What is internal mobility?

Internal mobility is when employees move into new roles within their current company rather than being hired externally. This strategy can include earning a promotion, switching departments, or taking on a temporary role in another team. Some companies even have programs that make it easier for employees to try new career paths without leaving the organization. Traditional career growth often focuses on moving up the corporate ladder, but internal mobility includes vertical and horizontal moves. Employees can earn promotions (vertical mobility) or transition to different departments (horizontal mobility) to match their evolving skills and interests.

Why internal mobility matters

Companies in every industry face ongoing talent shortages, making it more difficult to find skilled workers. External hiring can take time and money, and there’s no guarantee a new hire will be the right fit. Internal mobility can help businesses fill roles faster, retain employees, and create a stronger workforce. It also allows companies to adapt to change without losing key talent.

Horizontal vs. vertical mobility

There are different ways employees can grow within a company. Understanding horizontal and vertical mobility differences can empower business owners to create compelling career development strategies.

• Vertical mobility: A traditional promotion where an employee moves into a role with greater responsibility and pay.
• Horizontal mobility: A lateral move, where an employee transitions to a different role at the same level, often to gain new skills or explore a different career path.

Both types of movement can benefit employees and companies. Vertical mobility can provide clear career progression, while horizontal mobility helps employees build diverse skill sets and become more adaptable.

Pros and cons of internal mobility

Internal mobility offers significant advantages for businesses and employees but also challenges. Understanding both sides can help companies create an internal mobility strategy that maximizes the benefits while minimizing potential downsides.

Pros 

Below are some advantages of internal mobility:

• Retains top talent: Employees who see career growth opportunities within their company are more likely to stay. Without internal mobility, skilled workers may look elsewhere for advancement, leading to turnover . A strong internal talent mobility strategy reassures employees that they don’t have to leave to develop their careers, improving long-term retention.
• Reduces hiring costs: Finding, interviewing, and onboarding external candidates is expensive. Promoting from within eliminates much of that cost. Internal hires typically do not require the same level of training, and companies avoid recruiter fees, job board postings, and lengthy hiring processes.
• Faster onboarding and training: Internal hires already understand your company culture, policies, and processes to transition into new roles more quickly. External hires often take months to adjust, whereas internal candidates can start contributing immediately.
• Encourages skill development: Employees moving within your company gain experience in different areas, broadening their expertise. Horizontal mobility can allow workers to develop diverse skills, while vertical mobility strengthens leadership capabilities. Both can help create a more productive and adaptable workforce.
• Increases employee engagement: Career stagnation can lead to disengagement. When employees know they have opportunities to move into new roles, they tend to stay motivated. Internal mobility programs show employees that their company values their growth, boosting morale and productivity.
• Strengthens company culture : A culture that prioritizes growth and internal opportunities fosters loyalty. Employees who see colleagues advancing within the company are more likely to believe in leadership and remain committed to the organization’s success.
• Improves workforce agility: Internal mobility can help companies quickly move employees into critical roles. Businesses can fill gaps efficiently without relying solely on external hiring when responding to market changes, restructuring, or expanding into new areas.

Cons

Below are some challenges of internal mobility:

• Limited fresh perspectives: Hiring externally can bring in new ideas and approaches. When companies rely too heavily on internal mobility, they risk becoming stagnant. A mix of internal and external hiring ensures diversity of thought.
• Role gaps may emerge: Shifting employees into new positions can leave vacancies that need filling. If companies do not have a talent pipeline ready to step into those roles, internal mobility can cause disruptions.
• Not all employees want to move: Some workers prefer stability over change. If an employer pushes internal mobility too aggressively, they may create pressure and dissatisfaction among employees who are happy in their current roles.
• Bias concerns: Without a structured approach, internal mobility can lead to perceptions of favouritism . When promotions or lateral moves lack transparency, employees may feel overlooked or assume the employer based their decisions on relationships rather than merit.
• Skill gaps can develop: Promoting internally without proper training can leave employees unprepared for their new roles. Businesses that invest in development programs can ensure employees succeed when they move into new positions.

Building adaptable teams for every project phase

Internal mobility can give managers the flexibility to structure teams based on the needs of each project. As an alternative to hiring externally, businesses can shift employees into roles where their skills and experience are most valuable. This strategy can help teams adapt as company goals change, ensuring every project has the right people in the right roles at every stage.

Matching skills to project demands

Some projects may require specialized knowledge, while others benefit from various perspectives. Internal mobility can allow managers to assess their workforce and place employees in roles that align with their expertise. A technical project may need experienced problem solvers, while a new product launch could benefit from employees with customer insights. Businesses can build effective teams without lengthy recruitment cycles by leveraging existing talent.

Encouraging cross-functional collaboration

Employees with experience in different departments can bring innovative ideas that improve efficiency and communication. For example, someone with experience in sales and marketing will typically understand how customer needs translate into effective advertising strategies. These connections can strengthen teamwork, reduce silos, and help departments align their efforts to achieve company-wide goals.

Adjusting to shifting priorities

As projects evolve, timelines, budgets, and objectives can change. When internal mobility is part of a company’s strategy, managers can quickly reassign employees to new tasks or teams. This agility ensures businesses stay consistent even when priorities shift, reducing delays and keeping projects moving forward.

Retaining institutional knowledge

When employees shift roles within a company, they carry valuable knowledge that can help teams work smarter and avoid common mistakes. For example, a project manager with an operations background might spot logistical issues before they become problems. Rather than losing that expertise when someone leaves, internal mobility strategies keep it in-house, strengthening future projects.

Creating a culture of internal mobility in your organization

Encouraging internal mobility can require intentional strategies that make career movement accessible and beneficial for employees and your company. Consider the following steps to create an environment that empowers employees to explore new organizational opportunities:

Promote movement between roles

When managers hold onto top talent too tightly, they might unintentionally slow growth. Instead of keeping employees locked into one role, leaders can promote a culture where talent moves freely across teams and departments. A workforce that can adapt to different roles strengthens the organization and reduces the need for external hiring.

Provide hands-on learning opportunities

While training is essential, real-world experience can help develop new skills. Internal transfers, short-term projects, mentorship programs, and cross-functional assignments allow employees to apply what they learn in a practical setting. Internal talent marketplaces can help match employees to these opportunities with their skills and interests, ensuring they gain valuable experience while contributing to business needs.

Encourage employees to own their career growth

Each employee has distinct career goals, and a rigid approach to development may not align with their aspirations. Instead of prescribing a specific career path, consider giving your employees the tools and resources to explore different options. Offering flexible career paths through promotions, lateral moves, or skill-building opportunities can help employees take ownership of their growth. This strategy can lead to stronger engagement and better results for your company.

Internal mobility can help businesses retain skilled employees, reduce hiring costs, and build adaptable teams. Companies can strengthen their workforce by promoting a workplace where employees can grow and take on new roles while maintaining a competitive edge.