Structured Skill Development Unlocks Employee Growth and Internal Mobility

Author: Victoria Kelleher

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Employers must keep their organizations up to speed with increasingly competitive industries and ever-evolving technology. That is why it is so important for an organization to actively build pathways for skill growth and advancement. This requires identifying skill gaps in the company on an ongoing basis and a structured method for helping employees develop the skills they need to advance.

Skill Development and Internal Mobility

Companies with well-designed skill development programs have a better pulse on the skills that exist across the organization, and therefore better awareness of the potential employees have for growth. As a result, they may have more fluid practices when it comes to promotions.

A recent survey from Brightmine found that companies with advanced skill development practices are more likely to identify and promote talent within (see Chart 1). For example, 50% of companies without organized skill development practices said they were more likely to fill an opening in a mid- to high-level position with an external candidate rather than an existing employee, compared with only 9% of companies with an organized approach to skill development. 

Connecting Mobility to Business Outcomes

Internal mobility is strongly connected to people outcomes and overall business performance. When employees experience growth and advancement within an organization, they are more likely to remain loyal to the organization and feel a sense of ownership of their work.

The survey found that when companies are more likely to promote an existing employee for a mid- to high-level open position, they are also more likely to report recent improvement in outcomes like employee engagement, key talent turnover, and Net Promoter Scores (see Chart 2). 

Since internal talent mobility has such a strong relationship with people outcomes, business leaders should take every opportunity to enhance it. The strong relationship between a well-designed skill development program and talent mobility makes it a lucrative choice for investment.

Building an Organized Development Program

Business leaders should benchmark their skill development practices and against the processes that are followed at leading companies. Companies with effective skill development typically organize their programs around certain steps:

  • Define a language: develop a defined taxonomy to define skills that are needed within the company, from technical skills to soft skills.
  • Assess the skill landscape: determine which skills the company needs for success at every level; identify the skillsets that employees already possess and the skill gaps that exist.
  • Define career paths and facilitate mobility: define pathways of common skill progressions for the skills needed to advance to higher level roles in the organization; create an internal talent marketplace to make openings visible.
  • Build a culture of continuous learning: train managers to assess career goals of direct reports and connect those goals to the skills necessary for employees to develop.
  • Link development with performance: build structured career development processes to define steps that can be taken for employees to advance toward ultimate career goals.
  • Measure outcomes: track metrics for internal mobility, time-to-fill, and outcomes like turnover and engagement.

Takeaway

Investing in a well-designed and structured skill development program can level up an organization's game when it comes to building structured career advancement paths. This will translate into increased higher-level aspirations for existing employees and more internal promotions. Employers can yield measurable business results as they cultivate well-developed and loyal employees across the business.