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Creating a culture of mobility requires management to accept that the benefits of movement (promotions and transfers) far outweigh the costs of replacing workers in their teams. The benefits are theoretically simple - as Manager “A” loses an employee, an employee from Manager “B” is ready and interested in moving into the now-vacated slot. This however assumes that all positions are equally attractive, that all positions can be filled quickly and internally, and that all managers have the same reputation and skills as developers of talent. Unfortunately, that theory has flaws that require both an accepted culture and a formalized process of mobility to ease some of those defects.
Executive sponsorship and support are essential. The senior-most leaders must be open and willing to share the people in their organizations. They approve transfers in and out, share stories of successful employee movement, publicly congratulate their team members on their moves (both within and outside of their function), and communicate the career moves they personally made and how those benefitted both themselves and the company.