Assessing the Internal Worker Upward Mobility Paradox from the Voices of Women of Color

Abstract

Internal upward mobility is frequently framed as a strategic mechanism for leadership continuity and workforce sustainability, yet many organizations fail to capitalize on the talent they have already developed. This qualitative study examines the consequences and missed opportunities that arise when organizations neglect internal employee talent and rely on conventional or externally focused talent management practices. Centering the lived experiences of twelve women of color, African American, Arab American, and Latina American professionals, the study explores how the absence of innovative, internal-facing mobility systems affects professional trajectories, emotional well-being, and organizational commitment. The findings reveal that organizations incur significant costs when internal talent is overlooked, including erosion of trust, disengagement, loss of institutional knowledge, and weakened leadership pipelines. Participants described an internal mobility paradox in which investments in education, skill development, and leadership training were disconnected from promotion and decision-making processes, prompting many to seek advancement externally. Grounded in internal labor market theory, the knowledge-based view of the firm, and signaling theory, the study demonstrates how organizations that fail to actively identify, engage, and elevate internal talent forfeit strategic advantages embedded in employee expertise and commitment. The findings underscore the need for innovative, internal-first talent management systems that surface employee capabilities, strengthen retention, and transform organizational cultures from reactive hiring to sustainable leadership development.