How to Optimize Internal Employee Hiring for Organizational Growth and Success

I couldn’t believe what I was hearing. “All we need is to get the right people in the right seats on the bus,” said the consultant. We had been discussing hiring needs at my company for hours, and my recruiting team was exhausted from trying to recover from earlier layoffs.

As a senior HR executive, I saw our issue differently. It wasn’t just a recruiting problem; it was an opportunity for better retention. We had talented employees within our company, but we weren’t utilizing their unique strengths strategically. So, I decided to speak up.

“What if we focused on moving talent around internally to leverage their strengths when needed?” I proposed. The room turned to look at me, and instead of eye-rolling, there was curiosity (mostly).

“What needs to change for that to happen?” the CEO asked.

There was a lot that needed to change, and fortunately, most of it was within our control.

A recent report by McKinsey and Company reveals that attrition and disengagement can cost a median-sized company up to $1.1 billion in lost productivity over five years. Many valuable employees feel let down by their teams, and the consequences are significant.

This marked the beginning of our year-long project to create an internal talent marketplace that aligned our employees’ skills with our current and future goals. We implemented four tactics that can help other companies build an internal marketplace.

4 ways to create an internal marketplace within your company

1. Plan for the present and the future: Most companies lack comprehensive workforce development plans. These plans, designed to align the workforce’s knowledge and skills with company goals, should also consider future needs. This requires investing in training and tools at both the company and team levels. Unfortunately, these plans are often incomplete or not fully executed. It’s crucial for senior leadership, not just HR, to ensure these plans are regularly updated and implemented.

2. Shift managers’ mindsets: Planning is important, but progress requires managers to change their thinking. We started with manager training that provided a common language and guidelines for operating within an internal talent marketplace. We introduced a standardized employee bio that highlighted the company’s most sought-after skills. We emphasized open communication between managers, identifying staffing needs, and improving storytelling about their work. We also established rules of engagement to ensure current managers communicated with potential new managers when considering employee moves.

3. Foster experimentation: Before employees transitioned to new roles, we focused on preparing them for what lay ahead. Managers had to prioritize the organization’s needs over their own team’s. To incentivize managers to develop talent for other teams, we incorporated upskilling into their annual bonuses and tracked development opportunities offered. We also provided managers with a list of free or low-cost development options, such as observation opportunities or leading projects to build specific skills.

4. Share success stories: To sustain a talent marketplace, leaders must excel at storytelling in various settings. Sharing success stories of internal mobility is crucial to generate employee interest. Additionally, leaders should skillfully share stories about team projects and the specific skills required to achieve goals. In my company, upper management provided storytelling tips and shared case studies of successful leaders. These leaders also acted as informal mentors for others seeking to improve their storytelling abilities.

Our efforts helped the executive team improve planning, target development, and retain top talent. While some initially hesitated about losing their best employees, our tactics normalized internal talent mobility and rewarded those who excelled at it. Now, we not only had the right people in the right seats, but also the right people driving the buses.