Their own backyards.

More than 38% of all jobs in 2008 were filled by internal transfers or promotions, according to a recent report by recruiting consultant firm CareerXroads. That’s 10% higher than the number from 2007.

The main reason: the economy. Many employees have instituted hiring freezes, but that doesn’t mean they don’t have to fill key positions. Internal recruiting is the only option at some companies right now.

Promotions and transfers offer other benefits, such as lower recruiting costs and increased retention, because it shows employees there’s still room to move up in a rough economy.

It’s a new twist on the issue of generational conflict and can result in a lot of battered egos. Older workers don’t think they should be taking orders from someone with less experience. And younger managers may view the other group as old-fashioned and unable to adapt.

But when a conflict arises, here’s some advice you can give both sides to help cool things down:

1. Don’t take it personally. Both the employee and manager need to know that misunderstandings are bound to occur, especially at first. However, they need to know it’s not personal and won’t last forever.
2. Give — and take — advice. Older workers may be reluctant to advise their boss — and likewise, younger managers may not want to take tips from a subordinate. That’s not good for the company — the employees likely have valuable experience they can share with the new manager.
3. Forget about style. Conflict often arises when employees and managers do things in a different — but still effective — way than the other side is used to. But stress the fact that it doesn’t matter how something is done, just how well it’s done.
4. Don’t make assumptions. Problems between generations are often there before the two sides even work together. That’s because both groups make assumptions about how the other will act. Instead, managers and employees need to view each other as individuals, not as stereotypes of their generations.

Choosing candidates for promotions is a tricky process — even the best employees don’t always continue to shine as they move up the corporate ladder. Here’s how HR can help management identify rising stars and weed out the duds:

Employees without move-up potential will exhibit several warning signs managers should be on the lookout for. Those who aren’t ready for promotions tend to:

1. Prefer working alone. The higher up in an organization employees move, the more people-oriented their jobs become. When employees would rather be a one-person team, it’s likely because they lack the people skills needed for higher positions.
2. Avoid difficult situations. In a lower-level job, it’s possible to avoid conflict and unpleasant people. But once they’re promoted, employees don’t have that option and will need the skills to tackle those situations head-on.
3. Don’t change their minds or admit they’re wrong. Supervisors must be able to take criticism, adapt to new situations and learn from their mistakes.
4. Avoid risk. Just as poor candidates for promotions won’t admit they’re wrong, they’re also afraid to be in situations where they might have problems. But taking risks and trying something new is a critical part of a supervisor’s job.
5. Shun training. Some workers aren’t interested in learning new skills — or worse yet, they think they know everything already. Those aren’t the people you want to promote.
6. Aren’t excited about their work. Even when employees are competent, they may lack the drive required to take on more responsibility. The signs should be there early on — odds are if they aren’t passionate about their current position, they aren’t ready for a new one.
7. Stay in the background. Some people naturally gravitate toward leadership roles. Those are the people who will take charge of their teams.

So if someone shows a few of those traits, does that mean they’ll never be promotion material? Of course not. But managers will need to help them improve in those areas before they’re ready to move up.

1. They put too much focus on details. Many managers are promoted because they were great employees and have a lot of technical knowledge — but they don’t get the training or experience they need to handle people effectively. That leads to managers who are too focused on how their employees get work done, instead of the bigger-picture issues like keeping the staff productive and motivated. One solution: Soft skills training can help a great employee make the transition to supervisor.
2. They can’t handle criticism. One key part of a manager’s job: listening to employees and changing styles to create an environment that lets employees do their best work. But too many new managers get defensive and ignore employees or overreact when they get criticism. Employees or outside candidates chosen for managerial positions should prove they can handle feedback and adapt accordingly.
3. They lack self-confidence. Managers need to take feedback seriously. But at the same time, they’re there to lead — and only those who trust their own judgment can get the job done.
4. They get territorial. A manager’s real job isn’t just to ensure the success of his or her department — it’s to do what’s best for the company as a whole. But some new managers focus only on themselves and their staffs, at the expense of other departments. Good managers learn to cooperate with each other and recognize that every department is important to the organization.

What are some reasons you’ve seen new managers fail? How does your company help new supervisors make the transition from employee to boss? Let us know your experience in the comments section below.

Many companies are reluctant to hire overqualified applicants because they’re afraid the employees will be difficult or jump ship as soon as they find a job with the pay and prestige they’re used to. But some experts say those employees are often the best hires because they have a boatload of experience and make good candidates for future promotions.

So should you hire one of those candidates?

Of course, those decisions will need to be made on a case-by-case basis. But here are some things to keep in mind:

• Don’t ignore the issue. Many interviewers are afraid to talk about the concern. But asking them what your company would need to do to keep them satisfied will let you know what chance you have of hanging on to those employees.
• Consider people from other industries. Often, the best candidates are the overqualified employees who are switching businesses or making a career change. They’ll be provided with new challenges and will be looking to learn as much as they can about a new area — in contrast to someone moving down within the same field who may carry a “been there, done that” attitude.
• Show the path to advancement. If there’s a good chance overqualified employees will be candidates for promotions, let them know. Explain early on what paths employees in that job generally take. That will help you avoid having employees who feel like they’re stuck in a job they’re too good for — and let them know they won’t need to leave your company to get back to the upper level.

As more job seekers hit the market and companies reduce hiring, the competition could fuel an increase in resume fraud, according to a recent article in the Wall Street Journal.

And it isn’t just lower level employees — several executives for top companies made news recently when it was discovered their resumes contained phony credentials.

One mistake many companies make: failing to ensure that third-party recruiting firms thoroughly vet candidates’ backgrounds.

Often there’s a miscommunication — both the company and the recruiter assume that background checking is the other party’s responsibility.

Maybe, according to a recent report, “Unpacking Prior Experience: How Career History Affects Job Performance,” published by the Wharton School of Business at the University of Pennsylvania.

According to the study’s authors, employees may be better off investing in developing fresh talent instead of hiring folks who’ve already built up their expertise. Why?

Mostly, it comes down to culture. While prior experience gives an employee valuable knowledge, it also leads to “habits, routines, and other cognitions and behaviors” that may cancel out the value of someone’s knowledge. (Which is made more problematic because experienced employees cost more.)

The report’s conclusions are based on an in-depth study of two companies and the successes and failures of their employees. You can download the paper here.

What do you think? Who have been the most successful candidates you’ve hired — the people with more or less prior experience? Let us know by leaving a comment below.

Most employers aren’t doing so — 56% of companies don’t consider generational differences when planning compensation strategies, according to a recent study by World at Work. And only 3% are actively executing a plan that takes all generations into account.

Is that a bad thing? On one hand, with benefits such as health care and retirement plans, older employees may have significantly different wants and needs than their younger counterparts.

But on the other hand, all employees are different and may have varying preferences no matter what generation they’re in.

What about at your company? Do you offer different packages to attract workers in different age groups? Has it worked? Let us know by leaving a comment below.

Whether you’re hiring from outside or promoting from within, companies have a lot riding on putting the right people in supervisory positions. How can HR help identify the best leaders for the organization?

When interviewing managerial candidates, it’s important to make sure they have these key qualities:

• Adaptability — It’s a fact of the workplace: No two employees are exactly alike. Managers need to be able to adjust their approaches and figure out how to get the most out of different types of workers.
• Problem-solving skills — Managers deal with countless issues over the course of their careers. Often, the best managers don’t come in with a wealth of technical experience but know how to learn on the fly and come up with solutions to new problems.
  
• Comfort during conflict — One thing’s sure about being a supervisor — there’s never a shortage of unpleasant situations. If it sounds like a candidate has always run away from conflict rather than dealing with it head-on, that’s a bad sign.
• Confidence — Managing also frequently involves making risky choices. Good supervisors are comfortable with that and have confidence in themselves and their decisions.
• People skills — Communication is essential. Of course, managers need to give useful feedback, but they should also be able to get input from employees and listen and respond to criticism.

Promoting from within

When you’re promoting a current employee, there’s one rule to keep in mind: The best employees don’t always make the best supervisors.

So how do you know who should be put into a leadership position? Here are two important skills to look for and how you can verify that employees have them:

• Ability to take on extra work — Sure, employees may be successful with their current workloads, but the extra responsibilities required of a manager are a whole different ballgame. When your organization is considering promoting employees, give them some more to do and see how they handle it.
• Training skills — Another good test is to let the potential manager train new employees. That will speak volumes about how he or she would perform in a leadership role.

Here are five things that bug recruiters and lead to bad searches, courtesy of third party recruiter Jennifer McClure:

1. Polygamy — Hiring multiple third parties to fill the same position is an easy way to tell recruiters not to invest too much in the search, says McClure.
2. Unrealistic timelines — It’s easy to find candidates quickly — but good candidates take time.
3. Expectations of miracles — Hiring a good recruiter isn’t a substitute for attractive company culture, competitive pay, solid benefits, etc.
4. Stingy pay — Recruiters are like employees — you get what you pay for.
5. Bad communication — Outside recruiters know early on whether the client company will be a good communicator throughout the process. It’s important to lay out needs and expectations at the start and ensure the third party that you’ll be a good partner.