Making the Business Case for Internal Mobility at ZigZagHR: How Internal Mobility Can Drive Employee Engagement

On January 30, Geert Volders, Director of Right Management Belgium, took the stage at ZigZagHR, highlighting a key but often overlooked opportunity: internal mobility. In today’s competitive job market, companies focus heavily on external recruitment, yet the strategic development of internal talent is often neglected. As Geert put it: "Why look for the five-legged sheep outside the organization when there are people internally willing and able to grow?"

The Complexity of Internal Mobility

Implementing a successful internal mobility strategy is more than just opening internal job postings. Companies must address critical questions: What does internal mobility really mean? Why should we encourage it? Challenges such as salary disparities between roles, the impact of internal transfers on teams, and the potential disappointment of employees who are not selected make internal mobility seem more complex than external hiring.

A significant roadblock is the perception of internal mobility. Some managers see it as a threat: they don’t want to lose their best people. As a result, employees may not be encouraged to apply for internal roles because their managers prefer to keep them.

A cultural shift is needed. Organizations must foster a mindset where internal mobility benefits both employees and the company as a whole. Learn more about fostering career mobility and change.

Breaking Through Traditional Mindsets

Many businesses still chase the elusive 'perfect candidate' externally while neglecting the talent they already have. Research shows that only 18% of employees in Europe have changed positions within their company in the past five years, and just 17% plan to do so in the next two years. In Belgium, in particular, employees tend to stay in the same role for extended periods. This reluctance to explore new opportunities can stifle innovation and limit organizational growth.

Additionally, employees are often unaware of the opportunities available within their own company. HR departments don’t always communicate internal vacancies and career development programs in a way that motivates employees to act. A proactive approach – one that actively engages employees and encourages continuous learning – is key to fostering and maximizing internal mobility.

The Need for a Strategic Approach

Internal mobility should not be a reactive process aimed only at filling vacant positions. It must be part of a broader workforce strategy that takes into account emerging trends such as digitalization, artificial intelligence, and sustainability transitions. Companies that fail to align internal mobility with long-term business goals risk losing their competitive edge.

A strong internal mobility strategy should include:

  • Skill development: Identifying future skill needs and providing relevant training and upskilling programs.
  • Talent matching: Implementing tools and systems that help match employees with suitable internal opportunities.
  • Career support: Offering coaching and mentoring to guide employees in their career progression.
  • Transparent processes: Ensuring clear and fair selection criteria so employees feel they have equal opportunities.

Budget Constraints and Undefined Responsibilities

Career development and internal mobility often fall into the gaps between different HR functions, such as recruitment, learning & development, and HR business partners, leading to unclear responsibilities and a lack of dedicated budget. Without proper ownership, internal mobility remains a secondary priority rather than a strategic focus.

One effective solution is to establish a centralized internal mobility team within HR. This team would be responsible for talent development, career coaching, and tracking internal movements, ensuring a more coordinated and effective approach.

Employees as Drivers of Their Own Careers

From the employee’s perspective, internal mobility enhances their skills, increases their value within the organization, and improves their employability overall. It’s not just about promotions, it also includes lateral moves, job shadowing, and cross-functional projects that broaden employees’ expertise. However, many companies only promote internal mobility when facing layoffs or restructuring and often limit opportunities to high-potential employees. How can we make internal mobility appealing to all employees?

Encouraging self-leadership is crucial. Employees should be empowered to take control of their careers by:

  • Having career conversations: Regular discussions with HR or managers about ambitions and internal opportunities.
  • Participating in internal job fairs: Informal networking events that introduce employees to different roles within the company.
  • Embracing continuous learning: Recognizing and rewarding employees for investing in their personal and professional growth.

Discover insights on continuous professional development.

Creating a Culture That Supports Internal Mobility

For internal mobility to thrive, organizations must foster a culture that encourages movement across teams and departments. This requires buy-in from leadership, business units, and employees – internal mobility cannot be solely an HR initiative. Managers play a crucial role in guiding employees through career transitions in a structured and transparent way. Training programs on change management, resilience, and peer coaching can equip managers with the skills needed to support internal mobility.

Transparent communication is also vital. Employees need to know what opportunities exist, what qualifications are required, and how they can prepare for internal career moves. This means establishing clear policies and fostering open dialogue between employees and leadership.

Strategic Workforce Management

Strategic Workforce Management (SWM) plays a central role in aligning talent strategies with business objectives. It involves identifying critical skill gaps, forecasting future talent needs, and implementing proactive workforce planning. Yet, according to the 2024 Vlerick HR Barometer, only 21% of HR professionals consider SWM a strategic priority.

So, how do we change this mindset?

By integrating internal mobility into long-term workforce planning, organizations can ensure that talent development remains a key business priority. HR leaders must collaborate with senior management to design workforce strategies that align with the company’s vision and future needs. This shift will elevate HR’s role from an administrative function to a strategic business partner.

In short

Internal mobility is a powerful yet underutilized tool for both employees and organizations. When companies take a strategic approach and build a culture that supports internal career movement, they unlock the full potential of their workforce.

Building a Strong Business Case for Internal Mobility

For HR leaders seeking to secure investment in internal mobility, creating a well-structured business case is essential. Here's how you can build a compelling case to gain support from top management and key stakeholders.

Identify the key challenge or opportunity

Start by clearly defining the problem you want to solve or the opportunity you want to seize. The 'why' behind the project needs to be compelling and data-driven to garner support from the executive committee. Make it as concrete as possible:

  • How many open positions are there in your organization?
  • What is the cost of filling a vacancy externally?
  • What are the gaps in skills and critical functions?

Define clear objectives

Outline what you want to achieve with this initiative. This is where you define the measurable outcomes that align with the company's broader goals. For example:

  • Increase retention among young starters
  • Fill vacancies more efficiently
  • Foster more internal mobility to reduce hiring costs
  • Ensure L&D budgets are used strategically for re- and up-skilling

Present a cost-benefit analysis

This is the section where you need to demonstrate the tangible benefits of internal mobility:

  • Resources needed: What financial, personnel, and technological resources are required to implement the strategy? Will you need internal HR support, or would external consultants be necessary?
  • Expected outcomes: What benefits will the strategy provide, both financially and operationally? Highlight the cost savings from reducing reliance on external hiring, improving employee engagement, and enhancing retention. Make sure the ROI is clear and quantifiable.

Define and Control the Risks

Every project comes with risks, and internal mobility is no exception. It's crucial to address potential obstacles and offer solutions for mitigation:

  • Will employees fear that everyone will change jobs?
  • Can the organization handle the shifts in workforce structure?

Consider and Present Alternatives

It's important to show that you've considered other approaches and explain why internal mobility is the best option. For instance, compare the cost of filling vacancies externally versus utilizing internal talent. Show the long-term value of investing in internal mobility instead of external hiring, emphasizing cost-effectiveness and employee growth.