Internal Mobility: Policy Guidelines

Internal mobility—the movement of employees from one position to another within a corporation—is an efficient and cost-effective method of talent deployment. A successful internal mobility program begins with a company clarifying its purpose and the business goals it seeks to accomplish with an internal mobility initiative. Next, the corporation translates the business goals driving internal mobility into specific business policies. These business policies will in turn determine the organization of the staffing department delivering the service, how and when the initiative will apply, and the rules and procedures followed.

This article explores the role of an internal mobility policy, the issues a policy should address, and the overall importance and impact of having an internal mobility policy, based on the analysis in the report Internal Mobility by Taleo Research.

In surveying large and global corporations on internal mobility practices, Taleo Research finds that 80 percent of organizations have a formal internal mobility policy in place.¹ A formal internal mobility policy is a document that specifies the business rules governing the process. Three common areas addressed by an internal mobility policy are internal sourcing, employee eligibility, and the involvement of managers.

Internal Sourcing

The first issue for an internal mobility policy to address is whether to make it a requirement to post all open positions internally. Taleo Research finds approximately one-quarter (27%) of companies always turn to internal candidates first. However, the choice of sourcing internally is not clear-cut but rather should be determined based on the corporation’s needs and the greater talent pool. Companies with very high internal redeployment rates may gain better advantage from external hires. Corporate growth plans can also influence internal sourcing decisions. A fast-growing company may want to fill more jobs from within but the disruption of backfilling positions and the lack of “bench strength” compels more frequent external sourcing.

Eligibility

A second area commonly addressed by an internal mobility policy are the eligibility requirements for employees to apply to an internal opportunity. The Taleo Research study reveals that the most common criteria governing the eligibility of an existing employee for an internal redeployment are “Satisfactory performance reviews” (89%) and “Minimum time in a position (80%), as companies seek to balance employee opportunity with work team stability and acceptable time to contribution. Nonetheless, conditions for eligibility set by an internal mobility policy are merely minimum requirements, and should not supersede considerations of merit or quality.

Involvement of Managers

Involvement by managers, both current and hiring, presents a critical issue for an internal mobility policy to address. Approval of the current manager is one area where business policies vary considerably. The companies surveyed by Taleo Research are nearly equally split, with 53 percent of companies making approval of the current manager a requirement. On the other hand, some companies avoid having to inform and get approval from the current manager, in order to foster interest in internal moves by its employees. An internal mobility policy may also specify when a hiring manager may talk to an internal candidate, and at what point the candidate’s current manager must be informed.

In addition, a company may address whether all employees should be considered as potential candidates, or only those who express interest in a specific position by applying for it. A further issue to decide is whether internal candidates are on equal footing with external candidates.

Success Factors

Companies place a high importance on an internal mobility policy. Respondents in 95 percent of companies consider a clear internal policy to be important (19%) or very important (76%) to the success of an internal mobility initiative. However, it is not enough simply to possess a formal internal mobility policy; 89 percent of HR executives consider frequent communication of the policy important as well.

To establish your internal mobility program, put a formal policy in place that covers the internal mobility business rules including conditions for internal posting, manager’s role, and the approval process. Communicate the policy and process clearly and frequently, especially with senior managers. Identify top performers as candidates for internal mobility; do not provide opportunities to average or under-performers.

A policy that reflects corporate goals is key. It focuses management attention on internal mobility, which aids in developing buy-in to the devised policy. It presents the opportunity to set out the macro-level design of the initiative, for instance on matters of departmental organization and budget allocation. Finally, crafting a formal internal mobility policy focuses attention on the process itself, which helps clarify the individual steps, business rules and procedures. A clear and comprehensive business policy gives an internal mobility program a solid foundation upon which to base well-optimized technology and processes.

Tags: Internal Mobility