Internal hiring instead of redundancy is ideal, says expert, but beware of potential pitfalls

New data from LinkedIn shows that UK companies are hiring more people internally since the pandemic started. Between April and August this year, internal hiring increased by 20% compared to the same time last year. In fact, over the next six months, 31% of UK employers are focusing on enabling employees to move to different roles and another third of respondents said the most important priority is reskilling and upskilling staff.

But an outplacement expert advises employers to avoid complications that arise from staff doubt and confusion.

“There is no doubt that internal hiring is a hugely positive step to reduce redundancies and optimise business strategy,” says Rhys Moon, Commercial Director of Renovo, “But employees are still likely to find it a highly sensitive topic. 

“When someone hears their role is no longer required, they can go through a period of disbelief, shock or anger. They can feel uncertain about their future with the organisation – even if redeployment is available. The process needs to be handled with extreme care so employees feel supported and business can remain as steady as possible.”

Renovo advises employers to have a clear redeployment strategy to support employees from the outset. Avoiding redundancy significantly reduces costs and also mitigates the risk of losing key talent. 

Rhys Moon adds, “Employees need to be supported during organisational change so they’re better able to engage with the process. If an employer helps its people to understand their values, skills and options, they will respond with more motivation, commitment and productivity.

“A good redeployment strategy that focuses on all employees – those who are directly and indirectly impacted - allows an organisation to focus on moving forward more quickly and decisively. Creating positive redeployment support also helps ensure that negative communications are reduced, protecting the employer brand.”

Janine Chamberlin, senior director at LinkedIn, said:

“Encouraging internal mobility not only boosts retention and improves employee engagement, but it can also help companies evolve their businesses from within and bridge any existing skills gaps. To ensure employees are set up for success and have the skills to support career transitions, reskilling and upskilling initiatives are vital and HR professionals will play a pivotal role in facilitating this.”