How Companies Can Improve Internal Mobility to Address the Tech Talent Shortage

The global tech talent shortage is no longer a looming threat—it is a present reality. By 2030, an estimated 85 million jobs will go unfilled, costing companies billions in lost productivity and revenue. For years, businesses have relied on external hiring to fill skill gaps, but that strategy is proving unsustainable. The cost of recruitment is rising, skilled candidates are in short supply, and turnover remains high. The solution lies within the organization itself. Internal mobility—promoting, upskilling, and reskilling existing employees—offers a more efficient, cost-effective way to address workforce shortages.

The Barriers to Internal Mobility

Companies that invest in internal talent pipelines can close skill gaps faster, improve employee retention, and build a more adaptable workforce. Yet, most organizations fail at internal mobility. Rigid job structures, managerial resistance, and a lack of clear career pathways prevent employees from moving into roles that align with their skills and ambitions. Without a structured approach, internal hiring remains an afterthought rather than a strategic advantage. Despite its clear benefits, internal mobility is often difficult to implement. Companies struggle with three primary obstacles:

1. Lack of Career Transparency – Employees do not know what internal opportunities exist, what skills are required, or how to transition into new roles. Without clear career roadmaps, they look elsewhere for growth.
   
   
2. Managerial Resistance – Many managers hesitate to promote employees into new roles because they do not want to lose top talent from their own teams. This short-term thinking leads to stagnation.
   
   
3. Insufficient Training and Upskilling – Without targeted learning programs, employees lack the technical skills necessary to take on higher-level roles, limiting their mobility within the organization.
   
   

A Strategic Framework for Internal Mobility

To make internal mobility a functional reality, companies need structured pathways for employees to advance and transition into new roles. This requires investment in learning programs, career development infrastructure, and cultural shifts that prioritize growth from within. Without these elements, internal mobility remains an abstract concept rather than a tangible career development strategy. The key is to create a seamless, transparent process that allows employees to identify career opportunities, acquire new skills, and transition smoothly into new roles without unnecessary bureaucratic barriers.

1. Define Clear Career Pathways

Employees cannot move internally if they do not know where to go. A lack of transparency around career progression is one of the biggest reasons employees leave organizations. Companies must create clear career roadmaps that outline:

• The roles available within the organization.
• The skills, qualifications, and experience required to transition into those roles.
• The training programs, mentorship opportunities, and career steps necessary to make internal promotions accessible.

One of the most effective ways to establish career transparency is through internal talent marketplaces—platforms where employees can explore open job opportunities, lateral moves, and short-term projects that align with their skills and aspirations.

Best Practice: Companies like Salesforce and Unilever have implemented internal talent marketplaces that function like internal job boards, making career movement easier and more accessible. These platforms allow employees to browse open internal positions and apply for cross-functional assignments or lateral role transitions. They also provide access to mentorship opportunities and skill development resources.

2. Invest in Upskilling and Reskilling

If companies want employees to transition into more advanced roles, they need to equip them with the right skills. Upskilling (enhancing existing skills) and reskilling (teaching entirely new skills) must be a core part of the internal mobility strategy. Without targeted learning programs, employees may lack the technical expertise necessary to take on new challenges.

• Technical Training in Emerging Fields: Employees should have access to structured programs in cloud computing, AI, cybersecurity, and data analytics—areas where the talent shortage is most severe.
• Mentorship Programs: Pair junior employees with senior professionals in aspirational roles to help them gain industry knowledge and real-world insights.
• On-Demand Digital Learning Platforms: Provide employees with access to Coursera, Udacity, LinkedIn Learning, and in-house training programs that allow them to develop new skills at their own pace.
• Certification Support: Offer reimbursement for employees who earn certifications in high-demand fields like AWS, Google Cloud, and cybersecurity.

Example: Amazon’s "Upskilling 2025" initiative is investing $1.2 billion in workforce training, helping employees transition into high-demand fields like software engineering and machine learning. By providing structured learning paths, Amazon is ensuring that its existing workforce can fill critical skill gaps without external hiring. Organizations that invest in continuous learning programs create a workforce that is agile, adaptable, and capable of growing with the business rather than being replaced by external hires.

3. Break Down Departmental Silos

One of the most significant barriers to internal mobility is organizational rigidity. Employees often feel confined to their current department because companies do not actively encourage cross-functional movement. Managers, fearing talent loss, may discourage employees from seeking internal opportunities.

How to Remove Barriers to Internal Movement:

• Implement Rotational Programs: Allow employees to gain experience across different departments through structured rotations.
• Encourage Cross-Team Collaboration: Foster a culture where employees can contribute to projects outside of their primary function, allowing them to explore different career paths.
• Normalize Internal Transfers: Managers should be incentivized to support internal movement rather than hoarding talent. Leadership should reward managers who develop employees and facilitate internal transitions.
• Short-Term Projects & Internal Gigs: Create temporary assignments where employees can test new roles before committing to a permanent transition.

Example: Google’s 20% time rule allows employees to spend a portion of their workweek on projects outside their formal job description. This has led to the development of products like Gmail and AdSense, proving that encouraging internal exploration fosters innovation and long-term career satisfaction. Organizations that embrace a flexible, cross-functional workforce see higher innovation, greater employee retention, and a more adaptable workforce.

4. Use AI-Powered Talent Matching

With advancements in AI and HR technology, companies can now use AI-driven talent marketplaces to match employees with relevant career opportunities based on their skills, work history, and learning progress. These platforms remove guesswork from internal hiring and help both employees and managers make informed decisions about career transitions.

How AI is Transforming Internal Hiring:

• Predictive Career Mapping: AI-driven platforms can analyze an employee’s current skills, performance history, and career aspirations to recommend the best-fit internal roles.
• Automated Skills Tracking: AI can monitor employee development and suggest training programs based on industry demand.
• Internal Job Matching: Employees receive personalized career recommendations, making it easier to apply for roles that align with their growth trajectory.

Example: Unilever uses AI-powered career mapping software, which has led to a 30% increase in internal promotions. The system proactively recommends job opportunities and learning paths tailored to each employee’s experience and goals. By leveraging AI for talent mobility, companies create data-driven, equitable, and efficient internal hiring processes, ensuring that talent remains within the organization rather than seeking opportunities elsewhere.

5. Shift the Culture: Make Internal Mobility the Norm

A company can have all the right systems in place, but if internal mobility is not ingrained in company culture, employees will continue to seek opportunities externally. For internal hiring to be a functional part of workforce strategy, leadership must position career mobility as a company-wide priority.

How to Build a Culture That Supports Internal Mobility:

• Recognize & Reward Managers Who Develop Talent: Instead of penalizing managers for "losing" employees to other teams, incentivize them to support career growth.
• Prioritize Internal Candidates Over External Hires: Establish policies where internal employees are considered first for open positions before looking externally.
• Celebrate Internal Mobility Success Stories: Publicly recognize employees who have successfully transitioned into new roles within the company. This reinforces that growth within the organization is possible and encouraged.

Case Study: AT&T publicly committed to filling 50% of open positions through internal promotions, shifting its hiring culture from external recruitment to workforce development. When internal mobility is normalized, employees become more engaged, more loyal, and more likely to invest in their long-term future within the company.

A Smarter Approach

The companies that will thrive in the future of work are not the ones competing endlessly for external hires—they are the ones investing in their own people. Internal mobility is not just an HR initiative; it is a competitive advantage. Organizations that create clear career paths, invest in employee development, and eliminate bureaucratic roadblocks will not only close skill gaps faster but will also build a workforce that is more engaged, more adaptable, and more invested in the company’s long-term success. The war for tech talent is intensifying. Companies that rely solely on external hiring will struggle. Those that embrace internal mobility as a strategic priority will not just survive—but lead.