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Internal mobility, the movement of employees to new careers or development opportunities within the same organization, is a critical component of effective talent management.
As companies everywhere deal with talent shortages, many turn to internal mobility to fill skill gaps, develop future leaders, and maximize workforce potential. By moving employees within the organization, businesses can reduce hiring costs, speed up career development, and retain top talent in a competitive job market.
Additionally, AI-powered analytics tools can help HR understand and visualize the flow of resources within an organization, such as career progressions, transitions, and relocations.
In this post, we’ll explore the benefits of internal mobility, how it supports critical business objectives, and how HR teams can visualize and optimize talent moves to prepare for the future.
Internal mobility occurs when employees move within an organization through promotions, lateral moves, or relocation. It’s all about finding new opportunities for people inside the company rather than hiring externally. These moves help encourage growth and development while filling critical roles with employees who already understand the business.
In recent years, the shift toward skills-based talent management changed how companies approach internal mobility. Instead of focusing only on job titles and past roles, businesses now prioritize the specific skills employees bring to the table. This approach makes internal mobility more strategic. It’s not just about moving people around—it’s about putting the right skills in the right places to meet business needs.
As external talent shortages and growing skills gaps continue to challenge companies, many look inward for solutions. External hires can be expensive and time-consuming, so more organizations focus on building talent from within. Internal mobility lets businesses tap into their existing workforce to fill roles quickly and cost-effectively.
1 – Retention: Internal mobility is a powerful tool for retaining your top talent. When employees see clear opportunities for growth within the company, they are more likely to stay engaged and loyal. In fact, LinkedIn’s Global Talent Trends 2020 report discovered that companies that promote internal career paths see up to 41% lower turnover rates compared to those that don’t.
Creating clear pathways for advancement keeps employees motivated and helps them feel valued, reducing the risk of them seeking opportunities elsewhere.
2 – Skills Development: Internal mobility allows companies to focus on developing the skills of their existing employees, preparing them for future challenges. Integrating internal mobility with learning and development programs helps employees grow into new roles, ensuring your workforce is always ready for the next wave of business demands. It’s a win-win—employees gain new skills, and companies stay competitive.
3- Filling Critical Skill Gaps: Internal mobility is key in skills-based hiring. By leveraging employee data, companies can match internal talent with open roles that require specific skills. This approach is faster and more efficient than searching for external candidates, especially when there’s a need for more specialized talent in the market. With the right internal mobility strategy, businesses can fill these critical skill gaps quickly and effectively.
4 – Boosting Employee Engagement: Employees who see clear internal opportunities for growth are more engaged in their work. They are more motivated to perform at their best when they know there’s potential to move up or take on new challenges within the company. Internal mobility fosters a culture of growth, helping employees feel like they’re part of something bigger. This kind of engagement leads to higher productivity and overall job satisfaction.
5 – Cost-Efficiency and Faster Hiring: Promoting from within is quicker and more cost-effective than external hiring. On average, external hires take longer to onboard and can cost up to 1.7 times more than internal candidates. Internal mobility allows companies to fill open positions faster, minimizing downtime and reducing recruitment costs. Plus, internal candidates already know the company’s culture and systems, leading to smoother transitions into new roles.
6 – Building a Stronger Talent Pipeline: Businesses create a robust internal talent pipeline by consistently moving talent within the organization. This internal talent pipeline helps identify high-potential employees who could be future leaders. Internal mobility helps companies play the long game by developing their talent from within, ensuring they’re prepared for succession planning and future leadership needs.
Start by evaluating your current talent pool to understand the skills and potential within your organization. Use this assessment to identify internal mobility opportunities and pinpoint skill gaps that can be filled with existing talent. Tools like Crunchr provide detailed insights into employee data, helping you map out where your talent stands.
Create clear and structured career pathways for employees to understand how to advance within the company. Connect these pathways with learning and development (L&D) programs to ensure employees acquire the skills needed for growth. This approach to development keeps employees engaged and aligned with organizational goals.
Data-driven platforms like Crunchr are essential for identifying and supporting internal mobility. Crunchr’s analytics, including the Sankey Flow Chart, help visually represent employee movement, skills gaps, and potential high performers, helping HR make informed talent decisions.
Promote a culture that values internal development by encouraging employees to explore new roles and take charge of their career progression. Regularly highlight internal success stories, offer growth opportunities, and ensure managers actively support and encourage team mobility. This will help build engagement and long-term employee retention.
Internal mobility is a powerful practice for addressing today’s most pressing HR challenges, from talent shortages to retention issues and the need for skills-based hiring.
By prioritizing internal talent, businesses can fill roles faster and save on recruiting costs while fostering a culture of growth and development. Investing in internal mobility is a surefire way to future proof your organization.
At the end of the day, HR leaders need the right tools to truly leverage internal mobility. The Sankey Flow Chart in Crunchr, provides the insights and visualizations necessary to optimize your internal mobility strategy. By understanding employee movements and identifying skill gaps, you can make informed decisions that support both individual career growth and organizational success.
Stay tuned for part two of our Internal Mobility series next week as we dive deeper into the Sankey flow chart in Crunchr.
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