In the 2001 North American recession, IT departments experienced mass layoffs and a reduction in resources. When the economy lifted from recession, many IT professionals left their companies and the IT field altogether, making succession planning more important than ever. Although the current economic downturn may present different challenges, the threat of layoffs still lingers in the minds of IT professionals. Even still, there is a shortage of IT talent, as IT departments struggle to fill positions. In a slowing economy, increase motivation and retention within the IT department by preparing employees for future leadership positions.
Internal Promotions Have a Proven Success Rate
Many studies have shown that internal hires often have a higher probability of success and retention rate than external hires. According to ERE.net, internal hires have a 90% success rate, while external hires average around 50%. During hard economic times, when employee morale is down, training and advancement programs are proven to motivate staff, improve productivity and retain employees. Preparing internal IT staff for leadership will not only help out in a tough economy, but will also stimulate IT employees and prepare the IT department for the future. Internal promotions should always be an option, but should not be considered for IT departments that require an immediate need for change.
