Looking Within: Internal Sourcing Strategies for Navigating the Great Stay
The script has been flipped on the Great Resignation with the Great Stay, and internal sourcing is going to be the way to go to solve talent shortages.
Job creation among private sector employers slowed for the fifth straight month (an increase of 99,000 jobs in August) and wage growth was stable, according to the ADP National Employment Report.
“I think one of the challenges right now, when you look [for talent externally], is … people being a little bit more hesitant to leave their organizations [and] move to a new organization. … It might take you longer to find that person [and] get them to speak to you,” ADP Chief Talent Officer Jay Caldwell said in an interview, attributing the main cause as worker anxiety about the economy and what could happen in the next year.
A survey by staffing and services solutions provider Aerotek found that job security was a top priority for nearly 20% of respondents in spring 2024 — an upward trend from 14% in spring 2023.
The Benefits of Internal Sourcing
According to Caldwell, internal sourcing — or recruiting from within — tends to drive positive trends in engagement, retention and productivity. He noted that the analytics available in modern HR technology are able to measure that impact.
Some other reasons why internal sourcing of talent is a good idea:
- Reduced recruitment costs: Hiring from within means less money spent on advertising, recruiter fees and the onboarding process (because internal candidates have already been trained).
- Familiarity with the company: Internal candidates already know the company culture, processes and team dynamics, leading to a quicker integration.
- Unveiling hidden talent: Internal sourcing can uncover and utilize skills and experience that aren’t immediately apparent in someone’s current role, and
- Engagement opportunities: Employee referral programs can boost morale by rewarding employees for recommending talented co-workers.
4 Strategies to Get Started
It’s important to collaborate with your managers to set up an infrastructure that helps people guide their careers with your organization by:
- Identifying where your high-turnover-risk employees are and what career opportunities might make them stay.
- Identifying which employees have skills that are transferrable to a different part of the organization, and communicating the direct and indirect career paths available to them.
- Providing stretch assignment opportunities, and
- Nurturing the skills necessary for the success of your business in five years and coming up with a plan to help employees get there.
The Time Management of Career Development
Caldwell pointed out that to keep up with the pace of change in business, investing in employee upskilling and learning and development is essential for internal mobility.
“The half-life of some skills can be as short as two years. What you know today is not going to be what you need to know tomorrow,” he said.
There also needs to be some strategic talent management. In addition to tools and resources that help employees move into new roles, consideration must be given to how they’ll handle their day-to-day workload while simultaneously getting educated.
“If you have to learn something new, you’ve got to sit down and study it. … Also, when you think about applying a new skill, there will be a productivity dip. It takes time to apply something new,” he said.
Make Internal Mobility Sexy
An effective way to pique employee interest in internal mobility is sharing internal sourcing success stories and testimonials.
“Hearing about a business leader who went from sales to operations, and is now in this executive role — and using that as a way to describe how the organization supports those steps — is highly effective,” Caldwell said.
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