The cost of employee recruitment, especially at the managerial level, continues to rise year over year. The total cost of external employee recruitment is now estimated at two to three times the annual salary of that position, which includes finding candidates, running background checks and training. The alternative, of course, is to promote from within.
Through internal promotion, it’s possible for your company to save thousands of dollars on recruitment, because you have a ready pool of candidates that you’ve already screened. Also, recent studies demonstrate that new hires from outside a company are less efficient in their job performance, and, on average, make 20 percent more than internal hires for doing the same job.
The greatest obstacle to successful internal promotion is finding the right candidates and filtering out those recommended due to favoritism or cronyism. In your search, your training management software acts as an impartial third party, providing invaluable insight into all potential candidates. Training management software simplifies your search by offering an in-depth look at your workers’ performance and habits, allowing you to identify their strengths and develop effective paths of promotion.
Analyzing workers’ habits
The search for an internal hire often begins with looking over supervisor evaluations. These evaluations carry a lot of weight because they are done by personnel familiar with a candidate’s day-to-day activities. However, overreliance on evaluations results in a significantly slanted view of a candidate’s work habits. The “halo effect,” a phenomenon that causes hiring managers to assume which candidates are the best fit, colors the validity of the evaluation. Given the existence of the halo effect, there is clearly a need for other, more objective ways to measure and calculate decisions regarding raises and promotions.
Reports from elearning platforms don’t carry the same subjective associations. These unbiased tools evaluate a candidate’s competency through the training management software. You become empowered with the knowledge of exactly how many hours a month a candidate spent in training, which demonstrates his or her level of commitment to improving themselves and their job performance. You also know if the candidate waited until the last minute to complete online learning programs, or if he or she started early and took the time to absorb the materials. Although they do not give a complete picture of a candidate’s suitability for a job, work habit reports from training management software are an objective balance to evaluations and personal recommendations.
Defining areas of strength
Within every company, there are hidden gems just waiting to be discovered, and training management software helps you do this. Sometimes, new hires are brought in for the wrong positions, and unrecognized talent doesn’t show itself until an employee has been with a company for quite some time. Other times, employees lack the self-confidence to show you just what they can do.
Training management software strips away fear, self-doubt and bravado to highlight a user’s strengths and weaknesses. For instance, imagine that Cindy, the young woman you hired to work in the warehouse, completes the mandatory new hire training course. Within that course is a section on product knowledge. This is an area in which warehouse employees tend to score low while members of the sales team excel. Cindy aces that portion of her training, but she continues to work in the back because she never saw herself as a salesperson. User reports from your training management software will show you that she is strong in areas associated with the sales team, so the next time you have an opening in that part of your company, you know she’s a qualified candidate.
Developing a path of promotion
The workplace is changing rapidly, as baby boomers finish their last years of work before retirement, and millennials step in to fill the vacancies. The millennial generation differs from older workers in significant ways, but perhaps the most important is the value these individuals place on job satisfaction over income. More than 22 percent of these employees claim training and development are the most important benefits that their employers can offer, beating out cash, health care, and other material benefits.
Your young employees want to know they are moving forward in their jobs, and if they feel that their careers have stalled, they will look elsewhere. Training management software is your company’s path to promotions. All you need to do is create a linear promotion ladder that says, “Complete these training courses, fulfill these requirements and you’re on the short list for the next internal promotion.” Users will flock to your online learning programs, so they don’t lose out on an opportunity for advancement or a new challenge.
By expanding your vision beyond just the training, your learning management system provides, recruitment of internal candidates becomes an inexpensive and viable way to fill positions within your company. Learn to utilize all of the features that you already pay for and find the gems hidden within your existing staff.