Executive summary

The state of career development is stagnant, posing a major risk to talent retention and workforce agility. This study reveals systemic inertia, with 96% of organizations failing to reach the “Innovative” stage on the HR Research Institute’s Maturity Model.

Despite the known link between employee developmental growth and loyalty to employers, most organizations continue to rely on immature, ad-hoc development systems. Effectiveness ratings for career development and internal mobility remain minimally changed from 2024, highlighting a persistent gap where intent rarely leads to action.

Furthermore, 40% of organizations say they do not offer career development programs to all employees, and nearly 80% of organizations admit they cannot meet employee demand for developmental opportunities.

The good news is that success is achievable for a high-performing cohort that we deem Career Development Leaders. These organizations are nearly five times more likely to have effective career management processes. They are much more likely to commit resources, ensure managerial accountability, actively use technology, and prioritize non-managerial career paths, tracking metrics that demonstrate tangible progress.

This report details the differences between these leaders and the laggards, indicating potential best practices for achieving a strategic advantage. Today’s shortfalls in employee development will not be addressed without wide-scale advances in processes, engaged managers, and dedicated resources.

Defining career development and internal mobility

For the purpose of this study and the survey on which it is based, we defined career development and internal mobility as follows:

• Career development refers to the improvement of an employee’s capabilities through training, education, and work experience, usually with the attainment of a specific occupational or professional goal in mind.
• Internal mobility refers to the movement of employees to new jobs, roles and opportunities within the same organization, often for the purpose of career growth. These movements may represent either permanent or short-term assignments.

Our major research findings

1. Only a fraction of organizations has progressed to higher maturity levels of the career development function.
2. Organizations struggle with meeting employee demand for career development opportunities and closing skills gaps.
3. Internal mobility is limited by a lack of clear pathways and formal processes.
4. Manager accountability for employee development remains low, while the burden falls on the employees.
5. Organizations primarily rely on foundational career development processes, often limiting access.
6. Career development technologies are mostly foundational, with limited adoption of advanced tools such as artificial intelligence (AI).
7. Compared to organizations with less mature career development functions (aka, Career Development Laggards), those with more mature functions (aka, Career Development Leaders) are: