Hiring Outsiders Costs Money. Save it by Investing in Human Development.
About 9 million Americans are looking for work as I write this. In related news, about 7 million job openings are still unfilled because the organizations seeking employees claim not to be finding candidates with the needed qualifications. The gap is driven by educational mismatches, according to multiple researchers.
What to do?
One solution: Do a better job of retraining and reassigning talent you already have on staff to fill the openings. A better developed workforce obviates the need to go outside the organization to find new hires, right? Succession planning should not be reserved for the top echelons of management!
That takes investment in human development, of course. But a survey conducted on behalf of Evolllution, a site dedicated to lifelong learning, did find some organizational support for making such an important investment:
- 70% of employers believe that employees need continuous learning simply to keep up with the demands of their current jobs
- 96% of employers say ongoing education improves job performance. Therefore, as a means of rewarding employees for their educational pursuits
- 87% of employers say additional education positively impacts pay raises
- 78% say it positively impacts promotions and advancement—in many cases directly
Among the research’s conclusion is one that supports the idea that preparing employees for promotion is a great long-term strategy.
“Beyond increasing productivity, ongoing education helps employees ascend the corporate ladder, allowing corporations to significantly reduce their bottom line by avoiding the high costs associated with outside hires.”
Hiring staff from outside the organization can significantly increase costs for employers, and is also riskier, as you know a lot less about an outsider than you do an internal candidate. In addition, someone willing to hop to your shop may be ready to hop out again in a few years! Here are some stats quoted by Evolllution in their article:
- Within four years, 64% of externally hired executives will fail at their new jobs
- 62% of internally promoted executives will still be with the company
If it costs twice a starting salary to hire an outsider (or more), why not invest a percentage of that cost in human development? Instead of searching for external hires with a higher potential for failure, save time and money by fostering a strong corporate training program that bridges and/or fills the gaps in needed job qualifications.
What do you think? Does your company make an active commitment to grooming employees for higher positions? Can you gain the new skills you need to rise into more senior positions? Are the qualifications clearly communicated so that people know for what to strive?
Let us know! We work with corporations on this issue regularly, and sharing your insight makes us all smarter. And that’s the goal of development, isn’t it?
You can learn more by viewing this infographic, based on the Evolllution research results.