Not long ago, the idea of an employee radically changing roles within the same company was uncommon.
Most workers were pigeonholed into their initial positions, with little opportunity for exploration or growth beyond their immediate responsibilities.
This static approach to talent management, however, is proving increasingly ineffective today as employees are seeking more diverse and fulfilling career paths –– often looking outside their current employers to find new challenges and opportunities for growth.
Forward-thinking companies are now turning their gaze inward, recognizing the untapped potential within their existing workforce.
They’re creating robust internal mobility programs that allow employees to move between departments, take on new responsibilities, and even completely pivot their career trajectories – all without leaving the company, thus fostering career advancement.
In this article, we’ll dive deep into the concept of internal mobility. We’ll explore what is internal mobility, why it’s becoming crucial for modern businesses, and how it benefits both employers and employees.
Internal mobility is the movement of employees within an organization to different roles, departments, or locations. It encompasses both vertical moves (promotions or advancements) and lateral moves (transfers to similar-level positions in different areas).
At its core, internal mobility is about leveraging existing talent to fill open positions, create growth opportunities within the company, and support employee development.
This concept goes beyond traditional career ladders, embracing a more fluid approach to talent management. Internal mobility can take many forms, including:
Promotions to higher-level positions
Lateral moves to different departments
Short-term assignments or projects
Job rotations
Secondments to other teams or locations
Participation in cross-functional initiatives
The evolution of internal mobility has been shaped by changing workforce dynamics and business needs. Historically, career paths were often linear and predictable.
Modern internal mobility programs are typically supported by technology platforms that match employee skills and aspirations with available opportunities. These systems often use AI and data analytics to facilitate more effective talent allocation and development.
Internal mobility is not just about filling vacancies; it’s a strategic approach to talent management that aims to:
Develop a more skilled and versatile workforce
Improve employee engagement and retention
Foster a culture of continuous learning and growth
Enhance organizational agility and innovation
Additionally, it helps mitigate the high costs associated with employee turnover, which can reach as much as 50% to 60% of an employee’s salary due to recruitment processes.
By enabling internal mobility, companies create an environment where employees can continuously evolve their skills and explore new career paths without leaving the organization. This approach not only benefits individual employees but also contributes to the overall resilience and adaptability of the business. Moreover, investing in an employee’s career journey fosters greater loyalty between employees and employers, strengthening long-term organizational commitment.
Over recent years, internal mobility evolved from a nice-to-have perk to a critical business strategy for talent retention. Its importance is backed by compelling data and success stories from leading organizations.
LinkedIn’s 2020 Global Talent Trends report found that employees stay 41% longer at companies with high internal mobility compared to those with low internal mobility. This statistic underscores the power of internal opportunities and employee engagement in reducing turnover.
According to the World Economic Forum’s 2020 Future of Jobs Report, 50% of all employees will need reskilling by 2025 due to the adoption of new technologies. Internal mobility programs help address this challenge.
For instance, AT&T’s Future Ready program, launched in 2013, invested $1 billion to reskill nearly half of its 250,000 employees for new roles within the company. As a result, they kept nearly half of their internal talent since then.
Unilever is a perfect example of the agility benefits of internal mobility. Their “Flex Experiences“ program allows employees to work on projects outside their usual roles.
This initiative has enabled Unilever to quickly reallocate talent to high-priority projects, enhancing workforce agility and contributing to their ability to navigate market changes effectively.
Google’s g2g (Googler-to-Googler) program is a prime example of how internal mobility facilitates knowledge transfer. This volunteer-based initiative allows employees to teach courses to their colleagues, spreading expertise across the organization.
A study by Matthew Bidwell, published in Administrative Science Quarterly, found that external hires typically cost 18% to 20% more than internal promotions for the same role. Moreover, they perform worse for the first two years and are 61% more likely to be laid off or fired.
Strategic succession planning
Procter & Gamble’s build-from-within approach to talent management has been crucial to its succession planning. The company fills 80% of its executive roles through internal promotions, ensuring a pipeline of leaders who understand the business intimately.
Better employee engagement and motivation
Gallup’s research shows that the opportunity to learn and grow is one of the top factors in employee engagement.
At Spotify, where internal mobility is ingrained in the culture through their “Mission” program, employee engagement scores are consistently high.
Solid cultural reinforcement
IBM’s internal mobility program, “Blue,” not only fills 50% of open positions internally but also helps reinforce the company’s culture of innovation and continuous learning across its global workforce.
Now that you know why internal mobility is important, here are three other benefits big organizations enjoy from implementing a talent mobility program, including enhanced career progression.
Internal mobility facilitates the exchange of diverse perspectives across different departments, leading to increased innovation.
A study by Deloitte found that companies promoting internal mobility are 3.8 times more likely to be viewed as innovative by their employees.
Example: 3M’s “15% Culture”
3M, known for innovations like Post-it Notes and Scotch Tape, has long embraced internal mobility through its “15% Culture.” This program allows employees to spend 15% of their time working on projects outside their primary responsibilities.
The results have been impressive:
Over 30% of 3M’s revenue comes from products invented within the past five years.
The company averages about 3,000 patents per year.
Notable innovations like the Post-it Note emerged directly from this program.
3M’s approach demonstrates how internal mobility can create a culture of innovation by allowing employees to explore new areas and bring fresh perspectives to different parts of the organization.
Internal mobility can play a crucial role in promoting diversity and inclusion within an organization, especially at leadership levels. It provides opportunities for underrepresented groups to gain exposure to different roles and advance their careers.
Example: Sodexo’s Spirit of Inclusion program
Sodexo, a global food services and facilities management company, has used internal mobility as a key driver of its diversity and inclusion efforts:
The company’s Spirit of Inclusion program includes mentoring, coaching, and job rotation opportunities specifically designed to support diverse talent.
As a result, between 2013 and 2019, the representation of women in senior leadership positions increased from 17% to 37%.
Sodexo has consistently been recognized as a top company for diversity, including being named to DiversityInc’s Hall of Fame.
This example shows how internal mobility can be strategically used to create more diverse and inclusive workplaces, particularly at senior levels.
Internal mobility can lead to improved customer satisfaction by creating more engaged and knowledgeable employees, thereby enhancing the overall employee experience.
A study by Temkin Group found that companies that excel at customer experience have 1.5 times as many engaged employees as customer experience laggards.
USAA, a financial services group serving U.S. military members, has implemented a robust internal mobility program that has significantly impacted both employee and customer satisfaction:
USAA’s program encourages employees to move between different business units every 3-5 years.
This approach has led to employees having a more holistic understanding of the company’s offerings and customers’ needs.
As a result, USAA consistently ranks at the top of customer satisfaction surveys in the financial services industry. In 2020, they ranked #1 in customer satisfaction among auto insurers according to J.D. Power.
The company also boasts an impressive employee retention rate, with an average tenure of 9 years, well above the industry average.
USAA’s example illustrates how internal mobility can create a virtuous cycle of employee engagement and customer satisfaction, leading to better business outcomes.
Here are seven examples of how internal talent mobility happens within the internal job market of the organization.
A promotion is a vertical movement within an organization up the career ladder to a higher-level position with increased responsibilities and often higher compensation.
Why it matters: Promotions reward high performers, fill leadership pipelines, and motivate employees to develop their skills.
Example scenario: An account manager in a marketing firm excels in client relationships and strategy. After demonstrating consistent performance and leadership potential, they’re promoted to senior account manager, overseeing multiple client accounts and junior team members.
A lateral move is a career transition to a different role at the same level, often in a different department or function.
Why it matters: Lateral moves broaden employees’ skill sets, increase cross-functional understanding, and can reinvigorate careers without changing level.
Example scenario: A financial analyst in the accounting department moves to a similar-level role in the marketing department as a marketing analyst, applying their numerical skills to a new context and gaining marketing expertise.
These are temporary assignments where employees work on projects outside their usual department or role.
Why it matters: These projects foster collaboration, expose employees to different aspects of the business, and can lead to innovation through diverse perspectives.
Example scenario: An IT specialist joins a cross-functional team working on a new product launch, contributing technical expertise while gaining insights into product development, marketing, and sales processes.
These are planned movements through a series of different jobs or departments over a set period, often referred to as rotational programs.
Why it matters: Rotations provide broad organizational knowledge, develop versatile skill sets, and help identify where employees excel.
Example scenario: A management trainee spends six months each in operations, finance, and human resources over an 18-month program, gaining a comprehensive understanding of the business.
These are structured programs where employees learn from more experienced colleagues through mentorship opportunities, guidance (mentoring), or observation (shadowing).
Why it matters: These programs facilitate knowledge transfer, support career development, and strengthen organizational networks.
Example scenario: A junior software developer is paired with a senior architect for a six-month mentorship, gaining insights into system design and career progression through regular meetings and collaborative projects.
A secondment is a temporary reassignment to a different part of the organization, often in a different location or even externally to a partner organization.
Why it matters: Secondments provide immersive learning experiences, can strengthen partnerships, and often lead to significant personal and professional growth.
Example scenario: A marketing manager from the US office is seconded to the company’s Asian headquarters for six months, gaining international experience, understanding new markets, and bringing fresh perspectives back to their home office.
Internal talent mobility programs come in various forms, each designed to meet specific organizational needs and employee development goals, offering internal career opportunities. Let’s explore five key types of these programs:
Career pathing initiatives provide employees with clear visualizations of potential career trajectories within the organization through career mapping. These programs go beyond traditional, linear career ladders to showcase various paths an employee might take, including lateral moves and cross-functional opportunities.
For example, a marketing associate might see paths leading to roles in brand management, digital marketing, or even product development. These initiatives often use technology to map out possible routes based on an employee’s current skills, interests, and the organization’s needs.
The power of career pathing lies in its ability to engage employees by showing them concrete growth opportunities. It helps retain talent by demonstrating that they don’t need to leave the company to find new challenges or advance their careers.
Skills-based talent marketplaces are digital platforms that match employees to opportunities based on their skills rather than just their job titles or work history. These marketplaces typically include full-time roles, short-term projects, mentorship opportunities, and a comprehensive skills inventory.
In a skills-based marketplace, a finance professional with data analysis skills might be matched with a short-term project in the marketing department needing those specific skills. This approach allows for more fluid movement of talent across the organization, breaking down silos and fostering innovation.
These platforms often use AI algorithms to make matches, ensuring a fair and efficient process. They also provide valuable data to the organization about its internal skill inventory and how it aligns with current and future needs.
Leadership development programs are structured initiatives designed to identify and nurture future leaders within the organization. These programs often involve a mix of formal training, mentoring, and hands-on leadership experiences.
A typical leadership development program might rotate high-potential employees through different departments over 18-24 months. During this time, participants might lead key projects, receive executive mentoring, and attend leadership workshops.
These programs not only prepare individuals for future leadership roles but also help the organization with succession planning by building a robust succession pipeline. They can significantly reduce the need for external hiring at leadership levels, ensuring continuity of organizational culture and knowledge.
Cross-training programs aim to develop employees’ skills in areas outside their primary job functions, promoting skill diversification. This type of mobility is often lateral, focusing on breadth of knowledge rather than upward progression.
For instance, a software developer might be cross-trained in user experience design, or a sales representative might learn the basics of marketing analytics. These programs can be formal or informal, ranging from structured courses to job shadowing opportunities.
Cross-training enhances organizational flexibility, allowing for easier reallocation of resources when needed. It also improves collaboration by giving employees a better understanding of different aspects of the business.
Mentorship and coaching programs pair less experienced employees with seasoned professionals for guidance and skill development. While similar, mentorship tends to focus on overall career guidance, while coaching often targets specific skills or competencies.
In a mentorship program, a junior account manager might be paired with a senior sales director for regular meetings to discuss career progression and navigate organizational dynamics. A coaching program, on the other hand, might connect an employee struggling with public speaking to an experienced presenter for targeted skill development.
These programs facilitate knowledge transfer within the organization, help preserve institutional knowledge and can significantly boost employee engagement and retention. They also provide development opportunities for the mentors and coaches, honing their leadership skills.
Each of these program types offers unique benefits and can be tailored to fit an organization’s specific needs and culture. Many companies find that a combination of these approaches creates a comprehensive internal mobility strategy, providing diverse opportunities for employee growth and organizational agility.
The key to success with any of these programs is clear communication, strong support from leadership, and alignment with overall business objectives. When implemented effectively, these internal mobility initiatives can transform an organization, creating a more engaged, skilled, and adaptable workforce.
Want to implement an internal talent mobility program and strategy but don’t know where to start with an internal mobility framework? Here are some step-by-step actionable tips.
Begin by analyzing your current internal mobility practices and internal mobility metrics, even if they’re informal. Look at data such as:
Internal hire rate: What percentage of open positions are filled by internal candidates?
Employee tenure: How long do employees typically stay in one role?
Career progression: How often do employees move between departments or advance within the organization?
Employee feedback: What do your people say about career growth opportunities within the company?
This assessment will help you identify strengths to build upon and gaps to address in your new program.
For instance, you might discover that while your engineering department frequently promotes from within, other departments rarely do so. Such insights will inform your program design and implementation strategy.
With a clear understanding of your current state, the next step is to define what you want to achieve with your talent mobility program. Your objectives should align with broader organizational goals and address the gaps identified in your assessment.
Some common objectives include:
Increasing internal fill rate for open positions
Improving employee retention rates
Enhancing cross-functional collaboration
Accelerating leadership development
Closing specific skill gaps within the organization
For each objective, establish specific, measurable performance metrics. For example, if your goal is to increase internal hiring, you might aim to fill 50% of management positions internally within the next year. These metrics will allow you to track the success of your program and make data-driven adjustments over time.
A successful talent mobility program requires support from all levels of leadership. Start by building a compelling business case that outlines the benefits of internal mobility, such as cost savings on external hiring, improved employee engagement, and enhanced organizational agility.
Use data from your initial assessment and industry benchmarks to strengthen your argument. Present case studies from other organizations that have successfully implemented similar programs. Highlight how the program aligns with and supports the company’s strategic objectives.
Engage leaders early in the process, seeking their input on program design and addressing any concerns they might have to ensure leadership alignment.
For example, some managers might worry about losing their top performers to other departments. Address these concerns head-on, emphasizing how the program will benefit the entire organization in the long run.
To facilitate internal mobility effectively, you’ll need the right tools and processes in place. A key component of this infrastructure is often a talent marketplace platform. However, you don’t need to create such a platform from scratch.
Solutions like Fuel50 offer robust, ready-to-implement talent marketplace platforms that can significantly streamline the process.
Fuel50’s talent marketplace facilitates internal mobility by:
Matching employees to internal opportunities based on their skills, experiences, and career aspirations
Providing visibility into available roles, projects, and gigs across the organization
Offering career pathing tools that help employees visualize potential growth trajectories
Delivering insights to HR and leadership about skill gaps, internal talent pools, and mobility trends
By leveraging a platform like Fuel50, you can quickly establish the technological foundation for your talent mobility program. This allows you to focus on strategy, communication, and change management rather than getting bogged down in software development.
In addition to the technology platform, consider other infrastructure needs such as:
Updated HR policies to support internal moves
Training programs for managers on how to support employee mobility
Communication channels to promote internal opportunities
Developing clear internal mobility policies and processes is crucial for the success of your internal mobility program. These guidelines should outline how employees can explore and apply for internal opportunities, and how managers should handle internal moves.
Key elements to include:
Eligibility criteria for internal moves (e.g., minimum tenure in current role)
Application process for internal positions
Guidelines for managers on supporting team members’ mobility
Policies on internal recruitment and selection
Process for transitioning between roles
Once these policies are established, communicate them clearly across the organization. Use multiple channels such as company-wide emails, intranet posts, and team meetings to ensure the information reaches everyone.
Consider creating a dedicated internal mobility portal where employees can access all relevant information.
For instance, Salesforce has a “Concierge” program that guides employees through the internal move process, from application to transition. This clear process helps demystify internal mobility and encourages participation.
Managers play a crucial role in the success of any internal mobility program. They need to balance supporting their team members’ growth with maintaining team performance. Provide comprehensive manager training to help managers navigate this balance effectively.
Training should cover:
The benefits of internal mobility for the team and the organization
How to have career development conversations with team members
Identifying and nurturing high-potential employees
Supporting team members in exploring internal opportunities
Managing the transition process when a team member moves to a new role
Consider creating a “Manager’s Guide to Internal Mobility” as a reference tool. Regular check-ins and refresher training can help reinforce these concepts over time.
For example, Google trains its managers to be “career growth enablers” rather than “gatekeepers,” encouraging them to support their team members’ career aspirations, even if it means losing them to another team.
Before rolling out your internal mobility program company-wide, start with a pilot program in a specific department or location. This allows you to test your processes, identify potential issues, and gather valuable feedback in a controlled environment.
During the pilot:
Closely monitor the metrics you established earlier
Conduct regular check-ins with participants (both employees and managers)
Gather feedback through surveys and focus groups
Track any unexpected challenges or benefits that arise
Be transparent about the pilot nature of the program and encourage open feedback. This will help you refine the program before a broader launch.
As an example, when Spotify launched its internal mobility program, they started with a small group of employees and gradually expanded it based on learnings from the initial phase.
After running your pilot program and gathering comprehensive feedback, it’s time to refine and develop a scaling strategy for your internal mobility initiative. Analyze the data and insights you’ve collected to identify what worked well and what needs improvement.
Key steps in this phase:
Review your initial objectives and metrics. Did you meet your goals? If not, why?
Identify any bottlenecks or challenges in the process and develop solutions
Incorporate feedback from employees and managers into program improvements
Adjust policies and processes based on real-world application during the pilot
Plan a phased roll-out to the rest of the organization, prioritizing areas that would benefit most from internal mobility
Remember that building a culture of internal mobility is an ongoing process. Continue to gather feedback and make adjustments even after full implementation.
For example, IBM’s internal talent marketplace started as a small initiative and gradually evolved into a comprehensive program. They continually refine the program based on employee feedback and changing business needs, demonstrating the importance of ongoing iteration.
Just like most radical shifts, your internal talent mobility program might face some resistance in the beginning due to change management challenges. Here’s how to overcome some of these obstacles.
Manager resistance can be one of the biggest hurdles to implementing a successful internal mobility program. Some managers may see internal mobility as a threat, fearing they’ll lose their best talent to other departments.
To overcome this:
Educate managers on the benefits
Help them understand how internal mobility can lead to more engaged employees and a stronger overall organization. Share success stories and data that demonstrate how internal mobility can actually improve team performance in the long run.
Implement a “give to get” culture
Encourage a mindset where managers are willing to let go of team members for the greater good of the organization, knowing they’ll also have access to a wider talent pool.
Adjust performance metrics
Ensure that managers are evaluated not just on their team’s performance, but also on their ability to develop and export talent to other parts of the organization.
Provide support
Offer resources and support to help managers backfill positions quickly when team members move to new roles.
A typical example is that at Google, managers who support their team members in finding new internal opportunities are recognized and rewarded, creating a culture that values talent development over talent hoarding.
Fairness and transparency are crucial for maintaining trust in your internal mobility program. Without them, employees may become disillusioned, leading to decreased engagement and participation.
To ensure fairness and transparency:
A prime example of this is Unilever. The company uses an AI-powered internal talent marketplace that matches employees to opportunities based on skills and experience, removing potential bias from the initial screening process.
Striking a balance between organizational needs and individual career goals can be challenging. Here’s how to approach it:
AT&T really excels at this. Their Future Ready program helps employees develop skills that align with the company’s strategic direction, balancing individual growth with organizational needs.
Transitions can potentially disrupt workflows and impact productivity. Here’s how to minimize these effects:
Procter & Gamble does this well. They use a “step-up, step-back” approach where employees moving to new roles maintain some responsibilities in their old role for a period, ensuring smoother transitions.
While Fuel50 isn’t exclusively an internal mobility tool, our comprehensive talent marketplace platform offers several features that significantly support and enhance internal mobility efforts.
Here’s how Fuel50 can elevate your internal mobility program:
Fuel50’s expert-driven skills ontology goes beyond traditional job matching methods. It creates a detailed map of skills across your organization, allowing you to identify potential candidates for internal moves based on their actual capabilities rather than just their current roles.
The platform’s career pathing tools enable employees to visualize potential trajectories within your organization, helping you spot hidden talent that aligns with your internal mobility needs.
By combining skills mapping with career aspirations, Fuel50 helps you create a more nuanced and accurate picture of your internal talent pool.
This approach ensures you’re not just filling positions but matching the right talent to the right roles for long-term success and employee satisfaction.
One of the challenges in internal mobility is understanding where your employees need to grow to take on new roles. Fuel50 addresses this by providing comprehensive skills gap analysis.
The platform compares the current skills of employees against the requirements of various positions, highlighting areas where development is needed for successful transitions.
This visibility allows you to create targeted development plans for your employees. Instead of generic training, you can focus on the specific skills and experiences each individual needs to be ready for their desired or potential new roles.
This targeted approach not only accelerates development but also ensures a better fit when internal moves occur.
Fuel50’s personalized learning and development recommendations transform internal mobility from a reactive process to a proactive, ongoing effort. The platform offers tailored suggestions for courses, resources, and experiences that align with both the employee’s career goals and your organization’s needs.
Moreover, the platform’s gig marketplace feature allows employees to take on short-term projects or assignments in different parts of the business.
This experiential learning is crucial for developing versatile employees who can easily transition between roles and departments.
By integrating learning and development so closely with internal mobility, Fuel50 helps create a culture where employees are constantly preparing for new opportunities within the organization.
Internal mobility isn’t just about filling positions; it’s about retaining talent. Fuel50’s focus on career growth and development plays a crucial role in keeping your employees engaged and committed to your organization.
The platform’s transparency about internal opportunities and development paths gives employees a clear vision of their future within your company.
Furthermore, Fuel50’s mentoring features facilitate connections between employees across different departments.
These relationships not only aid in knowledge transfer but also help employees feel valued and invested in, increasing their likelihood of seeking growth opportunities within your organization rather than looking elsewhere.
Effective internal mobility requires a deep understanding of your current talent landscape and future needs. Fuel50’s analytics capabilities provide valuable insights that can inform your internal mobility strategy.
The platform can help you identify trends in skill development, track the progress of internal moves, and even predict future skill needs based on your organization’s direction.
These insights allow you to take a more proactive approach to internal mobility. Instead of simply reacting to vacancies as they occur, you can strategically develop your talent pipeline to meet future needs across all departments.
This data-driven approach ensures your internal mobility efforts align closely with your overall business strategy, creating a more resilient and adaptable organization.