The Australian recruitment landscape is brutal. A recent Seek report paints a grim picture:
- record low unemployment.
- A sever talent shortage.
- increased competition for skilled professional.
This scenario, which is particularly challenging for SME’s, creates a ripple effect. Every departure feels like a tsunami, leaving overworked teammates scrambling and productivity taking a hit.
But what if the solution lies closer than you think? Internal hiring isn’t just a feel-good strategy; it’s a strategic weapon in today’s competitive talent landscape. Here’s why:
- Develop Your Diamonds:
Replacing a skilled employee takes time, money, and resources, not to mention the stress on existing teams. By investing in your people’s development, you can kill the proverbial two birds with one stone. A whopping 87% of Gen Z rank learning and development as one of their top “must have” job requirements. By nurturing internal talent, you not only build a pipeline of ready replacements, but you also meet a key employee need which results in higher retention rates. Imagine promoting a high-potential employee with company knowledge and loyalty instead of starting from scratch with an external hire.
- Succession Planning: Don’t be Caught Off Guard:
The lack of formal succession planning is a major hurdle for SMEs. In fact, a 2022 survey by the Australian Small Business and Family Enterprise Council revealed that only 34% of SMEs have a documented succession plan. This leaves them vulnerable when key personnel leave, impacting business continuity and growth. Building a talent pipeline through internal development and succession planning ensures smooth transitions and protects your company’s future.
- The SME Challenge: Limited ResourcesBig Impact:
Larger companies can dedicate entire HR departments to talent development and succession planning. But for SMEs, limited resources and budgets can be a barrier. However, smart companies are getting creative. Using external HR consultants for specific tasks, leveraging online learning platforms, and even partnering with universities for internship programs are some strategies employed by resourceful SMEs.
- Identify, Select, Retain, Develop:
Great People Inside’s assessments can play a crucial role in your internal hiring strategy. Clients we work with:
- Identify high-potential employees with the skills and aptitude to excel in new roles.
- Match high potential employees with the right role.
- Select the right candidates for development programs and promotions based on their attributes.
- Retain their top talent by providing managers with the tools to deliver personalised development opportunities and career paths.
- Develop a robust succession plan, ensuring a smooth transition of knowledge and expertise.
This ongoing talent shortage could drown your business. So, embrace internal hiring, invest in your people, and unlock the potential within your organisation.
If you are Ready to unleash the power of your internal talent pool? Contact Great People Inside and discover how our assessments can help you win the talent war.