Recruiting

Rethinking Retention: Why Hiring Practices Need an Overhaul

More than 9 in 10 workers are actively looking for or planning to change jobs this year, according to Monster’s 2025 Work Watch Report. That statistic is often cited as proof of a disengaged workforce. But what’s often overlooked is the growing disconnect between how most companies hire and what actually drives success on the job.  

Too many hiring processes still rely on surface-level criteria, such as years of experience with a specific tool, past roles at admired competitors or degrees from certain universities, rather than assessing whether a candidate has the core skills, cultural alignment and potential to thrive in the actual role. 

For many organizations, the real issue may be upstream. If hiring decisions are mismatched from the start, based on outdated criteria or misaligned expectations, it’s no surprise when those new hires struggle to connect with the work. Employees leave, performance suffers and HR is left scrambling to restart the cycle. 

The good news: By reengineering hiring processes, HR teams can improve productivity and retention. 

Check-Box Hiring Doesn’t Deliver 

Despite the rise of skills-based hiring and other innovations, many companies still default to traditional methods: resumes, past job titles, degrees and pedigree. These may indicate experience, but they don’t necessarily predict success in the role or fit with the company’s values and culture. 

Research from Harvard Business Review and Burning Glass Institute found that fewer than one in 700 get hired without a college degree, indicating a significant gap between the promise and practice of skills-based hiring. Many job descriptions are still designed around tasks, not outcomes. Roles are filled based on what looks good on paper rather than what the work requires. 

There’s also the challenge of unconscious bias. Leaders often lean toward candidates who reflect their own background or follow familiar career paths. That may feel safe, but it’s limiting. It narrows the talent pool and reinforces sameness, even when diverse thinking and fresh perspectives are exactly what’s needed.  

Hire for Potential, Not Just Proof 

Most interviews offer only a narrow snapshot of a candidate’s ability. And while experience matters, it’s not the only predictor of future performance. Organizations that want to break the cycle of detachment need to rethink how they assess and support new talent. 

This starts by reframing the goal of hiring. The question isn’t just whether the person has done the job before, but whether they have the potential to succeed with the right support in place. That mindset shift opens the door to a broader, more inclusive candidate pool and sets the stage for better long-term outcomes. 

However, hiring for potential only works if the organization is set up to nurture it. That means going beyond onboarding checklists to create clarity, connection and development from day one. It requires integrating systems and practices that actively support growth and enable performance. 

Hiring shouldn’t be treated as the end of the talent process. It’s the beginning of a longer journey to develop, empower and retain the individual.  

Organizations that prioritize performance enablement over traditional performance management often begin by helping new hires understand company strategy, values and cross-functional dynamics. From there, embedding regular one-on-ones, feedback loops and development conversations into daily practice supports employee growth and access to needed upskilling opportunities. 

Don’t Overlook the Talent Right in Front of You 

Hiring externally is only one piece of the puzzle. Internal mobility is one of the most overlooked and underused talent engagement and retention strategies. 

Many employees don’t know how to find or apply for internal roles. Career paths are often unclear, and job openings are quietly filled based on who managers already have in mind. These informal practices may seem efficient, but they can undermine transparency and discourage broader participation. 

To make internal mobility work, HR leaders need to formalize the process and shift cultural norms. Looking at roles opened to internal or external candidates at my company, Unit4 (and excluding promotions during the annual cycle), internal hires made up 13% of total hires in 2023, 33% in 2024 and 38% in 2025. This upward trend underscores the growing opportunity for HR leaders to invest in and scale internal talent pipelines. That includes: 

  • Centralized visibility into available roles 
  • Clear and equitable criteria for advancement 
  • Manager training to support and promote internal candidates 
  • A culture that values cross-functional movement, not just longevity. 

When done right, internal mobility accelerates productivity, reduces onboarding costs and boosts morale. Internal candidates already understand the organization, its systems and its culture. A portable record of development conversations helps internal hires carry their progress into new roles and accelerate integration. And when employees see a clear path forward, they’re more likely to stay and thrive. 

Equity Is Key  

If roles are consistently filled through back-channel conversations, trust erodes. Employees may stop applying altogether, assuming the outcome is preordained. A visible, open and consistent approach is essential to ensure all employees feel they have a fair chance to grow within the organization.  

The patterns driving today’s retention crisis — misalignment between roles and expectations, lack of growth pathways and inconsistent support — aren’t new. They’re the result of compounding hiring and enablement gaps. Fortunately, they’re also fixable. 

HR leaders have a chance to stop this cycle. That starts with three strategic shifts: 

  1. Re-evaluate your hiring criteria: 
    Hiring has long relied on static checklists, years of experience, job titles and academic credentials as proxies for performance. However, these traditional markers don’t always reflect what drives success in a specific role or organization. Instead, HR teams should focus on how candidates think, adapt and collaborate. Are they aligned with the organization’s values? Do they have the mindset and communication skills needed to thrive? Hiring for future potential, rather than just past performance, creates space for more diverse and dynamic teams. 
  1. Enable performance from day one:
    Hiring the right person is only the beginning. What happens after the offer letter is just as critical. Onboarding should do more than introduce systems and policies; it should immerse new hires in the company’s mission, strategy and cross-functional context. Early exposure to the organization’s structure, history and leadership direction builds stronger alignment. Embedding development conversations, feedback loops and regular one-on-ones early on reinforces a culture where people can grow. 
  1. Make internal mobility intentional:
    Many organizations support internal movement, but the reality is often unstructured, opaque or inequitable. Employees don’t know what roles are available or how to pursue them, and managers may be reluctant to “lose” team talent. To make internal mobility a meaningful strategy, HR must design a consistent and transparent process. Publishing roles internally, applying fair criteria and creating manager accountability all contribute to a more equitable and motivating talent ecosystem. A system that allows performance history and development progress to move with internal candidates can help them hit the ground running. 

Taken together, these three shifts can help reverse the disengagement trend. Retention improves not because people are trapped in roles, but because they’re set up to thrive in them. 

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