In January (2020), the Bureau of Labor Statistics calculated the US unemployment rate at just 3.6%. Though a low unemployment rate is usually good news for an economy, fewer people searching for employment means a smaller pool of talent for businesses, often leaving employers desperate to find the skilled workers needed to fill open positions.
However, businesses miss out on major opportunities when they search for talent outside of the organization, rather than within it. Scrutiny of 30 years of data found that external hires not only cost more than those promoted from within but also tend to score worse on performance reviews and have a shorter tenure than their hired-from-within colleagues.
Moreover, promoting from within improves employee retention, work ethic, and even workplace happiness. It also gives hiring managers the benefit of knowing that the existing team member is already a good cultural fit, has strong working relationships, and understands the industry.
Upskilling your employees is a critical process in reducing the need for outside hires and increasing internal promotions.
Investing in your current team's soft skills, technology know-how, and knowledge of industry trends can help your business reap the rewards of promoting from within and creates more well-rounded individuals and teams.
Start increasing professional development opportunities to improve your company's performance and ultimately create an impressive talent pool for future openings at your organization.
The following are some ways to go about your upskilling effort, along with challenges that may need to be overcome.