New Survey Reveals Organisations May Be Overlooking
the Best Candidates For New Roles: Their Own Employees
Research from Cornerstone OnDemand reveals that 77 percent of organisations see internal recruitment as critical, yet they fill less than a third of vacancies internally
LONDON, 10 July 2014: Cornerstone OnDemand (NASDAQ: CSOD), a global leader in cloud-based talent management software solutions, today announced the results of a new study that reveal how organisations could be missing out on top talent and increasing costs by neglecting internal recruitment. According to the research, carried out in conjunction with leading industry analysts across Europe, over three quarters of organisations (77 percent) understand that internal recruitment is critical, but 54 percent do less than a third of their recruiting from their existing employee base.
“Your employees are your best asset, so it makes sense for companies to tap into this valuable talent pool.” said Vincent Belliveau, Senior Vice President & General Manager EMEA, Cornerstone OnDemand. “Staff turnover and external recruitment can be prohibitively expensive, costing more than £30,000 on average, per role. Organisations already have a good understanding of the skills and aptitudes of their people, making internal hires a faster, more effective way of recruiting. However, there are clearly barriers blocking companies from making the most of this.”
Cornerstone’s research, which polled HR professionals representing 363 European organisations across a number of vertical sectors, found that barriers to effective internal recruitment included the fear of losing top performers (25 percent) creating internal vacancies (14 percent) and limiting diversity in the workplace (12 percent). However, with 93 percent admitting that internal recruitment has been successful in the past, it is clear that teams need to look beyond the short term challenges that internal recruitment can cause and focus on the longer term benefits, which outweigh both the costs and risks.
According to the study, HR professionals believe that internal recruitment can have an extremely positive impact by developing, engaging and retaining staff. However, many experience technological as well as social and professional barriers; 69 percent of the sample reported that they rely on simple job posting systems to hire internally, even though more than 40 percent think a dedicated career planning system is a must have.
“Without a fast and effective means of recording current employee skills and matching these skills to internal vacancies, internal recruitment is time-consuming and frustrating,” concludes Belliveau. “This complexity can drive HR teams to advertise externally and unnecessarily. However, it’s vital that they look at the bigger picture – whilst managers might worry about losing talent within the department, it’s far worse for the company to lose this talent entirely. People now have multiple careers – not just multiple jobs – within their lives, and savvy organisations which embrace this can not only retain, but also engage and develop their best people, ultimately benefiting the entire organisation.”
To download the full report, Your Company’s Got Talent! – Internal Recruitment Issues in the European Marketplace 2014, please click here.
Cornerstone was founded with a passion for empowering people through learning and a conviction that people should be your organisation’s greatest competitive advantage.
Cornerstone is a global human capital management leader with a core belief that companies thrive when they help their employees to realize their potential. Putting this belief into practice, Cornerstone offers solutions to help companies strategically manage and continuously develop their talent throughout the entire employee lifecycle.
Featuring comprehensive recruiting, personalised learning, development-driven performance management, and holistic HR planning, Cornerstone’s human capital management platform is successfully used by more than 3,500 global clients of all sizes, spanning more than 42 million users across 192 countries and 43 languages.
Learn more at cornerstoneondemand.co.uk.