As the talent war continues to rage, we are seeing a shift away from external hires and towards internal talent promotion. Pent-up demand combined with a dearth of labour means that companies can no longer grow through recruiting alone. To remain competitive in a highly competitive and dynamic landscape, companies must focus on developing their internal workforce through upskilling and other development programs.
And, it’s not just about an upward trajectory. The old adage about moving people “up or out” is quickly falling to the wayside. A 2022 study by researchers at the MIT Sloan School of Management and Revelio Labs found that lateral career opportunities are more than twice as important as compensation in predicting employee retention.
A 2019 Deloitte report outlined how an organization reaped a 30% increase in employee engagement after introducing an internal career program to help employees learn new skills and seek alternative roles.
By empowering employees to tap into roles that align with their interests, not only are you filling the position, but you are also deepening engagement, driving down recruitment costs, fostering an agile culture and giving the organization a competitive advantage. If an employee is unhappy with their role, lateral talent mobility can be the solution.
For this trend to work successfully within an organization, three things need to happen. Firstly, HR must have a solution in place that allows employees to access available positions within the company. Secondly, all employees must have access to tools and development plan to be able to aptly prepare to follow their interests and take on a new role, whether it’s an upward step or a lateral move. And, lastly, leaders need to have a bigger, less siloed view of the talent that is available within the organization.
Peer group coaching may be just what your organization has been looking to take its employee development efforts to the next level. If you’d like to know more about our group coaching programs, contact us to start a conversation.