Frequent employee turnover can be a real headache for businesses of any size. Each time a key team member leaves, your company loses thousands of dollars in emotional capital and actual monetary value.
According to a study by Gallup, voluntary turnover alone costs U.S. businesses a trillion dollars annually.¹ Even with a conservative estimate, replacing a single employee can cost anywhere from half to twice their yearly salary. That’s a hefty cost for not retaining your best employees.
What Triggers Quitting?
Employees leave their jobs for many reasons, often feeling undervalued and unfulfilled. Low pay and poor benefits make them look for better opportunities. Personal reasons like moving to a new place or family needs can also cause someone to change jobs.
Additionally, they care a lot about having a good work-life balance. Even a high-paying job can seem unattractive if they are burnt out from too much work or not enough flexibility. This means that company culture is significant, too. Toxic environments with bad leadership or little recognition can quickly lower morale and push employees to quit.
Sometimes, the job itself isn’t a good fit. Employees who don’t enjoy their daily tasks or their skills don’t match the job’s requirements look for new opportunities. If they don’t see chances to grow, they seek roles with clear career paths for advancement.
Talent Mobility Solutions: A Tool for Employee Retention
Talent mobility allows employees to move within their organization, whether across different departments or into leadership roles. It creates a dynamic environment where employees can take on new projects or transition into other positions. This strategy aims to keep employees engaged and challenged by matching their talents with the right opportunities within the company.
However, the big question is: can it fix the turnover issue? To an extent, yes.
Like other measures organizations use to retain employees, such as offering competitive pay, fostering diversity, creating an inclusive work environment, and providing flexible work arrangements, talent mobility can be a powerful tool to address many reasons employees leave their jobs.
Many organizations wait until high employee turnover becomes very obvious before deciding to act. This reactive approach can significantly hurt the company’s performance and bottom line. Talent mobility, on the other hand, is a proactive approach to addressing employee concerns before they reach a tipping point.
Internal Mobility Solution: How Talent Mobility Helps Employee Retention
Internal mobility isn’t a one-size-fits-all solution. If employees are unhappy with core aspects of the company culture or leadership, or if personal reasons necessitate a complete job change, mobility may not be enough to retain them. However, it targets pain points that cause people to leave, generally improving retention rates. Here are some benefits to applying an internal talent mobility program to your business.
Additional Opportunities for Career Development
Stagnation is a major demotivator for ambitious employees. According to the APA’s 2024 Work in America survey, nearly a quarter (23%) of American workers are dissatisfied with their opportunities for professional advancement.² Talent mobility addresses this by allowing employees to take on new roles and responsibilities that broaden their skill sets.
Continuous learning and development keep employees engaged, motivated, and more likely to stay longer. They understand that their efforts and achievements can be rewarded with new opportunities, encouraging them to perform excellently.
Increased Job Satisfaction Levels
Feeling valued and appreciated is crucial for employee satisfaction. When a company supports employee mobility, it shows employees that their professional development is essential and that the company is willing to invest in their future. This creates a positive work environment where employees feel empowered to take control of their careers.
Successful internal hires serve as role models, inspiring others to pursue their growth within the company. This fosters a culture of collaboration and knowledge-sharing, which further strengthens employee engagement and retention.
Decreased Managerial Issues
An average person spends much of their day at work, so poor management can make even the best job unbearable. If a specific manager is the root cause of dissatisfaction, talent mobility allows employees to explore different teams with better leadership styles. This allows them to thrive under a more supportive and motivating manager.
However, while talent mobility helps employees escape bad managers, a long-term solution requires proactive leadership development. Companies can invest in training and coaching programs to equip managers with the skills to create positive and productive work environments.
Reduced Financial Dissatisfaction
While talent mobility won’t directly increase salaries, it can offer other ways for financial advancement within the organization. Internal talent mobility programs provide clear paths for career progression.
Employees can qualify for raises, bonuses, or other performance-based compensation by moving into new roles with more responsibility. This career growth and salary increases create a sense of financial progress that can counter feelings of undervaluation.
Succession Planning: Securing a Talent Pipeline the Right Way
Now that you understand how the talent mobility strategy can up your retention efforts, here are six steps you can take to aid the mobility process:
1. Understand Organizational Needs and Goals
The first step in adequate talent mobility is understanding your organization’s strategic goals and workforce needs. Identify key areas where talent is most needed, and the skills required for these roles.
Ensure your talent mobility plans match your long-term business goals. Then, do a thorough analysis to identify skill gaps, important roles, and future workforce needs. This will help ensure that your talent mobility efforts are targeted and effective.
2. Maintain Transparency
A successful program needs clear communication. Employees should know about available internal opportunities, how to apply, and the skills and experience required for each role. This transparency builds trust and encourages employees to explore internal mobility options.
Use your communication channels to inform employees about openings and clearly state the selection criteria. This will help employees assess whether they are a good fit and encourage qualified individuals to apply.
3. Focus on Development
Don’t assume your employees have the necessary skills for every open position. Invest in training and development programs to give them the knowledge and skills they need for new roles.
This includes mentorship programs, online courses, and workshops on specific skill gaps. This empowers employees to take advantage of internal mobility opportunities, benefiting their career growth and creating a highly skilled and adaptable workforce.
4. Make It a Two-Way Street
Effective talent mobility is a collaborative effort. Don’t just dictate opportunities; be open to employee suggestions and aspirations. Conduct regular career development conversations to understand individual goals and explore how internal mobility can align with those aspirations.
Encourage discussions about skill development and possible lateral moves to broaden their skills. This can help employees feel in control of their career paths.
5. Monitor and Evaluate the Program
Regularly monitoring and evaluating your talent mobility strategy are essential for ensuring its effectiveness. Establish key performance indicators (KPIs) to measure success, such as employee satisfaction, retention rates, and impact on business performance.
Gather feedback from employees who participated in the internal mobility program to understand their experiences and identify areas for improvement. Use this data to make informed adjustments and continuously improve your mobility strategy.
6. Think Long-Term
Mobility isn’t just about filling immediate needs and building a resilient and adaptable workforce for the future. Encourage employees to think about their long-term career goals and how mobility can help them achieve them. This forward-thinking approach enables you to create a more dynamic and future-ready organization.
RASO360 CAN HELP YOU BUILD A RESILIENT WORKFORCE
Managing a business comes with its own challenges, and adding the stress of hiring can make it even more tedious. Raso360 removes that stress by providing properly vetted candidates eager to join your team and contribute to your success.
Whether you need to fill temporary or permanent roles, we’ve got you covered. Contact us today!
References
- Mcfeely, Shane and Wigert, Ben. “This Fixable Problem Costs U.S. Businesses $1 Trillion” Gallup, 13 March 2019, www.gallup.com/workplace/247391/fixable-problem-costs-businesses-trillion.aspx.
- Decarbo, Beth. “Lack of growth opportunities is a big reason why employees leave jobs. Here’s how to change that” American Psychological Association, 2 July 2024, www.apa.org/topics/healthy-workplaces/growth-opportunities.
