Here’s a reality check: Your organization could be pouring thousands into external hiring while overlooking exceptional talent already on your team. 

Studies show that external hires cost up to six times more than promoting from within, yet many companies fail to tap into their existing workforce’s potential.

For HR leaders, the message is clear—it’s time to shift the focus to internal talent mobility. By prioritizing internal growth, you can reduce costs, retain top talent, and build a workforce equipped with future-ready skills.

So, if you want to learn how to create and sustain an effective talent mobility strategy and spot high-potential employees for growth opportunities, keep reading. 

What is talent mobility, and why does it matter?

Talent mobility refers to identifying and transitioning employees into roles where their skills are best utilized within an organization. 

This concept goes beyond promotions. It covers all talent movement across your company's departments, locations, and roles.

It’s a cornerstone of strategic workforce planning that ensures employees grow alongside the organization.

A talent mobility framework includes:

1. Internal talent mobility programs: These initiatives encourage employees to explore organizational opportunities, whether through promotions, lateral moves, or project-based assignments.
2. Upskilling and reskilling: Providing training and resources to help employees gain the capabilities needed for future roles.
3. Transparent career paths: Clearly defined progression opportunities to foster employee confidence and ambition.

Your organization can implement several types of internal movements:

• Vertical mobility: Traditional upward movement between job levels, often through promotions. 
• Horizontal mobility: Lateral moves across departments or functions at the same level. 
• Project-based mobility: Temporary assignments on cross-functional projects. 
• Geographic mobility: Relocation opportunities across different locations. 

A LinkedIn Workplace Learning Report reveals a significant disconnect in career development efforts. Only 14% of employees say their organization has helped them craft a career development plan, and just 15% feel encouraged to explore new roles internally.

So, why is internal talent mobility so often overlooked?

While executives acknowledge its importance, building a strong internal mobility program demands time, resources, and a clear strategy. 

Designing personalized growth plans, ensuring skill alignment, or promoting role transitions seamlessly is difficult. 

But the payoff is undeniable.

Employees stay 41% longer at companies with a strong talent mobility program than those without. 

Companies also save resources by filling positions internally. Studies show that external hiring costs 18-20% more than internal transitions.

Hiring teams that get talent mobility right don’t just retain employees; they inspire loyalty, drive performance, and future-proof their talent pipelines.

How to manage a successful internal talent mobility program

An effective internal talent mobility program goes beyond just implementing policies. It’s about creating an ecosystem where employees feel empowered to explore new roles while contributing to organizational goals. 

Here are the key elements that make such programs work:

1. Enhancing employee engagement through career development

Employees engage deeply when they see tangible career growth ahead. 

To foster this, organizations must build a culture that integrates learning and mobility into daily operations. 

Start by showcasing internal career pathways through visible opportunities. Employees are 190% more likely to feel they belong when managers actively support their career growth. 

For example, start by incorporating conversations about career progression as a standard practice in performance reviews. 

Managers can guide employees by identifying skill gaps and offering actionable development plans. 

If an employee shows leadership potential—assign them to lead a small team or initiative.

Creating tailored learning paths is another way to boost employee engagement through career development. For example, design role-specific training programs that align with individual career goals and organizational needs. 

A marketing specialist aiming for a leadership role could follow a path that includes team management workshops, advanced analytics courses, and mentorship opportunities. 

This approach equips employees with relevant skills and demonstrates the company’s investment in their growth, fostering deeper loyalty and motivation.

Ultimately, employees who feel supported in their growth contribute more actively, remain loyal, and align their success with the company’s objectives. 

2. Leveraging technology to streamline internal talent mobility

Technology has reshaped how organizations manage internal talent mobility—especially applicant tracking systems. 

Tools like Kula simplify how internal opportunities are shared, applied for, and tracked, creating a seamless experience for interested candidates and HR teams. 

Kula’s career portals allow organizations to post internal job openings in an accessible, user-friendly format. Employees can explore these opportunities and apply directly, removing traditional barriers like manual processes or lack of visibility. 

The platform also supports skill-based talent matching, using AI to identify employees whose skills align with open roles. 

For example, if a new leadership role becomes available, Kula can suggest employees with relevant experience or those who have completed aligned training. This ensures internal moves are well-informed and strategic.

An ATS with strong reporting features can help track employee interest and applications by offering data that identifies trends and patterns in open roles. 

For instance, identifying a rise in internal applications for certain roles may prompt your hiring team to create more growth opportunities in those areas.

3. Foster an internal mobility-friendly culture

Building a culture that supports internal mobility requires intentional actions from leadership and a commitment to employee development. 

Simply creating a talent mobility framework through a set of policies isn’t enough. Your organization should go above and beyond by exemplifying internal movement core values and processes.

A great way to encourage a culture of talent mobility is by starting with leadership. 

When leaders actively encourage their juniors to explore opportunities within the organization, it reduces the fear of being labeled disloyal. 

A LinkedIn study found that employees who moved into new internal roles were 3.5 times more likely to be engaged than those who stayed in their current positions. 

Ultimately, this engagement drives productivity and retention for the entire team.

Leaders can normalize internal movement by celebrating the success stories of employees transitioning to new roles or departments. 

For instance, an annual “Mobility Spotlight” featuring employees who’ve grown within the company demonstrates leadership’s commitment to internal growth.

Employees are also more likely to stay when they see opportunities to advance, as 20% of voluntary turnover occurs due to a lack of career growth. 

Managers should also prioritize discussing career aspirations during one-on-ones to help employees identify suitable opportunities. 

A McKinsey report notes that upward mobility in a company is most effective when paired with “stretch roles.” These positions challenge employees to develop new skills while leveraging their existing strengths. 

Stretch roles prepare employees for future leadership and drive team innovation and adaptability.

For example, offering a junior software engineer the opportunity to lead a team of freelancers challenges that employee to develop leadership and project management skills while leveraging their technical expertise.

Eventually, this employee will become capable enough to manage a full-fledged team of software engineers, allowing them to scale in their career and the organization. 

4. Offer methods to support career development

94% of employees say they would stay longer at a company that invests in their career development.

This means that a culture of mobility starts with investment in skill growth. 

And here’s what your HR team can do to promote career development within teams:

1. Internal career mentoring

Introduce dedicated mentors who guide employees in identifying their strengths, gaps, and aspirations. These mentors can help their mentees create clear development plans, connect them with relevant training, and suggest internal opportunities aligned with their goals. 

For example, each department in your organization can have 2-3 dedicated mentors with groups of employees who will receive tailored advice on their career aspirations, challenges, or potential projects.

These mentors can conduct sessions with their groups every few weeks to offer insights and guidance. 

Career mentoring not only fosters a culture of growth but also helps boost employee retention and engagement. 

2. Team project initiatives

Encourage departments to collaborate on inter-team projects. For example, a marketing and product team could co-develop a campaign, allowing members to experience responsibilities outside their usual scope. 

This collaboration exposes employees to different functions while fostering skills applicable to future roles.

Apart from inter-team collaboration, allow junior team members to take the lead for more initiatives instead of always relying on senior management. 

3. Transparent skills-building platforms

Deploy platforms that give employees visibility into available training and skill-building opportunities. 

For example, HR teams can offer a portal or educational websites where employees can browse certifications or in-house workshops tied to internal job requirements. 

This way, everyone in your organization will know exactly how to progress toward new roles using skill-building certifications or workshops. 

To take it further, consider investing in a learning and development policy where your organization covers all expenses related to skill-building certifications, webinars, or workshops. 

5. Implement strategies to discover and promote internal talent

The key to identifying internal talent for promotions and transitions lies in structured data-driven methods to ensure high-potential employees are recognized and supported. 

Here are two effective strategies to uncover and promote talent within your organization:

1. Leverage performance reviews to spot high-potential employees

Performance reviews are more than a tool for evaluating past results—they’re an opportunity to identify employees with untapped potential. 

Look beyond metrics like KPIs and employee ratings and instead focus on behaviors such as problem-solving, collaboration, and leadership in day-to-day tasks.

For example, an employee consistently exceeding expectations in their role while mentoring team members might show leadership potential. 

Use these insights to create personalized development plans, offer stretch assignments, or recommend them for future leadership programs.

Regular feedback loops are also key. 

When managers continuously discuss career goals with employees, it becomes easier to identify those ready to step into new opportunities. 

According to Gallup, employees who receive regular feedback are 3.6 times more likely to be engaged at work, directly influencing their potential to thrive in new roles.

2. Utilize skills-matching tools and analytics

Skills-matching platforms powered by AI make internal talent discovery significantly easier. 

These tools can analyze employee profiles, career histories, and training records to recommend candidates for open roles or projects.

For instance, if a critical project requires advanced data visualization, an ATS with a skills-matching feature can flag employees who’ve recently completed relevant certifications. 

Data analytics enhances this process further by providing workforce insights. 

Combining human insights from performance reviews with data-driven recommendations creates a holistic approach to discovering and promoting internal talent. 

This ensures employees are placed where they can contribute most effectively while advancing their careers.

A central database that tracks employee skills, interests, and priorities helps match candidates with opportunities. It also highlights areas needing development.

Apart from this, rewards and recognition make internal mobility more attractive. 

Employees are likely to pursue internal opportunities when they see their colleagues advancing. This creates a positive cycle of development and retention that benefits the whole organization.

Companies that fail to invest in internal talent mobility risk losing their best employees to competitors who actively prioritize career growth. 

If you’re not creating opportunities for your people, someone else will.

And this is where Kula can help you stay ahead. 

Its AI-driven talent matching, intuitive career portals, and real-time insights make internal mobility seamless and strategic.

Don’t let talent mobility be your organization’s blind spot. With the right strategy and tools like Kula, you can create an engaged, loyal, and future-ready workforce.