The external job market is tight: employers are cutting recruitment or lengthening the hiring process (or both), while candidates are cautious about changing companies in an uncertain economic environment.

So when there are openings, firms are doing all they can to save money by sourcing talent with proven track records from within their own ranks.

This renewed emphasis on internal recruitment comes at a time when hiring freezes continue to affect many large financial institutions in Australia, according to the senior HR professionals who attended Tuesday’s eFinancialCareers roundtable in Melbourne.

It is now almost a universal rule that all vacancies must be first announced to current employees. Although firms assess their needs on a case-by-case basis, the minimum time before external advertising can take place is typically one to two weeks.

Pre-emptive mobility

Encouraging internal mobility is more than just reactively marketing roles to staff as they arise. Roundtable panellists agreed that HR should have programs in place to identify individuals who are willing to move interstate or to another job function.

“We have gone beyond just putting up jobs internally. We look at who’s indicated in the past that they are prepared to relocate. They tell their career consultant as part of their performance management,” said one of the delegates, all of whom asked not to be named in this report.

Another attendee added that her firm is mapping out skill sets across the business to pinpoint transferable talent in advance. “While it’s important to find out who wants to move, we also need know who actually has the right expertise to make this viable.”

Challenges

Roundtable delegates admitted that internal mobility could sometimes prove problematic. “Interstate relocation is the main challenge. Despite the support mechanisms we’ve developed, many people aren’t keen,” said a representative from an Australian bank.

“Brisbane and Perth are a big problem for us,” added an HR professional from a big four accounting firm. “And even if they do move to Perth, there’s the danger of being poached by the likes of BHP and Rio, who are offering better salaries, benefits and sometimes even sign-on bonuses to buy the person out of the relocation bond they owe to us.”

A lack of enthusiasm from line managers poses an equally serious difficulty. “We must educate them. Many don’t want to let their staff move, especially if they are worried that in this cost-cutting environment a replacement won’t be approved,” said one of the roundtable panellists.

By contrast, international mobility opportunities are a retention and recruitment tool for junior candidates. “Younger people are attracted by the chance to relocate overseas, especially the top grads.”