Internal Mobility: How Companies Retain Talent by Offering Growth Opportunities Within Teams

• Why Internal Mobility Matters More Than Ever
• The Numbers Speak for Themselves
• Case Studies: Lessons from Scandinavian Companies
• Volvo: Building an Internal Talent Marketplace
• IKEA: A Culture of Career Fluidity
• Ericsson: Nurturing Innovation Through Mobility
• The Benefits of Internal Mobility
• For Organizations:
• For Employees:
• How to Foster a Culture of Internal Mobility
• The Future Belongs to Agile Organizations

In today’s competitive job market, where attracting and retaining top talent is increasingly challenging, internal mobility has emerged as a critical strategy for forward-thinking organizations. Career development opportunities consistently rank among the top factors influencing employee satisfaction and retention. Conversely, the absence of such opportunities is a leading cause of employee turnover. By enabling employees to explore new roles and responsibilities within the organization, companies can not only retain key talent but also foster innovation and strengthen their culture.

Why Internal Mobility Matters More Than Ever

For years, researchers have studied the link between talent management practices and organizational performance. One recurring insight is that rigid, siloed structures often hinder employee growth and stifle innovation. Managers may be reluctant to let go of high-performing team members, fearing the impact on their own department. However, this mindset can lead to stagnation for both the individual and the company.
Internal mobility—defined as the practice of moving employees into new roles or projects within an organization—offers a solution. It allows companies to maximize the potential of their existing workforce while reducing costs associated with external hiring. More importantly, it creates a culture of continuous learning and adaptability, which is essential in today’s fast-changing business environment.

The Numbers Speak for Themselves

Data from LinkedIn reveals that employees who experience internal mobility are 64% more likely to stay with their company after three years, compared to just 45% for those who don’t. Furthermore, LinkedIn’s Workplace Learning Report highlights that 79% of learning and development professionals believe reskilling current employees is more cost-effective than hiring externally. Post-pandemic, 54% of organizations have made internal mobility a higher priority, recognizing its potential to drive both engagement and efficiency.

Case Studies: Lessons from Scandinavian Companies

Volvo: Building an Internal Talent Marketplace

Volvo IT, the technology arm of the Swedish automotive giant, faced several challenges: high employee turnover, low morale, and a lack of cross-functional collaboration. To address these issues, Volvo introduced an internal talent marketplace—a platform where employees could explore new roles, participate in cross-departmental projects, or even take on temporary assignments aligned with their interests and skills.
The results were transformative. Within the first year:

• The company saved significantly by filling roles internally rather than hiring externally.
• Over 100 full-time equivalent positions were allocated to project-based work through the marketplace.
• Employee engagement scores increased by 9%.
• Cross-functional collaboration improved, leading to faster innovation cycles.

This initiative not only retained key talent but also fostered a sense of ownership among employees, who felt empowered to shape their own career paths within the organization.

IKEA: A Culture of Career Fluidity

IKEA has long been known for its commitment to employee development. The company actively encourages its staff to explore different roles across departments and even locations. For instance, an employee starting in customer service might transition into supply chain management or marketing over time. This approach has helped IKEA maintain a highly engaged workforce while promoting diversity of thought and experience within its teams.

Ericsson: Nurturing Innovation Through Mobility

Ericsson leverages internal mobility as a tool for fostering innovation. By rotating employees across different business units and geographies, the telecommunications leader ensures that knowledge flows freely throughout the organization. This practice not only accelerates professional growth but also strengthens Ericsson’s ability to adapt to market changes.

The Benefits of Internal Mobility

For Organizations:

1. Enhanced Collaboration: Employees who move between teams build bridges across departments, breaking down silos and fostering better communication.
2. Cost Savings: Reskilling or redeploying existing employees is far more cost-effective than recruiting externally.
3. Knowledge Retention: When employees leave an organization, they take valuable institutional knowledge with them. Internal mobility helps retain this intellectual capital.
4. Increased Innovation: Diverse experiences lead to fresh perspectives and creative problem-solving.

For Employees:

1. Career Growth: Opportunities for lateral moves or promotions keep employees engaged and motivated.
2. Skill Development: New roles provide a chance to learn different skills and broaden professional expertise.
3. Stronger Networks: Moving across teams allows employees to build relationships with colleagues from various parts of the organization.
4. Higher Job Satisfaction: Employees feel valued when they see clear pathways for growth within their company.

How to Foster a Culture of Internal Mobility

1. Create Transparency Around Opportunities: Employees should have easy access to information about available roles or projects within the company.
2. Leverage Technology: Implement platforms that act as internal job boards or talent marketplaces where employees can explore opportunities aligned with their skills and interests.
3. Train Managers: Equip leaders with the tools and mindset needed to support internal mobility rather than hoard talent within their teams.
4. Encourage Knowledge Sharing: Establish systems for documenting and transferring knowledge when employees transition between roles.
5. Reward Mobility-Friendly Behavior: Recognize managers who actively promote internal mobility as part of their leadership approach.

The Future Belongs to Agile Organizations

As competition for top talent intensifies, companies must rethink traditional career paths and embrace more dynamic approaches to workforce development. Internal mobility offers a win-win solution: employees gain access to meaningful growth opportunities while organizations build a more resilient and innovative workforce.
The success stories from companies like Volvo, IKEA, and Ericsson demonstrate that internal mobility isn’t just a trend—it’s a strategic imperative for businesses aiming to thrive in an unpredictable world. By investing in tools, processes, and cultures that support internal movement, organizations can unlock untapped potential within their teams while positioning themselves as employers of choice.
For HR leaders and executives wondering where to start: begin by asking how your organization can make it easier for employees to grow without leaving your company. The answer may hold the key to your future success.

References

1. Collings, D. G., & Mellahi, K. (2009). “Strategic talent management: A review and research agenda.” Human Resource Management Review, 19(4), 304–313.
2. Sparrow, P., Brewster, C., & Chung, C. (2016). “Globalizing human resource management.” Routledge.
3. De Vos, A., & Meganck, A. (2009). “What HR managers do versus what employees value: Exploring both parties’ views on retention management from a psychological contract perspective.” Personnel Review, 38(1), 45–60.
4. Campion, M. A., Cheraskin, L., & Stevens, M. J. (1994). “Career-related antecedents and outcomes of job rotation.” Academy of Management Journal, 37(6), 1518–1542.