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- Why You Should Let Your Favorite Employee Move to Another Team | MIT Sloan Management Review (2024)
Why You Should Let Your Favorite Employee Move to Another Team | MIT Sloan Management Review (2024)
This article explores the detrimental effects of internal talent hoarding and highlights the benefits managers can gain by supporting their employees' career advancement.
Tanguy Dulac
September 22, 2024
EMPLOYABILITY & LEARNING CULTURE | MIT Sloan Management Review | Why You Should Let Your Favourite Employee Move to Another Team
This article explores the detrimental effects of internal talent hoarding and highlights the benefits managers can gain by supporting their employees' career advancement.
DID YOU KNOW?
“75% of managers engage in talent hoarding, intentionally keeping skilled employees in their current roles despite growth opportunities elsewhere.”
NEED AN EXECUTIVE SUMMARY?
Introduction
In today's dynamic business environment, managers often face the dilemma of supporting their career advancement or retaining them within their teams. This article explores the concept of internal talent hoarding and its implications for both managers and organisations.
Key Insights
Prevalence of Talent Hoarding: 75% of managers admit to hoarding talent, with the actual percentage likely higher due to social desirability bias.
Career Advancement Barriers: Many companies require employees to get their current manager's approval to apply internally, enabling managers to block promotions directly.
Attraction of Top Talent: Managers with higher rates of promoting subordinates received 43% more internal applications overall and 66% more applications from employees rated as high performers.
Functional Diversity: Managers supporting employee advancement attracted 32% more applicants from other functions than those with lower promotion rates.
Reputation Effects: A manager's reputation for supporting promotions follows them throughout the organisation, even when changing roles.
Long-Term Impact: Managers who promoted employees at higher rates continued to receive more applications in subsequent years, with the effect persisting for at least three years.
Recommendations
Implement robust internal talent markets: Create transparent systems for employees to view and apply for internal opportunities. Encourage managers to post all job openings internally and consider implementing an internal talent marketplace platform.
Incentivise talent development: Establish financial rewards for managers who successfully promote subordinates, similar to Chipotle's $10,000 bonus for general managers who train crew members to become managers.
Enhance leadership performance metrics: Incorporate measures of a manager's ability to develop and advance team members into leadership ratings. Include metrics such as promotion rates and diversity of internal applicants.
Foster a culture of internal mobility: Encourage open discussions about career growth and normalise cross-team moves. Train managers to have regular career conversations with team members and support their development.
Track and analyse promotion rates: Use HR systems to monitor managers' success in advancing employees. Share best practices from high-performing managers and identify areas where talent hoarding may occur.
Address misconceptions about talent mobility: Educate managers on the long-term benefits of supporting employee advancement, such as attracting higher-quality applicants and fostering innovation.
Conclusion
Managers can become talent magnets by supporting internal talent mobility, attracting high-quality applicants and fostering innovation within their teams. Organisations that discourage talent hoarding and promote internal advancement will likely see improved retention rates, reduced recruiting costs, and a more engaged, productive workforce.
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