Internal mobility is critical to improving employee retention, engagement, and overall organizational growth. Yet many companies struggle to create effective paths for employees to advance within their organizations. The following outlines strategies for enhancing internal mobility, with insights supported by research and case studies.
Employee Expectations Are Changing
Many employees feel that their current employers aren't investing enough in their growth:
- 60+% of U.S. employees who left their jobs identified limited career advancement opportunities as a major factor in their decision to quit (Pew Center Research data
)
- 94% would stay with a company that prioritizes their career development. (LinkedIn
)
This lack of opportunity is driving employees elsewhere:
- 49%. of individual contributors say that the lack of quality career advice has negatively impacted their careers. 67% indicated that career advancement is a top priority, with a quarter believing they are more likely to achieve it with a different employer (MITSloan
)
- 32% of Canadian professionals cited "more advancement opportunities" as a key factor that would lead them to look for a new position (RobertHalf
)
Challenges in Internal Hiring
Despite the benefits, internal mobility faces significant roadblocks. Recruiters are often not empowered to source internal candidates, and many companies fail to prioritize internal over external hiring. This is a missed opportunity, as internal candidates typically:
- Perform better in areas like attendance, collaboration, and meeting expectations.
- Lead to fewer regretted hiring decisions.
Additionally, internal hiring is more cost-effective. According to the Wharton School
, the median cost of hiring an external candidate is 18% higher than promoting from within, due to both recruitment expenses and the tendency for external hires to command higher salaries than internal promotions.
Best Practices in Talent Mobility
Unilever has pioneered an internal talent marketplace that matches employees' skills with short-term projects and tasks. This fluid approach allows employees to move across departments and break down traditional silos, focusing on the skills they bring rather than their job titles. As a result, Unilever can assign the right talent to the right work, accelerating business performance while enhancing internal mobility.
Similarly, Haier uses a fractionalized work model where 75,000 employees operate within self-organizing microenterprises. This model promotes extensive internal mobility by allowing employees to shift between projects based on their skills. Haier’s talent marketplace ensures that evolving business needs are matched with the right internal talent.
Cushman & Wakefield taps into internal mobility by identifying transferable skills, particularly targeting underutilized talent pools like military veterans. By recognizing veterans’ leadership and project management skills, Cushman & Wakefield broadens its talent pool and redeploys internal talent across the organization seamlessly.
At Cleveland Clinic, redefining employees as “caregivers” rather than by their specific medical specialty has allowed the organization to build multidisciplinary teams that provide more holistic care. This approach creates more flexibility for employees to move internally and contribute to patient care beyond their traditional roles
Action Steps for Boosting Internal Mobility
Here are a few strategies organizations can implement to drive internal mobility:
1. Organizational Strategy & Policy
- Refresh Company Policies that Limit Internal Mobility: Update or remove outdated policies that restrict internal talent movement to foster a culture of mobility.
- Define Eligibility for Internal Applications: Set clear criteria and guidelines for who can apply for internal roles, ensuring transparency.
- Prioritize Internal Candidates in Talent Acquisition: Develop policies that prioritize internal hires before seeking external candidates.
2. Talent Identification & Opportunities
- Create Career Paths: Use performance reviews to discuss long-term career trajectories, not just short-term goals.
- Write Job Descriptions for Internal Candidates: Tailor internal job descriptions to emphasize growth opportunities within the company.
- Use Short-Term Gigs: Encourage employees to apply for short-term projects to explore new roles and departments, promoting internal mobility.
- Design an Effective Notification and Approval Process: Establish streamlined communication for internal openings and ensure prompt approval processes.
- Leverage Technology for Internal Talent Matching: Implement AI-powered platforms or talent marketplaces to match employees’ skills and interests with internal opportunities in real-time.
- Track Internal Mobility Metrics: Implement data analytics to track movement, identify skills gaps, and measure the success of internal mobility initiatives.
3. Employee Empowerment & Development
- Guide Employees on Applying Internally: Provide clear, step-by-step guidance to help employees navigate the internal application process.
- Run Omnichannel Campaigns and Events to Engage Internal Talent: Use diverse channels (email, internal events, platforms) to actively promote internal career opportunities.
- Send Recurring Email Campaigns to Remind Employees: Regularly remind employees to explore internal career options through email campaigns and automated talent alerts.
- Offer Upskilling and Reskilling Programs: Develop structured upskilling and reskilling initiatives, enabling employees to prepare for roles in new functions or departments.
- Create a Skills Inventory: Develop a centralized skills database to map employee competencies, aiding in more effective internal talent placement.
4. Manager Training & Engagement
- Train Managers to Encourage Employee Development: Equip managers with skills to actively promote their team members’ growth and development.
- Train Managers for Mentorship and Coaching: Provide training in mentorship and coaching techniques to better guide employee development.
- Incorporate Career Development into Performance Management: Use performance management discussions to explore future career aspirations and align them with internal opportunities.
- Enhance Manager Receptivity to Hiring Internal Talent: Educate and incentivize managers to consider internal candidates, aligning this with performance goals.
5. Recruiter Enablement
- Empower Recruiters: Give recruiters access to internal talent data and reward them for prioritizing internal candidates.
- Encourage Recruiters to Prioritize Internal Candidates: Ensure recruiters consistently consider internal talent pools first when filling open positions.
6. Barriers Identification & Mitigation
- Understand Barriers to Internal Mobility: Regularly review and address obstacles that hinder internal mobility, such as outdated cultural norms or inefficient processes.
- Increase Employee Awareness of Internal Career Opportunities: Ensure employees are fully informed about internal career paths and growth opportunities.
- Increase Manager Likelihood of Encouraging Direct Reports to Pursue Internal Career Opportunities: Train managers to actively support their employees’ internal career aspirations and encourage them to explore new roles.
7. Learning & Development Alignment
- Align Learning Programs with Internal Career Paths: Ensure that learning and development initiatives are designed to build the skills needed for internal roles and career advancement.
- Provide Continuous Feedback Opportunities: Implement structured feedback mechanisms where employees can share their experiences with the internal application process.
8. Internal Networking & Collaboration
- Foster Internal Networking Opportunities: Create opportunities for cross-functional collaboration and networking, allowing employees to explore potential career paths.
- Encourage Cross-Departmental Collaboration: Enable employees to work on cross-departmental projects to gain exposure to different roles and functions.
9. Compensation & Rewards
- Incorporate Skills-Based Compensation: Reward employees based on their acquired skills and contributions across different areas, promoting internal mobility.
- Recognize Internal Mobility Success Stories: Celebrate and publicize internal promotion and mobility success stories to encourage others.
10. Diversity, Equity, and Inclusion (DEI) Considerations
- Ensure Equitable Access to Internal Opportunities: Develop systems that ensure all employees, regardless of background, have equal access to internal mobility opportunities.
- Address Bias in Internal Hiring: Implement training to minimize bias in internal hiring and promote fair consideration of all internal candidates.
11. Measurement & Accountability
- Monitor and Evaluate Progress: Use data to assess the effectiveness of internal mobility programs and make adjustments based on insights from employee feedback and mobility trends.
- Key indicators include: Retention rates and employee satisfaction; promotion rates and succession planning; competition for roles; performance and skill development.
Conclusion: Internal Mobility as a Competitive Advantage
Organizations that excel at internal mobility gain a tangible competitive advantage by maximizing the potential of their existing workforce. These companies experience higher productivity, stronger employee loyalty, and a deep bench of leaders ready to tackle future challenges. Investing in robust internal mobility programs allows businesses to tap into overlooked talent, drive sustained performance, and secure their long-term growth.