Enabling Growth and Innovation through Skill-Based Internal Mobility, by Jonathan H. Westover PhD

Abstract: This article examines how organizations can leverage skill-based internal mobility as a strategic advantage for workforce development and business performance. Drawing on academic research demonstrating higher retention rates and increased innovation among companies with robust internal mobility programs, the article argues that lateral and cross-functional moves centered on skill alignment are more effective than traditional hierarchical promotions. The article outlines practical implementation strategies, including establishing clear mobility structures detached from hierarchy, actively spotlighting opportunities, measuring impact, and recognizing contributions. Through case studies of successful programs at Accenture and MassMutual Financial Group, along with actionable steps for organizations to begin their own initiatives, the author presents internal mobility as a crucial pathway for cultivating employee growth, preventing stagnation, and fostering innovation in today's competitive business environment.

Episode Transcript

Enabling Growth and Innovation through Skill-Based Internal Mobility Abstract (00:00):
This article examines how organizations can leverage skill-based internal mobility as a strategic advantage for workforce development and business performance.

(00:14):
Drawing on academic research demonstrating higher retention rates and increased innovation among companies with robust internal mobility programs,
the article argues that lateral and cross-functional moves centered on skill alignment are more effective than traditional hierarchical promotions.
The article outlines practical implementation strategies,

(00:37):
including establishing clear mobility structures detached from hierarchy,
actively spotlighting opportunities,measuring impact,
and recognizing contributions.
Through case studies of successful programs at Accenture and MassMutual Financial Group,
along with actionable steps for organizations to begin their own initiatives,

(01:01):
the author presents internal mobility as a crucial pathway for cultivating employee growth,
preventing stagnation,and fostering innovation in today's competitive business environment.
Having worked with organizations for years helping them unlock their human potential,
one theme continually rises to the surface - the critical importance of nurturing internal mobility as a means of fostering growth,

(01:27):
innovation,and workforce engagement.
Today we will explore how companies can enable more skill-based internal movement within their ranks.

The Foundation (01:37):
Research on Internal Mobility and Skill Development A wealth of academic research points to the strategic and competitive advantages that internal mobility can provide when properly structured and supported.
Studies have shown that companies with robust internal mobility programs experience higher employee retention rates,

(01:59):
greater innovation,and improved business performance overall (Cappelli,
2008;
Debruyne, 2018).
However, not all internal moves are created equal.
When organized solely around hierarchy and promotions,
internal mobility can actually stifle creativity and skill development over time (Bidwell,

(02:24):
2013).
The most effective internal mobility programs focus instead on lateral and cross-functional moves centered around skill and interest alignment (Davis et.
al, 2019).
This allows employees to continuously evolve their skillsets,
take on new challenges that prevent boredom and stagnation,

(02:47):
and spawn novel combinations of perspectives that fuel innovation (Bidwell,
2013;
Davis et.
al, 2019).
It also keeps highly-skilled,mission-driven individuals engaged who might otherwise seek opportunities elsewhere (Cappelli,
2008).

(03:09):
Internal mobility programs should emphasize skill and career development over promotions to maximize benefits for both employees and the organization.
The key question now becomes - how can companies implement internal mobility in a way that enables this type of skill-based,
innovative movement?
Launching a Structured Internal Mobility Program The first step is establishing clear structures,

(03:35):
guidelines and definitions around internal mobility.

As a consultant,I've found companies achieve the most success when they (03:39):
Designate internal mobility "roles" separate from traditional job titles,
allowing movement detached from hierarchy.
Map out career "lattices" or "ladders" showcasing the range of experiences and skills available within and across functions.

(04:01):
Clearly communicate expectations that all employees should gain experience in 2-3 new areas over a 3-5 year period through short-term assignments or projects.
Train managers to regularly discuss interests and potential new experiences with their teams instead of just focusing on current role performance.

(04:22):
Once structured as such, companies must socialize the program throughout the organization.
For example,one biotech client I worked with held "internal mobility fairs" where different departments shared upcoming opportunities,
both large pharmaceutical sponsors presented on areas of need across their R&D pipelines.

(04:43):
This inspired over 150moves in the first year alone.
Spotlighting Internal Opportunities Continuously spotlighting internal openings keeps the program top-of-mind.
Forward-thinking organizations use tools like weekly newsletters,
an internal job board,and digital profiles for each employee's skills and interests to match them with opportunities.

(05:07):
However, passive postings alone often fail to yield impact.
My consulting work emphasizes the importance of coaches,
mentors and recruiters who can actively match employees with the right developmental experiences.
One financial services firm achieved this through "temporary hiring managers" - employee volunteers who serve 6-month terms matching peers with new roles based on conversations and skills assessments.

(05:35):
Measuring and Recognizing Impact Any successful program requires regular measurement and recognition.
Internally-mobile employees should complete pre and post assignment surveys assessing skill gains,
challenges faced,and impacts to their work and mindset.
Departments hosting assignments also provide feedback on the value created.

(05:58):
Aggregated annually, these insights show tangible skills developed across the workforce.
They also surface opportunities for program refinement.
Most importantly,companies must recognize top contributing departments and individual employees to ingrain internal mobility as a cultural norm.
Annual "Innovation Awards" tied to measurable business impacts work well in this regard.

Industry Examples (06:24):
Enabling Internal Mobility at Scale Now that the research foundation and structural best practices have been established,

let's explore two examples of large organizations that have seamlessly woven internal mobility into their fabric at scale (06:34):
Accenture is renowned for its skill-infused,
rotational career model where over 60% of their 450,
000 employees experience 2-4 moves every 3-5 years(1).

(06:56):
They deploy robust profiles,matching algorithms and talent marketplaces to continuously find new opportunities based on each person's skills,
interests and the business landscape.
Combined with a learning-centric culture,this keeps Accenture an employer of choice while spurring world-leading innovation.

(07:16):
MassMutual Financial Group prioritizes "purposeful movement" for their 10,
000+ employees through formal career mapping,an internal networking platform,
and strong management support for short term assignments(2).
Over 90% gain experience in 1-2 new areas each year,

(07:38):
feeding skills back into areas like product design,
client experience and digital transformation.
MassMutual is now recognized as one of the most forward-thinking insurers thanks to this model.

Practical Applications (07:52):
Getting Started To conclude,

here are 3 concrete,actionable steps organizations of any size can take to lay the foundation for their own skill-based internal mobility program (07:56):
Conduct a skills inventory audit across all departments to understand current capacities and gaps.
Analyze job descriptions for overlaps as well.
Assemble an internal mobility task force including HR,

(08:20):
learning leaders,and employee volunteers to design initial career lattices,
mapping opportunities within and between functions.
Host "skills showcase" forums where departments present 2-3 upcoming rotational openings or special project needs for the next 6-12 months.
Encourage volunteers from other areas to gain exposure.

(08:44):
Starting small with targeted skills mapping and short term,
volunteer-based assignments is the best way to prove impact,
gain buy-in and iteratively scale up structures over time based on learnings.
Focus first on championing moves within functions or divisions before expanding effort to entire organizational skill networks once concepts are proven.

(09:09):
By planting these early seeds,companies set themselves up to continuously enable growth,
opportunity and innovation for years to come through skill-based internal mobility.
Conclusion Fostering internal mobility should be at the core of any employer strategy seeking to maximize talent,
cultivate new ideas and successfully adapt to changing market needs.

(09:33):
When supported by research-backed best practices,internal talent networks become a strategic differentiator and powerful driver of organizational success.
I hope the insights shared provide a useful framework for any company pursing this important pathway.
Please feel free to contact me if you have any other questions!