Few Companies Track Internal Movement Despite Benefits

Internal movement tracks the quality of promotions and employee placement in new job roles, but only 30% of companies measure it.

Two-thirds of high-performance organizations say they recognize the value of measuring internal movement rates among employees, but only 30% of companies actually do so. In a new report released this week, the Institute for Corporate Productivity (i4cp) offers several strategies to improve usage of this important metric and other workforce measurements.

Internal movement, a metric that looks at internal placement and promotion rates, provides a clearer picture of how valued employees are developing and progressing. Measuring the quality of internal movement provides several benefits that empowers organizations to:

  • Track development of employee segments, such as high potentials and diversity groups;
  • demonstrate to employees that they promote from within;
  • demonstrate to prospective employees that they deliver on promised advancement opportunities;
  • provide support for effective deployment of employees into critical roles.

Internal Movement Playbook: Leveraging the Power of Workforce Measurement is the culmination of research and analysis conducted by i4cp's talent management measurement working group, a consortium of organizations that collaborated to examine and understand how high-performance organizations are measuring their workforces.

i4cp's research, combined with in-depth discussions with talent management practitioners and thought leaders at several leading organizations, has determined that most companies have yet to grasp how to measure internal movement or to gauge its quality. The length of time needed to track employee transitions and the subsequent results complicates things - for example, it may take a year or more to determine whether or not a promotion was successful.

The playbook explores how specific companies are overcoming such hurdles to gain a clearer understanding of their workforce. i4cp member-company AIG has assembled an HR data council of business unit leaders to standardize human capital metrics throughout the company, while another i4cp member, Toyota Financial Services, is building a data mart to gather a wide range of metrics and reports that factor into strategic decision-making.

i4cp's Internal Movement Playbook is now available exclusively to i4cp member organizations, providing the fast-growing network of leading organizations with strategies and solutions to overcome workforce measurement deficiencies.

In 2012, i4cp will examine global talent management issues through its Talent Management Exchange working group. Issues addressed will include how global companies are dealing with talent shortages, localized labor relations, and other concerns. Other i4cp research working groups currently accepting new applicants include:

Erik Samdahl
Erik is the head of marketing at i4cp, and has nearly 20 years in the market research and human capital research industry.