Internal Candidates Stumble to the Top
While external hires are given time and assistance in transitioning to a new company and position, such assistance is usually not offered to workers who are promoted internally. That lack of assistance often leads to senior-level struggles that continue on for longer than necessary.
By David Shadovitz
If you think internal senior-level candidates transitioning into a new job have an advantage over their external counterparts, think again.
A recent study by RHR International found that internal talent face their own set of unique onboarding challenges.
"Our research suggests internal leadership transitions are far more complex and challenging than one might realize," says Rebecca L. Schalm, global practice leader for executive selection and integration at RHR International, a Chicago-headquartered management consultant.
Indeed, the research found that many of those interviewed grappled with the transition well after moving into their new positions.
"When people were nine, 10 or 11 months into their new roles, they were still struggling with things one would have thought would have been resolved a long time before," Schalm says.
At the 10-month mark, 40 percent of those studied found the transition a challenge, while 20 percent rated it as a "downright disappointment."
For the study, RHR researchers questioned 150 leaders from 59 different organizations globally.
Schalm notes that "role clarity" presented one of the biggest stumbling blocks for those questioned.
"It was fascinating to see how many people talked about the frustration they felt in getting clarity around their roles," she says. "People really struggled ... ."
Companies need to apply the same rigor to their internal-transfer and promotion processes as they do for external hires, she says.
David M. Sluss, an assistant professor of management at the Moore School of Business at the University of South Carolina, agrees that internal transfers can be a "blind spot" for many companies.
"Internal transfers bring their own pile of problems," he agrees.
When individuals come from the outside, Sluss says, "we expect them to be different, especially at the executive level. We give them the benefit of the doubt. But if they're moving internally, that benefit of the doubt is going to be miniscule."
But just because someone is hired internally doesn't mean he or she doesn't need time to adjust, he says.
The study revealed that assumptions tend to run rampant with both employers and candidates, which interferes with open dialogue and prolongs the integration timeline.
Sluss says many of the problems lie in the selection process. If others believe there's a political component to the move, he says, "then it's going to create problems for the transferee."
HR leaders, Sluss says, need to pay much closer attention to how a person selected.
"If the person is someone who is prototypical, people are going to be much more likely to endorse and follow [him or her], he says.
Schalm notes that companies need to apply the same rigorous approach to managing their internal succession as they do for external candidates.
One reason is that many of those promoted from within are less likely to have the opportunity to discuss the position as a part of the selection process, according to the RHR report. "In the case of external hires," it states, "many have done a job similar to the one they are assuming in the new company ... ."
Meanwhile, it notes, "those transferred from within are taking on responsibilities that may be brand new to them, often at a level in the organization that has new and different expectations of its leaders."
Robert Gimbel, a partner and coach in the Phoenix office of consulting firm LifeStyle Architecture, isn't surprised by the study's findings. "It's a reminder that HR leaders need to spend more of their time in talent management and succession planning," he says.
"As baby boomers retire, do we have the people coming up the road to replace them?" Gimbel asks. "The answer is no. Do they have skills that are needed? The answer again is typically no.
"The fact is we don't groom our people very well," he says.
Companies need to spend more time and energy developing their internal transferees, the experts say.
In her interviews relative to the study, Schalm says, "one of the key things we kept hearing [from those who were promoted internally] is the need for them to develop their skills." In contrast, she says, "outside people already have the skill sets that are needed."
Companies are wrong to assume someone already knows everything just because they've been with the company, Schalm says. "It's a lot more difficult and frustrating than most people assume."
April 2, 2010 Copyright 2010© LRP Publications
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