Companies are advised to emphasise building a growth, development, and learning culture due to slowing hiring rates.
LinkedIn’s chief economist, Karin Kimborough, suggests that organisations focus on skills and career development in their talent strategy instead of costly external hiring. This is because labor markets are still tight in many countries and industries post-pandemic, and employees are more likely to prioritise internal job opportunities than external ones.
In Southeast Asia, “people leaders” are 1.8x more likely to move internally than individual contributors; Gen X shows highest internal mobility rate (69%).
Internal mobility rates have increased in 16 out of 19 global industries studied, but most employees still prioritise external job opportunities. This is due to factors such as higher pay increases when switching employers and unclear internal hiring processes.
To encourage internal mobility, companies need to assess and demonstrate skills, shift from valuing experience to valuing skills, and adopt equitable compensation practices. They should also question their company culture, how they encourage internal moves, how employees access internal roles, and how well different teams (talent acquisition, HR, talent development) collaborate.
