills they need. We actively 're-recruit' our internal people to new roles based on their education achievements, wrote one HR leader about her organization s aggressive internal recruitment that has resulted in a significant uptick in one of their hardest-to-fill positions 13. We are continually looking for ways to help employees achieve personal goals while aligning them to the organization's needs both now and in the future. The Tuition Assistance program is a vital part of this strategy and when focused and used correctly, it propels the organization forward. 13
11 A leading name in education assistance, EdAssist helps organizations create internal skills pipelines and more that maximize talent. We manage programs for nearly 200 organizations, and process more than $500 million in tuition and loan payments each year. Our best practices in policy design ensure employers that education investments support their business objectives. With intuitive self-service, expert advisors, powerful reporting, and significant tuition savings from 200+ accredited educational institutions, our tuition management and loan repayment programs transform education assistance into strategic investments that drive recruitment, employee growth, retention, and engagement today, while setting a solid strategy for the future. ENDNOTES Deloitte Global Human Capital Trends, Deloitte University Press, Job Openings and Labor Turnover Archived News Releases , Bureau of Labor Statistics 3 Josh Zumbrun. The Rise of Knowledge Workers Is Accelerating Despite the Threat of Automation. The Wall Street Journal, May Baby Boomers Retire, Pew Research Center, December 29, Civilian labor force participation rate, by age, sex, race, and ethnicity, Bureau of Labor Statistics 6 Karen Harris, Austin Kimson, Andrew Schwedel, Labor 2030: The Collision of Demographics, Automation and Inequality, Bain & Company, February 7, LinkedIn s 2017 U.S. Emerging Jobs Report, December 7, Sources of Hire 2017, SilkRoad 9 Matthew Bidwell, Paying More to Get Less, The Effects of External Hiring versus Internal Mobility, Sage Journals, December 27, Josh Bersin, The Learning Curve Is The Earning Curve, Forbes, April US & Canada Talent Trends: Data on How Candidates Want to Be Recruited, LinkedIn Talent Solutions 12 James Manyika. Technology, Jobs, and the Future of Work, McKinsey Global Institute, May Molly Weaver, MBA HCS, A flourishing Tuition Assistance Program, LinkedIn, March 13, 2017 Contact us to learn more info@edassist.com Follow 2018 Bright Horizons Family Solutions LLC. All Rights Reserved
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