HR Leaders Turn to Upskilling and Internal Mobility Amid Hiring Freezes

HR leaders are increasingly turning to internal mobility and employee upskilling as hiring freezes expand, according to Careerminds’ Sept. 8 report. This shift reflects how companies prioritize reskilling over external recruitment to maintain agility.

Quit rates in the U.S. dropped to 2%, BLS data shows, prompting HR teams to redeploy internal talent. As external hiring slows, workforce reskilling and redeployment strategies are becoming essential.

Raymond Lee, president of Careerminds, explained the trend. “Instead of relying on external hires, many HR leaders are reskilling existing staff. This strategy helps cut costs while boosting employee loyalty,” he said.

Slowing Job Market Pressures HR Leaders

The U.S. job market appears to be cooling. Only 22,000 jobs were added in August, while June’s data showed a loss of 13,000 jobs, according to BLS. Economists warn the slow pace may trigger higher unemployment in the coming months.

The Conference Board survey revealed that more CHROs expect reduced hiring over the next six months. To adapt, half of HR leaders plan to increase change management training for managers and leaders.

Hiring Freezes Spread Across Roles

Careerminds surveyed 600 HR managers. Two-thirds confirmed hiring freezes. Among them, 22% stopped recruitment entirely, while 44% limited freezes to specific roles.

For partial freezes, 36% paused entry-level hiring, creating challenges for recent graduates. Another 30% froze mid-level recruitment, while 25% stopped leadership hiring. Nearly half of HR managers expect freezes to last 12 months. Another 16% predicted two years, while 32% projected six months.

Reskilling and Upskilling Gain Momentum

The main reasons cited for freezes included economic uncertainty, cost controls, automation, restructuring, and regulatory changes. Consequently, HR managers are reviewing career frameworks to retain and engage staff.

Notably, 43% said they are actively upskilling employees, with a strong focus on digital skills, cybersecurity, risk management, leadership, and people management.

By emphasizing reskilling and internal mobility, HR leaders aim to navigate economic challenges while ensuring organizational resilience.

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News Source: Hrdive.com