Recruiting and training is expensive and time-consuming. Hiring internally can be a way to reduce those costs.
Here we go again! It’s Monday morning, just before lunch. You’ve just come out of a strategy meeting where your leadership announced that your team will again be growing this year. 100 new employees in the next 6 months! How is our HR department, consisting of only three people (you included!), going to pull this one, with a limited budget and so many other things on your plate? Questions like these go through your mind as you’re heading towards the canteen.
Yup, hiring can be very time-consuming - and costly! The Society for Human Resource Management estimates that companies in the United States (US) spend an average of $4,129 per job. Not surprisingly, when searching for people to fill in management and leadership roles this amount is even higher.
That’s surely a lot of money spent on finding new talent (and we’re not even touching upon the cost of mishire!). According to some estimations, nearly €75 billion are allocated to various recruitment staff, products, and services in the US. Globally, companies are likely to spend three times more.
But it is not only the high financial costs that present a problem to hiring teams, potentially threatening the business of the entire company.
The data from Glassdoor suggest that companies nowadays spend double the amount of time interviewing candidates that they used to some years ago.
“Seriously?! How come finding talent has become so difficult?”, you may ask.
You will not be surprised to hear that the outside search and onboarding can prolong the time when a job actually gets done. Research suggests that newbies can spend up to three years to reach the level of performance of employees who have been with the company for a longer time period. Wow.
So next time you’re overwhelmed with the number of people that you’ve been asked to bring into your organization, think about what skills and experiences your existing team members have to offer to (help) fill those positions.
As noted by Deloitte in its Global Human Capital Trends report from 2019, “Organizations can no longer expect to source and hire enough people with all the capabilities they need; they must move and develop people internally to be able to thrive.”
We couldn’t agree more. It’s all about creating a working environment where every employee can thrive.
A deeper understanding of how people feel about the opportunities to develop and grow in the workplace might be just the first step to ensure that you’re on the right path of making your hiring process a bit less painful.
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