The power of internal talent pooling for frontline organisations: Nurturing success from within

In today’s fast-paced and highly competitive business landscape, frontline organisations are constantly seeking innovative ways to secure their position in the market. One of the most valuable assets that these companies possess is their workforce — and to remain agile and successful, it is essential to harness the potential of their talent.

Enter the concept of internal talent pooling — a strategic practice that not only enhances employee growth and satisfaction but also drives organisational success in the long run. As industries like Childcare & Early Learning, Retail, and Hospitality continue to struggle with high employee turnover, burnout and disengagement, giving employees more of a reason to stay is integral. In this article, we’ll explore the importance of internal talent pooling and how it can benefit both employee and organisation.

What is internal talent pooling?

Internal talent pooling refers to the practice of identifying, nurturing, and developing employees with high potential within an organisation, with the aim of filling key positions and leadership roles from within the existing workforce. Rather than looking outside the company for new talent, internal talent pooling focuses on growing and upskilling existing employees to take on greater responsibilities and challenges.

The importance of internal talent pooling

Internal talent pooling may seem like a difficult undertaking for frontline organisations, whose workforces are often transient in nature due to seasonal hiring requirements. However, there are still several benefits that come with internal hiring — especially when it comes to retaining people for longer.

Retention of top talent: One of the most significant benefits of internal talent pooling is its positive impact on employee retention. When employees see a clear path for career advancement and professional development within their current organisation, they are more likely to stay committed to their roles and the company’s mission. According to LinkedIn’s 2024 Global Talent Trends report, hiring is sluggish around the world — but internal mobility is up by around 6% year-over-year. Clearly, internal talent pooling and hiring is on the rise, as organisations realise the boosts to agility, engagement, retention, and career development it brings.

Reduced recruitment costs: External recruitment can be time-consuming and costly, involving advertising, interviewing, onboarding, and training. In fact, it’s estimated that the costs to replace a worker range from three to four times their salary. By promoting from within the organisation, businesses can save on recruitment expenses while ensuring a smoother transition for employees moving into new roles.

Enhanced employee engagement: Knowing that they could advance within the organisation can significantly boost employee morale and engagement. When employees feel valued and invested in, they are more likely to be productive and contribute positively to the company culture. 

Faster adaptation and skill alignment: External hires often require more time to adapt to the company’s culture, values, and workflow. Their time to productivity is longer – and in a fast-paced frontline role like nursing, understanding how things work from day one is crucial. Internal talent, on the other hand, already possesses an understanding of the organisation, which translates into a faster learning curve and smoother integration into new roles.

Cultivating a learning culture: Internal talent pooling encourages a learning culture within the organisation. Employees are more motivated to acquire new skills and knowledge when they know it will lead to career growth and new opportunities.

Building institutional knowledge: Internal talent pooling allows companies to retain valuable institutional knowledge and experience. Employees who have been with the organisation for an extended period have a deeper understanding of its history, processes, and unique challenges.

Strengthening employer brand: A robust internal talent pooling program reflects positively on an organisation’s employer brand. This can attract external talent, as potential candidates see the company as one that invests in its employees’ growth and development.  

A 2022 report found that 29% of employees would consider returning to a former employer for better growth opportunities, making it doubly important to foster a culture of internal mobility.

Implementing an effective internal talent pooling strategy

There are a few ways frontline organisations can see these benefits come to fruition, both with and without technology. They are as follows:

Identify high-potential employees using technology: Regularly assess employee performance and potential to identify those with the ability and motivation to take on more significant responsibilities. Time is money when it comes to hiring talent and by utilising technology effectively, hiring managers can quickly identify and mobilise their internal talent.  

For example, Humanforce Talent is an all-in-one talent acquisition platform that provides visibility of your entire workforce, including internal talent, their specialties, availability and even preferred next roles. Leveraging this platform, hiring managers can easily filter by internal talent, view their current skillset, and even view desired future roles or positions for more accurate Suggested Match results. 

The platform’s robust analytics feature further empowers HR teams by offering insightful data on internal talent demographics, recruitment progress, and potential bottlenecks. This invaluable information includes salary expectations, allowing for a comprehensive understanding of the internal workforce’s compensation trends and gender-based variations.

Develop customised training programs: Offer tailored training and development initiatives to equip employees with the skills needed for future roles. Customised training programs not only equip employees with skills, but can also keep them feeling engaged and valued. In a frontline environment, the training needs of team members and those deemed to be ‘high potential’ can be identified by line managers, who should ideally be having regular one-on-one catch-ups with their team.

Create clear career progression paths: Creating clear career progression paths is essential for retaining top talent and motivating employees to stay committed to their professional growth. When employees have a transparent roadmap for advancement, they are more likely to feel valued and engaged, knowing that their efforts and achievements are recognized and rewarded. In fact, retention rates are 34% higher among organisations that offer employee development opportunities. 

Performance Management, part of the Humanforce HR suite, enables managers to map out these career progression paths through goal setting, tracking, and progression, 360-degree feedback, real-time performance data, skills and training needs analysis, and more.

Encourage cross-functional experiences: Provide opportunities for employees to work in different departments and gain a broader understanding of the organisation. Encouraging cross-functional experience not only enriches employees’ skill sets but also fosters a collaborative and innovative work environment.  

By offering opportunities for individuals to explore various departments, they can develop a deeper appreciation for the organisation’s overall objectives, enabling them to contribute more effectively to the company’s success. Additionally, this cross-pollination of knowledge and expertise can lead to the discovery of hidden talents within the internal talent pool, further enhancing the process of identifying and nurturing top talent through technology-driven solutions like Humanforce Talent. 

Another great way of facilitating cross-functional collaboration is through rotating rosters. We covered them in more detail here — but in a nutshell, rotating rosters allow managers to schedule employees at different times each week. For example, an employee may work night shift for an entire week, afternoon shift the whole of next week, and morning shift the week after that. Not only does this provide workforce flexibility, but allows employees from different rosters, departments, and areas to interact on a consistent basis.

Internal talent pooling can be the differentiator

Internal talent pooling is a powerful strategy that not only benefits the organisation’s bottom line but also promotes employee loyalty and professional development. By investing in the growth of their workforce, companies create a culture of excellence, fostering a sense of purpose and commitment among employees.  

For frontline organisations looking to deliver the best possible services, having a skilled and motivated internal talent pool is a key differentiator that sets successful organisations apart from the rest. 

To discover more about Humanforce Talent and how it can kickstart internal talent pooling for your organisation, visit the product page. 

About Humanforce 

Humanforce is the all-in-one platform for frontline and flexible workforces, offering a truly employee centred, intelligent and compliant human capital management (HCM) suite – without compromise. Founded in 2002, Humanforce has a 2,300+ customer base and over half a million users worldwide. Today, we have offices across Australia, New Zealand, the US, and the UK. 

Our vision is to make work easier and life better by focusing on the needs and fulfilment of frontline workers, and the efficiency and optimisation of businesses. 

To learn more about how Humanforce’s solution can help automate people processes in your business, please contact us.