Recruiting top talent has become more challenging than ever due to talent shortages, changing skills requirements, increased competition, high employee expectations, and turnover rates.

That’s why many companies turn to internal talent mobility—a strategy that focuses on filling open roles with current employees. 

The latest trends show that more than 76% of business leaders see internal mobility as key to their company’s success. It saves time and money by reducing the need for external hiring, and employees value it, too.

Internal mobility gives them a chance to grow and learn new skills without leaving the company, which keeps them more motivated and connected.

Keep reading to discover how tapping into your current team can solve hiring challenges, close skill gaps, and drive lasting success—without even opening a job ad.

What is internal talent mobility?

Internal talent mobility is the process of moving employees to different roles, teams, or projects within the same company. Instead of hiring new people from outside, companies help current employees find new opportunities and challenges inside the organization. This approach can help fill open roles faster, keep employees engaged, and build a more skilled workforce over time.

The main types of internal talent mobility include:

1. Promotions refer to moving employees to higher positions, often with higher responsibility, pay, and title. Promotions show employees that their hard work is recognized and that they have a future in the organization.
2. Lateral mobility is the shift of an employee to a position at a similar level as the one they occupied, but in a different team or department, most often to gain new skills and broaden their experience.
3. Temporary assignments or project-based roles give employees short-term assignments or projects to work on, often in different parts of the company. Employees are often deployed to these roles on short notice to fill a skill gap or expose them to new knowledge, experience, co-workers, and clients. 
4. Cross-functional roles require placing employees in roles that span multiple departments or functions, which helps them understand more about the business.

Different types of internal mobility allow existing talent to explore their potential and grow, which benefits both the employees and the organization. A structured talent mobility program helps keep employees engaged and ensures that the company can fill roles with the skills it already has on hand.

Why do companies implement internal mobility strategies?

Companies implement internal mobility strategies for several important reasons:

Addressing skills gaps

Companies often have pressing skills gaps in the specific context of a new project or client request when they quickly need to locate the talent they need to meet business requirements. The skills they need will often lie within their existing workforce, within another team, department, or division of their organization. 

By using internal talent mobility, they can fill these gaps faster by promoting or moving existing employees into new roles. This approach ensures that the urgent requirements for particular skills are met without going through the lengthy external hiring process.

Deloitte’s study states that 77% of business executives believe their organization should support employees in becoming more employable by providing relevant skills. However, only 5% strongly agree that their company is investing sufficiently in helping people acquire new skills to keep pace with the rapidly changing workplace.

Employee development

Internal mobility helps with employee development by offering employees opportunities to learn new skills and take on different responsibilities. A structured talent mobility program allows employees to build their careers within the company, increasing the overall skill level of the workforce and ensuring employees feel supported in their growth.

Anu Madgavkar, Partner and leader of the McKinsey Global Institute, explains how “bold moves” in career transitions—where employees take on roles with up to 40% new skills—are key to career growth. 

“We found that roughly a third of workers in most of the countries we looked at had very successful, upwardly mobile career trajectories—one, two, or three income brackets higher. Those who were upwardly mobile had pursued mobility but with stretch roles and stretch skills, meaning they moved into jobs and roles that were adjacent but still represented maybe up to 40 percent nonoverlapping new and different skills that they hadn’t deployed or exercised in their previous role.”

Organizations that encourage internal mobility enable employees to apply existing while acquiring skills, thus facilitating smoother role transitions.

Employee engagement and retention

When employees see a clear path to moving up or laterally in the company, they’re more likely to feel engaged and motivated. This can also improve employee retention rates, because employees who know they have internal opportunities are less likely to look for them elsewhere. 

Nataša Dobre, HR director at CBS International Serbia, explains:

“In a mature company environment, there is often a challenge to keep fully engaged senior or mid-management members with a start-up spirit. I am referring to talent who invested a lot of energy and know-how to set up a company or business function, find themselves in a “business as usual” environment, and, therefore, start looking for new challenges.

These individuals often respond to external opportunities if the company doesn’t invest in setting up a proper playground for their potential and know-how.

For such a target group, internal talent mobility can be a solution; it can benefit both the company and the talent. Companies need to be sensitive to the needs of key talent and put in the energy and a proper plan to ensure that one of the strong internal drivers, such as self-actualization and motivation, are recognized and realized among talents.”

According to LinkedIn’s 2023 Workplace Learning Report, at the two-year mark, an employee who has made an internal move had a 75% greater chance of staying with their company.

Cost savings 

Internal hires usually cost less than bringing in new talent from the outside. Internal talent mobility saves on recruitment, onboarding, and training costs since existing talent is already familiar with the company’s culture and systems. These cost savings add up, especially in large organizations.

Laura Martin, Co-Founder and CEO of Glinda Group, highlights the biggest benefits of internal talent mobility programs:

“There are obvious benefits, including reducing the cost of hire, time to fill, and other recruiting metrics, especially when there are known “feeder” roles that the organization can efficiently recruit from the outside.”

However, she adds: The number one benefit I’ve seen from internal talent mobility is a breakdown of organizational silos, and that plays out in two ways. 

1. When people move from one area to another, they can often quickly spot issues in how information flows, how dependent processes/workflows can be improved, and ways that things aren’t efficient or accurate due to a lack of visibility/connection between divisions.
2. Increased empathy for other departments. It’s difficult to join in when others say, “Oh, Finance ALWAYS messes that up,” when you just transferred from the Finance department and have lived experience on “the other side.” 

Having colleagues who have worked in multiple divisions leads to a better understanding of the team’s inputs/outputs and, at its best, increased curiosity and empathy, which leads to stronger interdepartmental relationships and—buzzword alert—collaboration. 

Cultural fit and institutional knowledge

Promoting from within ensures that employees who already know and fit well with the company’s culture continue to grow within it. Employees moving into new roles bring valuable institutional knowledge, which helps them succeed more quickly than someone new to the company.

Potential barriers in internal mobility

While internal mobility offers many benefits, companies can face some challenges when trying to promote and move employees within the organization. 

Here are a few common barriers and suggestions to overcome them:

Lack of a clear process

Some companies don’t have a clear internal mobility process, which makes it hard for employees to know about new opportunities within the company or how to apply for them. Without a structured program, employees might feel unsure about the possibility of moving to different roles.

Solution: Create a transparent internal job board or talent marketplace where employees can see available roles. For instance, Schneider Electric has developed an internal platform called Open Talent Market, which allows employees to view and apply for available positions, projects, and mentorships within the company. Transparency empowers employees to explore various career paths and makes it easier to move into new roles.

Managers reluctant to let go of top talent

Managers may hesitate to let go of their best employees because they fear losing top performers. They may also think that if key members leave for another position within the company, it will impact their team’s productivity.

Laura Martin agrees: “One of the most common challenges is “talent hoarding.” Leaders are often reluctant to give up their best performers. One way to combat that is to reward/celebrate leaders who develop talent to go on to other things. I used to maintain a count of direct reports who were promoted off my team on my internal talent profile – I have always seen that as something to be celebrated. “

Solution: Encourage managers to view internal mobility as a way to build talent across the company rather than as a loss. 

Google exemplifies this approach, as seen in the experience of Alison Agüero Dooley, who successfully transitioned into a new role within the company. Google’s internal culture encourages employees to pursue new roles by leveraging networks and setting up “coffee chats” to explore other opportunities.

Alison’s manager and team lead facilitated her transition to Product Management by recognizing her skills and interest in a new role. 

A culture of managerial support and internal networking helps employees feel comfortable exploring new paths, showing that Google values internal growth. By showcasing these transitions and encouraging managers to assist in career shifts, Google motivates employees to seek opportunities within the company, strengthening internal mobility.

Lack of skills or training for new roles

Employees may be interested in new roles but lack the skills required for these positions. Without the right training, it can be difficult for employees to transition smoothly.

Solution: Invest in learning and development programs that help employees build the skills they need to succeed in different roles. For example, Amazon has committed over $1.2 billion to upskill 300,000 employees by 2025, offering programs like Amazon Technical Academy and Machine Learning University to prepare employees for in-demand roles.

Resistance to change or traditional hiring mindset

Some companies are used to hiring from outside for open roles and may find it difficult to adjust to promoting from within. Employees might also hesitate to move roles if they’re not used to the idea of internal movement.

Solution: Promote a culture that values internal mobility by highlighting success stories. Salesforce does this well with its Career Connect platform, an internal talent marketplace powered by AI. Career Connect shows examples of employees who have successfully moved to new roles within Salesforce, which helps others see that growth and career changes are possible inside the company.

Career Connect also recommends career paths, short-term projects, and training opportunities that match employees’ skills and goals. 

Inadequate measurement of internal mobility success

Without tracking the impact of internal mobility, companies may not see the benefits and might not continue investing in it.

Solution: Track key metrics like employee retention rates, job satisfaction, and productivity after employees switch roles. This helps companies understand the value of their internal mobility programs and identify areas for improvement.

We can see the importance of tracking internal mobility through examples like Hilton Worldwide. The famous hotel chain started the Thrive@Hilton program to help employees find meaningful career paths. The program includes tools for career planning, access to internal job openings, mentorship opportunities, and resources for learning and development. By tracking metrics like employee engagement and turnover, Hilton has seen improvements in both areas since launching the program.

Innovative approaches to internal talent mobility 

To stay competitive, many companies use creative strategies to make internal talent mobility easier, more effective, and more appealing to employees. Here are some innovative approaches and real-world examples of companies that have successfully implemented them.

1. Talent marketplaces

A talent marketplace is an internal platform that matches employees with new roles, projects, or opportunities based on their skills and interests. It’s like a job board, but it’s only available within the company.

Unilever created an internal AI-powered talent marketplace called FLEX Experiences, which allows employees to sign up for projects outside their current roles to gain new skills. This helps employees explore different interests and fills short-term project needs within the company.

Unilever found that employees participating in the marketplace developed new skills faster, and the company filled skill gaps without needing to hire externally. This approach has boosted employee engagement and satisfaction, as people feel they have more career options within the company.

2. AI-driven career development tools

Companies now use AI-powered tools to help employees find roles or projects matching their skills, career goals, and learning preferences. These tools analyze employee data to suggest career paths, skill-building opportunities, or even mentors.

IBM has developed an AI-driven platform called Watson Career Coach, which provides personalized career guidance to employees. The AI suggests new roles, learning resources, and development paths based on each employee’s interests and strengths.

IBM reported that this approach has increased employee satisfaction and retention, as people feel guided in their career journey and can see a future within the company. It also helps IBM retain talent by offering employees tailored growth opportunities.

3. Mentorship programs

Mentorship programs pair employees with experienced mentors who can help them learn new skills, understand the company culture, and prepare for future roles.

General Electric (GE) has a formal mentorship program where junior employees are paired with senior employees across departments. This allows them to learn from experts and gain insights into other roles within the company.

GE’s mentorship program has helped improve employee development and confidence, making employees more likely to consider internal job shifts. The company also found that mentored employees were more engaged and stayed longer with the organization.

4. Skill-building programs and job potations

Skill-building programs and job rotations allow employees to learn new skills or experience different roles within the company. This approach helps them gain a more well-rounded understanding of the business.

Deloitte uses job rotations and skill-building programs to prepare employees for leadership roles. Employees rotate through different departments, which helps them understand various aspects of the company and develop new skills.

Deloitte has seen a boost in leadership readiness and employee retention. By exposing employees to different parts of the business, they feel more connected to the company’s mission and more prepared for advanced roles.

5. Project-based learning opportunities

Project-based learning gives employees short-term assignments or projects outside their regular roles. This allows them to try something new, build specific skills, and network with other teams.

At Google, employees can take on “20% time” to complete tasks outside their main role. This lets them explore other interests, work with different teams, and learn new skills.

Google has found that these projects increase employee satisfaction and help build a culture of innovation. Employees feel more engaged and appreciated because they can explore interests and contribute to different projects within the company.

How can you measure the ROI of your internal talent mobility program?

Companies can track specific KPIs (key performance indicators) to measure the ROI (Return on Investment) and effectiveness of an internal talent mobility program. These metrics help show whether the program benefits the company and its employees by boosting engagement, saving costs, and enhancing skills. 

Here are some important ways to measure ROI:

1. Internal promotion rate

• What does it mean? A higher internal promotion rate means the company is effectively growing and using its talent from within, which boosts employee morale and reduces external hiring costs.
• How to measure it? Track the percentage of job openings filled by current employees rather than external candidates. 
• Formula: (Internal Hires / Total Hires) * 100

2. Employee retention rate

• What does it mean? High retention rates suggest that employees are satisfied with their career progression opportunities, which reduces turnover costs and promotes a stable workforce.
• How to measure it? Measure the percentage of employees who stay with the company over a specific period. 
• Formula: (Number of Employees at End of Period / Number of Employees at Start of Period) * 100

3. Time to fill open positions

• What does it mean? Filling open positions quickly minimizes productivity loss and reduces the workload for other team members who may be temporarily covering responsibilities.
• How to measure it: Track the average number of days it takes to fill open positions, comparing internal hires to external hires.

4. Employee engagement and satisfaction scores

• What does it mean? Internal mobility programs can lead to higher engagement and satisfaction if employees feel valued and see growth opportunities, which boosts productivity.
• How to measure it: Use surveys or engagement tools to gauge employee satisfaction with questions focused on career growth and mobility. Calculate average scores and track any increases over time.

5. Skill development and training participation

• What does it mean? Measuring the number of employees engaged in skill development shows whether the program successfully prepares employees for various roles to create a more skilled workforce.
• How to measure it: Track the number of employees who complete training programs or certifications relevant to their new roles.

6. Performance metrics for promoted employees

• What does it mean? Monitoring performance post-transition helps ensure that employees promoted internally are successful in their new roles, indicating good placement and readiness.
• How to measure it: Compare performance ratings or goal achievements before and after an internal move.

7. Cost savings from reduced hiring and onboarding

• What does it mean? Internal promotions often reduce recruitment, onboarding, and training costs, leading to direct financial savings.
• How to measure it: Calculate cost savings by comparing the average cost of external hires (recruitment, training, onboarding) with the cost of internal hires.

8. Employee career path tracking

• What does it mean? Tracking career paths reveals if the program effectively supports employees’ growth and progression, which improves engagement and skill diversity within the company.
• How to measure it: Monitor the frequency and types of lateral or upward movements employees make within the company.

9. Talent pipeline readiness

• What does it mean? A strong talent pipeline ensures there are qualified internal candidates ready to step into key roles when needed. This reduces hiring gaps and helps with succession planning, making the organization more resilient.

• How to measure it: Track the number of employees identified as “high potential” and measure how often they are ready to fill important roles within a certain time frame. You can also track the percentage of key roles filled by internal candidates.

However, every company should be creative about the unique KPIs they observe and measure that are relevant to their context. 

Nataša Dobre suggests an interesting approach to measuring the success of your internal mobility program:

“I would say that every company talent who left the company for a role in a different business function with another employer can be counted within a KPI that indicates the internal mobility process needs improvement.”

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Companies that thrive invest in their own people. Practicing internal talent mobility is more than just filling roles by sidestepping the arduous process of external hiring—it’s a forward-thinking approach that helps build a stronger and more agile workforce from within. 

By prioritizing internal mobility, HRs can meet several organizational goals with the course of action: close skill gaps, save on hiring costs, and keep employees engaged and motivated.

With talent marketplaces, career development platforms, and mentorship programs, the path to a highly skilled and resilient workforce is clear. Now is the time to begin investing in internal mobility and create a culture of growth that drives success at its core.

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Internal talent mobility FAQs:

1. Why is internal talent mobility important?

Internal talent mobility is important because it allows companies promote or transfer current employees into new roles, which helps them save on recruitment costs and reduce the time needed to onboard new hires. It also improves employee satisfaction and retention, as employees feel valued and have a chance to grow within the company. 

2. What benefits does internal talent mobility offer to both the organization and its employees?

For organizations, internal talent mobility reduces recruitment expenses and accelerates the time to fill open positions, developing a more skilled and adaptable workforce. 

For employees, it emphasizes career development, allowing them to learn new skills and move up the career ladder without leaving the company. It also creates a sense of job security and satisfaction, as employees see clear paths for advancement.

3. What tools or technologies can help map employee skills and potential?

Companies use the following tools and technologies to map employee skills:

• Skills mapping platforms help companies identify and organize the skills of each employee, creating a clear picture of current strengths and gaps within the workforce. They provide data that allows HR to align talent with the right roles or projects.
• AI-driven talent management systems analyze employee skills, career goals, and performance data. They suggest personalized career paths, development opportunities, or even potential mentors. 
• Learning and development platforms offer targeted training based on an employee’s skill profile. They recommend courses or certifications that align with the employee’s interests and the organization’s needs, supporting continuous upskilling.

4. What are the potential pitfalls of relying too heavily on internal talent mobility?

Relying too much on internal mobility can limit fresh ideas and innovation, as existing employees may reinforce current practices. It can also lead to skill gaps if new skills are needed that internal staff lack or need to improve. Additionally, employees may compete for the same roles, which can create tension. 

A balance between internal hires and external recruitment helps bring in new perspectives and essential skills.

5. How can companies track the impact of internal mobility on employee satisfaction and retention?

Companies can track the impact of internal mobility by conducting regular employee satisfaction surveys, monitoring retention and turnover rates, and analyzing performance and engagement metrics before and after employees move roles. These insights help gauge whether internal moves lead to greater job satisfaction and longer employee tenure, indicating the program’s success.