The Strategic Role of Recruiters in Driving Company Growth through Internal Mobility and Development

A few years ago, I faced a significant challenge jumping into a new role. We had an urgent need to fill a critical position within the company. The timeline was tight, and the expectations were high. However, as I delved deeper into the internal and market data, it became clear that the talent we were looking for were in high demand, and the competition for that specific talent was fierce. In addition, the remuneration package we had in mind was simply not competitive enough to attract the caliber of candidates we needed.

Armed with these insights, I knew I had to take a different approach. I presented the data to our stakeholders, handing them a detailed strategy including a delivery timeline, ensuring that the business won't be impacted. I did deliver, but made a great mistake by overlooking an internal employee. A mistake that turned out to be a great lesson.

The State of Internal Mobility and Its Impact on Growth

Recruiters play a pivotal role not only in supplying their organization with top talent but also in shaping the long-term growth and sustainability of the company. A key aspect of this role involves balancing external hiring with the strategic promotion and development of internal employees, often referred to as "zig-zag" opportunities, where employees grow by moving laterally across different functions before climbing vertically.

Internal mobility - the practice of promoting existing employees or moving them into new roles within the company has proven to be a powerful driver of organizational growth. According to LinkedIn's Global Talent Trends report, companies with high internal mobility retain employees nearly twice as long as those that don't prioritize internal movement. Additionally, Gartner research found that employees who make lateral moves within their company are 2.5 times more likely to remain with the organization, reducing turnover costs and increasing institutional knowledge retention.

However, despite the benefits, the data reveals a gap between potential and practice:

• Promotion rates: On average, only about 10% of employees are promoted annually in a typical organization.
• Internal hiring rates: Only 30% of open positions are filled internally, leaving 70% of roles to be sourced externally.

This gap underscores an opportunity for recruiters to drive significant value by advocating for greater internal mobility and upskilling, thereby creating a more sustainable and growth-oriented talent pipeline.

Attracting Top Talent Through Growth Opportunities

According to my own research, so far, the top talent I've come across are increasingly drawn to organizations that offer clear pathways for career progression (the most frequently asked question in interviews). A Gallup survey found that 87% of millennials rate "professional or career growth and development opportunities" as important to them in a job. Therefore, when companies highlight their commitment to internal promotions and lateral moves, they are more likely to attract high-caliber candidates who are looking for more than just a job-they want a career.

Once an employee puts their trust and effort in the company's vision, it is the company's responsibility to nurture their potential and provide opportunities for continuous growth.

The Recruiters Role in Influencing Decision-Making

Recruiters can influence company growth by becoming strategic advisors in the hiring process. Here are some examples I have practiced:

1. Data-Driven Advocacy: By presenting data (data is king) on internal promotion rates, turnover rates, and the costs of external versus internal hiring, recruiters can make a compelling case for increasing internal mobility. This data can be used to influence leadership decisions, ensuring that business needs are met while also fostering employee development.
2. Close Monitoring of Business Needs: Recruiters should stay closely aligned with the evolving needs of the business, identifying gaps that could be filled by current employees with the right development opportunities. This proactive approach not only meets immediate needs but also prepares the company for future challenges.
3. Promoting a Culture of Growth: By highlighting and celebrating success stories of internal mobility, recruiters can help to embed a culture where growth is expected and supported. This, in turn, makes the company more attractive to potential hires who value development opportunities.