Internal Mobility: Your Next Great Hire is Already on Your Payroll

By Alex Foster, Vice President of People Experience at Kelly

It’s a familiar dilemma for leaders: You have a critical role to fill and find yourself torn between promoting a high-performing internal candidate or bringing in an external hire with an impressive resume. The external candidate looks great on paper, but you know your internal person could do the job.

I get it, that perfect external resume can be enticing. But after years of building teams, I’ve learned that when you hire someone you already know, you have a level of control and confidence that no interview process can match. You don’t need to roll the dice because you're making an informed bet.

Companies that prioritize internal mobility see higher retention, better performance, and lower hiring costs. The best part is you can start building this advantage today, with practical strategies that don’t require perfect systems or big budgets. 

What is internal mobility?

Internal mobility goes beyond the classic promotion. It's any movement that helps people grow within your organization. That could mean upward moves, lateral shifts, or even project assignments that stretch someone's skills. The customer service representative who becomes a business development manager. The recruiter who discovers a passion for data analytics. The HR generalist who finds their calling in learning and development. 

Ultimately, the heart of internal mobility is helping employees grow and find new challenges without losing them to competitors. And the business case for prioritizing this approach is stronger than most leaders realize.

How internal hires give your business an edge

Here are three compelling reasons to look inward first:

You already know what you're getting. When I promote someone internally, I'm not guessing about their work style or culture fit. I've seen their track record in real situations, including how they handle pressure, solve problems, and step up when needed. Plus, they're already connected to your organization’s mission and purpose.

You’re more likely to retain talent. Those who make internal moves are 40% more likely to stay at a company for at least three years. Most high-performing employees have their own career goals and aspirations. If they can meet them within your company, they’re more likely to stay and feel satisfied with their growth. 

External hiring has hidden costs most leaders miss. Research from Wharton shows external hires get significantly lower performance evaluations for their first two years, despite having higher exit rates and earning 18-20% higher salaries. That means you're paying more for lower performance during that crucial ramp-up period, compared to an internal candidate who already knows the ropes.

Developing internal talent: Start with what you have

So how do you actually start developing internal talent? You don't need sophisticated technology or formal programs to get started. Some of the most effective internal mobility happens through simple, scrappy approaches that any leader can implement today.

Treat your managers like career coaches

Employees who move into new jobs internally are 3.5x more likely to be engaged than those who stay in their current jobs. When managers resist developing their team members because they don't want to lose good people, they're creating the very problem they're trying to avoid. That’s why I teach managers to see themselves as career coaches, not just task managers.

Talk to your people about their future

I dedicate at least one conversation per month or quarter with each team member purely to their development. Not what we need to get done, but what they need to be successful in their current role and their career. These "stay interviews" become your early warning system for spotting flight risks and identifying people ready for new challenges.

Begin with simple tools

Forget waiting for the perfect system. Start with pulse surveys, regular development conversations, and cross-functional project opportunities. At Kelly, we even use employee resource groups as development opportunities where someone who's never managed a team can get leadership experience.

Plan for talent moves before you need them

What capabilities will you need in three to five years? How can you start building those skills now with the people you already have? Back in late 2021, our Kelly senior leadership team identified the need for a future chief diversity officer (CDO) role. We weren't ready to create the position yet, but we had internal candidates who could potentially grow into it. 

Instead of waiting, we spent three years intentionally developing these people through stretch assignments, cross-functional rotations, and mentorship. When we opened the role, we had multiple qualified internal candidates who had been purposefully prepared. That's strategic internal mobility. We don’t react to openings, we anticipate what the business will need.

Remove geographical barriers

If remote work is blocking internal moves in your organization, examine your policies rather than accepting it as an insurmountable barrier. My philosophy is simple: Get the best talent, period. Geography shouldn't be a limiting factor if you're willing to adapt your approach.

Why you still need external hires sometimes

Before you think I'm suggesting you never hire externally, let me be clear that's not the answer either. Sometimes you need skills that don't exist in your organization yet, or someone who can challenge the way you've always done things. 

We hear the term "culture fit" all the time, but what I've learned to value more is the concept of a "culture add," or someone who strengthens what you already have while bringing something genuinely new to the table. At Kelly, having external hires ensures we stay connected to the broader world our clients live in. The key is being strategic about when you go outside versus when you develop from within.

One internal move creates opportunities for everyone

Nearly 70% of recruitment leaders say they want to invest more in internal mobility programs in 2025, while just 33% of organizations have established programs. In today's economy, where talent acquisition is expensive and retention is critical, organizations that can grow their people from within have a significant competitive advantage.

The beauty of internal mobility is that it creates a ripple effect of opportunity. That director position opens up a manager role, which creates space for a senior analyst to step up, which might mean bringing in a new entry-level person excited to start their career. 

Your next great hire isn't out there somewhere, polishing their resume. They're already on your payroll, waiting for you to see what they could become.