Organizational Design for Career Mobility in an AI-Driven World
Co-authored by: Bhavik Modi and Jamie Librot
The rapid advancement of artificial intelligence (AI) is fundamentally reshaping the global workforce. As AI automates tasks and transforms job roles, organizations face unprecedented challenges, including potential workforce displacement, declining employee engagement, and a growing need for more effective leadership.
In this evolving landscape, the concept of career mobility - the ability of employees to move within an organization through various roles, projects, and development opportunities - becomes not just beneficial, but critical for survival and sustained growth.
What is Career Mobility?
Career mobility is often misunderstood as simply vertical promotion. However, we define career mobility as a dynamic and multidimensional journey encompassing:
● Vertical Movement: Traditional promotions to higher-level roles.
● Horizontal Movement: Lateral shifts to different departments or functions that broaden skills and perspectives.
● Rotational Assignments: Temporary stints in various areas to gain diverse experience.
● Project-Based Work: Opportunities to contribute to cross-functional projects that develop new competencies.
● Skills-Based Redeployment: Moving employees to roles that leverage their evolving skill sets, often across traditional organizational silos.
In essence, career mobility empowers employees to continuously learn, adapt, and grow within the organization, rather than seeking external opportunities when their current role no longer serves their aspirations or the organization's evolving needs.
The Urgency: Low Career Mobility and Employee Engagement
Career mobility consistently emerges as one of the lowest-scoring items on employee engagement surveys. Workday Peakon’s Global Workforce Report, for example, found that “Growth” ranked among the weakest engagement drivers across industries in both 2023 and 2024. This gap matters because research from Qualtrics shows that employees’ belief that their career goals can be met within their organization is one of the strongest predictors of engagement and intent to stay. Without visible career pathways, attrition becomes more likely; McKinsey identified lack of career development as the single most common reason people left their jobs during the Great Attrition.
Taken together, these findings show the business impact: when organizations fail to invest in mobility, engagement suffers, turnover rises, and the costs are staggering. Gallup estimates that low engagement drains $8.9 trillion from the global economy annually, with U.S. engagement dipping to a ten-year low in 2024. Career mobility programs are therefore not just a “nice-to-have,” but a strategic imperative for retention, productivity, and organizational health.
Navigating Workforce Transition in an AI-Driven World
The fear of AI-driven job displacement is real. Leaders must proactively address this by designing organizations that prioritize internal talent development and redeployment over external recruitment.
Real-World Story: From Operations to Analytics
A large financial institution, facing the automation of many back-office operations roles, decided to invest heavily in upskilling. Instead of layoffs, they identified employees in affected roles with strong analytical aptitude and provided intensive training in data science and business intelligence. One such employee, formerly an operations specialist, is now a valuable member of their analytics team, contributing to strategic decision-making. This approach not only mitigated the impact of automation but also fostered a culture of continuous learning and loyalty.
Evidence-Backed Research and Data:
Research from MIT's Initiative on the Digital Economy highlights that companies that invest in retraining and redeploying their workforce during technological shifts significantly outperform those that resort to mass layoffs in terms of long-term profitability and innovation. These organizations experience less disruption, maintain institutional knowledge, and cultivate a more resilient workforce. It also builds trust within the organization as employees see the company intentionally looking for ways to retain them.
Improving Employee Engagement Through Dynamic Career Paths
When employees see clear pathways for growth and development, their engagement levels soar. Organizations must move beyond static job descriptions and embrace dynamic career paths that are responsive to both individual aspirations and organizational needs.
Practical Steps for HR/Talent/Learning/Leadership Leaders:
1. Skills-Based Talent Architecture:
○ Action: Shift from role-centric to skills-centric talent management. Map existing employee skills and identify future skill needs driven by AI.
○ Insight: This allows for a more fluid allocation of talent to emerging opportunities and helps identify reskilling pathways. Use robust skills taxonomies and assessment tools to build a comprehensive skills inventory.
2. Internal Talent Marketplaces:
○ Action: Implement internal marketplaces where employees can explore project opportunities, short-term assignments, and full-time roles across departments.
○ Insight: These platforms democratize access to growth opportunities and allow employees to proactively shape their career paths. Success stories show increased internal mobility by up to 50% within a year of implementation.
3. Personalized Learning Journeys:
○ Action: Leverage AI-powered learning platforms to offer personalized recommendations for courses, certifications, and experiences based on an employee's current skills, career aspirations, and future organizational needs.
○ Insight: Tailored learning boosts engagement and ensures skills development is relevant and impactful. Provide access to both technical AI skills and critical human skills like creativity, critical thinking, and emotional intelligence.
Enhancing Manager Effectiveness as Career Coaches
Managers are pivotal in facilitating career mobility, yet many lack the training and tools to effectively coach their teams on career development.
Challenge: Managers as Gatekeepers vs. Enablers
In many organizations, managers view internal mobility as a threat to their team's productivity or as a loss of talent. This perception must shift.
Evidence-Backed Research and Data:
Studies from Deloitte and Gallup consistently show that managers who actively support their team members' career development see higher team performance, lower attrition, and greater overall employee satisfaction. Conversely, managers who are perceived as roadblocks to career growth contribute significantly to disengagement.
Practical Steps for HR/Talent/Learning/Leadership Leaders:
1. Redefine Managerial KPIs:
○ Action: Incorporate metrics related to internal talent development and mobility into manager performance reviews. Reward managers for developing and "exporting" talent to other parts of the organization.
○ Insight: This incentivizes managers to become proactive career coaches rather than gatekeepers.
2. Manager as Coach Training:
○ Action: Provide comprehensive training for managers on effective career coaching techniques, including active listening, goal setting, and identifying development opportunities.
○ Insight: Equip managers with the skills to have meaningful career conversations that empower employees to own their development. This training should include understanding how AI will impact roles within their own teams and the broader organization.
3. Cross-Functional Collaboration Tools:
○ Action: Implement tools and processes that facilitate seamless cross-departmental movement and collaboration.
○ Insight: Encourage managers to engage in "talent-sharing" initiatives and to view the organization as a single talent pool.
Conclusion
The AI revolution demands a radical rethinking of organizational design. By proactively addressing career mobility as a strategic imperative, Fortune 500 companies can transform the challenges of AI-driven change into opportunities for growth, innovation, and enhanced employee engagement. It requires a fundamental shift in mindset from traditional hierarchical structures to fluid, skills-based ecosystems where employees are empowered to navigate their careers with agility and purpose. Investing in organizational design that prioritizes career mobility is not just about adapting to the future; it's about shaping a more resilient, engaged, and ultimately more successful workforce in an AI-driven world.
For more insights and to discuss tailored solutions for your organization, please contact us at cultivate@cultivate.co .
Bibliography
Deloitte. (2025, March 24). Is there still value in the role of managers? Deloitte Insights. https://www.deloitte.com/us/en/insights/focus/human-capital-trends/2025/future-of-the-middle-manager.html Deloitte
Gallup. (n.d.). Improve work performance with a focus on employee development. Gallup Workplace. https://www.gallup.com/workplace/269405/high-performance-workplaces-differently.aspx Gallup.com
Gallup. (2024, January 31). Employee engagement in the U.S. stagnates in 2023, ending recent gains. Gallup. https://www.gallup.com/workplace/610380/employee-engagement-stagnates-2023.aspx
McKinsey & Company. (2022, March 9). The Great Attrition is making hiring harder. Are you searching the right talent pools? McKinsey & Company. https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/the-great-attrition-is-making-hiring-harder-are-you-searching-the-right-talent-pools
Qualtrics. (2024, January 17). 2024 Employee experience trends report. Qualtrics. https://www.qualtrics.com/employee-experience/employee-experience-trends/
Workday. (2024, July 9). Global workforce report: H1 2024. Workday Peakon Employee Voice. https://blog.workday.com/en-us/2024/global-workforce-report-h1-2024.html
