How do I best fill the open position in my team? With an internal or an external candidate? Do I even have the required skills and abilities in the team? In the company?

A breath of fresh air from outside is often necessary to bring new ideas, new perspectives and new approaches into the company. However, filling positions with external candidates is not always the only solution. Skills and abilities can be built internally with forward planning to ensure that the right candidate can take on the vacant position at the right time.

The costs associated with external recruitment are often underestimated. In addition to the obvious expenses for advertisements and, depending on the position, headhunter services, external appointments often incur additional costs that can be delayed:

Longer induction phase:
It often takes longer for an external candidate to really perform fully in the new role and, more importantly, in the new company compared to internal candidates.
Performance slump:
If the position to be filled is a management position, it should also be noted that a performance slump in the team is to be expected until the structures have stabilized with the new manager.
Absences due to illness:
There will be tasks that need to be taken on by other team members or colleagues for the duration of the recruitment and induction period. The longer the recruitment and induction process takes, the greater the risk of sickness absence caused by the additional workload.
Dismissal of high performers/potential employees:
Internal career opportunities are limited by external hiring. This can lead to frustration among internal applicants and, in the worst case, to their departure and thus further necessary vacancies to fill.
Filling the position again:
When hiring externally, there is a higher risk of a misfit between the applicant and the corporate culture. Depending on how serious this misfit is, it can result in the contract being terminated and the recruitment process, including monetary expenses, starting all over again.

How can structured talent management help you to save costs?

Identifying potential:
Who in my team/ in other teams performs and shows the potential to take a vertical or horizontal career step? What career ambitions do these employees have? This step enables positions to be filled more quickly, headhunters and external advertising costs to be saved and the risk of further recruitment to be reduced. Ideas and insights regarding suitable candidates can be gained during development discussions, project work, etc.
Succession planning:
Start planning even if the position is still filled. It is important to clarify with the potential successors whether there is interest in the potential position, but it is even more important to involve the position holder in the search and to communicate transparently that succession planning does not mean that the position holder has to vacate their position soon. A benefit of early planning for the position holder is for example that they are able to quickly take advantage of interesting career opportunities, and the manager of the position is able to fill the vacancy quickly with the right candidate. It is advisable to plan for the short, medium and long term, as well as to have candidates who can take over for a short time in an emergency.
Targeted and individual employee development:
A defined succession plan enables targeted investment in employee development, e.g. through training, coaching or on-the-job measures.
Employee retention:
Structured talent management creates internal career opportunities, which in turn means that high potentials and high performers do not necessarily have to look externally for attractive career steps. Internal appointments also reflect a sincere appreciation of the knowledge of internal employees, which also has a positive effect on the working atmosphere.

For talent management to really work, open and transparent communication with job holders and potential successors is the most important thing. Job holders need the assurance that their chair is not being sawn into, and potential successors need to be clearly informed that they are possible successors, but that this is no guarantee that they will end up in the position, as the most suitable candidate will ultimately fill it.

No manager or company must go through this process alone. We support our clients with targeted, tailor-made and practical leadership trainings, coaching and organizational development and talent management expertise.

Talent management should not only save costs. No, it should increase satisfaction in the company, employees should feel seen.

Are you ready to save costs with us, make your company fit for the future and your employees happier?