Investing in Talent Mobility to Bolster the Retail Workforce

"Let’s stop competing so much on talent acquisition and really double down on how to do this internally,” said Brook Weddle, partner at McKinsey & Company. "There have been some false starts, but there’s some nascent work on creating—at scale—a reskilling and upskilling engine for your most critical roles. A lot of organizations are exploring that more rigorously now.”

Here, we’ll explore how retail organizations can use talent mobility to improve employee retention, create a more skills-based hiring framework, and compete for talent in a challenging landscape.

Encouraging Internal Career Growth

To foster internal talent mobility in retail, organizations must actively encourage and facilitate career growth opportunities for their employees. This approach not only enhances employee satisfaction but also contributes to a more skilled and versatile workforce.

Here are key strategies to promote internal career development:

• Develop clear career paths: Create well-defined progression routes within different departments, such as transitioning from sales associate to team leader, or from customer service representative to operations manager. This clarity helps employees envision their future within the company.
• Cross-departmental exposure: Encourage employees to explore roles in various departments, allowing them to gain diverse skills and a broader understanding of the business. This can include temporary assignments or job shadowing opportunities.
• Skill-based advancement: Implement a system that recognizes and rewards skill acquisition rather than solely focusing on tenure. This approach motivates employees to continuously upskill and adapt to new challenges.
• Internal job boards: Maintain an easily accessible platform where employees can view and apply for open positions within the company. Ensure that internal candidates are given fair consideration for these roles.
• Training and development programs: Offer targeted training initiatives that align with both current job requirements and potential future roles. This could include leadership development courses, technical skills workshops, or customer service enhancement programs.
• Regular career discussions: Encourage managers to have frequent conversations with their team members about career aspirations and development opportunities. These discussions can help identify potential internal moves and necessary skill enhancements.
• Recognition of internal mobility: Celebrate and showcase examples of successful internal career transitions. This not only motivates other employees but also demonstrates the company's commitment to internal growth.

By implementing these strategies, retail organizations can create a culture that values and supports internal career growth. This approach not only improves employee retention and satisfaction but also builds a more adaptable and skilled workforce capable of meeting the evolving demands of the retail industry.

Aligning Skills with Opportunities

Building a robust system to identify employee skills and interests and match them with internal job openings is essential for boosting talent mobility in the retail sector. Retailers must prioritize creating a seamless process that not only highlights the existing capabilities of their workforce but also uncovers hidden potential.

Leveraging Advanced Analytics Technologies

This can be achieved by integrating advanced technologies, such as AI-driven analytics, into talent management practices. These tools can process vast amounts of employee data to uncover patterns, predict career trajectories, and recommend tailored opportunities that align with both individual aspirations and organizational needs.

Fostering a Career Growth Environment

To further enhance this system, organizations should focus on fostering an environment where employees feel encouraged to actively participate in their career growth. This includes offering intuitive platforms where employees can explore potential career paths, identify areas for improvement, and access resources to obtain new skills.

Creating this type of environment is ideal for internal talent mobility, but it also has an impact on external hiring. Retail organizations can position themselves as desirable places to work by providing candidates with growth opportunities.

Developing Personalized Learning and Development Modules

Personalized learning and development modules, mentorship programs, and cross-departmental projects can provide employees with the hands-on experience needed to prepare for future roles. Additionally, incorporating feedback mechanisms allows employees to voice their career preferences, ensuring that their goals align with the company’s vision.

Creating a Dynamic Workforce

By adopting such a comprehensive approach, retailers can create a dynamic workforce that adapts to changing business demands while maintaining high employee satisfaction. This not only ensures that critical positions are filled promptly but also cultivates a workplace culture centered on innovation, growth, and mutual success.

What HR leaders are saying:

"We measure whether employees see the organization as a place where they can continue to grow their careers. We’ve found that when employees are doing well, that success can be tied directly to a strong sense of belonging, of feeling included."

Enhancing Workforce Succession Planning with Talent Mobility Initiatives

Enhancing workforce succession planning is crucial for retail organizations to maintain continuity and leverage their existing talent pool effectively.

Workforce succession planning refers to the strategic process of identifying and developing internal talent to fill key roles within an organization as they become available. This involves not only preparing for leadership transitions but also ensuring that critical positions at all levels are supported by capable and well-prepared employees.

By proactively addressing potential gaps in skills or personnel, succession planning helps organizations mitigate risks, maintain operational stability, and adapt to future challenges with confidence. Retailers can also ensure a smooth transition of leadership roles and critical positions, reducing disruption.

To deepen the organization’s workforce and succession planning efforts, retail HR leaders should prioritize the following focus areas:

Focus Area: Talent Identification and Development

Skill and Competency Mapping

Create a comprehensive inventory of competencies essential for success in various positions, aligning them with organizational goals. This map should leave room for future positions, such as those that will be created with new technology implementations.

This process helps with the following:

• Clearly defining skills needed for each role
• Guiding the identification of potential successors
• Designing targeted development initiatives

Employee Assessment and Evaluation

Conduct thorough assessments of your current talent pool to identify high-potential individuals. Leaders will later encourage these candidates to expand their skills or apply for other roles within the retail organization.

This involves the following projects:

• Creating a talent inventory
• Performing skills gap analysis
• Using tools like employee evaluations and 360-degree feedback

Formalized Cross-training and Job Rotation

Implement cross-training and job rotation programs to develop a versatile workforce. Creating formalized cross-training programs triggered by employee performance metrics may be more effective than simply suggesting to specific employees that they should train in other departments.

These practices help with the following:

• Expose employees to different roles and functions
• Ensure potential successors acquire a breadth of skills and experiences
• Prepare individuals for handling diverse responsibilities

Focus Area: Leadership Development

Individual Development Plans

Create tailored development plans for potential successors. These plans should work to close skills gaps, strengthen areas of weakness, and reinforce the strengths of specific employees.

These plans should do the following:

• Outline specific development activities and goals
• Address identified skills gaps
• Include training programs, mentorship, and challenging assignments

Mentoring and Coaching Programs

Establish mentoring relationships and coaching programs to support leadership development. These programs can also be formalized. We’ll explore how to create such programs in an upcoming section.

These initiatives accomplish the following:

Provide developmental feedback to managers
• Offer targeted support for skill development
• Help align individual goals with organizational needs

Focus Area: Organizational Strategy

Future Needs Forecasting

Consider the direction of your organization and the roles that will be required both in stores and corporate offices given the evolving industry landscape. For example, future brick-and-mortar stores may require new roles depending on how the organization plans to engage and serve customers.

This involves the following tasks:

• Identifying skills and roles needed in the future
• Aligning succession plans with future organizational needs
• Preparing for tomorrow's challenges, not just filling today's gaps

Transparency and Communication

Establish clear communication about the succession planning process. Communicating early to all stakeholders enables them to provide suggestions and feedback. It also helps them identify potential opportunities for career development and cross-training early in the process.

This approach does the following:

• Demystifies the process for employees
• Encourages active participation in development paths
• Fosters a culture of growth and opportunity

Focus Area: Succession Structure

Create a Formal Structure

Develop a formal succession structure to avoid favoritism and increase retention rates. This structure should be published and available to every employee.

Consider the following:

• Creating new positions like assistant department managers or department leads
• Establishing clear titles and wage scales for new positions
• Implementing a fair and transparent process for designating successors

Regular Plan Updates

Continuously review and update the succession plan to ensure its relevance. Set specific dates throughout the year to review your plans, incorporate new data, and execute important projects relating to talent mobility.

This includes the following:

• Reassessing the skills needed for key positions
• Evaluating the progress of potential successors
• Adapting the plan to changing business needs
• Launching new talent mobility initiatives

These strategies align to build a strong internal talent pipeline. They also help to improve employee retention and ensure long-term business success. This approach not only safeguards against unexpected departures but also fosters a culture of continuous growth and development within the retail workforce.

How to Create Comprehensive Coaching and Mentorship Programs

To create comprehensive coaching and mentoring programs in retail, organizations should focus on structured approaches that foster employee growth and development. Effective programs pair experienced staff with those seeking to advance their careers, providing guidance, support, and knowledge transfer. Here are key elements to consider:

• Establish clear objectives: Define specific goals for the mentoring program, such as improving employee retention, enhancing leadership skills, or facilitating knowledge transfer.
• Link programs to business strategies: Ensure your learning, development, coaching, and mentorship programs are strategically linked to your overall business strategies. According to one report by HR Portfolio Insights, only 49% of the leaders surveyed said their programs were strategically linked.
• Match mentors and mentees carefully: Use personality assessments and career aspirations to create compatible pairings that maximize learning potential.
• Provide training for mentors: Equip mentors with the necessary skills to guide effectively, including active listening and constructive feedback techniques.
• Set regular check-ins: Schedule consistent meetings between mentors and mentees to ensure ongoing support and progress tracking.
• Incorporate diverse learning methods: Blend one-on-one sessions with group workshops and online resources to cater to different learning styles.
• Measure and evaluate: Implement metrics to assess the program's impact on employee performance, engagement, and career progression.

By investing in robust coaching and mentoring initiatives, retailers can cultivate a culture of continuous learning, improve employee satisfaction, and build a skilled workforce ready to tackle future challenges in the dynamic retail landscape.

What HR leaders are saying:

"We created a link between our external and internal talent acquisition teams to make sure there was a clear talent handoff. We also offered career advisement assistance to any internal candidates who didn’t necessarily meet the minimum requirements for particular roles. This allowed us to understand their motivations and to see if we could reposition them on a successful career path."

Case Study: Walmart’s Talent Mobility Initiatives

Walmart has recently revamped its approach to talent mobility, focusing on skills-based hiring and internal development. In 2024, the company announced plans to fast-track associates into approximately 100,000 in-demand jobs over the next three years, including salaried management and hourly supervisor roles, according to a report by HR Dive.

To support this initiative, Walmart has doubled the number of short certificate options paid for by the company, emphasizing skills like frontline manager leadership, data science, and project management. The company also removed college degree requirements from most jobs, shifting towards a skills-based approach to hiring and promotion.

To promote employee education, Walmart expanded its Live Better U program to focus on developing skills aligned with key roles within the company. The brand even implemented a flexible approach to education, allowing employees to earn college credits through leadership training at Walmart Academy facilities.

These efforts reflect Walmart's commitment to internal mobility, and they have been ongoing. At the end of the 2023 fiscal year, 88% of U.S. roles above entry-level were filled internally, according to a report by Great Place to Work.

By investing in employee development and creating clear pathways for advancement, Walmart aims to build a more adaptable and skilled workforce while improving employee retention and satisfaction.

Start Empowering Your Workforce with Talent Mobility Opportunities

Investing in talent mobility is crucial for retail organizations to build a resilient, adaptable, and engaged workforce. By implementing comprehensive strategies for internal career growth, succession planning, skill alignment, and mentoring programs, retailers can create a dynamic environment that fosters employee development and retention.

Ultimately, prioritizing talent mobility not only enhances organizational agility but also positions retail businesses to thrive in an increasingly competitive and evolving market landscape.

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To learn more about how your organization can encourage career growth, don’t miss HR Retail 2025. It’s happening from April 15th to 17th at the JW Marriott LA Live in Los Angeles, California.

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