We spend a lot of time at Jobspeaker thinking about retention. College student retention and how to improve it. Employee retention as it relates to meaningful and fulfilling work. And Employee retention as a cost-savings to hiring companies.
Each of these prongs has it’s own issues and none is easy to solve.
But a new LinkedIn report has evidence that a Skills-Based Hiring approach actually improves employee retention.
“For example, LinkedIn data finds that investing in employees’ learning and growth is key to retention:
Workers who have made an internal move at their organization at the two-year mark have a 75% chance of remaining there, compared to 56% for those who haven’t.”
Companies that excel at internal mobility are able to retain employees for an average of 5.4 years. That’s nearly 2x as long as companies that struggle with it, where the average retention span is 2.9 years.
Employees have long been asking for work that complements what they can do and provides opportunities to learn and grow. In a skills-first labor market, people can find or stay in jobs that match their skills and skill-building potential, ultimately leading to a more engaged workforce.
So if employees want roles that complement their skills, and using skills as a way to promote internally improves retention, and moving to a skills-based hiring practice substantially increases the hiring pool, what is the world of work waiting for?
We certainly are not advocating for a complete lack of educational requirements – we believe in higher education. But we also believe there are many talented workers who are overlooked daily because they do not hold a four-year degree.
Download the full report.
Or if you are ready to learn how Jobspeaker can help you move to a Skill-Based Hiring Approach, schedule a demo today.
