One of the biggest talent management issues is employee tenure, which has dropped by 11% over the last 10 years. It’s not shocking, then, that 70% of HR professionals say that finding and recruiting talent with the right skills is a top priority. 

But searching internally and developing employees is an underutilized resource. Since 2020, internal hires for open positions have dropped from 40% to just 24%. Companies who focus too much on hiring from external pools miss out on faster time-to-hire rates, as well as the institutional knowledge that can be brought into these roles.

External recruits also present hiring risks in terms of being fit for the role and company culture. While external candidates receive higher salaries, they also receive lower scores on performance reviews. In fact, external hires are 61% more likely to be fired than internal hires.

The pain of a bad fit can further be amplified with employee turnover for those overlooked for a particular position.

The benefits of internal mobility for employees include better advancement within their careers and job satisfaction that leads to higher company loyalty and retention rates. You’re also likely to boost productivity by choosing the right employees to grow, even if they don’t meet certain criteria on their paper resumes. 

Before you start creating a program to develop untapped talent in your organization, make sure you have an education assistance policy in place that aligns with your talent management goals. 

There are a couple of components to consider when building an internal policy. 

The first step is to look at what skills gaps your organization needs, both currently and in the future. Talk to managers and senior leaders to identify upcoming industry trends, staffing needs, and organizational goals. This should be an ongoing process, rather than a one-time event.

The next step is to benchmark your offerings against industry standards and your peers to ensure competitiveness. Benchmarking helps to ensure you’re focusing on the right investments without missing any up-and-coming trends within your sector. 

After identifying the skills your company needs, it’s time to start looking into your existing pool of employees. Check with managers for signs that an employee may have untapped strengths or skills sets.  

This often manifests as overperformance in their current position, continually volunteering for development opportunities, and performing well in company trainings. Also consider one or more formal assessments, such as testing for cognitive abilities, soft skills, and personality.

If you have a specific training program to address your company’s skill gaps, encourage employees to participate by launching an engaging communications plan. Helpful assets include fact sheets, social media, and newsletter posts for awareness and toolkits and webinars to encourage program participation.

As you identify the skills gap in your organization, consider offering individualized career coaching cohorts.

Employees benefit from personalized, one-on-one sessions to discuss their academic, career, and financial goals. They can also discover the best education programs to meet those goals, which ultimately reduces costs and time to completion. 

When academic coaching is offered as a benefit, it gives employees confidence that they can make an internal move. Additionally, by developing an education plan with ongoing coaching support, employees are more likely to complete their upskilling endeavors. 

Education assistance is another way to inspire professional development and leverage untapped talent with the workforce. Client surveys from EdAssist reveal that tuition program participants have a 92% retention rate, along with a 49% reduction in turnover rates. 

But education assistance doesn’t mean you have to give your employees carte blanche to pursue any program or degree they want (though there are compelling reasons to consider it). You can create tailored programs focused on the skill development and training that your company needs to meet your strategic objectives. 

For instance, many organizations choose to partner with local educational institutions that allow employees to enroll in select relevant coursework. A benefit program could be customized to include upfront tuition payments or discounts, or reimbursement after the program is completed. 

The result of any education assistance  program is to fill critical roles from within while also building a culture that values education, growth, and internal promotion.

Getting the most out of your workforce takes a mix of both inspiring employees to reach for more while also providing them the avenues to do so, including through education assistance opportunities. Employees need to know that their efforts will pay off professionally and that they have the support of their employer to complete the upskilling required to achieve their goals. 

That’s why investing in your employees’ growth and development is essential in today’s competitive landscape. By utilizing education assistance programs, you can effectively bridge critical skill gaps while fostering a culture of continuous learning and advancement. 

This approach not only retains top talent but also transforms it, leading to a more engaged, loyal, and productive workforce. With EdAssist, you can unlock the full potential of your untapped talent and drive sustained success and innovation for your company.