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Guide to internal promotions | How to plan & prioritize for the best fit

Deciding whether to promote employees from within or hire externally is difficult. Promoting from within can improve employee engagement and morale and show your dedication to your people’s professional growth; on the other hand, external hires bring in diversity of thought. 

Developing an internal promotions plan allows you to take a strategic approach to employee career development goals and proactively recognize growth opportunities . These systems also help you identify and outline roles and responsibilities and find the best fit. 

In this article, you’ll read about:

• What an internal promotion is 

The value of internal promotions

Promoting internally vs. hiring externally.

• A six-step internal promotions development plan

🚀 An easy and equitable promotion process doesn’t have to be out of reach  ‍ Leapsome’s new promotion management tool empowers you to make people decisions fairly, effectively, and transparently. 👉 Learn more  

What is an internal promotion?

An internal promotion happens when an internal candidate is promoted to a new position — instead of the organization hiring an external candidate. Another interpretation of the term internal promotion is when an employee acquires the necessary skills to reach the next level of their professional journey. 

These promotions generally encompass:

• Changes in responsibilities 
• A new job title
• A salary increment or pay increase 
• More specialized tasks

People ops professionals and leaders typically rely on factors like performance and 360° reviews , experience levels, skills, and accomplishments to execute successful internal promotions. ‍

⭐ Looking for more tips on carrying out successful employee promotions? Check out our comprehensive guide to employee promotions .

Internal promotions demonstrate your investment in employee development and recognize your people’s hard work. By hiring internally, you show that your organization provides growth opportunities and has a fair and transparent promotion policy . 

This helps build a healthy workplace that fosters employee satisfaction, engagement, and enablement.  ‍

“In companies that exclusively hire from the outside, employees might feel that the only way for them to [grow] (…) is to switch companies. But when you promote from within, employees will feel that their hard work is paying off, giving them a reason to stay.” ‍ — Bill Harrison, CEO of ComplianceBridge

💪 Motivate and invest in your employees with Leapsome’s promotion management tool Our platform lets you build an equitable and scalable promotion process. 👉 Learn more  

Promoting internally is a great way to retain and nurture talent and strengthen your company’s brand and culture. However, without promotion policies that ensure fairness and invest in learning and development (L&D), it can lead to unhealthy competition and favoritism. Let’s look at some of the benefits and drawbacks of internal promotions in more detail.

Promoting internally

Promoting internally is a great way to cut recruitment costs and invest in employee development. However, it can also lead to challenging workplace situations. Here are the advantages and disadvantages of this approach. ‍

• Saves money — By significantly shortening the hiring process, human resources departments can reduce costs associated with advertising open positions and interviewing and sourcing candidates.
• Reduces training time and speeds up the onboarding process — Your internal candidates are already familiar with your organization’s processes and systems, significantly reducing the time and money you have to invest in their training.
• Boosts retention rates — Providing opportunities for employee growth shows your people they don’t need to leave the company to further their careers.
• Improves team motivation and morale — Current team members are more motivated when they see hard work being rewarded at your company.
• Ensures culture fit — Your existing employees already know your company culture, which eliminates the risk of a position being filled by someone who isn’t a culture fit. ‍
• Can lead to challenging situations — If not handled well and not following well-defined policies, an internal promotion could cause unhealthy competition and resentment between team members.
• Limits fresh perspectives — Promoting from within can mean organizations remain stuck in their ways. That’s because internal candidates don’t add fresh perspectives like external hires do.
• Creates another open position — When one of your existing employees moves up in your organization, you create a gap in your current workforce. ‍

Hiring externally

Hiring a candidate externally can bring new, unexpected ideas into your organization, but it can also lower employee morale and retention. Let’s look at the pros and cons of bringing someone new into your company. ‍

• Gives access to a larger talent pool — You can assess more candidates if you look outside your organization. And if you’re a remote company or use a hybrid work model, you can assess candidates from more diverse backgrounds and geographical locations.
• Brings diversity of thought and perspective — A fresh pair of eyes can, sometimes, more easily identify areas of improvement and drive positive change. ‍

“It’s important to freshen up the team every now and then, too, to bring in fresh ideas and new perspectives. While a close-knit team is certainly a valuable asset for any company to have, it can create an insular, somewhat stale atmosphere if you’re not careful.” ‍ — Peter Strahan, Founder & CEO of Lantec

• Doesn’t promote internal employee development — Your people want to grow as professionals over time and need their title, compensation, and responsibilities to reflect that. Hiring an external candidate to fill an open position doesn’t support those kinds of employee ambitions and goals.
• Lowers employee morale — Internal talent can feel overlooked, which has a negative impact on their satisfaction and engagement levels.
• Increases turnover rate — If employees don’t see future growth opportunities in your organization, they’re much more likely to leave your company to look for a better position elsewhere. ‍

6-step internal promotions development plan

Internal promotion development plans increase transparency within your organization and outline the steps employees must take to achieve promotions.

Additionally, promotion development plans enable you to be more proactive about your promotion decisions by encouraging managers and reports to continuously think about their professional growth.

1. Determine what you need

To define what you need from your internal hires and what skills you’re looking for, you first need to get clear on your company’s current status. Ask yourself:

• Is our management team equipped to support current employees? If your leaders don’t have the capacity or skills to mentor new hires and help them get the hang of their new role, you’d be setting them up for failure. Setting up employee onboarding guides helps increase performance and gives new employees the support they need to succeed.
• Are our employees engaged and satisfied with their positions? Conduct regular pulse and engagement surveys to understand your people’s engagement levels and whether or not they’re satisfied with their current career paths. If not, it might be time for an internal promotion, a shift in responsibilities and compensation, or a 1:1 check-in to find out more about the problem. ‍
• Can we benefit from a fresh perspective? Sometimes, certain problems can only be solved with a fresh pair of eyes. If that’s the case for your company, an external hire could be a great solution.
• Does our company have an established development framework ? Where your employees are on their development and learning path gives you a clear overview of their current skill set and who’s due for a promotion.

2. Put together a job description with all the necessary skills

A clear job description guides you in your promotion process, helps you find the right candidate, and manages expectations. Assess the skills and experience levels of existing employees in the same or similar roles to help you narrow down what you’re looking for.

Additionally, if you’re planning to communicate the open position company-wide, you’ll use this job description to announce the new opportunity. Include details like:

• Skills and qualifications
• Role objectives

3. Establish your promotion criteria

Objective promotion criteria will help you narrow down your internal candidates and find the best fit more easily. That’s because you can use these assessment metrics to guide your decision-making process. 

Suppose you’re looking for a candidate that has excellent communication skills. In that case, you’ll know to mainly consider employees who have consistently received positive feedback from their managers and peers in this area. 

Other criteria to consider include:

• Achievements
• Seniority or tenure 
• Working style 
• Professional goals 
• Growth potential 
• Rapport with peers 
• Willingness to learn
• Alignment with company values

💡 Remember: While considering achievements is important, don’t forget to look at “failures” — how a person faces a problem, what they learn from it, and how they apply those lessons are all equally important.

4. Be transparent about promotion decisions 

Transparency is crucial to creating a healthy workplace — especially when it comes to promotion decisions. One of the most meaningful ways to avoid a toxic work culture and demonstrate your commitment to transparency is to openly communicate how management handles promotions within your organization.

 Some questions you can answer for your people include:

• Is this an open or closed promotion?
• Who can apply for this position?
• Why has this position become available? 
• What data will inform your final promotion decision?
• What are the criteria for this promotion?

Shutting the red curtains on these decisions can lead to staff feeling confused at best — and overlooked at worst. Additionally, being open about internal promotions and development paths shows other employees that they’ll have the same chances for advancing their careers in the future.

5. Communicate the promotion decision with employees

The timely announcement of employee promotions is great for transparency and allows for a company-wide celebration of your people — boosting morale and fostering a sense of community.

Your all-hands meetings or company newsletter are great places to make these announcements. Alternatively, consider your company’s Slack or Microsoft Teams channels.

6. Have employee engagement and development frameworks in place

Robust employee engagement, employee development plans and development frameworks help employees remain engaged , even if they don’t have the necessary skills to qualify for a particular position. 

Some steps you can take in your training and engagement process include:

• Creating an employee engagement action plan to improve employee experience and keep your finger on the pulse of your people’s engagement and satisfaction levels. Your survey results can then guide your development initiatives.
• Arranging regular 1:1 meetings with employees to discuss their personal and professional goals.
• Creating a personalized career progression framework that illustrates the competencies an employee needs to develop before taking on a new role.
• Keeping the conversation going, especially with unsuccessful candidates who might feel overlooked. This helps make your and your employee’s arguments clearer and keeps them motivated and engaged. ‍

A people enablement platform like Leapsome lets you create detailed career progression and development frameworks for every organizational level

💡 Remember: Promotions aren’t the only way to reward employees who consistently go above and beyond. A performance bonus is a great way to acknowledge the value and hard work of employees who don’t yet qualify for a promotion.

7. Follow up

Promotions aren’t one-and-done tasks. Make sure to have a streamlined onboarding process planned — including the tasks needed to ensure a seamless handover — so the transition is smooth for everybody.

Additionally, check in with your employee regularly through 1:1s and team meetings to ensure they have the resources they need to succeed. You can also assign them a mentor or buddy to support them and show them the ropes so they can confidently grow into their new role.

Nurture career growth with Leapsome

A lot goes into promoting from within. Your organization’s promotion processes need to be equitable, fair, and transparent while making it easy to find the right candidates and support internal growth. Internal promotions require a lot of forethought. That’s where Leapsome comes in. 

Our new promotion management tool helps you automate your company’s promotion and compensation processes and create scalable, unbiased, and consistent workflows.

‍ It also lets you collaborate with key stakeholders and integrates with our tools for personalized career development paths, performance reviews, team alignment, and more. Because putting your people first and achieving business goals can go hand in hand. ‍

🚀 Build scalable and equitable promotion processes with Leapsome Leapsome’s promotion and compensation tools empower managers and leaders to make more data-informed decisions and increase employee trust. 👉 Book a demo

Leapsome Team

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A guide to developing an internal promotion plan for your company

Why look for outside talent when you have great employees within your company who know the culture, the business, etc.? Internal promotion is just that: selecting people who already work in the organisation, who have the skills and knowledge required to take on new responsibilities. 

This type of initiative has a highly positive impact on the company: cost savings, improved motivation and engagement.

Here we explain exactly what it's all about. if you would like to know more about employee training and development read here . 

What is internal promotion?

Internal promotion is a selection method where the organisation's existing employees are the candidates. So, rather than searching for external talent, it means promoting employees who have shown themselves to be capable of taking on new responsibilities. 

In general, factors such as experience, training and skills demonstrated by candidates to date are taken into account in this process. Performance evaluations are often used to identify internal talent and ascertain who deserves to move up the ladder. 

Internal promotion policies are employed both in private companies as well as public authorities . 

The advantages of internal promotion

Introducing internal promotion procedures has huge advantages, both for the company and its employees.

Reduced r ecruitment time

Internal candidates are already part of the company, so it takes less time to find and “convince them”, meaning no more drawn out recruitment processes.

What's more, evaluating professionals who are part of the company is much simpler:

• Their track record is accessible.
• They are comfortable with the company culture.
• They probably don’t need to be interviewed by the team leader. 

All this reduces the time involved at each stage of the recruitment process, and, consequently, the time-to-hire. 

It also makes the onboarding process quicker and simpler

Every professional requires some time to find their feet in a new role , but internal hires are usually more efficient in this sense.  The employee:

• Already knows how the company and its internal policies work.
• Is acquainted with their new team members.
• May already know the nature and responsibilities of their new position.

Lower recruitment costs

Internal recruitment is much cheaper than external as it does not require:

• Advertising the vacancy on job portals. It's much easier to let candidates know about opportunities via email or a poster on the notice board.
• Devoting time to sift through CVs or review databases , as simply asking team leaders or reviewing the last performance evaluations will be enough to find suitable profiles.

Bolster staff engagement

Internal promotion in the company sends the message that employees are valued and worth investing in. It gives employees the opportunity to advance their careers . Allowing them to access other positions that may interest them is good for boosting motivation and engagement.  This helps to construct a culture of trust and retain talent. 

Types of internal promotions in organisations

Within companies, there can be different types of internal promotions . We normally distinguish between three: 

Horizontal promotion

Horizontal internal promotion is when a worker moves to a higher grade in a different department in the company. 

Vertical promotion

This is probably the most well-known type of internal promotion and involves the worker moving to a more senior role than they held to date. It usually involves more responsibility and, accordingly, a pay rise. 

Temporary promotion

There are also cases in which an employee r eceives a temporary promotion to cover a colleague's absence or maternity/paternity leave . Therefore, once this period is over, the employee will return to their previous position. 

The importance of internal promotion

There’s nothing like internal promotion in an organisation to inspire and motivate employees. It is a valuable tool which can be used to achieve different objectives:

• A survey carried out by the consultancy Great Place to Work, published in the media , revealed that when people believe internal promotions are managed effectively, they are twice as likely to put in extra effort at work.
• Offering employees a challenge and goal to strive towards allows them to constantly improve, learn and develop .
• A clear internal promotion policy reduces staff turnover by half .

These are just some examples that demonstrate the importance of internal promotion. External candidates may seem enticing, but it has been shown that acquiring internal talent yields greater advantages for the company .

5 steps to implementing an internal development plan

Internal selection procedures are not so different from external ones. The main difference lies in the preparatory work, in which the recruiter needs to meticulously analyse the current workforce to find candidates. 

1. Define the company’s needs

The first step of internal promotion is to set out the company’s requirements and, with that in mind, the areas needing improvement or the positions that need to be covered.  At this point it is crucial to craft a good job description for the vacancy and describe all the essential professional skills and abilities that the ideal candidate will possess.

2. Establish staff selection criteria 

When looking for internal talent in the company, we should establish a range of objective criteria to shortlist possible candidates for the vacancy. It is important to take into account:

• Achievements or results obtained.
• Organisational capacity.

We should also pay attention to the following factors:

• The employee’s availability and interest.
• Empathy and relationship with colleagues.
• Career path outside the company.

3. Analyse the company's HR

The time has come to analyse the internal talent in search of possible candidates. You can use your HR software to go over each employee’s record , review their last evaluations, etc. This will help you progress faster and more confidently. 

It is important that candidate selection is based on the factors mentioned above to ensure it remains valid and useful. Otherwise, if we are led by other criteria, it’s possible we could miss the perfect candidate. 

Another option is to advertise the vacancies and allow all staff to apply for them. You can do this by sending an email or attaching a poster to the notice board.

4. Speak to the candidates

Contact the shortlisted candidates and tell them the news. It is important to provide all the details about the position they are applying for, including what their new responsibilities would be and the financial terms.  In the same way, you should explain to them how the selection process will work if they decide to go ahead.  Offer them 48 hours to decide if they want to participate or not. 

5. Conduct the final evaluation

The moment has come to decide which of the candidates will advance within the company. Design a selection process based on an objective evaluation of their skills and abilities for the position. It is also helpful to carry out interviews with other members of the organisation to compare results.  With all this information, you can make your final decision and choose the most suitable candidate.

The main trends in internal promotion

• In economic crises, when budgets are squeezed, internal promotion is an interesting solution to avoid incurring new recruitment costs.
• More and more companies are using HR software with Artificial Intelligence to carry out internal selection procedures.
• There are also predictive analytics programs emerging that are capable of “guessing” which employee will offer better results in a certain role. 

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Building a Solid Internal Business Plan: Expert Guidance and Insights

An internal business plan is like a compass for your organization, guiding your team towards common goals and strategies. In this guide, we’ll break down each component of an internal business plan in simpler terms and share expert tips to help you create a plan that keeps your team on the same page.

• Key Highlights
• An internal business plan is a roadmap that guides your team towards common goals and strategies.
• It helps align your team, make better decisions, and achieve success.
• Create a clear and concise plan with SMART goals, action steps, and communication strategies.

What is Internal Business Plan?

Differences between internal and external business plans:.

• What's the Purpose of an Internal Business Plan?
• Here's Why It Matters:

Benefits of an Internal Business Plan:

• 1. Mission and Vision: Your Organization's Purpose (Around 200 words)

2. Organizational Goals: What You Want to Achieve (Around 250 words)

3. swot analysis: understanding your internal landscape (around 300 words).

• 4. Key Strategies: How You'll Achieve Your Goals (Around 250 words)

5. Action Plans: Who Does What (Around 350 words)

6. budget and resources: what you need (around 250 words), 7. monitoring and evaluation: keeping things on track (around 300 words), 8. communication plan: keeping everyone informed (around 200 words), common mistakes to avoid, tips to overcome challenges, measuring success, effective metrics for internal business plan success, interpreting data and making data-driven decisions:, what must an entrepreneur do after creating a business plan, 1. secure funding, 2. assemble your team, 3. execute your strategies, 4. foster communication and collaboration, 5. measure performance and analyze data.

A business plan acts as a blueprint for your organization’s future, detailing its goals, strategies, and financial projections. An internal business plan takes this concept further, focusing specifically on aligning your team and ensuring everyone understands their roles and responsibilities in achieving your shared vision.

Here’s a breakdown of the key differences between internal and external business plans:

What's the Purpose of an Internal Business Plan?

Think of an internal business plan as your team’s GPS for success. It’s all about getting everyone on the same page and heading toward the same goals. Unlike the fancy plans you show off to investors, this one is all about making sure your team knows where you’re headed and how to get there together.

Here's Why It Matters:

• Teamwork and Focus: It spells out what your gang is trying to achieve and gives everyone a clear focus on the mission.
• Smarter Choices: Helps everyone make better decisions by laying out the game plan. It's like having a playbook for your business moves.
• Using Resources Wisely: Shows where the money, people, and tech need to go, making sure everything's used just right.
• Making Everyone Accountable: Sets goals and ways to measure success so that everyone's accountable for their part.
• Happy Teams: When everyone knows what they're doing and why, it makes the team feel united and pumped up.
• Spotting Trouble Early: It's like having a radar for problems, so you can plan ahead and steer clear of disasters.

An internal business plan isn’t just a document—it’s your team’s guidebook, making sure everyone’s rowing in the same direction and making the right moves to reach those big goals.

• Improved Communication and Alignment: Creates a shared understanding of goals, strategies, and responsibilities within the organization.
• Enhanced Decision-Making: Provides a data-driven foundation for strategic decision-making and resource allocation.
• Increased Accountability and Performance: Establishes key performance indicators (KPIs) and promotes accountability for achieving goals.
• Boosted Team Morale and Motivation: A clear roadmap fosters a sense of purpose and direction for team members.
• Improved Risk Management: Identifies potential challenges and facilitates the development of contingency plans.

Overall, an internal business plan serves as a vital tool for achieving organizational goals, fostering collaboration, and ensuring long-term success.

Checkout our free sample business plans now!

1. mission and vision: your organization's purpose (around 200 words).

Your mission defines why your organization exists, while your vision outlines what you aim to achieve in the future. Keep these statements clear and inspiring, as they set the direction for your entire team.

• Expert Tip 1: "Your mission and vision should motivate and unite your team. They're your organization's North Star." - Maria Rodriguez, Management Consultant.

Lay out your short-term and long-term goals. Make them specific, measurable, achievable, relevant, and time-bound (SMART). These goals give your team a sense of purpose and direction.

• Expert Tip 2: "Goals should be like checkpoints in a race - clear and achievable. They keep your team focused and motivated." - Mark Thompson, Organizational Strategist.

Conduct a SWOT analysis to identify your organization’s strengths, weaknesses, opportunities, and threats. This helps your team understand your current position and potential challenges.

• Expert Tip 3: "SWOT analysis is like a diagnostic checkup. It helps you know where you're strong and where you need to improve." - Emily Turner, Business Analyst.

4. Key Strategies: How You'll Achieve Your Goals (Around 250 words)

Outline the strategies your organization will use to achieve its goals. These could include expanding to new markets, improving processes, or developing new products or services.

• Expert Tip 4: "Your strategies should align with your goals. They're the 'how' behind your 'what'." - David Reynolds, Strategy Consultant.

Break your strategies down into actionable steps. Assign responsibilities to specific team members, set deadlines, and define key performance indicators (KPIs) to track progress.

• Expert Tip 5: "Action plans turn ideas into actions. They make your strategies a reality." - Laura Martinez, Project Manager.

Detail the budget and resources required to execute your action plans. This includes finances, manpower, technology, and any other resources necessary for success.

• Expert Tip 6: "Budgets ensure you have the resources to implement your plans. They're like a financial roadmap." - Susan James, Financial Analyst.

Explain how you’ll monitor progress and evaluate the success of your action plans. Regular assessments help your team stay on course and make adjustments as needed.

• Expert Tip 7: "Monitoring and evaluation ensure you're headed in the right direction. It's about continuous improvement." - John Stevens, Management Expert.

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Describe how you’ll communicate the plan to your team. Transparency and clear communication are crucial to ensure everyone understands their roles and responsibilities.

• Expert Tip 8: "A well-communicated plan fosters teamwork and alignment. It's the glue that holds your organization together." - Maria Rodriguez, Communication Specialist.

While crafting and implementing your internal business plan, be mindful of these common pitfalls:

• 1. Lack of Clarity and Specificity: Vague goals and objectives lead to confusion and hinder progress. Ensure your plan outlines SMART (Specific, Measurable, Achievable, Relevant, and Time-bound) goals with clear action steps.
• 2. Ignoring Internal Analysis: Neglecting a SWOT analysis (strengths, weaknesses, opportunities, and threats) leaves you blind to internal challenges and untapped potential. Conduct a thorough assessment to gain a realistic understanding of your organization's capabilities.
• 3. Unrealistic Budgeting: Overestimating resources or underestimating costs can derail your plan. Develop a realistic budget based on accurate data and forecasts to avoid financial constraints.
• 4. Inadequate Communication: Failing to communicate the plan effectively to your team leads to misalignment and inefficiency. Foster open communication channels and ensure everyone understands their roles and responsibilities.
• 5. Rigid and Inflexible Approach: The business landscape is dynamic, so your plan should be adaptable. Be prepared to adjust your strategies and tactics as needed based on market changes, performance data, and feedback.
• Seek feedback: Enlist the help of colleagues and stakeholders to review your plan and identify areas for improvement.
• Promote collaboration: Encourage open communication and brainstorming sessions to foster innovative ideas and solutions.
• Track progress regularly: Monitor key performance indicators (KPIs) to measure progress and identify areas needing adjustments.
• Be proactive: Anticipate potential challenges and develop contingency plans to minimize disruptions.
• Embrace flexibility: Be prepared to adapt your plan as needed based on evolving circumstances.
• Goal Achievement: Track progress towards achieving your defined SMART goals.
• Financial Performance: Monitor key financial metrics like revenue, profitability, and cost-effectiveness.
• Operational Efficiency: Measure improvements in efficiency through process metrics like cycle time and error rates.
• Team Performance: Evaluate team effectiveness by tracking KPIs like productivity, engagement, and satisfaction.
• Market Share and Growth: Monitor your market share and growth rate to assess your competitive position and market penetration.
• Analyze trends and patterns: Identify trends and patterns emerging from your data to understand the underlying drivers of success or failure.
• Investigate root causes: Delve deeper into the root causes behind performance data to pinpoint areas for improvement.
• Test and experiment: Utilize A/B testing and other experimental methods to validate your assumptions and optimize your strategies.
• Communicate data insights: Share key data insights with your team to promote transparency and inform decision-making.
• Make data-driven decisions: Base your strategic decisions on evidence and insights gleaned from your data analysis.

By implementing these tips and practices, you can avoid common pitfalls and effectively measure the success of your internal business plan. Remember, a successful plan requires continuous monitoring, feedback, and adaptation to ensure it remains relevant and effective in driving your organization towards its goals. Ready to write an internal business plan but don’t know what to do? Explore WiseBusinessPlans’ professional business plan writers to get started today!

With your internal business plan finalized, it’s time to shift gears and focus on its execution. This crucial phase requires action, dedication, and strategic implementation to transform your vision into reality. Here’s what you, as an entrepreneur, must do after creating an internal business plan:

• Assess your financial needs: Review your budget and determine the funding required to execute your plan. Explore various funding options, including personal savings, loans, grants, and angel investors.
• Craft a compelling pitch: Develop a concise and persuasive pitch deck that highlights your vision, market potential, and financial projections to attract investors.
• Build relationships with potential investors: Network with individuals and organizations interested in your industry and build relationships that can pave the way for funding opportunities.
• Identify key roles: Determine the skills and expertise needed to implement your plan effectively.
• Recruit talented individuals: Find passionate and qualified individuals who share your vision and values, and build a cohesive and motivated team.
• Delegate and empower: Assign tasks and responsibilities based on individual strengths, fostering ownership and accountability within your team.
• Break down your plan into action steps: Divide your strategies into manageable tasks with clear deadlines.
• Implement best practices: Utilize proven strategies and methodologies aligned with your industry and goals.
• Monitor progress and adapt: Regularly track progress against your goals, identify areas needing improvement, and adapt your strategies as needed.
• Communicate openly and transparently: Keep your team informed of progress, challenges, and decisions.
• Encourage feedback and input: Create an environment where team members feel comfortable sharing ideas and concerns.
• Build trust and collaboration: Foster a collaborative culture that encourages teamwork and shared ownership of success.
• Track key performance indicators (KPIs): Identify specific metrics aligned with your goals and regularly track their progress.
• Analyze data and draw insights: Utilize data to identify trends, understand performance drivers, and make data-driven decisions.
• Continuously improve: Leverage data insights to identify areas for improvement and adapt your strategies to optimize performance.

By following these steps after crafting your internal business plan, leveraging a well-designed business plan template can further assist in effectively translating your vision into action, propelling your entrepreneurial journey towards success.

Hire our award-winning business plan writers now!

In summary, creating an internal business plan is about providing your team with a roadmap to success. By simplifying each section and focusing on clear communication, you’ll not only set your team on the right path but also promote unity and collaboration within your organization. Your internal business plan is your tool for achieving your mission and turning your vision into reality.

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8 Steps to Write a Useful Internal Business Plan

Noah Parsons

7 min. read

Updated October 27, 2023

One of the best uses for a business plan is as an internal management tool to help you run your business. Now, this doesn’t mean that you need to write a full business plan that you’d traditionally use to pursue funding or pitch to investors. 

Instead, you can stick with a simple internal business plan model that keeps your document lean and easy to communicate. 

• What is an internal business plan?

An internal business plan keeps your team in sync with your business strategy, sets financial goals and budgets, and helps you track business performance so you can manage your business better. It’s a document that can easily be distributed across multiple communications channels, encourages employee engagement, and leans into uncovering issues and competitive advantages for your business.

To simplify the planning process, I recommend using a growth planning method to create an internal business plan. This method focuses on creating simpler, shorter business plans that are designed to function as internal communications plans. 

Growth plans are useful tools for internal business planning because they’re shorter, easier to update, and focused on succinctly describing your business strategy and financial goals. Think of it as a more robust and expansive executive summary that is meant to be analyzed, updated, and referenced consistently. 

What is the difference between an internal and external business plan?

An internal business plan is a tool that is built to serve you and make your business easier to manage. It’s the most effective business plan for internal analysis and should be the focal point for regular strategy sessions. Internal business plans are also frequently used to quickly explore new business ideas to determine if they are viable. 

The audience for an internal business plan is typically your business partners and employees. It is usually not shared beyond the close circle of people who are involved in your business on a day-to-day basis. With the limited audience and the focus on business strategy and management, internal business plans are typically less formal. They don’t include much of what is included in an external business plan. 

External business plans, on the other hand, are used to present your business to people outside of your organization. They are typically part of the fundraising process and are used to communicate your business strategies and your team to lenders and investors. External business plans are also used when you are buying or selling a business.

Because of the focus on educating outsiders about your business, external business plans usually include more detailed information about the team behind the business, the business history, and milestones that have been achieved. The format is also more formal and typically a little longer than an internal business plan.

• What is the internal purpose of a business plan?

Within your business, an internal business plan is used to define your business strategy, define who your ideal customers are, outline a more detailed marketing plan, and set your revenue goals and expense budgets.

Business planning is often associated with fundraising and startups, but there’s a lot of value for existing businesses to create a simple internal business plan:

Define your business strategy

A solid business strategy is key to a successful business. Defining your strategy also helps you maintain focus as you grow. Opportunities are always presenting themselves and as a business owner, you need to know what your strategy is and determine if an opportunity fits with your strategy or not. 

There are also times when you may want to shift your strategy, but this should be done thoughtfully. With a defined business strategy, you’ll have the guidance you need to steer your business in the right direction.

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Bring everyone up to speed

Especially as your team grows, it’s important that everyone works towards the same goal. It can be easy for different people to have different visions of where your business is going. These different visions can make your business less efficient as people work towards disparate goals. 

A good internal business plan keeps everyone aligned and can encourage more consistent and valuable employee communication. In many ways, it should be the document that helps define your internal communications strategy and even your company culture. After all, if you have a clear vision that you can easily convey, the easier it will be to engage and grow your business.

Focus on forecasts and performance

One of the most important management tools at your disposal is a budget and forecast. An internal business plan should always include a forecast that sets revenue goals for your business as well as budgets to guide spending. These forecasts and budgets should be reviewed on a regular basis, at least monthly, and refined as you go based on how your business is performing.

• How to write an internal business plan

Internal business plans are simple and direct. Ditch the long paragraphs and lengthy explanations and instead focus on simple bulleted lists and short sentences. Remember, the plan is for you, so make it a tool that you’ll use and update on a regular basis. Long documents are rarely updated while simple, one-page business plans are easy to keep current and use.

Here’s what to include in your internal business plan:

1. Value proposition

This is a one-sentence summary of your business. What value do you provide and to whom do you provide it? You can use this section to share your mission statement – it’s a reminder to your team about the overarching purpose of your business.

2. The problem and your solution

It’s often easy to describe the products and services you offer. However, the most important part of this section is defining the problem that you solve for your customers. A strong definition of the problems you help your customers solve will keep you focused as you explore new revenue opportunities.

3. Target market and the competition

As important as defining your customers’ problems is to define who your target customers are. This helps ensure that marketing campaigns are focused and that your team knows who you are trying to reach. You should also track the alternatives that your customers might consider and why they might choose a competitor over you.

4. Sales channels and marketing activities

Your internal business plan should define how you sell your products and services and what marketing channels you’ll use to reach your customers. If you’re expanding into new markets, your internal business plan can help you guide that activity.

6. Financial projections

At the very least, you’ll want to forecast sales and set expense budgets to guide your team. Beyond that, cash flow forecasts provide crucial insights into if and when you should consider raising additional funding or opening a line of credit to support business growth. 

7. Milestones

Milestones define key goals and objectives for your team. This isn’t about setting day-to-day tasks but setting a few key goals for the upcoming months. You’ll keep your team focused on the most important objectives by setting milestones.

8. Your team

If your team isn’t growing, you can skip this section for internal business planning. But, if a key part of your business strategy is to hire and add important team members, identify your key team growth areas.

• Make use of your internal plan

Are you ready to write a business plan? Download our One-Page Plan Template to start building your own internal business plan. This framework will help you produce a simple, one-page business plan that will outline your strategy and key milestones.

From there, build out your financial forecasts and budgets. Start with a sales forecast and expense budget so you can generate a complete profit & loss statement. Ideally, you should also create a cash flow forecast.

Now it’s time to put your plan to use. Start a regular plan review process with a monthly plan review meeting. Go over your strategy and compare your sales forecast and expense budget to your actual results.

During your monthly review, you can tweak your strategy and update your revenue goals to reflect what is actually happening in your business. You can also adjust expense budgets based on actual spending and changing revenue goals. If you find yourself needing a more robust tool to help with this analysis, you may want to check out LivePlan’s reporting and forecasting features .

The key to good internal planning is to keep it lightweight and nimble. A good internal plan is the tool you need to bring together smart strategic management and fiscal responsibility so you can grow your business. Still not convinced? Check out these key reasons why writing a business plan is worth your time .

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

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Empowering your employees: A blueprint for internal promotion planning

Deciding whether to hire external candidates or promote from within is a question every recruiter faces from time to time. Promoting from within the company often helps create a healthier work culture and a more successful organization.

However, in every business, some amount of employee turnover is expected. So one of the ways to reduce employee turnover is to have a strong internal promotion plan. This makes your employees feel more valued and appreciated.

But how do you decide who to promote? How do you evaluate team members’ skills and performance in the most accurate and objective way possible?

Suppose your criteria for promotion are based on compliance with business ethics or deep expertise in a specific area. Either way, your approach to evaluating employees’ skills is critical to the success of your internal promotion initiatives – and, ultimately, of your organization. 

In this article, we’ll explain why an internal promotion plan might be just what you need to empower your employees. We’ll also show you how to set up the right internal promotion scheme to bolster employee motivation.

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What is an internal promotion, what is the importance of internal promotion, types of internal promotions in organizations, 6 steps to develop an internal promotion plan, empower your employees and help them grow with testgorilla.

Internal promotion is a selection process where you promote existing employees of your organization to new positions. Instead of searching for talent outside your organization, you get to promote team members who have shown they can handle new responsibilities.

Most times, internal performance evaluations help you identify top internal talent. As such, it positively impacts your company enabling you to save money and improve employee motivation and engagement.

Internal promotion tops the list of ways to inspire and motivate your employees. If you are also looking to create a healthy work environment that fosters employee growth, satisfaction, and enablement, internal promotion can help you achieve that.

Promoting internally is a great way to nurture talent and strengthen your company’s brand and culture. Also, it shows that your company has a fair and transparent promotion policy.

In 2022, global spending on hiring external employees was at $25 bn , according to Statista’s Research Department. Hence, as the expenses of getting external recruits continue to rise, internal promotions will give you the financial leverage your business needs to thrive.

To properly practice and maximize internal promotions, you need to know the types of internal promotions available in organizations today. Consider the following:

1. Horizontal promotion

Horizontal promotion entails a promotion where an employee remains on the same level within your organization but moves to a different department. In essence, this kind of internal promotion is lateral and comes with a departmental change.

Here, the responsibilities may not increase but will change due to the change of department. Compensations and rewards for talent are usually less than in vertical promotions.

2. Vertical promotion

Vertical internal promotions are certainly the most popular kind of internal promotion. Here, the employee moves to a more senior role within the same department. Like most promotions, vertical promotions come with a pay raise and more responsibilities.

To be promoted, employees need to show they have gained sufficient experience and skills for the new role. 

3. Temporary promotion

In this case, the promotion of an employee is only meant to be a temporary solution during the absence of another team member. It could result from maternity or paternity leave, staff shortages, or prolonged sick leaves, for example. 

Since this promotion is just for a period of time, the employee will return to their previous position once their coworker is back. 

The internal recruitment process is similar to a standard external selection process. However, as a recruiter or hiring manager, you must take note of the following to ensure you select the right employee for promotion.

1. Identify your present organizational needs 

The first step in creating a successful internal promotion plan is understanding your company’s needs. For example, what kind of talent or skills will the role require? Do you have employees who could comfortably fill these roles?

Answering these questions would enable you to clarify your needs and develop the right blueprint.

2. Create a job description with the necessary skills

Next, you’ll need to create a good job description for the vacancy. On it, you should indicate the essential professional skills, abilities, and expertise the ideal candidate should possess.

A clear job description helps you narrow down what you are looking for and manage your expectations. This way, you’ll be able to spend more time focusing on the best potential candidates rather than on individuals who do not even have the required skills.

3. Establish staff promotion criteria

Sound promotion criteria allow you to create metrics that guide your decision-making process.

For example, let’s say you want a candidate with fantastic leadership and management skills . You should look out for employees who consistently receive excellent feedback from their managers and peers in this field – and you can even use skills tests to confirm their observations. 

The key thing to focus on is the consistency with which the employees receive positive feedback. This way, you’ll be sure they’ll deliver consistent quality after the promotion. 

4. Be transparent about the promotion process

One thing all healthy workplaces have in common is that they are transparent about their procedures and selection criteria, especially when it comes to recruitment and promotions. 

So, to avoid creating a toxic work culture and environment, you must always be transparent.

Showing your commitment to being unbiased and objective by giving clear information on how your HR team and leadership handles internal promotions reassures employees of the possibilities to advance their careers in the future and helps instill trust and confidence.

5. Use your HR tech to gain deeper insights on your employees

A survey by Gartner shows that 58% of companies rely on HR technologies for recruitment. But did you know that you could use your HR tech stack for internal promotions, too? 

You can use your HR software to review each employee’s record and analyze talent better, which will enable you to move faster through the internal recruitment process. 

Candidate selection should be based on performance, skills, and growth potential to ensure you promote the right person. HR technologies enable you to have full visibility into the performance of your employees. 

6. Conduct a final examination or interview

After assessing candidates’ skills and narrowing down your selection to the most promising ones, conduct a final interview with each one of them to see who’s the best fit.

You can use a skills test before the interview to verify the skill level of all contenders for the role. Using the information you gather from such tests would put you in a better position to choose the perfect fit among your employees, as it enables you to be unbiased and objective – which, when you personally know applicants, can be a challenge.

Every employee’s desire is to progress in their career. Internal promotions facilitate this and give you room to discover skilled talent among your existing staff. 

With our detailed step-by-step guide above, you’ll have no problem drafting the blueprint for your internal promotion plan and evaluate your employees’ skills – which is best done with the help of the right skills assessment platform.

TestGorilla is one of the best skills testing platforms out there and it has a plethora of resources and features to help you assess your employees and promote them internally. 

To create the perfect internal promotion scheme in your company, select up to five tests to include in an assessment and ask your employees to take it to see who’s the perfect fit. 

Get started for free to enhance the career growth of your employees.

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Internal Marketing Strategy Guide: Everything You Need To Know

Mariya Postelnyak

Jun 15, 2021

Internal Communications

With effective internal marketing, your employees become brand ambassadors. But what does it really take to implement a successful internal marketing strategy? We’ve compiled everything you need to know about internal marketing so you can start leveraging its benefits.

When you think of the word ‘marketing,’ chances are you imagine pitching and selling to customers. Rarely do we consider marketing in the context of promoting a company to its own employees. And yet, internal marketing is just as valuable as external marketing. 

In fact, the two go hand-in-hand. The main objective of internal marketing is to engage, inform, and inspire employees so that they can excel in their roles. 

By fostering employee engagement and effective communication, internal marketing can help you empower your teams and improve business outcomes simultaneously.

We’ll take a deep dive into everything you need to know about effective internal marketing and why you should use an internal email tool and not an external tool like Mailchimp for internal communications .  

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What is Internal Marketing?

Internal marketing is when you sell the brand from the inside. Similarly to external marketing, the goal is to promote company products, services, and brand values.

External vs Internal Marketing

The difference between external and internal marketing is the target audience. For internal marketing, the target audience is made up of employees rather than customers. 

However, you still want to apply external marketing techniques to an internal approach. That means creating an internal marketing plan, deciding who will oversee your internal marketing strategy, and understanding the difference between internal vs external communication tools .

In the long run, the intended outcome of internal marketing is to enhance employee engagement and boost business performance. In the case of email marketing for universities , the goal is to align faculty, staff, and students and ensure everyone is on the same page. 

Internal marketing doesn’t have to be a painstaking process. With great internal communications tools like ContactMonkey, you can streamline the key components of your internal marketing strategy through a single platform — your employee newsletter.

Why is Internal Marketing Important?

Internal marketing is important because it helps align employees with brand goals and values.

When employees understand and endorse their company’s mission and principles, they’re better equipped to promote the brand to customers.

More importantly, employees feel and do better at their jobs because they’re truly motivated by their organization’s goals. 

Benefits of An Internal Marketing Program

Still not convinced that you need an internal marketing strategy for your business? Here are some key benefits of an internal marketing program that you should consider.

Increased employee engagement

Engaged employees are not only more satisfied in their jobs, but 17% more productive . This makes employee engagement one of the biggest benefits of an internal marketing strategy. 

Effective internal marketing inspires employee engagement through a clear and compelling vision of the company’s mission. Whether it’s through effective communications or inspiring internal storytelling , employees gain a deeper sense of purpose at the company.

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When employees understand and feel inspired by organizational goals, they’re more likely to excel in their roles. They also believe in the product they’re promoting to customers, which improves both employee experience and customer satisfaction.

Higher employee retention

When employees feel inspired and invested in their role, they’re less likely to be swayed by recruiters.  

With effective internal marketing, employees are continuously reminded about the benefits of working at their company. 

They’re informed about opportunities for professional growth and are motivated to grow within the organization. Once employees have a sense of pride in what they do alongside a vision for growth, they will stay at your company longer and perform better. 

Strengthened company culture

An effective internal marketing strategy provides employees with a cohesive set of messages, visuals, and practices that represent the internal brand. This is the basis for a strong company culture .

A great example of this idea in action can be seen at Southwest Airlines. The company’s signature heart logo became a key part of its successful internal marketing strategy . 

The heart was a visual emblem as well as a symbol for the practices and values prioritized by Southwest employees. It extended across their external and internal brand through mottos like “showing heart” and the company’s internal brand pillars, “a warrior spirit, a servant’s heart, fun-loving attitude.”

With effective internal marketing, employees begin to engage with common values and practices. This leads to a sense of pride in the brand identity and a strong company culture.

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Enhanced customer service/satisfaction

Customers are a lot more likely to trust a product recommendation from a friend or family member. With effective internal marketing, your employees develop a strong connection with your products and are more inclined to recommend them to their close circle. 

But it also goes beyond that. With great internal marketing, customer service improves as a whole. That’s because your staff start to truly believe in the product and are enthusiastic about their role in providing it. And your clients pick up on this fast. 

To harness this asset, make sure you’re telling a great brand origin story . This will give employees a better understanding of the ‘why’ behind your brand and get them excited to be a part of it. 

Internal Marketing Examples

Internal marketing can take on many forms. Here are just a few of the most common examples of internal marketing and company newsletter ideas :

• Employee appreciation day
• Job promotion opportunities
• Internal contests and rewards
• Employer branding initiatives
• Employee social media and shoutouts using Slack
• Employee performance reviews and internal spotlights
• Competitive compensation and benefits with perks like free lunch
• Company news and milestone highlights in your company newsletter
• Work-life balance initiatives such as unlimited vacation or extra days off during summer
• Professional development opportunities, including free webinars or course subscriptions
• Promotional internal communications campaigns, such as “Associate of the Month” profiles

10 Components of a Successful Internal Marketing Strategy

Now that we’ve covered why an internal marketing strategy matters, let’s dive into how it actually works. We’ll break down the key components of a successful internal marketing strategy and give you actionable ways to harness it in your business. 

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1. Internal marketing goals

Setting internal marketing objectives is the first step to launching a successful internal marketing strategy.

Your internal marketing goals can include increasing awareness around professional development opportunities or raising employee engagement. 

Whatever your objectives are, they should be backed by internal marketing metrics. These can include improvements in customer feedback or a rise in positive responses to engagement surveys sent through your employee feedback platform .

Establishing the scope of your internal marketing strategy means determining the scale of your desired outcomes. Are you trying to strengthen your existing internal brand or transform it all together?

If you’re trying to enhance what you already have in place, think about adding brand stories or employee testimonies into your employee newsletter.

For a company-wide transformation, you’ll need to think bigger. Consider making presentations about your new brand products and team goals or building new visuals for your internal company newsletter . 

3. Designated internal marketing team

Once you have the rough outline of your internal marketing plan, you’ll need to decide who will be responsible for guiding your internal marketing program. 

While many companies choose HR teams or dedicated internal communications teams for this task, it’s important to involve many teams and departments for more diverse perspectives. 

Employees from all levels and roles should be involved in building your internal marketing strategy. Zappos is a great example of a company that puts this approach to action.

Through “employee-generated media”, Zappos involves all levels of employees in their internal and external marketing. Staff is encouraged to build the brand inside-out through posts, comments and conversation on Twitter and internal blogs. 

4. Effective Internal Communications

Your internal communications are at the heart of your internal marketing strategy. From employee newsletters to leadership communications , internal emails present your brand mission, educate employees on company values and goals, and encourage employee feedback .

Your internal communications set the tone of your employer brand and give employees different cues about your company. Not to mention, internal communications also work as a toolkit. They give employees resources and equipment in the form of company eBooks, employee forums, newsletter updates, and the like.

All of these add up to a store of knowledge about your company and form the base of your internal marketing efforts.

5. Clear brand vision

A core component of effective internal marketing is communicating a vision that’s worth pursuing. Employees want a clear understanding of your brand’s value proposition and their role in it. 

Starbucks is a good example of a company with a compelling vision and a clear vision statement : “T o inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” 

Starbucks’s mantra is communicated both to customers and employees, who the company calls “partners.” This small gesture equally conveys one of the brand’s biggest values – collaboration and community. 

6. Fluid dialogue between employees

A  great vision also needs to be supported with employee feedback and dialogue. For effective internal marketing, your employees have to be able to join in a conversation about your brand, share ideas, and provide feedback. 

Employee newsletters are great tools for boosting employee dialogue and driving your internal marketing strategy.

Newsletters create two-way conversation through idea-sharing, embedded surveys and commenting options. This boosts engagement and makes employees feel that their opinion is valued, which is essential for successful internal marketing.

7. On-brand messaging

R egardless of what types of internal communications channels you choose, you need to make sure your messaging is always on-brand and consistent. That means aligning your internal brand voice across all of your internal communications channels and matching it to your external brand.

With consistent and on-brand internal communications as a priority in your internal marketing strategy, your employees will have a clear image of your brand. And they’ll convey it just as well to customers. 

For more ideas on effective internal communications, listen, and learn from dozens of IC experts at this year’s top internal communications conferences .

8. Internal marketing benchmarks

With clearly defined benchmarks, you’ll be able to easily see whether your internal marketing strategy is achieving the desired outcomes.

Your performance benchmarks can include objectives like getting a high employee satisfaction score on your recent employee survey or a soaring eNPS score . 

eNPS (Employee Net Promoter Score) determines the likelihood that your employees would recommend your business to others. It’s measured using a simple scale rating question such as the one below:

9. Internal marketing audit

Measuring the performance of your internal marketing strategy is essential to its success. An internal marketing audit looks at the analytics behind employee emails and newsletters to see the impact of your efforts. 

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With an email tracking tool like ContactMonkey, you can check how many of your employees are reading key company announcements, learning about product updates or checking career development resources:

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10. Consistent feedback

To make sure you’re getting continuous feedback on your internal marketing efforts, you’ll also need to gather feedback using a pulse survey tool .

These short, simple surveys are designed to take a ‘pulse check’ of your workplace through a single focused question on your topic of choice. 

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With ContactMonkey, you can embed short, simple pulse surveys into your employee newsletter. From there, you’ll be able to gather employee insights on topics related to your internal marketing goals. 

5 Best Internal Marketing Tools

At this point, you’re probably thinking that an effective internal marketing strategy is no walk in the park. From setting your internal marketing goals to gathering continuous employee feedback, there are many pieces you have to connect. 

Luckily, there are some great tools to help you implement your internal marketing strategy and get the benefits without working overtime. Here are our favourites:

1. Internal Email

Your employees want a consistent source for their daily scoop. With an internal email  newsletter , employees get key company insights while learning about new internal marketing campaigns, events and everything in between. And that covers the to-do items in your internal marketing checklist. 

Company newsletters synchronize every other channel of internal communications. You can include videos communications , podcasts, and company PR to create a unified brand image.

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And that’s not all. Your internal newsletter can also be a treasure trove of employee feedback. 

With an interactive email tool like ContactMonkey, you can include surveys and anonymous commenting options to get feedback and build conversations. The best part? You can do it all through your Outlook or Gmail.

You can also use ContactMonkey’s List Management feature to build custom email lists to increase the effectiveness of your internal emails. Your custom email lists can be created without IT, and integrate with your Human Resource Information System (HRIS) like Workday and ADP, as well as Azure active directory, so they update automatically.

2. Employee Surveys

With the right questions, employers can understand how their staff perceive their products, brand mission and values. They can also check whether an existing internal marketing strategy really resonates with their staff. 

If you notice misalignment between your desired brand image and how your employees see things, it’s your job to mend the gap.

Employee surveys let managers understand their staff’s level of satisfaction, engagement and connection with the brand and its products. 

With ContactMonkey’s employee pulse surveys , you can get feedback in a style and speed that’s best suited to your goals. Options include eNPS surveys, emoji reactions, star ratings, and Like buttons. 

Not sure what questions to include in your internal communications? Try using ContactMonkey’s OpenAI ChatGPT integration to generate unique questions based on prompt you provide. Simply edit the output text so it applies directly to your audience.

You already know the power of video when it comes to external marketing. Just try thinking of brands like OldSpice or Nike without being reminded of their iconically ridiculous ads or extravagant celebrity promos. 

When it comes to internal marketing, videos are just as powerful.

Videos provide much more creative opportunities than text alone. They allow you to create powerful messages and dynamic brand storytelling through sound, animation and tonality.

The result is a stronger emotional response from the audience, which is crucial for conveying authenticity.

What’s more is that your employees are about 1200% more likely to share videos than just text and graphics alone. This is especially true when it comes to Gen-Z audiences . This means that by using video, you’ll be able to multiply the reach of your internal marketing strategy.

We recommend using a video-making tool tailored to corporate content like Clipchamp. With its intuitive drag-and-drop video editor, Clipchamp makes it easy to create professional corporate videos. When your video is ready, embed it into your employee newsletter with a video-friendly internal communications tool like ContactMonkey . 

Want to take your videos to a whole new level? Learn about using virtual reality in corporate communications.

4. Video Conferencing

Old fashioned video conferencing software shouldn’t be underestimated in your internal marketing strategy. 

With remote work becoming more common, video conferencing can be a powerful tool to drive awareness about products and forge a strong company culture.

By allowing face-to-face interaction and collaboration, video conferencing tools like Zoom and Microsoft Teams provide more opportunities for team-building and bonding.

When using video conferencing, take advantage of screen sharing for collaborating on a project or sharing team performance data. By showcasing team progress and achievements, you’ll get your teams working towards a common goal, and building trust. 

5. Intranet Software

Think of an intranet as a jack of all trades. It gives staff access to news, company resources, internal training modules, employee chats and a whole lot more. Because of its multifunctional abilities, an intranet has some pretty big perks for internal marketing. 

Intranets connect employees from different teams and levels on a single platform where they can have conversations, share ideas and learn from each other. 

They also showcase your company’s internal brand voice, brand image, and company culture in a unified way. This gives employees a clear idea of what the brand’s all about.

Jostle is a great example of an effective intranet platform. Its cloud-based software provides clear information architecture that helps streamline communication in the workplace. 

To get the most out of your Intranet , use it alongside your employee newsletter. You’ll drive more traffic to your Intranet by reminding employees to check  for updates and linking them to Intranet features and posted events. 

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6. Employee SMS

SMS strengthens and extends the reach of your internal communications while ensuring that remote, deskless and frontline workers stay engaged . 

With over 90% of texts being opened within five minutes, SMS is a quicker, more reliable way for relating time-sensitive information. This includes emergency alerts, meeting reminders, and schedule changes. But it also lets you promote employee events, remind staff about engagement surveys, and draw attention to other internal marketing campaigns.

With ContactMonkey’s SMS text builder , internal communicators can embed links, event invites, and reminders straight into employee texts. This makes it easier for staff to access key resources right from their messaging app ⁠— whether they’re on the go or at the office. 

How to Improve Your Internal Marketing Program With ContactMonkey

With ContactMonkey, you can centralize your internal marketing strategy through a single tool. That’s because ContactMonkey combines employee emails, surveys and email tracking all in one place. 

Through the email template builder , you can easily keep employees informed and engaged by embedding graphics, videos, and surveys into your weekly newsletter. You’re also able to ask questions and let employees voice concerns through a variety of employee feedback options and anonymous comments.

Once you send out your employee emails, simply track and measure engagement through Contact Monkey’s Reporting tool. The result: a simpler way to implement your internal communications strategy and get employees informed and excited about your brand.

Key Takeaways

If your brand doesn’t have buy-in from your employees, you won’t be able to captivate customers. When staff are engaged, excited and informed about your products, they convey that same enthusiasm to clients.

With effective internal marketing, your employees will start feeling more connected to your brand and understand its mission, vision, values, and goals. They’ll become brand ambassadors and earn the trust of your clients through their own confidence in the product.

Create better internal comms today.

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4 tips for successful internal promotions

Jackie Dube

Promoting from within has many benefits: retaining institutional knowledge, engaging employees, and building cross-functional skills, to name a few.

But internal promotions can also cause people problems when not done well. Consider the top performer placed in a managerial role without the appropriate leadership skills. Or the individual contributors left behind who are resentful they weren’t picked for the opportunity.

It’s critical to create a culture and system for employee development that enables promoting from within . Here’s how to do that:

What is internal promotion?

Internal promotion is when you fill an open role with an existing employee instead of hiring someone new. 

How to effectively implement an internal promotion process

Foster a culture that supports internal growth and movement..

When we released the results of the 2019 Employee Engagement Report , we were shocked by one finding in particular: Nine of the 10 top drivers of engagement—and turnover intent—relate to the organization.

Which means it’s not just about loving the job you have, working on a great team, or getting along with your manager. What drives employees at work is how the organization is set up in the first place.

If your company doesn’t have a culture that supports internal growth and movement, the ability to promote employees or develop career paths becomes much more difficult. Rather than working as part of an existing company culture, you’re swimming upstream against the culture.

Why should your company adopt this mindset of internal growth and movement? Because it’s better to grow and develop employees internally than lose them to another organization. 

Proactively identify opportunities for employee growth.

To successfully promote from within, you need to regularly think about your current workforce, their skill sets and aptitudes, and future roles you’ll be opening.

You can do this in multiple ways:

• Talent reviews ask business leaders to assess employees across the company on performance and future potential. This information can help you keep an eye on internal candidates who may be a great fit for future roles.
• Talent mapping is an initiative usually conducted by human resources departments. It involves finding the right talent, putting talent in the right roles, and retaining top talent through career pathing. This process will keep you thinking ahead about ways you can support existing employees with their career growth.
• Personal development meetings allow employees the opportunity to share their own career development goals. You may be surprised when there’s a big difference between where an employee currently is in the company and where they’d like to end up!
• Leverage workplace behavioral assessments to understand innate drives. These insights can help you match employees with new roles that fit how they like to work—and their behavioral strengths. 

By proactively identifying opportunities for existing employees to make lateral career moves, be promoted into more senior positions, or grow into leadership roles, you keep employees engaged and your talent pipeline open.

Join 10,000 companies solving the most complex people problems with PI.

Hire the right people, inspire their best work, design dream teams, and sustain engagement for the long haul.

See how PI’s Talent Optimization Platform can help your company hire with certainty, inspire your teams, and sustain lasting employee engagement.

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Always be developing leaders.

In sales, there’s a mantra: Always be selling. 

You can apply that concept to employee development: Always be developing leaders .

As your organization grows, its need for leaders will too. Leverage leadership principles and help employees identify areas where they need to bolster their leadership skills. This will help set them up for future growth opportunities—whether it be as a subject matter expert, project lead, people manager, or executive. 

Keep the candidate experience the same as for an external hire.

Even though an internal candidate may be a proven performer, you still need to go through the hiring process of interviewing to ensure fit.

Start by creating a job description that outlines the role’s responsibilities and requirements. Consider the behavioral traits required to succeed in the new position. 

Make sure the internal candidate matches what you’re looking for from external candidates. Do they have the leadership skills and competencies to move into a more senior position? Are they wired for this kind of work—or will the job be like writing with their non-dominant hand?

If an employee is moving to a new department or team, take a look at how they compare to existing team members. Are they a seamless fit with the team’s current behavioral composition, or would their addition change the team dynamic? 

While there are times to hire externally, internal promotions are an effective way to reward performance and create career paths that bolster employee engagement.

Why are internal promotions important?

Internal promotions can affect everything from employee morale to performance, so it’s important to get them right.

What are the benefits of an internal promotion model?

• Faster onboarding. The people who know your business best are the people who already work there. That means your internal hires can spend less time learning about your business and more time learning the role.
• Improved productivity. Nothing encourages hard work like the possibility of a promotion. Employees who want a promotion will often go above and beyond to nail their next performance review.
• Improved employee morale. Promotions encourage hard work—but they also encourage a long tenure. When people feel they can move ahead in their current company, they’re less likely to leave.

Are there drawbacks of internal promotions?

• Your company can become set in its ways. New employees often bring a fresh perspective. With too many internal promotions, your company may stagnate and lose out on the latest trends.
• Smaller talent pool. Sometimes you just can’t find the expertise you need within your company. If you rely exclusively on internal promotions, you might miss out on talented new hires from outside the company.
• Decreased employee morale. While promotions are a strong incentive, they can also be a drawback. If employees assume promotions are guaranteed, they may become disappointed when they fail to earn them.

Jackie is the SVP of talent optimization at PI. She was born in Switzerland but isn't a dual citizen.

Related Posts

3 easy tips to create compelling career paths

What your company can gain from clear career pathing

8 recruiting tips for successful hiring

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Internal Marketing: Ultimate Guide [FREE Template] - Oak Engage

   Minute Read     Internal Comms

Table of Contents

Internal marketing is just as important as external marketing when it comes to motivating and engaging employees into your company and their work. 

When done right, internal marketing ensures that your employees are providing a high quality service to your customers and helping the company grow. 

In this guide we’ll cover how to utilise internal marketing within your business and provide you with a free template for you to easily create your own plan.

Topics we’ll cover:

• What is Internal Marketing?
• Who is Internal Marketing aimed at?
• Why is Internal Marketing Important?

Common Internal Marketing Tactics

Internal marketing strategies, internal marketing tools.

• What is an Internal Marketing Plan?
• How to create an Internal Marketing Plan
• Internal Marketing Plan Template [FREE DOWNLOAD]

What Is Internal Marketing?

Internal marketing is a type of strategy that focuses on building loyalty, skill and engagement with your employees by selling your company vision and culture to them.

Internal marketing is based on the ideas that customers' attitudes towards a company are not just based on the product or services, but the overall experience they have with the company.

According to an American Express survey, 78% of consumers have bailed on sales transactions because they received poor customer service.

Usually, internal marketing will be led by HR, but to take internal marketing that one step further, initiatives from the marketing leaders will be essential for success and growing your brand.

Who Is Internal Marketing Aimed At?

Internal marketing is aimed at your employees.

Essentially, it's your company marketing its products and brand to its own employees. 

You want them to truly understand why you’re selling those products so they can communicate that with external people-including your customers.

The idea behind internal marketing is to earn employees enthusiasm by creating an emotional connection to the brand or company.

Why Is Internal Marketing Important?

As a marketer it's likely that you spend hours every day looking for a new campaign that will make you stand out. However, you’re probably spending all of that time focussing on a strategy that only deals with your customers. After all, they are the people bringing the money in. 

But, you can't forget about the people who actually make that happen. Your employees.

Let's look at some of the benefits of internal marketing:

• Improves employee development and customer retention
• Encourages employees in every department to perform better
• Creates a common understanding of company goals and strategies
• Information flows effectively between departments
• Empowers sales staff to be authentic and increase customer engagement
• Happy workers are easier to retain and provide a strong cultural foundation
• Less turnover and reduced hiring and recruitment costs

Now let's look at 3 ways that internal marketing can specifically boost employee engagement:

1. It Aligns Your Employees With the Companies Values and Goals

When employees are informed and engaged with the brand guidelines and overall goals, they will also support branding on every level. 

This can take place in the form of providing access to relevant content or facilitating other ways of knowledge sharing in the company.

According to Smarp, the average employee spends 2.5 hours a day looking for information they need to complete a task.

2. It Builds a Connection Between the People and What They Sell

Internal marketing is a way to build an emotional connection with the product or service employees sell. This matters a great deal in terms of how engaged employees are in their work.

If everyone within the company is motivated to sell, markt and develop the product they work with, businesses will be positively impacted.

3. It Builds Trust Amongst Your Employees

Marketing a shared vision and reducing silos will make employees feel trusted and more confident in their work.

You will want to boost knowledge sharing and avoid information silos, which are harmful to prioritising work, motivation and the ability to see the bigger picture.

As we’ve already mentioned, a lot of internal marketing is to do with informing and educating employees on your company. 

Some common examples of internal marketing tactics include:

• Educating employees on the company goals and values
• Encouraging communication and collaboration between employees
• Ensuring employees know that their contributions matter and are essential to the success of the company
• Encouraging employees to have an input on company policies and leadership

Now more than ever, getting employees involved in the marketing and sales process will greatly benefit the results of your overall business.

The same as traditional marketing, you can execute internal marketing through a variety of tactics. 

Internal marketing has one goal in mind and that's to earn your employees’ support. This support will in turn be communicated externally by the employees themselves.

Let's go through some strategies that show up often in successful internal marketing.

Consistent Communications of Company’s Vision & Values

It's not enough to have your vision and values ticked away in a shared drive. You must refer to them often and have a leadership that truly believes in them.

In fact, 73% of employees who believe they work for a ‘purpose driven’ company are engaged, compared to only 23% of those who don't.

As a company, you most likely already have a mission or values set out. The key is to identify opportunities to communicate them regularly as part of your internal marketing. These could be in weekly meetings or performance reviews. 

Seeking & Acting on Employee Feedback

Employee feedback is a critical element of internal marketing. It sends the message to employees that their voice is heard and all feedback is being acknowledged.

Pulse surveys are a great way to collect feedback from your workforce. They gather real, actionable insights that businesses can use to improve employee engagement, productivity and collaboration and enhance employee experience. 

Clear & Centralised Internal Communication

Communication is critical to any great working relationship. The key with internal marketing is to ensure your messages don't get lost among email, chat, social media and more.

You should limit the use of traditional communication channels for internal marketing. Tools such as instant messenger on your company intranet are designed for ultimate productivity. Focus on one dedicated and centralised digital platform like Oak Engage.

Better Learning & Development

94% of employees would stay with a company longer if that company invested in learning. However, 40% of employees who receive poor training leave their positions in the first year with the company.

Learning and development is an essential part of your internal marketing strategy. You should start small. Begin by identifying the gaps in your employees’ skills.

The key is to always be one step ahead!

Continue to provide training or meetings for open discussions. Re-evaluate as often as you need. And remember, your work should never feel too comfortable because thats when mistakes or obvious improvements are missed.

The way that you communicate with internal employees is very different to the channels you may use for traditional external marketing campaigns. That’s why it's so important to choose the right marketing tools for your employees.

At Oak, we provide a variety of different tools that companies (from any industry) can utilise to improve internal marketing and engagement between employees:

1. Company News & Announcements

This feature provides a single location where employees can discover the latest company news and announcements. 

A range of content can be communicated in this section, such as major corporate updates, messages from the CEO, policy changes and even changes on the intranet itself. 

2. Instant Messenger

Oak messenger, designed to improve employee engagement and workplace productivity, users can send instant messages to one specific person or a whole group. 

3. Social Timelines

News and social feeds are designed to unite teams and promote solidarity with your company's own social feed. 

With the social intranet software, employees have a space to create bonds and relationships with other colleagues, increasing productivity, collaboration and connectivity.

4. Mandatory Reads

Mandatory reading could be a specific article or document that's been uploaded by leadership. This feature dramatically helps to improve compliance and the flow of business-critical information. It also helps to save on email traffic.

5. Knowledge Base

This allows users to get the help they need instantly. Knowledge Base provides employees with a wealth of information and support.

From FAQ’s to How-To Guides and walk-through videos, Knowledge Base is ideal for new starters and remote workers who are just starting out on getting to know their company.

6. Content Management

Oak’s content management system helps employees easily access content to complete tasks quickly anywhere, anytime and stay connected with other employees and the organisation. 

Streamlining internal communication, improving productivity and cultivating a positive corporate culture.

What Is an Internal Marketing Plan?

An internal marketing plan is similar to an external marketing strategy as it must tell a story that persuades the audience to take action.

How to Create an Internal Marketing Plan

Are you ready to start engaging your employees with an internal marketing plan?

Here are 5 steps you need to think about before implementing your strategy:

Think about what you want to get out of your internal marketing strategy.

Examples of goals could include:

• Increase in employee retention
• Increase in employee engagement
• Boost in sales
• Enhance Company Culture

You should then determine how you will reach your goals. This might be as simple as creating a presentation on your current marketing strategies to be shown in a team meeting. 

Another approach could be determining how much expansion is needed in the areas of HR, business acquisition or customer facing, to properly grow your business or meet your marketing goals.

Who will need to receive internal marketing communications in order to meet your goals? This could include your whole team or different employees from different departments.

You should share your plan with everyone in the company. This allows each employee to ask questions and submit ideas to help improve your internal marketing strategy.

Marketing Message

Once you know who you’re targeting and the goal, you can start to think of the messaging.

Start by making a list of things you want to communicate internally, this could be anything from company news or important documents from the past year.

Your Internal Communications Tactics

How will you communicate your message internally?

The distribution of your marketing plan is one of the biggest differences between internal and external marketing. With internal marketing, you want to make messages private for your company and only employees are allowed to view them.

Some channels you could use are:

• Your Employee Intranet Platform

An intranet is certainly the best option to communicate your goals internally with your team. It allows you to connect instantly with different departments and distribute company news in seconds.

Measure the Impact

Build your metrics. 

Set metrics that help measure the success of the strategy. For example, if you intend to increase sales by 10% by the end of the year, be sure to keep track of where the team is in terms of meeting this goal. You should also ensure that the goals are attainable and reward employees when they are met.

Internal Marketing Plan Template

Are you ready to take the next step? Download our internal marketing plan template. Simple and easy to follow, the template will get your planning off to the best possible start!

Molly Southern

Molly is a Content & Design Executive at Oak Engage. Coming from a background in Design, she can tailor her marketing approach to specialise in both visual and written content within her role.

Internal Marketing: What Is It & 18+ Examples You Can Use

It used to be that companies could use old-school marketing tactics aimed directly at their target customers. 

Corporate social media accounts, advertising, white papers, conferences. You get the idea.

And for the most part, that was good enough.

But times have changed. 

It’s no longer enough for a company to talk about itself. In 2017, for the first time in nearly two decades, people’s trust declined in every kind of institution - including business.

Instead, people are turning to people they know or can relate to:

• 96% of consumers don’t trust ads
• After a company’s technical experts, a “regular” employee is the most trusted voice a company has .

It’s clear: to truly reach their customers, companies need their employees’ buy-in and vocal support.

But how can companies get that support?

Enter: Internal Marketing.

What Is Internal Marketing?

Internal marketing is the promotion of a company’s vision, mission, and culture to its employees with the objective of gaining their support.

The companies that are the best at internal marketing treat employees as internal customers who need to be convinced of the company mission.

They don’t take their employees’ support of the company as a given, and instead make a deliberate effort to earn it.

Because these top companies know how powerful it is when their (often large) employee base buys-in to what the company is doing, then spreads the word outside of the company via interactions with customers, friends, family, and social media.

These businesses understand that their corporate voice isn’t enough, and that customers develop opinions about the company well before using their product or service. 

Unsurprisingly, the benefits of internal marketing are numerous:

• Increased employee satisfaction and engagement
• Greater brand reach
• More trusted marketing
• Better customer service
• Improved recruiting and employer brand

Internal Marketing Examples

As with traditional marketing, you can execute internal marketing through a variety of tactics.

Internal marketing has one goal in mind: to earn your employees’ enthusiastic support. The idea being that that support will in turn be communicated externally by the employees themselves.

So how you get to that objective is really only limited by your creativity.

However, there are a few tried-and-true tactics that show up often in successful internal marketing.

Consistent Communication of Company’s Mission, Vision, & Values

Why This Matters: This is your company’s north star. It’s not enough to have your mission and values tucked away in a shared drive or plastered on the walls. You have to refer to them often, and have leadership that truly believes in them and adheres to them. Because employees care. In fact, 73% of employees who believe they work for a "purpose-driven" company are engaged , versus only 23% of those who don't.

How to Execute It: You probably already have a mission, vision, and values. The key is to identify opportunities to communicate and revisit them regularly as part of your internal marketing. Think weekly meetings, quarterly reviews, employee performance reviews, and so on.

A Strong 1-2 Year Plan

Why This Matters: Employees want to know what they’re building towards. While the mission and vision are great for big picture, long term thinking, they don’t spell out the details of the near term. Having a clear, positive plan for the next 12-24 months will help employees feel secure and optimistic. They’ll be on the same page with company leadership and know exactly what their day-to-day activities are leading up to in the near term.

How to Execute It: Work with leadership to document your 1-2 year plan. Then communicate it regularly with everyone in the company - a critical step given 71% of employees are unable to identify their company’s strategy . Each department and employee should understand exactly how they contribute to the success of the plan.

Seeking & Acting on Employee Feedback

Why This Matters: The first two examples have been more “top-down” in nature. That’s why employee feedback is a critical element - it sends the message to employees that their voice is heard, too. Not all feedback can (or should) be implemented, of course. But all feedback should be acknowledged.

How to Execute It: Start getting feedback on your employee experience. You can use something simple and free like Google Forms , or more robust and purpose-built for employee feedback like TINYpulse . Heck, we’ve even seen teams use Trello boards to be fully transparent about their feedback and its implementation status. Whatever you choose, it’s important that you’re genuinely interested in the feedback, and are willing to make changes based on that feedback.

Clear, Centralized Internal Communication

Why This Matters: You’ve likely noticed by now that communication is a central theme when it comes to internal marketing. After all, communication is critical to any great relationship; the relationship between employer and employees is no exception. The key with internal marketing is to ensure your messages don’t get lost among email, chat, social media, and so on.

How to Execute It: Limit use of traditional communication channels for internal marketing. Tools like email and chat are designed for productivity. They’re not suited for delivering more thoughtful, “bigger picture” communications meant to boost morale, gain strategic buy-in, and gather feedback. Instead, focus your messaging on a dedicated, centralized communications hub like Swaybase .

A Social Media-Friendly Environment

Why This Matters: 8 in 10 workers report using social media in the workplace . And 98% of employees use at least one social media site for personal use; 50% are already posting about their company online. It’s a given that employees are active on social media and they’re talking about you. Make sure it’s done the right way and supports the business.

How to Execute It: Start by creating a social media policy that embraces the modern realities of social media in the workplace. Clarify expectations of employee behavior online - and then make it easy for them to share pre-approved content with their personal networks through a more formal employee advocacy program.

Better Learning & Development

Why This Matters: Simply put, today’s talent cares about training. 94% percent of employees would stay with a company longer if that company invested in learning, and 40% of employees who receive poor training leave their positions in the first year with the company.

How to Execute It: Training (or Learning & Development, if you prefer a more holistic term) is a big topic. Start small. Begin by identifying the gaps in your employees’ skills. The best way to do this? Ask your employees where they feel they need to develop their skills.

Provide the Benefits Employees Want

Why This Matters: While salary is often top of mind, employees also care about benefits. So much so, that the right benefits can convince employees to choose a lower paying job over a higher paying one. Parents in particular value flexible hours and work-life balance more than salary.

How to Execute It: Ask your employees what they’d like. Then work with leadership and HR to make at least one positive change in the benefits offered at your company. Keep in mind: it doesn’t have to cost top dollar. As the chart shows, after health insurance, employees value relatively low-cost benefits, including flexible hours, more paid vacation time, and work-from-home options.

Eat Your Own (Product/Service) Dogfood

Why This Matters: Unappetizing image aside - it’s long been a mantra to “ eat your own dogfood ,” meaning use your own product or service. Why? Because doing so turns your employees into customers, which in turn helps your employees better understand your external customers. It also brings your employees closer to the very thing you’re creating and selling, enabling them to be better ambassadors for the company.

How to Execute It: Work with leadership to make your product or service available to employees. In some cases, full and unfettered access may be impossible or unfeasible. For instance, Airbnb can’t give away unlimited free stays to employees. But they could give away a handful of free stays a year. Find what’s right for you.

Additional Examples of Internal Marketing

Some additional examples include:

• More frequent promotion cycles
• Celebrating new business deals and major milestones
• Monthly employee spotlights
• Company-wide brainstorming for new products/services
• Creating and sharing the company’s “origin story”
• Process improvement workshops between departments
• Reorganized / improved office layout
• Free company swag/gear
• Performance-based incentives
• Interdepartmental rotational programs

Remember, you can be as creative as you like with your internal marketing.

The objective is always the same: to win your employees’ support.

So don’t feel restricted! 

It’s completely up to you to determine the best means for achieving that objective.

Implementing Your Internal Marketing The Right Way

You’ve identified the need for internal marketing and communicated the benefits of it to company leadership. 

You’ve brainstormed various examples and tactics you’re willing to consider.

How do you proceed from here?

Step 1: Identify Key Stakeholders

Everyone in the company will be impacted by your internal marketing. And for each department, that may look a little different. So identify a lead “point of contact” within each department who can weigh in on the ideal way to roll out your internal marketing for their department.

Step 2: Lay a Foundation for Communication

As we’ve seen, communication is a common thread throughout most of your internal marketing efforts. Establish a centralized internal communication method that is separate from the noisy, overcrowded traditional channels like email and chat. 

Step 3: Prioritize Your Tactics

With a direct line of communication to your employees, you can begin to roll out your first tactic. Start small and focus on something from your list that is relatively easy for your organization to implement.

Step 4: Make it Foolproof for Employees to Spread the Word

Internal marketing done right leads to employees who will want to advocate for you outside your four walls. We mentioned it earlier, but you need to make it easy for your employees to communicate their positive take on the company with the people in their personal networks. If you’ve picked the right communications tool , then it already has a social media component built in that you and your employees can use.

Step 5: Measure the External Impact

This may be counterintuitive, but keep in mind that a main reason for doing internal marketing in the first place is for the external benefits it drives:

Most of those benefits are external.

Therefore, it makes sense to track external performance indicators, such as:

• Marketing metrics (social media reach and engagement)
• Hiring metrics (time to hire, offer accept rate)
• Customer satisfaction (Net Promoter Score, customer turnover)

We may sound like a broken record, but ultimately your internal marketing will come down to how well you communicate with your employees.

After all, not only do you want your message to be heard.

You want employees to internalize it. And then to spread the word with the rest of the world.

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5 Internal Marketing Strategies to Supercharge Employee Engagement (Infographic)

Your company’s employees are among its most valuable assets. Internal marketing strategies can boost important efforts such as reducing employee turnover. They help create a stronger company culture, boost mission alignment across all levels of the organization and ultimately improve employee and customer satisfaction. By helping your employees to better understand your organization’s mission, you can help them to become powerful brand advocates online and offline.

We’ll walk through the 5 main internal marketing strategies you should consider adopting to increase the internal advocacy of your brand, as well as the 3 KPIs you should track to help you measure your efforts.

What is Internal Marketing?

Internal marketing represents the set of activities that promote an organization’s mission and objectives to its employees. These practices are driven by goals such as increasing employee engagement and retention. In addition, internal marketing efforts can support employees in becoming brand ambassadors and advocates.

You’ll need to approach internal marketing differently than your external marketing efforts, but the two strategies should align with one another. Ultimately, internal and external efforts should promote a holistic view of your organization and its mission.

A good internal marketing strategy will augment your external marketing campaigns. When employees feel a stronger sense of belonging and mission with their organizations, they’re ultimately more productive and better able to respond to client needs. Internal marketing also helps enhance collaboration by promoting information exchange, ensuring customers are getting an optimal experience.

Benefits of Internal Marketing

Employees who feel deeply connected to their work and to the overall mission of their company are more likely to represent your brand in a positive light. Employee advocacy begins with employee education and engagement.

When employees feel disconnected from their work, they’re more likely to seek out other opportunities. And they certainly won’t go out of their way to speak positively about the company or the work they do.

The benefits of internal marketing extend to many aspects of the business. Some of the top benefits include:

• Reduced employee attrition. When employees feel valued — and feel that their work is important — they’re less likely to look for greener pastures.
• Lower hiring costs. Organizations perceived as great places to work don’t need to spend as much money to attract top talent.
• Higher productivity. Employees are more likely to focus on producing great work when they feel they are contributing to a worthy mission.
• Improved employee satisfaction. Recognizing the hard work employees do helps them to feel proud of their accomplishments.
• Better company cohesion . Employees have a better grasp of their expectations and long-term goals when they are angling toward a clearly defined mission.
• Stronger alignment . When broader company goals are widely understood, there is a greater sense of alignment between leadership and team members.
• Eliminating information silos. Organizations that share objectives are better able to exchange critical information cross-departmentally.
• Enhanced customer interactions. Customers want to work with businesses they believe in. Mission alignment shows customers that your business is consistent and authentic.

Should You Hire an Agency for Internal Marketing?

In short, it depends. Agencies usually handle multiple clients at once, so if you go with the wrong agency you might find that your projects aren’t getting a sufficient amount of time devoted to them. You also lose a lot of control over the content creation process, so choosing an agency without the right expertise can actually do more harm than good.

There are plenty of reasons to go with an agency, however. Great agencies handle each of their clients with care. They take the time to learn and understand your business — including your industry, mission, and branding guidelines — to deliver marketing materials that are on-brand and impactful. If you’re strapped for cash, you can trust the right agency to contribute positively to your internal marketing strategy.

When you work with the right agency, you can count on getting all of the benefits that come with outsourcing your marketing without the added headaches. These include cutting down your marketing costs, which gives you more resources to devote to other parts of your content marketing strategy, and reducing the amount of time it takes to roll out branded content.

Some organizations might be reluctant to outsource their internal marketing strategy to an agency, and that’s OK. Leaning on an agency for external marketing gives your internal marketing team more room to focus on creating internal materials — like starting an internal company blog — that help your organization achieve its broader goals and objectives.

5 Internal Marketing Strategies To Increase Brand Advocacy

Internal marketing tactics encourage a positive working environment. Whenever you engage your employees in the following activities, make sure they have the time and resources to participate fully. Forcing employees to partake in internal marketing activities while they have more important responsibilities, like serving customers, can lead to the opposite of your intended impact.

1. Brand Education

Helping your employees to understand the history and mission of your company is an essential component of your internal marketing strategy. It’s also an important step in building an inclusive company culture. By helping your employees to feel like they are a part of something bigger, they may be more likely to participate in brand advocacy.

Onboarding is the perfect time to introduce new employees to your company and corporate culture. This might include presentations, videos or graphics explaining how the company has grown and evolved since its inception. Consider creating an employee onboarding guide to facilitate a smooth introduction to the company culture. These efforts may also include giving away freebies like branded sweatshirts, water bottles and similar products. Even if employees in your company don’t wear uniforms, these unique gifts can help them feel more like a member of the team.

Beyond the onboarding experience , brand education can help employees to stay up to date with the current incarnation of your brand. As your organization reacts to market changes and evolves along with your external market, your internal marketing campaigns can keep employees in-step with these broader concepts.

2. Employee Recognition Programs

An effective employee recognition program can be the central pillar of an internal marketing campaign. This is especially true for smaller organizations with fewer employees. Recognition helps team members know that management sees and appreciates their hard work.

There is a wide variety of shapes that your recognition program can take. For instance, managers can write thank you letters to employees. A handwritten note offers a personal touch that rewards like small gifts just can’t touch. Alternatively, recognition can take the form of a fun party game like an employee award show or a meal prep and delivery solution , to cater an employee appreciation with a delicious meal. They can also send a company-wide email detailing the project and the employee’s unique contribution, notifying everyone of a job well done (and inviting recognition from other employees at the same time). Also, many companies deliver employee recognition through gifts , such as clocks, houseplants, or awards. Employees who receive gifts are sure to feel appreciated. In turn, they can be happier in the workplace and improve their productivity.

At the other end of the spectrum, large organizations have seen great results with managed incentive programs. These types of programs offer employees experiential rewards such as afternoon excursions to a local sporting event or longer trips to exciting destinations. Many companies have also opted to adopt employee recognition software to streamline their efforts. According to research from the Bersin Group, companies that offer incentive programs see 14% higher employee performance than organizations without incentive programs.

3. Integrated Communication Apps

As more teams operate remotely, internal communication apps have become increasingly essential to employee engagement efforts. Apps like Slack enable employees to easily share information with one another while reducing dependence on meetings. Additionally, you can use  noise-canceling software  to ensure productive and engaging meetings.

Employee communication is a basic use case for communication apps. Internal marketing campaigns can use this technology to deliver branded information and keep everyone in alignment with broader company objectives. For example, you could use apps to announce new product or service rollouts.

In addition, apps can offer powerful ways to measure engagement. You can easily see who has adopted the app and who uses it most frequently. This data can show you which employees are your best brand advocates. You can also leverage app usage reports to support future internal marketing campaigns.

4. Employee Roundtables

Do your employees feel comfortable expressing their opinions? Employee roundtables can offer a safe and constructive place for employees to get together with management and share their ideas. Roundtable discussions should allow individuals to disagree with one another while remaining civil and respectful.

This is a great opportunity for collaboration between your human resources department and your marketing department. Insights gleaned from the discussions can inform new HR initiatives and support the marketing team in understanding what employees like or dislike about the company. Transparency is key. Managers should minimize their own interactions and focus on listening to what their employees have to say.

5. Bonding Activities

Your internal marketing plan should include activities that are focused entirely on helping your employees to feel like they’re part of the team. In other words, not every activity should be about promoting your brand to your employees. Sometimes, people just need to kick back and have some fun.

Taking your team out to lunch is a fun way for employees to get to know one another in an informal setting. By increasing employee comfort levels, it becomes easier for team members to share ideas, ask questions and even drive innovation.

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Three Internal Marketing KPIs To Track Your Progress

Internal marketing is critical because it helps create a greater sense of community among team members, which ultimately helps to reduce inefficiencies and deliver a better experience for customers.

Effective internal marketing experiences will have a positive impact on a number of areas within your organization. The following key performance indicators can help you develop a sustainable and successful internal marketing program:

1. Employee Productivity

Taking benchmark measures of employee performance before and after implementing your internal marketing program can show you the impact it has on tangible deliverables. For example, let’s say your campaign includes sharing sales strategies with other departments. You should see that your marketing team is in alignment with the sales process.

Or say you’re trying to decrease the number of internal tickets to your company’s IT department. Monitoring adoption of your internal communication app can show you if your employees are communicating with each other about technology troubleshooting.

As a means of measuring productivity, consider implementing  automatic time tracking . This can help you see how your employees spend their billed time.

2. Employee Retention

At the end of the day, effective communication empowers employees to perform their jobs according to expectations. Internal communications should make employees feel more engaged with the organization’s overall mission. It also ensures you’re hiring qualified candidates that truly believe in your mission and what you’re trying to accomplish.

Tracking retention and turnover rates can help you understand how your employees feel about the work they do. In addition to monitoring turnover rates, you should also review exit interviews to see if there are any trends in the reasons employees give for moving on to other opportunities.

3. Online Interactions

Are your employees communicating with each other? Are they sharing branded stories to their personal social media channels? While it can be difficult to monitor these digital interactions, they can show you exactly how your employees feel about the company mission. Engaged, satisfied employees are more likely to share their experiences and accomplishments with their personal networks, for example. Likewise, a high level of engagement with your organization’s internal chat apps can show you how your teams collaborate with one another.

Successful internal marketing campaigns can turn employees into effective brand ambassadors. This in turn can have a positive impact on your external marketing efforts. To learn more about how to align advocacy marketing with your organization’s broader content marketing strategy, check out our comprehensive guide .

Editor’s Note: Updated October 2021.

By Alexander Santo

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How to Create an Internal Business Plan for a New Company Initiative

It is important to put together a complete, comprehensive internal business plan for a few reasons.

Business plans for start-up companies have become mainstays in the business world. But more and more company initiatives and projects have begun to require business plans as a way of validating prudent investments and company spend as maturing businesses look for innovation within to drive future revenue growth. A time may come in a business or a division when you have a new idea or product you believe will equal big revenue for the company, but how do you convey your message to the larger organization? As the world turns towards innovation and technology to drive growth in this mature economy, creating an internal business plan is becoming more and more commonplace, if not a necessity.

If you have a good working relationship with your executive team, business ideas should not be popping up out of the blue. Instead, you should have a platform for discussion in either staff meetings or one-on-one sessions with the executives. However, it is important to put together a complete, comprehensive internal business plan for a few reasons:

• It shows that you have your stuff together and can be organized and methodical about your plan.
• You will need to evangelize your new plan quickly and succinctly throughout the organization, and a detailed business plan is the most effective way to disseminate information.

Here are a few suggestions for inclusion in your business to improve the probability of gaining approval:

Executive Summary

The Executive Summary may be the most important part of the internal business plan as it cements the audience’s first impression of the project. This may be the only page many executives have time to read and discuss, so make sure it tells the story in a summarized manner. Style, visualization, and financial accuracy are all important aspect of this page.

Questions to ask and answer include:

• What is the idea?
• Where did it come from?
• How much to you believe its worth?
• What is the duration of investment?
• What is the financial impact?
• What is the mechanism we need to enact and unlock this new revenue stream?
• How does this project tie into and/or complement the overall strategy for the business and any other growth initiatives? (It is important to see how this product or service will become an integral part of the organization for years to come and not a one-off fad or an ill-conceived idea.)

It is very important to lay out your marketing strategy, as this will be the main focus point for management in understanding how realistic it will be to achieve your results. First, you need to identify your target market, whether it be a specific demographic or fanbase or creating a new segment. You will need to be very specific about your methods of attracting your target customers and the message you are going to represent to the overall market. If you are tapping into a new market, how will you get your message out there? If you are stealing share or competing against another rival, what will be your differentiation to gain share?

Without the right combination of message and means of delivering the message, even truly superior new products may have trouble gaining traction in the marketplace. If you can show that you already have customers lined up ready to purchase your products or services, this makes your case more convincing.

Management Team

Executives want to support new projects and new ideas, but they need to be confident in the people you put in charge. If you, as the author of the internal business plan, will not be directly operating the new product or service, but someone else on your team will be the main contact, you want to make sure they are a good fit for the project.

The team structure has to go beyond just your normal, everyday team configuration. It must show how each team member’s background and accomplishments contribute essential elements needed to succeed with this new venture. The project may involve more than one department, so you will want to show that you put time and effort into determining the team and define the responsibilities of each member. Make sure that you have a diverse group of people that have the availability to dedicate time to the project with a good mix of senior and junior employees.

Financial Projections

As the executive team decides whether they are going to approve of the investment in this new product or service, they have to consider whether they are going to get a sufficient return on their investment. Not only do they have to consider ROI, but in many companies where resources are limited and staffing up can be a political nightmare, business units also have to consider opportunity costs or tradeoffs related to moving individuals and not having them concentrate on already productive and proven products and services.

The financial projections provide clues about how well thought out the new products and services are as well as their financial viability. The executive team will look for whether the team has presented a reasonable forecast for revenue and profit growth that is both aggressive, but realistic for the business unit. When they see projections that seem unattainable, the project immediately loses credibility. Executive teams also want to see whether the management team backed up the projections with sound assumptions based on hard data obtained from industry sources – or were the projections simply guesswork. Financial projections in a business plan do not need to be voluminous or excessively complex. However, they do need to be clear and reasonable while being exciting from a ROI standpoint.

Getting Support for Your Internal Business Plan

While you may include additional information in your business plan, it is important to keep it short and succinct. It is also important that you dedicate the correct resources to develop, publish, and present this business plan. Our team at 8020 Consulting has experience putting together business plans for project and initiatives. You can contact us to learn more .

If you’d like to learn more about internal momentum toward business goals, we invite you to download our operational review program guide . It offers insights into how to organize meetings and set roles to encourage organizational traction:

About the Author

Lester has over 15 years of professional finance experience in strategic planning, forecasting and budgeting, financial analysis, and business evaluation. Prior to joining 8020 Consulting, Lester was the Director of Business Planning and Analysis at Warner Bros. and had previously worked as a Senior Manager of Retail Analysis and Manager of Finance for The Walt Disney Company. Additionally, Lester has held positions at Thomson Reuters and Public Financial Management. In his career, Lester also operated as the Chief Financial Officer for a consumer goods start-up company, where he oversaw the Accounting, Finance, Operations and HR functions. Lester’s expertise centers around FP&A, budgeting and forecasting, financial modeling, cause of change analysis, consolidation, industry analysis, and project management. Lester holds a Bachelor of Arts in Economics from Stanford University, and an MBA in Corporate Strategy and Finance from The University of Michigan, Ross School of Business.

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How to Create a Promotion Plan? (With Examples)

Promotion planning is optimizing every element of the marketing plan of your services. It requires thinking and making decisions for the utilization of a promotion process. These include consideration of resources, strategies, marketing tools to use, and services that carry your objectives and demands. Let’s take a look at how to create a promotion plan.

What will we cover in this article?

An Overview of a Promotion Plan

The promotion plan is the outline and shows significant aspects of the promotion. Thus, creating your promotion outline of the campaign should consist of sequences of components. Each of them has its aims for creating a successful promotion. These aspects also have vital relationships and impacts on each other to lead to achievement or failure of promotion plan.

Your promotional plan will be unique to your business relative to your marketing campaign. Therefore, your promotion plan varies in each element to achieve your goal. As each marketing campaign stands in different aspects and serves a purpose, promotion plans should differ for goals. Even in a single campaign plan, you might need several or more objectives which add more distinctiveness to your business.

In a word, creating a promotion plan shows your aim to get a successful outcome at the end of the promotion, and you believe that you need a roadmap to launch into the market.

How Does a Promotional Plan Benefit?

As it seems, a promotional plan seems more necessary now for any business with different ambitions. The company’s purpose of creating promotions can change. Therefore, it needs to follow structures about trying something new. The promotion plan gives a clear roadmap to your business and investors. Promotion plans are an outline of trying new strategies.  It is straightforward, and almost all aspects of promotion are planned before implementing it. Indeed, a promotion plan illustrates the company’s strategic characteristics of any promotion. It creates ways to achieve and describes how it is possible. 

The end of the promotion plan helps in achieving long-term goals. It can grab attention and make you known to your target and turn them into long-term customers. A promotion plan can function as inform, influence, or persuasive purposes. It is also adjustable and can change to any part of the plan.

Components of a Promotional Plan

Promotional plans don’t have a specific structure in terms of components. While creating a promotion plan, there are some components to set off. However, some things need to have in a promotion plan. Namely, they are elements to take into consideration for every promotion plan. These segments are equally important in creating any promotion. You can find the most probably efficient ones stated in this article.

Create Your Promotional Plan

You may want and have different reasons to start your promotion. For instance, the promotional plan process aims to inform, reach target audiences, persuade and engage with the company in basic terms. A promotion plan requires thinking systematically. Before starting your promotion plan, consider the most convenient elements shown below.

Creating Your Promotional Plan Includes

To create your promotion plan, you can look for the components covered in your promotion. Some of them are listed and explained in this article.

A Promotional Plan

• Define Aims And Problems

Identify Objectives

Know target audience.

• Promotion Type And Strategy

Key Messages

Name promotion plan, promote products and services, plan resources, test your promotion plan, implementation of promotion plan, monitor and evaluate promotion plan.

Define Aims and Problems

Why do you want to promotion plan? Any issues you are concerned about and lead to planning? It is one of the crucial parts to know and get more clear about starting your promotion plan. Define and state your reasons, goals, and problems to create a promotion. Make sure about your motivation and be specific for creating a detailed promotion plan. Defining aims might be the very first step to start your planning.

After you define your reasons to start a promotion plan, the next thing to do is make clear objectives. Objectives are goals to at the end of the promotion plan, outcome to get through the company efforts. Identify your reasons for creating a promotion plan with your objectives. Objectives will guide particular strategies and shows how you will market them. They also should match with your promotion type in the promotion plan. You can decide your objectives by keeping in mind your target audience. Objectives should be specific, achievable, realistic, and measurable. Promotional objectives would be specific to your intents in your campaign, and you can find some examples:

• Your promotional objectives would be to launch a new product or service, inform customers about the product, build loyal customers, expand your market. 
• The objective can be specific to get traffic to your website or registrations.

Think about the target audience before deciding anything about the promotion plan, and try to have their perspectives in marketing. In every marketing, there is always a target audience. You can not think of objectives or strategies without considering audiences. So, try to learn or conduct research about your possible target audiences. Without knowing them, any business could not make it and be successful.

 One of the first things to start in a promotion plan is to know your target audiences. The target audience can be people who probably would be interested in your product. When you know about your target audience, you will save time, deliver the right services and provide knowledge about marketing efforts to take. It would help the company is more likely to meet with the right people and use the right offer to lead solutions to any problem.

 Define the target audience to make a clear vision for the products, like things the audience needs to know. 

In general, know or pick some of them, possibly worth knowing:

• Audience demographics (gender, age, etc.) 
• Behavior patterns most probably benefit the promotion plan.

Design of Promotion

Promotional design is like launching your execution plan. You have to find the type, the strategies and add some of your creativity. Decide on the promotion types and strategies that consist of the target audience and objective of the promotional plan. In addition to that company should analyze the pros and cons to select appropriate promotional tools with their resources.

Promotion Type and Strategy

Promotion type and strategy is about how to apply your objective to marketing. While looking for a promotion strategy, you need to focus on the target audience, objective, product, or service for promotion type. 

Create your promotion type which is suit best to the company and campaign. With the promotion type, you decided that is a way to attract the target audience. It will encourage people to know your business or change the image of your company and pursue. Also, simple promotions are easy to understand and respond high within the market. 

You can choose from the various promotion types:

• Advertising
• Personal selling
• Sales promotion
• Public relations
• Social Media

If you decide what type of promotion you will use, start implementing it into your promotion strategies. You may promote with these strategies:

• Free shipping
• Percentage discount
• Give free items
• Loyalty-coupons
• Special offers at weekends

What is the mission statement of the company in that specific promotion? Find massage, name promotion, and products or services to reflect your promotion. Let the audience know about your promotion product or service with simple and catchy phrases. This phrase needs to infer the company and its promoted service. 

Make promotion more unique by giving a name. Name promotion plan with the campaign, find catchy and related to promotion campaign. Try to title it to grab attention just hearing that. 

You can present promotions with products with their messages. Choose something relevant to the promotion plan. It could be classic as shirts and hats. Products that include the company logo or slogan will say more about the current promotion plan. It allows to high chance of grabbing attention and meeting with audiences to deliver the campaign. 

Plan your resources, should decide the duration of the promotion, strategies, or tools to have in the promotion plan. The budget you have and incentives need to take consideration during the planning.

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Check the resources that you are going to invest in marketing. Set budgets because you will know your expense of promotion, services, and marketing tools you can choose.

Once you have a promotional plan, you should test your plan. It would help to realize potential problems and identify the things you need to change in the promotion plan. To test the promotion plan and try it with selected markets. Similarly, you can test your strategies once you set a goal and objective. A key performance indicator is the simplest way to test your revenue goal at a particular time.

Until this part, you make a plan and decide on an objective, target audience, strategies to use in implementation. It is time for promotion to launch. You are in the market and assess your processes with the outcomes of the promotion plan. It allows you to adjust the promotion plan or change it completely.

A promotional plan is a great way to evaluate your business. In planning processes, you think about your current resources, target audience, objective, strategies. After you launch, you see the performance of the promotion plan with the result in the real market now. 

Promotional Plan Template

Create your promotion plan with components of it.

Yet, a simple promotional template can include of following elements:

• Overview of the current status of the business and products or services you offered (resources, products, and budget)
• Mission statement to start promotion plan
• Long term goals and KPIs
• Target Audience (information about your target audience)
• Promotion strategies

Conclusion About How to Create Promotional Plan (With Examples)

In this article, you can find almost everything about the promotional plan. So, start your promotion plan while sticking with its fundamental aspects. Also, consider your business and services to create your unique promotion plan, know your target, and always keep into your mind the objective and goal in each promotion plan. We hope this article will help all you need to know about the promotion plan.

Frequently Asked Questions About

A promotion plan is a process of optimizing your marketing. You need to know about aspects of a promotion plan to create your own. It means more emphasis on thinking and deciding on implementing it. Think of your promotion plan as an outline with elements that shows your goal to create a plan. It’s a unique roadmap to your business

The company’s purpose of creating promotions can change. So, it needs to follow structures about trying something new. Promotion is easy to get attention,  and people are most likely to purchase. Those build brand loyalty.

There are not certain fundamentals of a promotion plan. But a promotion plan has components to include in every promotion plan to achieve its goal. Each of them is equally important and impacts on results of the promotion. Therefore, to create a successful promotion that should consider and have every plan. Cover these in a plan: mission statements, objectives, audience, strategies, and assessment tools.

A promotion plan is a process, so you don’t need to do anything special but start creating and thinking about your promotion. You can try the promotion plan by asking the following questions as a start, Why do you want to promote a plan? What is your current company doing?

A promotional plan is for various purposes so, there are many different templates that you can find or create your unique template. However, in a basic promotional template, you look for components such as current status, state reasons for promotion plan, define an objective, know the target audience, find promotion strategies and test the process.

I am İrem Beyza Gökcan and I am currently studying management engineering at Bahçeşehir University at the same time I am also studying public relations and advertising at Anadolu University. I am interested in digital marketing and SEO. Also I am pursuing my career in this area.

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Research from McKinsey & Company finds that of employees who voluntarily leave their jobs, 35% cite a lack of career development and promotion opportunities as their reason.

If the Great Resignation has taught us anything, it’s that employers must do more to invest in employee retention. 

And according to data from LinkedIn’s 2020 Global Talent Trends report, employees at companies that hire and promote more internal candidates stay 41% longer than workers at companies with lower internal hiring rates.

Having a promotion policy in place to recognize employees for their hard work is a critical piece of the puzzle to retaining more workers. 

A clear promotion policy makes career planning and growth opportunities easier to design and follow. Here’s how to create one for your organization.

What is a promotion policy?

A promotion policy is a set of guidelines that define how, when, and why an employee is eligible for a promotion. The company’s human resources team develops these guidelines to provide specific and measurable goals for employees to qualify for a promotion. 

“Promotion policies are meant to clarify any pay adjustments, title, and responsibilities that change with rank and job category,” says Dannie Lynn Fountain, a Senior SWE Sourcer at Google. “In other words, it's a road map to career growth for both employees and the organization.”

Employee promotion policy template: 

A promotion policy recognizes hardworking employees by justifying promotion decisions through objective evidence. A promotion policy template helps management devise qualifications effectively. Here’s one sample template: 

What not to include: Tenure or formal education requirements. “Both are possible bias/discriminating factors,” warns Fountain.

Why are promotion policies important?

According to Fountain, “Promotion policies are critical for supporting internal mobility. By having a promotion policy, the path to career growth is clear, and employees can work towards future goals.”

“As well, the clearly defined parameters promote equity and reduce the advancement gap, by making the expectations by role and rank clear across all individuals in that role,” Fountain shares. Transparent policies serve as reference points for employees to track their performance.

What is the purpose of a promotion policy?

A promotion policy adds structure to an organization’s promotion process. It is aimed to develop policies with specific goals in mind, such as a leadership development plan , that converge to make a more fair work environment. Below are some common goals companies set. 

Career growth plan 

Employees stick around longer in a company when they see a clear career growth plan for themselves. Promotion policies make it easy to map these plans for each position by developing promotion indicators. 

Eradicate discrimination 

Not having an objective guidelines leaves room for workplace discrimination . It can also lead to emotional bias and favoritism. Harmful workplace practices such as religious or gender discrimination may persist in organizations without a promotion policy. A promotion policy creates transparency in the process by ensuring promotions are based solely on merit and work ethic. 

Internal hiring 

When opening new roles, companies can opt for internal hiring rather than hiring external candidates. HR management should carefully consider the pros and cons of internal hiring. When you have job openings, internal hiring saves on training costs and hiring time. It also encourages talent development within the organization . 

Reward system 

If we zoom out from the nitty-gritty of employee promotion policy, we see it is simply a structured reward system for capable employees. Managers can promote their direct reports when they meet expectations. 

An established reward system keeps employees motivated to excel. Yet, research from Workhuman and Gallup finds that only 36% of employees report their organization having some sort of recognition system in place.

Employee retention

One of the top indicators of a subpar company culture is a high employee churn rate. Many businesses that aren’t able to retain workers have poor employee relations . Having a transparent promotion policy helps increase employee retention . It reduces vacancies because it reassures your staff that the opportunity exists for them to make it to the next level. This could be in the form of a higher position, higher pay, and more responsibilities. 

How do promotion policies influence recruitment?

“Promotion policies guide new hire leveling (what rank/job title should a new hire have based on their background) and aid recruiting in having conversations about internal mobility,” says Fountain.

Setting professional development goals at work makes it easy to create a development ladder for employees by hiring internally. 

Organizations should thoughtfully choose between internal and external recruitment. Excessive internal recruitment shrinks teams and causes potential understaffing. But excessive external hiring can cause the company to over-staff. Thoughtful hiring strategies avoid both these recruitment problems while promoting employee development internally.

Essential components of a promotion policy

Eligibility .

An employee is deemed eligible for a promotion if they meet their defined KPIs and have the mindset to excel further. Evaluating eligibility requires the employee’s manager to find the balance between objective and subjective evaluation. The criteria for promotion are set at the bi-annual or annual performance management meetings by managers and directors. 

Career alignment 

A promotion policy for each position should follow a defined career growth path. For example, a Graphic Designer’s next promotion should be Senior Graphic Designer and then Head Designer. It wouldn’t make sense to promote a graphic designer to an Operations Manager position unless they are looking for career mobility within the organization . 

Fair opportunity 

Giving a fair chance of promotion to all employees is essential for a promotion policy. This includes removing gender discrimination, ethnic discrimination, or nepotism from the promotion process. Providing a fair opportunity to excel to all employees reveals healthy transparency within an organization’s operations and keeps employees motivated to climb the promotion ladder.

Pair your promotion policy with a fair, consistent performance appraisal process . This lets workers know where they stand, how they can improve, and why others may have been promoted instead of them.

How to establish a promotion policy

Here’s how companies can develop and educate the workforce about a new promotion policy:

• Perform an Audit: An audit of all current roles and any existing succession plans should be done first to identify gaps.
• Define Career Paths: HR and top management should map out career paths to ensure each position has a promotion pipeline in place.
• Add Eligibility Criteria: For each promotion, define eligibility criteria with quantifiable goals and metrics that can be checked for each candidate employee.
• Employee Handbook: Add the career paths along with the promotion eligibility criteria to the employee handbook for everyone to access. Keep the employee handbook updated with each new development.
• Management Training: Hold management training programs to help managers understand the employee promotion policy and their role in making those decisions. 

Tips for communicating a new promotion policy

Once a new or updated promotion policy is ready, circulate it effectively to all employees. Here are some helpful tips for communicating the promotion policy across the organization: 

1. Company-wide updates

Adding the promotion policy changes to the employee handbook doesn’t necessarily mean employees will read and understand it. HR can send a company-wide email to alert all employees to changes in the promotion policy. They may also conduct an all-hands meeting to discuss it and answer any questions. The employee promotion policy should also be paired with internal job openings. 

2. Reinforce knowledge

When changes are made to the existing promotion policy, email updates should be sent across the organization. Some companies also develop a mandatory internal quiz to ensure all employees know and understand the new promotion policy. 

Promotion policy FAQs

When should i implement a promotion policy.

Implement a promotion policy when your company is big enough to have hierarchies. Normally, companies with ten or more employees should have a promotion policy in place to give opportunities for career growth. 

Do small businesses need promotion policies?

Businesses consisting of small teams of under ten employees may not need a promotion policy. However, Fountain would argue that all companies that plan to advance talent internally should have promotion policies in place.

Promotion policies help structure a business when it divides functional teams in its growth stage. As their business enters this stage, founders should consider implementing a policy to internally promote employees to managerial positions before hiring new talent.

Are there consequences to not creating a promotion policy?

Not having a defined promotion policy gives way to unfair promotions and discrimination in the workplace. 

“The advancement gap (the gap that occurs when marginalized individuals are promoted at a slower rate than others) can be mitigated through an effective promotion plan,” says Fountain. “A promotion plan also helps guard against other equity issues and EEOC issues.”

Not having a promotion policy may discourage talented candidates from applying to the organization. This could be due to an (apparent) lack of value for hard work or career growth milestones in place. 

Keep empathy at the heart of your employee promotion policy

At the end of the day, employees simply want to know that they're working towards something meaningful and that they have a fair shot at achieving it. 

While your company's mission and ESG initiatives can help support that, your workers also need to know what's in it for them. They want to know how your organization intends to help them meet their professional goals. Having a formal promotion policy and communicating it to your staff can go a long way toward employee retention and engagement. 

Some employees may have a record of good performance and be eager to reach a higher level or move laterally within your organization. If they don't have the perfect mindset or skillset, coaching is an excellent tool to help them get there. Investing in your team’s career development is a powerful way to show them that you care.

Allaya Cooks-Campbell

BetterUp Associate Learning Experience Designer

Talent mobility: what it is and 3 steps to developing your process

Off-the-job training and how it benefits your team, how to use workforce development to close the skills gap, how to write an exciting promotion announcement, 4 ways the sap successfactors integration makes life easier, increase engagement and morale with knowledge management, are you being passed over for a promotion here’s what to do, getting passed over for a promotion is tough. here's how to handle it, what is reskilling and how can it benefit teams, similar articles, career mobility: a better answer for talent retention, employee relations: an overview and best practices, what is the open-door policy workplace and does it still work, how to grow your team better, faster with an employee referral program, what is sabbatical leave it's the best kept secret in hr, learn how to manage two jobs at once, hiring here’s why internal candidates might be best, here’s what to look for in a work-from-home policy, stay connected with betterup, get our newsletter, event invites, plus product insights and research..

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Writing an internal business plan

Beyond external, there are many internal reasons to write a business plan to support business success.

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While all of the reasons for writing a business plan are usually described as external, such as landing investors or recruiting quality talent – there are plenty of reasons to make an internal business plan as well. Generally, such a plan is there to act as a roadmap for the company’s success; something to remind everyone of the joint vision they are working towards.

Business plan writing tips & advice for the avid entrepreneur

Why is a business plan important and who is it for, can a business plan improve your organisational performance, why make an internal business plan.

Generally, many large businesses utilise internal business plans to make sure that the overall company vision is not compromised and easily communicated to everyone. That sort of strategic direction is not easy to achieve solely by meetings and memos, especially if sprawling corporate structures are involved. Plus, the information laid out in such ways is always prone to change; which is why business plans are there to provide a more long-term, future-oriented set of values and motives.

Apart from that, as you will see in detail below; internal business plans are less focused on the financial aspect of running a business, at least when everything is functioning correctly in that regard. Instead, such plans are more often used to establish a set of metrics that the staff can use to see how hard they are working. Additionally, they are there to enable better performance management by upper management; ensuring that everyone realised what they need to do for their job performance not to suffer, and precisely what is expected of them in the workplace.

Overall, internal business plans allow for a higher degree of control and coordination among different levels of management and employees. Not only is communication vastly improved by the elimination of superfluous dilemmas; but the staff is also better able to voice their pleasure or concerns about where the company is going in the commercial and cultural sense. Such a plan is as much suited for staff empowerment as it is for better management .

Mission statement

If vision is about imagining and looking forward; your mission is very much about the present, and doing. In other words – you want to focus your mission statement on the practical, everyday actions that company employees can undertake to itch closer to the future forecast of the vision statement. So, make sure to lay out what kind of behaviours and actions must be done for your business to get where you want it to go.

For customer-oriented companies, the mission statement can also contain a succinct description of what the most average target consumer is for the company; something all employees will keep in mind. And then, tackle the public image of your company; what it is currently, what you want it to become, and what everyone needs to do to attain that image. That will bring a unique definition to your business in the eyes of the public, and give everyone a sense of clarity about what kind of collective they’re in.

If you want to bring even more clarity to your business, the only thing you can do is provide more specific desired outcomes for the future of your business. With that in mind, make sure to use your internal business plan to lay out a clear set of objectives for everyone who has access to it. Once you manage that, you will have a perfect guiding light to keep everyone involved headed in the proper direction.

Unlike the broader mission statement, your objectives should be less long-term and much more detail-oriented and specific. For example, you may want to choose a realistic revenue target and a reasonable date for hitting it. Then, think of what all of your employees need to do to manage this. And give them a set of objectives all of them are capable of understanding and working towards. Naturally, these must be in perfect alignment with your mission and vision, for the business plan to give a meaningful structure to your company culture .

Strategies are more general activities that your management must employ to reach the desired objectives. You want to make sure these are spelt out clearly, but they can be pretty broad in terms of scope. Remember – these will act as a bridge between your objectives and the practical actions that must be taken.

If you’re looking for examples, think in terms of detailed quarterly or monthly reviews, and better measurements of certain metrics to reach specific objectives. For example, most of your employees may need to work on revamping the quality control process at all production stages.

Action plans

Action plans are a part of the internal business plan; usually there to tie in a particular activity from a strategy with your set of objectives. Let’s clear this up a bit. Actions could mean the creation of a new product or a more modern marketing plan. It could also be the process of developing or investing in new systems. That is something you want to plan out annually and with strict deadlines.

Sustainability

Before you round out your internal business plan, there’s one crucial question you need to ask yourself. Namely, is your company capable of doing everything that this plan sets out to do? After all, with so many different management plans that are a part of this overall plan, it may all seem a bit overly ambitious. And while it sometimes just seems a bit confusing until everyone gets more comfortable with it; in many situations, an internal business plan may be too lofty to be realistic.

There’s no shame in making amendments to your internal business plan after it’s been circulated the company. After all, some things may prove to be not feasible after a couple of months. Or, an idea which seemed great to you, in the beginning, is now looking pretty outdated.

On the other hand, you don’t want to throw things out of the plan whenever they prove difficult to do; that’s also a recipe for disaster. Finding that middle ground between following an intricate, but realistic plan, and changing one that’s just not viable – that is something only a truly great manager is capable of.

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How to write an internal business plan?

A business plan is an argumentative document that outlines the structure, functions, products/services, and strategic and financial goals of a company or a business idea. 

Business plans can be used in several decision-making processes in businesses. They are an important part of creating strategic, feasibility, operational, and expansion plans. 

External business plans are often aimed at convincing the reader to invest or lend money to a company, while internal business plans are made for the board members or the staff.

In this guide, we’ll focus on what an internal business plan is and what it’s not. We’ll dig deep into why a business might need an internal business plan. This guide will also help you determine what tools you can use to create an effective internal business plan for your business.

So, let’s get started!

In this guide:

What is an internal business plan?

Why write an internal business plan, how does an internal business plan differ from a traditional (external) business plan, what tools can you use to write an internal business plan, how to use your internal business plan effectively, the bottom line.

Unlike the traditional business plan that is aimed at the company's external audiences, the internal business plan is made to be used within the company. 

Its main aim is to keep the team or the board in sync with the goals and strategy of the business. This ensures everyone is on the same page so that decisions can be taken in line with the company’s strategy.

Just like a traditional business plan, an internal business plan also: explains how a project is being moved forward, details the risk and rewards associated with the action plan, and includes a financial forecast. 

A good internal business plan leans into uncovering weaknesses and competitive advantages for your business. Ensuring that employees are in sync with the goals of the business also encourages employee engagement.

What is the difference between an internal business plan and a business case?

While internal business plans and business cases might sound similar, they actually are not the same at all. 

A business case analyzes the merits of a single project or potential initiative, the business plan, on the other hand, covers the plan of action for your entire business over several years. 

Considering that the details mentioned in a business plan are based on a series of hypotheses and forecasts, they need to be reviewed periodically. For that, the business plan preparation should be an ongoing task in your business. 

On the other hand, the business case is usually a single one-off analysis aimed at making a go or no-go decision based on an estimated return on investment.

Need a convincing business plan?

The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

By now, you’ve probably determined that an internal business plan can be thought of as a summary that aims to connect the employees with the vision and goals of the company. It includes valuable financial and strategic details about the business.

This means the document can be used to gain a quick and clear understanding of business operations, funding, and expected profitability. 

If the creation and communication of an internal business plan are carried out effectively, it can do wonders. Let’s see some of the advantages of this document.

Get buy-in from the board and decision-makers

The internal business plan can be used to convince the board (and other decision makers) and get their buy-in on the next strategic move for the business. 

This may include an expansion plan, a restructuring, a refinancing, etc. The internal business plan can be considered an argumentative document since it is a powerful tool for convincing the board members to approve a plan of action. It does so by providing a clear and compelling vision for the organization's future.

In a well-crafted internal business plan, the need for action can be demonstrated. You can highlight the challenges facing the organization and how these problems can be addressed. The financial benefits of taking action can also be demonstrated by outlining the expected return on investment (ROI) of proposed initiatives. 

Finally, an internal business plan can help to build consensus and support for taking action by demonstrating how proposed initiatives align with the organization's overall mission and values.

Facilitate decision making

Business decisions are effective only when they align with the company’s goals and objectives. Therefore, it is imperative that your heads of departments and delegates are well aware of the company strategy.

Considering that an internal business plan contains details about the short and long-term goals of the company, it can act as a framework for evaluating options and making informed choices. 

It also helps the leaders and decision-makers stay focused on what's most important for the business by outlining specific goals and the strategies needed to achieve them.

Align staff members on vision and direction of travel 

Internal communication is one of the most important aspects of modern-day businesses. Businesses need to be connected to employees at all times to ensure engagement and collaboration.

Internal business plans explain where the business is headed making sure everyone has a concrete idea about what is going on in the business.

The traditional (external) business plan is mainly aimed at securing financing from investors or lenders. It may also be used to convince business partners or suppliers to do business with the company. 

On the other hand, the internal business plan aims to align the staff and board members with the goals and vision of the company.

As a result, internal business plans differ from traditional business plans in the following ways:

• Less description: the employees of a business already have some level of familiarity with the business operations. Therefore, the description of company structure, products and services, operations, and market mentioned in an internal business plan can afford to be less detailed than in an external one.
• Less financial information: internal business plans made accessible to the broader staff might contain less financial information than external plans, as the owners or board members might not be comfortable sharing confidential financial information with everyone. 
• More strategic information: non-disclosure agreements are rare with investors, whereas staff and board members have an obligation in that regard. Therefore, the level of strategic disclosure might be much higher in an internal business plan than in an external one.
• Different tone: while external business plan tend to be formal documents, the tone of internal ones might be less formal if they are meant to be shared only with the staff. 

There are two possible formats for writing an internal business plan based on the intended audience and level of disclosure: 

• For a simple internal business plan aimed at your staff, the recommended format is an executive summary (also called one-page business plan).
• For a more detailed document aimed at getting buy-in from board members and decision-makers, the traditional business plan structure is recommended.

Steps involved in writing an internal business plan

The first step in writing an internal business plan is to identify the key goals and objectives that your company wants to achieve. These could include expanding into new markets, launching new products or services, or improving operational efficiency.

Secondly, conduct a thorough analysis of your target market and the competition to identify any trends, opportunities, or challenges that your company may face. Your internal business plan should be reviewed and updated regularly to ensure it remains relevant and aligned with your company's goals and objectives.

The standard template for the traditional business plan

• Business Overview -  A description of the business model, products/services offered, and the industry you operate in.
• Market Overview - A quick overview of your industry, market trends, and potential opportunities for growth.
• Financial Highlights - A summary of the company's main financial metrics (revenue, profit, and cash flow) and expected performance over the next 3 years.
• Our Ask - The specific request being made in the plan (for board members / when seeking approval only).
• Structure & Ownership - Details about the organizational structure, including ownership and management team.
• History - A brief summary of the company's past performance and key milestones.
• Location - A description of the physical location of the business, including any relevant details about the surrounding area.
• Management Team - An overview of the management team, including their experience and qualifications.
• Products and Services - A detailed description of the products and/or services offered by the company.

• Demographics and Segmentation - Information about the potential customer segments.
• Target Market - A description of the specific segments the company is targeting.
• Competition - An analysis of the competitors in the market and how the company differentiates itself.
• Barriers to Entry - An explanation of what prevents new competitors from entering the market.
• Regulation - Any laws or regulations that may impact the company's operations or products.
• Competitive Edge - The unique advantage the company has over its competitors.
• Pricing - The company's pricing strategy for its products or services.
• Marketing Plan - A detailed plan outlining how the company will reach its target market and promote its products/services.
• Milestones - Key events or goals the company plans to achieve in the short- or long-term.
• Risks and Mitigations -  An analysis of the potential risks to the business and how they will be managed.
• Personnel Plan - Details about the staffing needs of the business, including job roles and responsibilities.
• Key Assets and IP - A description of the company's key assets and intellectual property.
• Suppliers - A list of the company's suppliers and their role in the business.
• Financial Plan - A detailed analysis of the company's financial projections, including a forecasted Profit & Loss statement, balance sheet and cash flow forecast.
• Appendix -  Additional information that supports the business plan, such as market research, legal documents, or product specifications.

Usually, internal business plans are prepared in-house using either specialized software or spreadsheets and word processors. Let’s look at both options.

Writing internal business plans with Word and Excel

Internal business plans can be prepared using "free" softwares like Word and Excel - though this is probably not the best approach. 

The first issue is that in order to create a financial forecast on Excel without making mistakes, the person preparing the forecast will need to be well versed in accounting and finance. This can work if you are a larger business with a dedicated CFO or FP&A team, but it’s usually not a viable option for small businesses.

The second issue is that preparing an internal business plan requires intense collaboration with your team. For instance, the head of sales might be working on the sales forecast, while your head of HR has to ensure you have enough staff to serve customers. 

In this context, juggling between Excel and a word processor while coordinating multiple staff members can quickly become counterproductive. 

The third issue when you use Excel is that forecasts are hard to build, and there are no built-in scenarios analysis capabilities which makes it harder than it needs to be to come up with a concrete plan of action - as your team will have to iterate to agree on a plan (should we hire or outsource? What if sales are 5% higher? Etc.). 

Finally, Excel has no actual vs. forecast analysis capabilities, which make it hard to track if the plan is being delivered as expected and maintain the forecast up to date as time goes by.

That’s why using Excel and Word to create business plans is fastly going out of fashion in favor of using specialized software.

Creating an internal business plan with an online tool

Creating an internal business plan is much more simple and effective when using an online software such as the one we offer at The Business Plan Shop. 

The biggest benefit is that you get professional guidance at every step of the plan preparation and:

• Round-the-clock availability of online software.
• Easy-to-use financial forecasting.
• Ready-made business plan templates.
• Easy financial analysis and KPI tracking.
• Integration with major accounting software solutions.
• Friendly support team.
• No installation required.

Another major benefit is that, when you use software, you can easily convert your internal business plan into a business plan for a bank or investor. 

If you're interested in using this type of solution, you can try our software for free by signing up here . 

Need inspiration for your business plan?

The Business Plan Shop has dozens of business plan templates that you can use to get a clear idea of what a complete business plan looks like.

Once your perfect internal business plan is ready, the next step is to figure out how you can use it effectively and make the most out of it. 

Here are a few pointers:

• Make sure to select the best communication channel and ensure that everyone from the target audience gets the internal business plan.
• Monitor and measure business performance to evaluate the impact of delivering the business plan.
• Make sure to translate key actions into actionable milestones. For instance, if you own a manufacturing company, you can mention how you will secure distribution agreements.
• Make sure that the phasing of milestones is done after agreement with team leaders/staff.
• Track actuals vs. forecasted financials, and perform regular reviews to track implementation progress. Regularly review financial performance and adjust accordingly.

An internal business plan can be a powerful tool for improving staff engagement. It can act as a tool to define the direction of the company and align the staff with the strategic and tactical goals of the company. 

It can also be used to convince the board to take action by providing a clear and compelling vision for the organization's future. 

We hope this guide helped you get a clearer picture of what an internal business plan is and how to create one for your organization. Don’t hesitate to contact-us if you have any follow-up questions.

Also on The Business Plan Shop

• Practical example of a business plan outline
• Do I need a business plan? Your questions answered?

Know someone who wants to create an internal business plan? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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How to create a proposal for a promotion.

Creating a proposal for a promotion isn't as difficult as you may think. Most employers are willing to discuss the possibility of promoting you, as long as they have the resources necessary for compensation and agree that you deserve to take on more responsibilities. A proposal for your own promotion doesn't have to follow a particular format, although it should be professional looking and typed. It's usually best to present the proposal to your boss or superiors in person, although it might be appropriate to e-mail a copy of the proposal to them as well.

Write the Intro

Write an introductory paragraph that clearly defines what position you have now and what position you would like to have. If the position you want does not exist at your company, define what new role you could fulfill and offer a suggested title for the position. For example, if you see there is a need for a public relations coordinator at your company, state this in simple terms.

List Your Qualifications

List the accomplishments and reasons that qualify you for the promotion. These can be in bullet-point form or paragraph form. Explain how you are not only meeting the requirements of your current job title, but how you are exceeding expectations and would like the opportunity to take on more responsibilities. Include noteworthy achievements such as a big sale or winning an important client. In this section, remind your boss how long you have been doing your current job and how you have grown in the position since you started. Cite any company policies about promotions, as well. For example, your contract might state that you're qualified for a promotion after a certain number of years in a position.

Explain Your Reasons

List reasons why you think you can handle the responsibilities of the promotion. For example, if the promotion would require more face time with clients, remind your boss how well you are currently performing in client meetings or how competent you are at giving company presentations.

Acknowledge that you want to become a better asset for the company. Although you may want the promotion for reasons like money or status, it's important to convey that you also want the promotion because you're invested in the welfare of the company. Convey your dedication and commitment to the company's goals and explain how the promotion could help you assist with furthering them.

Do the Math

Numbers carry weight for any business decision. If you have figures to show that promoting you will benefit the company financially, put them in your proposal. For example, if you want a sales management position, showing how much sales will probably increase as a result will help your argument.

Close With an Opening

Include a closing paragraph that indicates your desire to discuss the subject further in person. This allows you to omit certain questions about salary or the date you might receive the promotion, since these types of details should be discussed in person with your boss.

Related Articles

How to write a letter of intent for a promotion →.

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An Objectives & Goals Clarification Meeting With a Manager →

• Quint Careers; Moving Up the Ladder: 10 Strategies for Getting Yourself Promoted; Randall S. Hansen, Ph.D.

Mara Tyler is a writer and public relations consultant based in the San Francisco Bay Area. With more than eight years of experience, she specializes in health, nutrition, women's lifestyle and marketing. Tyler holds a Bachelor of Science in public relations.

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Innovation, science and economic development canada's 2024–2025 departmental plan, on this page, from the minister, companies, investment and growth.

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Internal services, future-oriented condensed statement of operations, human resources, corporate information, supplementary information tables, federal tax expenditures, definitions.

It is our pleasure to present the 2024–25 Departmental Plan for Innovation, Science and Economic Development Canada (ISED), which lays out the key priorities the Department is working to advance for the benefit of all Canadians.

In 2024–25, ISED will continue working with the Innovation, Science and Economic Development Portfolio and other federal partners to bolster Canadian innovation by fostering competitive, sustainable and inclusive economic growth.

As Canada transitions to a net-zero economy, ISED has entered into special agreements with industry partners such as NextStar Energy, Volkswagen PowerCo, and Northvolt Batteries North America to increase Canada's production of lithium battery cells and electric vehicles (EVs). To help ensure Canada's economy remains a competitive destination for investment following the introduction of the Inflation Reduction Act in the United States, these unprecedented agreements will advance the country's position as an EV manufacturer. To complement these efforts and support Canada's Critical Minerals Strategy, the Strategic Innovation Fund (SIF) will also invest in projects that will prioritize the manufacturing, processing, and recycling of critical minerals.

Recognizing the growing importance of artificial intelligence (AI), ISED will seek to accelerate the adoption and commercialization of AI by investing in the Pan-Canadian Artificial Intelligence Strategy (PCAIS). In 2024-25, the PCAIS will provide funding of up to $20 million to institutions in across the country to advance AI innovations and research. Further advancing the PCAIS, ISED's Advanced Manufacturing Global Innovation Cluster, led by Next Generation Manufacturing Canada, will provide $19 million in funding for 12 AI projects in Canada's manufacturing sector. These projects are expected to enhance the competitiveness of Canadian manufacturing through the commercialization of Canadian AI innovations, while increasing manufacturing capacity in the country.

The new National Quantum Strategy (NQS), in turn, will continue to ensure Canada's leadership in quantum technology. Under the NQS, the Department, in collaboration with key partners including the regional development agencies, will continue to support the development of Canada's quantum research and the commercialization of quantum-ready technologies through the Quantum Industry Canada program.

The Department's Universal Broadband Fund (UBF) will continue to support the expansion of broadband, connecting underserved rural, remote, and Indigenous communities with access to high-speed Internet. The Government of Canada, in partnership with other orders of government and private sector stakeholders, has leveraged UBF to secure high-speed internet access for 93.5 percent of Canadian households and is on track to exceed its goal of connecting 98 percent of Canadian households by 2026 and 100 percent by 2030.

Supporting fundamental research continues to be a priority for ISED. The Department is working to promote a strong, vibrant science and research community across Canada, anchored by a diverse pool of world-class researchers. Through the Biomanufacturing and Life Sciences Strategy, ISED is looking to grow a strong, competitive domestic life sciences sector, with cutting-edge biomanufacturing capabilities, which will create good jobs for Canadians and ensure Canada is prepared for future pandemics and health emergencies. Specifically, the Department is investing $225 million in AbCellera—the Canadian biotech company that helped develop the first antibody therapy treatment for COVID-19—to fund research and clinical trials projects, and to build a new manufacturing plant that will produce anti-body therapies for clinical trials.

In addition, scientific excellence will be supported through the Strategic Science Fund. Contribution agreements are being finalized with a diverse portfolio of organizations selected for funding by an independent expert panel. The funding will support of the organizations in advancing program objectives to support research, talent, knowledge mobilization and science culture. To help post-secondary institutions maintain and enhance security posture and support them in identifying, assessing, and mitigating risks to research security, ISED will continue to fund the Cybersecurity Initiatives Program.

In 2024–25, ISED will continue to support small and medium-sized enterprises (SMEs) —the backbone of the Canadian economy. In addition to the Department's ongoing support for women-owned and Black-owned businesses—through their respective entrepreneurship strategies, ISED will continue to eliminate barriers to access for under-represented entrepreneurs by providing support through the 2SLGBTQI+ Entrepreneurship Program. The program will deliver critical business advice, create resources, provide mentorship, and will collect the data needed to better understand the needs of 2SLGBTQI+ entrepreneurs and the challenges they face. Additionally, the Canada Digital Adoption Program will continue to support SMEs to modernize their operations and adopt e-commerce technologies, bolstering their growth and competitiveness.

Finally, ISED will support tourism in Canada by delivering on the Federal Tourism Growth Strategy, which includes targeted actions to help the Tourism sector recover from the pandemic and grow the Indigenous tourism industry. Specifically, the Department will strengthen economic reconciliation through the $20 million Indigenous Tourism Fund, which will support the scale-up of signature Indigenous tourism experiences and help build the capacity of micro and/or small Indigenous tourism businesses.

Funding from Budget 2023 will support additional tourism programming including $50 million to Destination Canada to attract major international conventions, conferences, and events to Canada; and $108 million to the Regional Development Agencies to support communities, small businesses, and non-profit organizations in developing local projects and events. With the goal of positioning Canada as a premier outdoor, nature-based destination, ISED will also leverage the country's natural landscape and network of trails in developing a new Trails Tourism Strategy.

We invite you to read this report to learn more about how ISED, along with its portfolio partners, is working with Canadians of all backgrounds and in all regions—urban and rural—to position Canada as a leader in the global economy.

The Honourable François-Philippe Champagne Minister of Innovation, Science and Industry

The Honourable Mary Ng Minister of Export Promotion, International Trade and Economic Development

The Honourable Soraya Martinez Ferrada Minister of Tourism and Minister responsible for the Economic Development Agency of Canada for the Regions of Quebec

The Honourable Gudie Hutchings Minister of Rural Economic Development and Minister responsible for the Atlantic Canada Opportunities Agency

The Honourable Rechie Valdez Minister of Small Business

Plans to deliver on core responsibilities and internal services

Core responsibilities and internal services, description, quality of life impacts, results and targets, plans to achieve results, snapshot of planned resources in 2024-25, related government priorities, program inventory.

Provide support to help grow small, medium and large Canadian businesses into globally competitive, high-impact firms; ensure a fair and competitive marketplace; promote the conditions that support competitive prices and product choices, including in the telecommunications sector; simplify government programming, promote efforts to reduce red tape for businesses, putting in place the right conditions for market-driven innovation and promoting growth and an economy that works for everyone; reduce barriers to the movement of goods, services, capital and labour; grow Canada's tourism sector.

The Companies, Investment and Growth core responsibility is most closely related to the "Prosperity" domain of Canada's Quality of Life Framework, but it also touches on the "Good Governance" and "Environment" domains.

The "firm growth", "gross-domestic product per capita", and "investment in in-house research and development" indicators under the "Prosperity" domain are directly related to this core responsibility, for which the key outcome is to provide support to small, medium and large Canadian businesses to innovate and grow. To assess this outcome, ISED tracks the revenue growth rate and value of business expenditures on research and development (BERD) of the firms it supports.

Additionally, the "Good Governance" domain measures Canadians' confidence in institutions. Several entities under ISED's Companies, Investment and Growth core responsibility, including Measurement Canada, the Office of the Superintendent of Bankruptcy, Corporations Canada, the Competition Bureau and the Canadian Intellectual Property Office, focus on fostering conditions for market-driven innovation and creating a fair and competitive marketplace for businesses, investors and consumers.

Under the "Environment" domain, the "greenhouse gas emissions" indicator relates to the following departmental results indicator: "annual incremental reductions in GHG emissions attributable to ISED-supported technologies".

The following tables show, for each departmental result related to Companies, Investment and Growth, the indicators, the results from the three most recently reported fiscal years, the targets and target dates approved for 2024–25.

Table 1: Indicators, results, and targets for departmental result: Canada has a clean and sustainable economy.

Table 2: indicators, results and targets for departmental result: canadian businesses and industries are innovative and growing., table 3: indicators, results and targets for departmental result: businesses, investors and consumers are confident in the canadian marketplace, including the digital economy..

The financial, human resources and performance information for ISED's program inventory is available on GC InfoBase Footnote i .

Departmental Result: Canadian businesses and industries are innovative and growing

Innovation and adaptation on the part of Canadian enterprises—from start-up to scale-up—are vital to success in job creation, economic productivity, and trade. To spur creativity in support of Canada's economic recovery, growth, and competitiveness, ISED will continue to work closely with entrepreneurs, businesses and industry sectors to build on areas of traditional Canadian advantage while also capitalizing on emerging opportunities. Innovation and adaptation on the part of Canadian enterprises—from start-up to scale-up—are vital to success in job creation, economic productivity, and trade. To spur creativity in support of Canada's economic recovery, growth, and competitiveness, ISED will continue to work closely with entrepreneurs, businesses and industry sectors to build on areas of traditional Canadian advantage while also capitalizing on emerging opportunities.

Growing Canada's innovation ecosystems

Innovation Canada Footnote ii offers programs and services to help Canadian businesses innovate and grow by accessing client-centered, simplified support to advance research and the development and commercialization of innovative technologies and products. Flagship programs like the Strategic Innovation Fund (SIF), the Global Innovation Clusters (GICs) and Innovative Solutions Canada are instrumental in fostering industrial innovation and growth while advancing other governmental priorities like reducing greenhouse gas emissions (GHG). With renewed funding of $750 million from Budget 2022, the five GIC's will continue their efforts to advance Canada's innovation ecosystems, promote investments in innovation and commercialization, expand their national and global presence, deepen their collaborations, and support the growth and scale-up of Canadian small and medium-sized enterprises (SMEs). In 2024–25, the GIC program will increase industry co-investments by raising the industry match ratio to $1.50 for every dollar committed by non-GIC partners by 2028. In addition, the program is expected to establish new collaborations involving funding partnerships for the Pan-Canadian Artificial Intelligence Strategy (PCAIS) and Canada's National Quantum Strategy. For instance, as part of the PCAIS, the Advanced Manufacturing Cluster Footnote iii launched the AI for Manufacturing funding challenge, calling on companies to submit project proposals focused on commercializing AI or machine learning solutions in manufacturing. As a result, NGen, the organization leading the Advanced Manufacturing Cluster, will provide $19 million in funding for 12 AI projects in Canada's manufacturing sector. These projects are expected to enhance the competitiveness of Canadian manufacturing through the commercialization of Canadian AI innovations while building manufacturing capacity in the country.

In 2024–25, SIF will continue to support industrial transformation and growth, building on its $17 billion in research and development (R&D) investments to ensure the long-term sustainability of Canadian businesses in key industrial sectors including automotive, critical minerals and batteries, life sciences, semiconductors, aerospace, natural resources, and agri-food.

Through the Net Zero Accelerator Initiative, SIF will support Canada's goal of becoming a leader in clean technologies and help advance Canada's commitment to achieving net-zero emissions by 2050. For instance, SIF will advance the development of the battery innovation ecosystem by providing funding for the construction of E-One Moli's new $1 billion battery manufacturing and R&D facility in British Columbia, to support the production of lithium-ion batteries for industrial and consumer applications. SIF will also invest in electric vehicle (EV) battery manufacturing projects such as those by Volkswagen PowerCo, NextStar Energy and Northvolt Batteries North America, which will help reduce GHG emissions, decarbonize the transportation sector and strengthen Canada's domestic manufacturing capacity. ISED's partnership with Northvolt, in particular, will support the construction of its new EV battery manufacturing facility in Quebec—a $7 billion dollar investment—that will produce some of the greenest batteries in the world given its low carbon footprint. These investments in clean technology solutions demonstrate ISED's ongoing work toward meeting Canada's ambitious emissions reductions targets and securing Canada's battery supply chain. Supported by these investments, Canada ranked first in Bloomberg NEF's 2023 Global Lithium-Ion Battery Supply Chain Ranking.

Under Canada's Critical Minerals Strategy, in 2024–25, SIF will use targeted funds to accelerate investments in critical mineral projects, specifically prioritizing advanced manufacturing, processing, and recycling applications. To meet the rising demand for critical minerals and related manufactured products, ISED's investments will increase the supply of responsibly sourced critical minerals, while promoting innovation and sustainable practices across domestic and global critical minerals value chains. Since Canada is a leading global producer of many minerals, including nickel, potash, aluminum and uranium, investments in critical minerals have the potential to spur economic growth and manufacturing capabilities both domestically and internationally. Through ISED's expected  $551.3 million contribution to Umicore, a circular materials technology company, the federal government, in partnership with the Government of Ontario, will support Umicore's decision to build a new manufacturing facility in Loyalist Township, Ontario, to produce essential EV battery components using critical minerals such as nickel, lithium, and cobalt. This facility, the first of its kind in North America, will strengthen Canada's domestic EV and battery supply chain.

Supporting the industrial transformation of key sectors

Since March 2020, more than $2.1 billion has been invested in rebuilding Canada's vaccines, therapeutics and biomanufacturing capacity. In alignment with the Biomanufacturing and Life Sciences Strategy, ISED will support a $61 million project by Edesa Biotech—a biopharmaceutical R&D company focused on developing and commercializing novel clinical-stage drugs for autoimmune and inflammatory diseases, such as acute respiratory distress syndrome (ARDS). ISED is also investing through SIF to support a $119.3 million project by Pharmascience Inc. to expand its facility in Candiac, Quebec, by 2,500 square metres, increasing its capacity to produce sterile injectables. Both projects will be instrumental in increasing innovation in the life sciences sector, contributing to Canada's talent pipeline by creating new jobs, and developing world-class expertise and infrastructure to build a competitive biomanufacturing and life sciences industry.

Budget 2022 announced $30 million over four years to expand the CAN Health Network across Canada. By connecting health organizations with Canadian companies from coast-to-coast-to-coast, the Government of Canada's investment in expanding the CAN Health Network will support innovation in the health technology sector, grow businesses, create good well-paying jobs and generate prosperity for Canadians.

SIF will continue to provide targeted support to the aerospace industry—one of the most innovative and export-driven sectors in Canada, contributing close to $27 billion and more than 210,000 jobs to the economy. The SIF investment of $350 million to support the new Initiative for Sustainable Aviation Technology— a pan-Canadian, industry-led aerospace network focused on funding collaborative R&D projects with companies of all sizes across the Canadian supply chain—will help accelerate the green industrial transformation of the aerospace industry, generate high-value jobs, strengthen the sector's supply chains, and position Canada as a global leader in sustainable aviation.

Through the National Shipbuilding Strategy Value Proposition (NSS VP), the department will help ensure the long-term sustainability of the Canadian marine industry by requiring that shipyards with large vessel contracts support investments in three key areas—human resources development, technology investment and industrial development—that are equal to 0.5% of the value of the contracts they receive. For 2024–25, Irving Shipbuilding Inc. and Seaspan's Vancouver Shipyards have forecasted more than $41 million in combined NSS VP investments in Canada's marine industry.

Helping businesses navigate government support

Connecting businesses with government programs and supports at the federal and the provincial, and territorial level to facilitate growth and innovation remains a key priority for ISED. In 2024–25, ISED will liaise with government partners to optimize service provided through the Business Benefits Finder, a platform that uses a client-centred approach to streamline the process of connecting businesses with the services and programs they need to bolster their performance. ISED's Accelerated Growth Service, which helps entrepreneurs and businesses innovate and scale up through its advisory and growth services, will complement the Business Benefits Finder by assisting existing, innovative businesses in accessing government programs and services.

Similarly, the Global Hypergrowth Project (GHP) will support businesses in scaling-up and growing by convening various federal, provincial, and broader ecosystem partners to identify programming gaps and opportunities for Canadian companies. Announced in July 2023, the GHP will help businesses develop into anchor firms, which are responsible for creating business clusters and incubating other businesses, by assisting them in navigating complex regulatory regimes, expanding to new markets, and acquiring the right talent. To achieve these goals, eight Canadian businesses have been selected to receive tailored support through the project, including Clarius Mobile Health Corp. With help from the GHP, Clarius will be able to propel its growth and make its innovative portable hand-held ultrasound imaging device available to more clinicians around the world.

In 2024–25, ISED's national BizPaL office will continue supporting cross-jurisdictional partnerships focused on helping Canadian businesses find and access business licences and reducing the burden of duplication for businesses to meet regulatory, permitting and licensing requirements. The program will help users navigate Canada's regulatory landscape via an interactive artificial intelligence interface, improving access to timely, complete information and analytics through an Open Service Platform and the Service for Regulators project.

Increasing access to capital for Canadian businesses

ISED, through the Canada Small Business Financing Program (CSBFP), will continue increasing the availability of financing for Canadian small businesses looking to start up, expand, modernize, and innovate. In 2024–25, the CSBFP will gather information to support and inform a statutory comprehensive review report assessing the extent to which the program has met its goals over the last five years, including examining the provisions and operations of the Canada Small Business Financing Act . The report will propose recommendations to ensure that the CSBFP continues to adapt to meet the current economic conditions and future needs of small businesses.

As announced in Budget 2021, ISED's Venture Capital Catalyst Initiative (VCCI), managed by the Business Development Bank of Canada, will support innovation and job creation in Canada by increasing the availability of private sector capital for Canadian entrepreneurs with high-growth potential, particularly for those in the life sciences sector and those belonging to under-represented groups. VCCI will accomplish this through three streams: $350 million for funds-of-funds, a $50 million for supporting VC investments in life science technologies, and a $50 million for an inclusive growth stream dedicated to increase access to VC programs for underrepresented groups. In 2024–25, funding recipients for the second intake of the inclusive growth stream and will invest up to $25 million in five Canadian VC funds through this stream. Through VCCI's inclusive growth stream, ISED aims to advance diversity, equity, and inclusion in the Canadian VC ecosystem by providing additional capital to invest in innovative under-represented entrepreneurs.

Supporting a modern telecommunications network

As the demand for spectrum and telecommunications services continues to grow, ISED will continue to advance Canada's position as a global centre for innovation and world-class wireless infrastructure. In 2024–25, the department will launch a new Non-Competitive Local Licensing framework, offering 80 MHz of mid-band spectrum, which will provide users— including wireless Internet service providers, vertical industries, and Indigenous communities—with localized access to shared 5G spectrum.

With a commitment to fostering greater universal connectivity, ISED will implement a new Access Licensing Framework in 2024–25 to facilitate greater access to unused licence spectrum in rural and remote areas, including supporting the expansion of broadband services. Under this framework, ISED will also consult on and implement an Indigenous Priority Window, which will allow Indigenous-led businesses and Indigenous service providers access to spectrum that strengthens their Internet connectivity, improves access to emergency response services, and establishes reliable cell service.

Reinvigorating tourism in Canada

Building on the progress made last year, ISED will continue to implement new strategies to advance the long-term growth of the tourism sector. In 2024–25, under the Federal Tourism Growth Strategy (FTGS), the department will coordinate and promote measures to support the growth of Canada's tourism industry, particularly positioning Indigenous communities as attractive tourist destinations, by continuing to implement the $108 million Tourism Growth Program, through the regional development agencies, to deliver key tourism projects.

As part of the FTGS, ISED will collaborate with its federal, provincial, and territorial partners, industry stakeholders and Indigenous people to ensure that the needs of tourism businesses are being served. The FTGS is based on five strategic priorities: investing in tourism assets, embracing recreation and the great outdoors, partnering to grow Indigenous tourism, attracting more international events, and improving coordination through a Ministerial Tourism Growth Council. ISED will also provide $50 million to Destination Canada, with the expectation of hosting more business events in Canada and invest in maintaining Canada's network of trails and outdoor spaces through the Trails Tourism Strategy.

Indigenous tourism is a key segment of the industry that differentiates Canada as a premier tourist destination. ISED's continued support of this segment through the $20 million Indigenous Tourism Fund (ITF), announced in Budget 2022, will help rejuvenate the Indigenous tourism industry and ensure long-term, sustainable growth for Indigenous businesses and communities. As a component of the ITF, the department is collaborating with the Indigenous Tourism Association of Canada to roll out the first $10 million of the Micro and Small Business Stream, which will provide financial assistance, specifically non-repayable contributions of up to $25,000, to support export-ready micro and small Indigenous tourism businesses.

Developing talent for the digital economy

As Canada's key industrial sectors continue to evolve and digitize, ISED remains committed to equipping youth, students, graduates, and mid-career workers with industry-relevant experience to enhance their professional experience and preparedness.

In 2024–25, ISED will continue to administer programs aimed at increasing digital skills and employment experience among Canadian youth, including the Digital Skills for Youth (DS4Y) program, the Computers for Schools Internship program (CFSI), and the Business + Higher Education Roundtable (BHER). Through DS4Y, which connects post-secondary graduates with internships in small businesses and not-for-profit organizations, nine not-for-profit organizations have been selected to provide 179 internships that will equip youth with the skills and experience needed to transition to career-oriented employment. In 2024–25, the CFSI will provide 148 internships to help young people develop digital skills through paid, on-the-job experience refurbishing digital devices, which will increase their employability and marketability to prospective employers. Likewise, the BHER will seek to help emerging talent develop skills that will prepare them for the labour market and support business innovation and growth. It will aim to create over 7,500 work integrated learning opportunities for post-secondary students in 2024–25.

Launched in 2022–23, the Upskilling for Industry Initiative (UII) has committed $125 million in 2024–25 to support employers and SMEs, in better identifying their skills needs and develop new upskilling programming to meet them. Through Palette Skills Inc., the selected lead delivery participant , Footnote iv UII will continue to support demand-driven short-cycle programs to meet the needs of employers in six high-growth sectors: digital technology, cybersecurity, agriculture technology, advanced manufacturing, clean technology and biomanufacturing. ISED expects to connect 15,000 Canadians, including those from under-represented groups, with new work opportunities by March 31, 2025, creating a responsive pipeline of upskilled workers for Canadian industry.

Departmental Result: Businesses, investors, and consumers are confident in the Canadian marketplace, including in the digital economy.

Creating equitable market conditions is critical to Canada's economic growth on the global stage. Through a focus on modernizing key regulatory frameworks and intellectual property products and services, ISED will continue its progress towards leveling the playing field for businesses, investors, and consumers, creating a robust and fair marketplace that balances economic growth with national security considerations.

Modernizing Canada's marketplace regulatory frameworks

In 2024–25, the Competition Bureau will support the government's efforts to modernize and update the Competition Act Footnote v to promote and strengthen competitive markets. The Affordable Housing and Groceries Act received Royal Assent on December 15, 2023. Among other measures to make life more affordable for Canadians, the Act empowers the Bureau to take action against collaborations that stifle competition and consumer choice, in particular situations where large grocers prevent smaller competitors from establishing operations nearby. It also removed the efficiencies defence, which allowed anti-competitive mergers to survive challenges if corporate efficiencies offset the harm to competition, even when Canadian consumers would pay higher prices and have fewer choices. With a modernized Competition Act, the Bureau will be better able to protect and promote competition in Canada leading to lower prices, while stimulating innovation and economic growth. The Bureau will also continue its work with regulators and policymakers to assess the impact of new or existing policies on competition, championing the essential role of competition in the economy. Through the Canadian Digital Regulators Forum, the Bureau will strengthen information sharing and collaboration on digital markets and artificial intelligence (AI) with the Office of the Privacy Commissioner of Canada and the Canadian Radio-television and Telecommunications Commission. To ensure that anti-competitive behaviour is detected and deterred, the Bureau will continue to implement proactive monitoring and enforcement measures in areas such as deceptive marketing practices, cartels, problematic mergers, and digital services.

To protect the integrity of the Canadian insolvency system, ISED's Office of the Superintendent of Bankruptcy (OSB) will continue to modernize its directives, regulations, and IT systems in 2024–25 to reduce unnecessary burden on those it regulates and support confidence in the Canadian marketplace. Through its newly launched Debtor Compliance Management System, the OSB will leverage AI capabilities to detect and address debtor non-compliance.

In 2024–25, Measurement Canada, which has the legislative mandate to approve and oversee all measuring devices used in Canadian financial transactions, will prioritize modernizing and renewing legislation governing trade measurement, especially the approval and inspection of electric vehicle charging devices.

Through legislative amendments to the Investment Canada Act , ISED will continue to strengthen Canada's reputation as the world's top destination to invest . The amendments propose new regulatory measures for foreign investments that aim to improve compliance and information sharing with international counterparts concerning foreign investment reviews and national security assessments. Additionally, the amendments will grant the Minister of Innovation, Science and Industry the authority to impose interim conditions during a national security review of investments and accept binding undertakings from investors to mitigate any national security risks. These measures will not only foster a stronger investment climate but also grant ISED greater authority in reviewing any national security threats from foreign investments. Through timely processing of foreign investment reviews under the Act, ISED will assess foreign investments in Canada for likely net economic benefits and potential national security injury as well.

Promoting compliance among federally incorporated businesses

In 2024–25, ISED will notify corporations of the new reporting requirements under the Canada Business Corporations Act (CBCA), whereby federally incorporated businesses must proactively submit information on their beneficial owners or individuals with significant control of their business. The publicly accessible beneficial ownership registry, governed under the CBCA, will provide information about the ownership and control of Canadian corporations governed under the CBCA to help reduce the misuse of these corporations and strengthen the detection of tax evasion and fraudulent activities through improved transparency of beneficial ownership.

Promoting and protecting consumer interests

As consumer spending patterns and trends change because of inflation and rising food prices, ISED will continue to ensure that the voice of the consumer is represented through the Contributions Program for Non-Profit Consumer and Voluntary Organizations. In 2024–25, the department will provide $1.7 million to consumer advocacy organizations in Canada to conduct research projects, addressing issues such as digital consumer protection, systemic barriers to vulnerable consumers, affordability, and sustainable consumption. The program will also receive a $3.3 million budget increase to strengthen support for consumer advocacy, with a particular focus on areas where consumers have expressed great concern, including retail practices and rising grocery prices.

Advancing inclusive economic growth through intellectual property

In 2024–25, ISED will work toward making Canada's intellectual property (IP) system more inclusive, with a particular focus on the intersection of IP and the protection of Indigenous knowledge and cultural expressions.

IP protections, services and resources remain widely underutilized by Indigenous businesses and entrepreneurs in Canada as they face barriers to accessing Canada's IP system. As a result, the Canadian marketplace has been flooded with fraudulent imported Indigenous arts and goods, posing a threat to the economic viability of Indigenous communities. To address these barriers and support the protection of Indigenous IP, ISED will provide $150,000 in grants to Indigenous organizations through Indigenous Intellectual Property Program (IIPP) grants. The program will fund both small scale Indigenous-led projects, up to $15,000, and larger, more complex projects up to $50,000. The IIPP grants will also fund representatives from Indigenous organizations, up to $5,000, for their participation in World Intellectual Property Organization events and negotiations related to intellectual property, Indigenous knowledge, and Indigenous cultural expressions policy.

Through the IP Clinics Program—a grant program designed to foster the development of future IP experts by increasing university students' exposure to IP issues—ISED will provide $400,000 to eligible projects with a commitment to improving the understanding of IP and increasing access to IP services, including for women and Indigenous-led businesses. In support of the Government of Canada's Intellectual Property Strategy, the program will continue to deliver low cost or free IP services and resources to promote inclusive access.

In an effort to provide quality, timely IP services and resources to innovators, as well as safeguard IP rights, the Canadian Intellectual Property Office (CIPO), an agency under ISED, will continue optimizing turnaround times and enhancing client services through new technologies. Specifically, CIPO will continue implementing its Trademark Recovery Plan to reduce application backlogs by increasing examination capacity to restore turnaround times to internationally comparable standards by 2026.

As part of the National IP Strategy, CIPO will continue to advance IP awareness among Canadian entrepreneurs and innovators through the IP Awareness and Education Program. In 2024–25, CIPO will offer a number of training opportunities and information resources on IP, developed in partnership with Indigenous organizations, government departments, businesses, academia, and regional offices. For instance, through the IP Village—a collaboration between Canada's leading IP organizations—ISED will deliver a range of targeted educational resources and tools to support SMEs and women, Indigenous and Black entrepreneurs in managing and levering IP assets as part of their business and growth strategies.

Departmental Result: Canada has a clean and sustainable economy.

As Canada transitions to a cleaner, more sustainable economy, ISED remains committed to supporting the development of a globally competitive clean technology sector that addresses environmental challenges and provides high quality jobs for Canadians. Through the provision of key supports to researchers and businesses to develop and adopt clean technologies and products, ISED will contribute to Canada's annual incremental reductions in GHG emissions and the number of clean technology projects underway, helping Canada progress towards its net-zero emissions goal by 2050.

Helping to grow the clean technology sector

In 2024–25, ISED will support project proponents that have the potential to transition the Canadian economy toward a net-zero future and seek to deploy clean technology in economic sectors and technology areas such as carbon capture and storage, agriculture, electricity, and clean fuels, including hydrogen. The department will continue offering services and resources to Canadian companies to facilitate the development and financing of transformative projects in Canada's industrial sectors, while helping Canada achieve its 2030 and 2050 emissions reduction targets and its transition toward a competitive, low-carbon economy. These activities include acting as a central point of contact in the government for project proponents; coordinating and identifying funding opportunities, in partnership with key federal departments and their funding programs; and working with companies to position high-potential project concepts for success. 

Leveraging improved data on clean technologies

As the federal focal point for clean technology, ISED's Clean Growth Hub—an inter-departmental initiative co-led by ISED and Natural Resources Canada and in partnership with 16 other departments and agencies—will continue to ensure that clean technology stakeholders are better equipped to make decisions related to clean technology innovation and deployment.

In 2024–25, the Hub will address emerging needs of clean technology stakeholders, including: leveraging government procurement to support clean technology development, facilitating stronger collaborations between clean technology innovators and adopters; strengthening awareness of unique regional clean technology needs, and leveraging new digital resources to improve client experience. It will also play an important role as a focal point in facilitating connections, coordinating leading clean tech companies across Canada, and providing assistance to new or existing clients, ranging from young clean tech innovators with high potential for disruption to large firms in high-emitting industries. Through the implementation of its strategy and action plan to advance reconciliation, equity, diversity and inclusion, which seek to better understand and address the needs of under-represented groups in the clean tech sector, the Hub will proactively leverage existing government efforts to increase inclusion and provide targeted support to these groups.  

In parallel, ISED, in collaboration with Statistics Canada and Natural Resources Canada, will publish macroeconomic, industry and administrative data related to Canada's cleantech sector to help support private and public sector decision making. The Clean Growth Hub, which is the only source of authoritative data on Canada's clean tech sector, will conduct an analysis of economic trends and policy impacts on the sector. The Hub will further publish data measuring the contribution of Canada's cleantech sector to the Canadian economy— including data on employment and disaggregated data on the basis of labour force characteristics— and measure various economic, social, environmental and governance indicators. With the aid of the administrative data pillar of the Clean Tech Data Strategy, the Hub will work with federal programs in improving the consistency of data collection on federal cleantech investments and will lead an annual data collection exercise on these investments, which will allow for deeper analysis and understanding of federal programs that support clean technology.

Canada, like many other countries, is dependent on global markets for its supply of critical minerals and lithium batteries. This reliance on external supply chains, combined with a lack of global market share in this industry, creates a risk that Canada will not be able to successfully transition to a low-carbon economy. Additionally, as the battery market is already very competitive, there is a risk that firms receiving funding will not be able to compete in the global market. To mitigate these risks, Canada will continue to strengthen its domestic supply chain through the Government of Canada's recently announced special agreements with industry partners—NextStar Energy, Volkswagen PowerCo, and Northvolt Batteries North America— to anchor the production of lithium batteries in Canada, helping to develop more resilient supply chains. These three major investments will help solidify Canada's position in the global supply chain and attract the business of automotive manufacturers and critical minerals suppliers, thereby creating a sustainable domestic ecosystem.

Additionally, in light of increasing interest rates and inflation combined with budgetary constraints , there is a risk that some programs, such as the Strategic Innovation Fund, the Global Innovation Clusters and the Accelerated Growth Service may be unable to deliver the planned level of activities and projects in 2024–25. In response, ISED has implemented several measures to minimize disruptions to funding and planned activities. For example, ISED is developing strategies to manage potential project cancellations or delays, including project pipelines that can be leveraged to reinvest this funding. The department is also conducting forecasting exercises with funding recipients to ensure that their spending is on track and that potential lapses are identified and addressed as early as possible. Furthermore, ISED will implement quarterly results monitoring and reporting, through committee reviews, and improve strategies for recipient selection to ensure that the expected results of projects are met.

Snapshot of planned resources in 2024–25

• Planned spending: $4,279,156,052
• Planned full-time resources: 4,352

In 2024–25, ISED will continue to ensure that its programs, policies, and initiatives are responsive, inclusive, and reflective of the diverse experiences and realities of Canadians in order to address inequities and barriers. For example, several Innovation Canada programs now require recipient organizations to develop inclusion, diversity, equity and accessibility strategies outlining how they will ensure fair and equitable access for applicants and highlighting targeted initiatives to address barriers and gaps for under-represented groups. In addition, the ElevateIP program will establish partnerships with organizations representing equity-deserving groups to develop more inclusive programming.

Following ISED's commitment to producing more inclusive outcomes for women and under-represented groups, gender and diversity plans are now mandated for all recipients of Strategic Innovation Fund support. The program requires recipient organizations to develop a comprehensive gender and diversity plan at the start of their projects in an effort to ensure that they are actively cultivating environments that are more equitable, inclusive and accessible. Similarly, under the Industrial and Technological Benefits Policy, firms bidding on applicable defence procurements are required to describe their approach to increasing gender equity and diversity in their corporate structure and broader supply chains in Canada. A key component of developing an effective GBA Plus framework is identifying how initiatives can be tailored to meet the diverse needs of the people most impacted. Programs such as the Global Innovation Clusters will be implementing a series of measures creating opportunities specifically for Indigenous peoples, for example—to provide meaningful work experience for people from equity-deserving groups. The clusters are also offering workshops and formal training in response to the industry's need for members to develop their talent, gain knowledge or learn new skills. Under each Cluster, the program also promotes the 50 – 30 Challenge that strives for gender parity (50% women and/or non-binary people) and significant representation (30%) of members of under-represented groups, on its board of directors.

ISED will continue applying a GBA Plus lens to its intellectual property programming as well. The IP Clinics and Patent Collective programs specifically support recipients from traditionally under-represented groups, such as women and Indigenous entrepreneurs, in need of network development and funding support for IP advice. CIPO, in general, will continue its collaboration with the international IP community to develop a stronger understanding of GBA Plus and address the existing gender gaps in the innovation ecosystem.

In 2024–25, the department will conduct various educational and awareness raising activities aimed at encouraging greater participation of equity deserving groups. For example, ExploreIP will be targeting underrepresented groups, including Indigenous, Black, women, 2SLGBTQI+, disabled and other diverse entrepreneurs, to increase program awareness and will highlight the importance of inclusion, diversity, equity, and accessibility among staff as they pertain to their duties. Corporations Canada at ISED will continue its broad and inclusive digital awareness campaign on how to effectively access information and resources, ensuring program requirements are accessible, reliable and not impeded by technological barriers.

ISED is committed to advancing Canada's efforts toward developing the United Nations 2030 Agenda for Sustainable Development and the UN's Sustainable Development Goals (SDGs). While ISED is a strong proponent for all 17 SDGs, its policies, programs, and initiatives mostly advance actions on SDG 9—Industry, Innovation and Infrastructure to "build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation." The department's key programs, such as the Strategic Innovation Fund, Canada's five Global Innovation Clusters and Innovative Solutions Canada will support work in: research and development, technology adoption, investments in science and research, efforts to attract anchor firms through foreign investment and measures to create innovative ecosystems. ISED will also contribute to this SDG through Canada's Intellectual Property Strategy, as Canadian innovators and businesses will continue to protect and leverage their IP. In terms of promoting green infrastructure as part of the SDG, SIF's Net-Zero Accelerator initiative, Sustainable Development Technology Canada (SDTC) and ISC will be supporting clean technology innovation and Canada's clean growth policies.

ISED is also a key contributor to the following SDGs: SDG 7—Affordable and Clean Energy, SDG 8 —Decent Work and Economic Growth, SDG 12—Responsible Consumption and Production; and SDG 13 —Climate Action. Since the department is a strong advocate for Canada's climate commitments, the SIF's NZA and SDTC provide targeted investments in projects advancing SDG 7 and SDG 13— such as ones focused on developing clean technologies, batteries, critical minerals and electric vehicles— and support for initiatives promoting globally competitive clean technology solutions that will help Canada achieve its net-zero target by 2050. In addition to these flagship ISED programs, the Business Benefits Finder, the Accelerated Growth Service, and the Upskilling for Industry Initiative will be advancing SDG 8 as well. These programs will encourage inclusive and sustainable economic growth by connecting Canadians with relevant government programs, and funding employer driven-approaches to redeploying workers in high-growth sectors.

More information on ISED's contributions to Canada's Federal Implementation Plan on the 2030 Agenda and the Federal Sustainable Development Strategy can be found in ISED's Departmental Sustainable Development Strategy . Footnote vi

Companies, Investment and Growth is supported by the following programs in the program inventory:

• Business Innovation
• Spectrum and Telecommunications
• Digital Service
• Economic Outcomes from Procurement
• Support for Small Business
• Talent Development
• Intellectual Property
• Competition Law Enforcement and Promotion
• Marketplace Protection and Promotion
• Clean Technology and Clean Growth

Supporting information on planned expenditures, human resources, and results related to ISED's program inventory is available on GC InfoBase . Footnote vii

Science, Research, Technology and Commercialization

Support and enable business-led investment and strategic collaborations for leading- edge technology development and commercialization; maintain and strengthen Canada's research excellence, including support for fundamental science, experimentation, and exploration to address global challenges.

The Science, Technology, Research and Commercialization core responsibility aligns with the "Prosperity" domain of the Quality of Life Framework. The program within this core responsibility focuses on maintaining and strengthening Canada's research excellence, including support for fundamental science, experimentation, and exploration to address global challenges.

Under the "Prosperity" domain, the "investment in in-house research and development" indicator aligns with ISED's departmental results indicator, "percentage of Canada's higher education research and development funded by business." Both indicators recognize the importance of investments in research and development to support innovation and the commercialization of new products, services, and technologies. ISED also tracks Canada's rank among OECD nations on the average relative citation (ARC) score of science and research publications. Key initiatives under this core responsibility focus on the transfer of knowledge within the Canadian research ecosystem.

The following tables show, for each departmental result related to Science, Technology, Research and Commercialization, the indicators, the results from the three most recently reported fiscal years, the targets and target dates approved for 2024–25.

Table 4: Indicators, results, and targets for departmental result: Canadian science, technology and innovation (ST&I) research contributes to knowledge transfer.

The financial, human resources and performance information for Innovation, Science and Economic Development Canada's program inventory is available on GC InfoBase . Footnote viii

Departmental Result: Canadian science, technology and innovation (ST&I) research contributes to knowledge transfer.

ISED aims to foster an innovative economy, improve the health and well-being of Canadians, and optimize federal investment in ST&I. To achieve these goals, in 2024–25 ISED will continue working with various third-party organizations (TPOs) to advance federal research priorities and fill ecosystem gaps—primarily through the newly established Strategic Science Fund (SSF). The Department will continue to promote collaboration between domestic and international research organizations, support the development of pan-Canadian science and research-related strategies, and provide the Prime Minister and Cabinet with advice related to key scientific issues through the Office of the Chief Science Advisor. ISED will also provide policy advice on cyber security and research security considerations for international research and development (R&D) investments in academia through the implementation of the Government of Canada's Digital Research Infrastructure Strategy.

Supporting coordinated federal investments

The government allocates funding to TPOs that play an important role in the Canadian science and research ecosystem by seizing unique opportunities, filling gaps in federal programming in areas of priority to the government, providing services nationally, or deriving advantages from ST&I activities being delivered at arms-length from the federal government. TPOs are independent, not-for-profit organizations that have highly diverse mandates and areas of expertise and cover a wide spectrum of ST&I activities.

In response to the need for greater transparency and accountability related to funding decisions, Budget 2019 established the SSF, administered jointly by ISED and Health Canada. This new competitive approach to investing in TPOs affirms the importance of a credible, principles-based merit-review process informed by the advice of independent external experts chosen based on high ethical standards, expertise, and diversity of perspectives. This approach was recommended by an independent advisory panel and external monitoring of this approach will ensure that it is fair and appropriately targeted.This marks a foundational change in how funding is provided to organizations in the science and research ecosystem. Through this coordinated approach, ISED and Health Canada are better equipped to make funding decisions and assess where there may be gaps in the ecosystem.

The SSF will act as a key funding vehicle for the science and research community and will ensure clear alignment with program objectives and expected outcomes. Activities funded under the SSF are expected to enhance internationally competitive, leading-edge research in areas critical to the health, and the economic and social well-being of Canadians; to develop, attract and retain world-class research and innovation talent in scientific areas that are aligned with Canada's priorities; to accelerate the exchange of research results and the translation of this knowledge into action in Canada and abroad; and to strengthen evidence-based decision making, innovation skills development and science culture.

Following a competitive process, 24 successful applicants have been selected Footnote ix to receive funding through the SSF in 2024-25, pending the finalization of contribution agreements. This first year of a five-year cycle of funding under the SSF will allow the government to provide direct financial support for organizations to advance both fundamental and applied research. ISED, in partnership with Health Canada, will work closely with SSF recipient organizations in 2024–25 to ensure their activities are aligned and positioned to meet expected program outcomes.

Accelerating the adoption and commercialization of artificial intelligence

In 2024-25, the Department will continue to support research and development in key emerging sectors such as artificial intelligence (AI) through the ongoing implementation of the Pan-Canadian Artificial Intelligence Strategy (PCAIS).

The PCAIS aims to drive the adoption of AI across Canada's economy and society. Through the three pillars—commercialization, standards, and talent and research, the PCAIS seeks to connect Canada's world-class talent and research capacity with federal programs that facilitate commercialization and technology adoption in order to ensure that Canadian ideas and knowledge are mobilized and commercialized domestically.

In support of the commercialization and talent and research pillars of the PCAIS, the $60 million fund for the national AI institutes —Amii in Edmonton, Mila in Montréal, and the Vector Institute in Toronto— aims to help translate research in AI into commercial applications and increase the capacity of Canadian businesses to adopt these new technologies. These three not-for-profit corporations are each receiving funding of up to $20 million over five years to support the advancement of AI research, training, and innovation. For example, Amii will advance leading-edge research in AI by funding academic research and encouraging industry leaders to invest in Alberta's world-leading talent and expertise. In 2024‒25, contributions to these institute will support capacity-building among business, health, and not-for-profit partners.

In 2024‒25, ISED will continue to monitor and support the ongoing implementation of the Digital Research Infrastructure (DRI) Strategy, to ensure Canadian researchers have the tools they need to conduct leading-edge research. Under the strategy, ISED is providing funding to the Digital Research Alliance of Canada (DRAC) for the planning, procurement, installation, operation and allocation of computing infrastructure to increase computing capacity for AI researchers. In 2024‒25, DRAC will continue to coordinate and deliver national services in advanced research computing, research data management and research software, while also promoting innovation and expanding the network of support and resources that are available to academic and research communities.

CANARIE, the Canadian Network for the Advancement of Research, Industry and Education (CANARIE) will advance the DRI Strategy by funding initiatives such as the expansion and maintenance of the National Research and Education Network (NREN)—which connects more than 750 Canadian universities, colleges, cégeps, research hospitals, government research labs, school boards, business incubators and accelerators. Specifically, through the Digital Accelerator for Innovation and Research (DAIR) program, CANARIE will continue to accelerate innovation and the commercialization of products and services by providing Canadian start-ups with free cloud resources and access to expertise in next generation technologies.

Enhancing Canada's research ecosystem and leading-edge technology development in quantum science

In 2024–25 the National Quantum Strategy (NQS) Secretariat will continue to oversee the coordination and integration of quantum R&D in Canada, guiding investments through the strategy's three pillars: quantum research, talent and commercialization. To do so, the secretariat will continue to work with key partners such as the Quantum Advisory Council, the Natural Sciences and Engineering Research Council of Canada, the National Research Council of Canada, Mitacs, Canada's Global Innovation Clusters, Innovative Solutions Canada (ISC), and ISED's Regional Development Agencies to look for solutions in several quantum technology areas such as computing, software, communications and sensors.

Additionally, under the NQS, ISED will provide another year of funding to Quantum Industry Canada, a consortium of Canadian quantum technology industries, which will increase internal capacity and improve the effectiveness of knowledge transfer between key groups to support the development, scaling and commercialization of innovations.

In 2024–25, work will continue developing of the Pan-Canadian Genomics Strategy in partnership with the NRC, taking into consideration the 'What We Heard' report published in the spring of 2022, which underscored Canada's potential in genomics with existing strengths in genomics research.

Canada has a small number of lab-to-market programs that aim to increase commercialization awareness and skills among early researchers and students. Budget 2022 provided funding for a national lab-to-market platform for students and researchers at post-secondary institutions to explore the commercial potential of their work, with the aim of filling gaps in funding to support post-secondary institutions in creating or expanding lab-to-market programming. In 2024-25, ISED will work with program delivery partners to launch the new national lab-to-market platform whereby successful post-secondary institution applicants will receive funding to develop shared training curriculum, leverage respective areas of sectoral or technology specialization, and engage in cross-promotion and networking as they build and expand their lab-to-market program offerings. A new annual survey, to be launched in fall 2024, will assess how knowledge created at Canada's universities, colleges and research institutes generates commercial outcomes, as well as broader social and economic benefits for Canadians.

Strengthening international scientific collaboration

In 2024–25, in collaboration with Global Affairs Canada, ISED will be joining Horizon Europe, the world's largest collaborative science, research and innovation program. As a result, Canadian researchers and innovators will be able to access a broader range of research opportunities in areas such as health; culture, creativity and inclusive society; civil security for society; digital, industry and space; climate, energy and mobility; and, food, bioeconomy, natural resources, agriculture & environment. The benefits of association to Horizon Europe include the ability to lead projects, receive direct funding and collaborate with European partners and other associated countries in various research and innovation areas.

Investing in Cybersecurity

In 2024–25, the Cyber Security Innovation Network (CSIN) program will seek to enhance R&D, increase commercialization, and further support the development of skilled cyber security talent across Canada. ISED's role is to implement, oversee and monitor the CSIN program, as well as provide funding for the selected successful projects. The CSIN program will help foster a strong national cyber security ecosystem and position Canada as a global leader in cyber security.

As the program's lead, the National Cybersecurity Consortium (NCC) launched an initial call for proposals in April 2023, which led to a partnership between telecommunications company Ericsson, and researchers from Concordia University, the University of Waterloo, and the University of Manitoba for a project to investigate the security of 5G networks. The project will receive $1 million in funding from the NCC over three years and aims to design and implement technologies that can prevent, predict, detect, and mitigate cyber threats in 5G networks using machine learning and AI. In 2024–25, a second national call for proposals will be launched to continue to support the growth of a comprehensive and collaborative Canadian cyber security innovation ecosystem through academia-industry collaboration.

Due to the sensitive nature of cyber security R&D and the innovation activities undertaken by the NCC in leading the CSIN, the network may be targeted for its data and intellectual property. While Canada maintains an open and collaborative research environment, it has increasingly been the target of foreign interference activities that, pose a threat to Canada's research ecosystem, and to as national security.

To mitigate the risk of targeted espionage, in collaboration with national security and intelligence organizations and Canada's granting agencies, ISED will continue with the phased implementation of the National Security Guidelines for Research Partnerships in 2024–25. These guidelines are used to assess whether aspects of a research project pose unacceptable risks to national security and if these risks cannot be mitigated, the project will not be funded. The guidelines already apply to the Alliance Grant program and the Canada Biomedical Research Fund.

• Planned spending: $969,539,190
• Planned full-time resources: 114

Barriers to access and to participation in science, technology, engineering, and math (STEM) for women and other equity-deserving groups have led to an under-representation in these fields. ISED and its partner organizations work toward reducing and eliminating barriers to participation in several ways, with the goal of creating a diverse talent pool and inclusive industries.

One way to address this issue is by applying a GBA Plus lens when selecting funding recipients and embedding GBA plus requirements into funding agreements. For example, in 2024–25, the NCC will implement an Equity, Diversity, and Inclusion (EDI) Framework with GBA Plus considerations. The framework will outline actions the NCC will adopt to identify and remove barriers regarding the participation of individuals from underrepresented groups in network governance, operations, and activities. This includes developing EDI objectives, actions, data collection methods, and performance metrics to measure progress.

Similarly, contribution agreements with science research organizations require that recipients provide details of their planned activities to advance EDI on an annual basis, including updates on progress in their annual report. These activities can include setting representation or diversity-related targets for the governance and administration of scientific review committees; collecting self-identification data for EDI performance tracking; working towards a better understanding of program impacts on underrepresented groups; and embedding EDI values in hiring and training processes. At the initial phase of selecting funding recipients and negotiating agreements, GBA Plus is also applied.

GBA Plus also means ensuring inclusive outcomes for all Canadians through inclusive program design and implementation. For example, the NQS's broad community-based approach encourages youth from under-represented groups, such as girls, Indigenous youth, disabled youth, at-risk youth, and youth living in rural or remote locations, to develop life-long learning habits and curiosity toward STEM fields such as quantum science and technologies. Additionally, by expanding NREN into Nunavut through an agreement with Nunavut Arctic College, CANARIE will continue to reduce the digital divide for rural and northern communities.

Lastly, Genome Canada maintains a strong commitment to action on inclusion, diversity, equity and accessibility (IDEA) by embedding policies and practices enterprise-wide across its programs. It will continue collaborating with all equity-deserving groups for input on investment prioritization and delivery of challenge-driven initiatives. Specifically, Genome Canada has engaged with a wide range of Indigenous leaders across sectors and supports Indigenous-led programs, such as Silent Genomes and the Summer internship for Indigenous Peoples in Canada (SING Canada). They are working with Indigenous partners to co-develop an Indigenous truth, reconciliation and engagement strategy to elevate Indigenous genomics leadership in Canada. Through continued partnerships in activities such as the Black Excellence in Science, Technology, Engineering, Mathematics and Medicine/Health (BE-STEMM) event, Genome Canada provides research and career opportunities to Black Canadian scholars, with a focus on removing barriers and boosting retention.

For details on ISED's contributions to various UN Sustainable Development Goals please see the United Nations 2030 Agenda for Sustainable Development and the UN Sustainable Development Goals section under the People, Skills and Communities, and Companies, Investments and Growth core responsibilities.

Additionally, more information on ISED's contributions to Canada's Federal Implementation Plan on the 2030 Agenda and the Federal Sustainable Development Strategy can be found in ISED's Departmental Sustainable Development Strategy . Footnote v

Science, Technology, Research and Commercialization is supported by the following program in the program inventory:

• Science and Research

Supporting information on planned expenditures, human resources, and results related to ISED's program inventory is available on GC InfoBase . Footnote x

Support the creation, transfer and diffusion of knowledge to ensure that Canadians, including under-represented individuals, are equipped with the skills and tools to participate in an innovative, high-growth economy; advance a culture of innovation where Canadians are driven to address local, regional, national and/or global challenges; benefit from growth of the middle class across communities; have increased access to affordable broadband and mobile Internet, including in rural and remote regions; and are protected and informed consumers.

The People, Skills and Communities core responsibility aligns with the "Prosperity" domain of Canada's Quality of Life Framework, with its focus on improving participation in the Canadian economy for various segments of the population, particularly the emphasis on broadband access. For example, one of the indicators in the "Prosperity" domain is "access to high-speed Internet," measured by the proportion of households that have access to high-speed Internet services, which is also one of ISED's Departmental results indicators.

This core responsibility also aligns with the inclusion lens of the Quality of Life Framework, as several of ISED's programs focus on reducing barriers and enhancing access to financial and non-financial supports for entrepreneurs from various equity-deserving groups, including women, racialized people, and members of the 2SLGBTQI+ communities.

The following table shows, for each departmental result related to People, Skills and Communities, the indicators, the results from the three most recently reported fiscal years, and the targets and target dates approved for 2024–25.

Table 5: Indicators, results, and targets for departmental result: People and communities from all segments of Canadian society participate in the economy.

The financial, human resources and performance information for ISED's program inventory is available on GC InfoBase . Footnote xi

Departmental Result: : People and communities from all segments of Canadian society participate in the economy.

In 2024–25, ISED will continue to provide people from all regions of the country with the necessary access, tools, and skills to participate in the digital economy. In support of Canada's Connectivity Strategy, ISED will continue to advance connectivity and bring reliable high-speed Internet access to households and businesses across Canada through the $3.225 billion Universal Broadband Fund (UBF). For instance, ISED will continue to roll out UBF projects across Canada to further advance connectivity in rural and remote areas of the country, such as in the example of Saskatchewan, where the UBF brought fibre-optic Internet to the communities of Thode and Shields, allowing nearly 350 households and other local businesses (e.g., those in the tourism industry) to benefit from access to remote schooling, work, healthcare and connecting with loved ones. These efforts will support our goal of 98% of Canadian households having access to high-speed internet by 2026, and 100% by 2030.

To provide high-speed Internet service to the hardest to reach households, the Government of Canada has entered into a $600 million agreement with Telesat to secure capacity on its low Earth orbit (LEO) satellite constellation, Telesat Lightspeed. Through Telesat Lightspeed, Internet service providers (ISPs) will be able to offer services to Canadian households at a reduced rate, bringing Canada closer to meeting its 2030 100% connectivity target. ISED will continue to monitor Telesat's progress towards a 2026 launch and 2027 service date, working with Telesat to connect a total of 40,000 rural , remote and Indigenous households in satellite-dependent communities, including in the Far North.

Through the Connecting Families Initiative (CFI), ISED will continue to promote affordable Internet access for low-income families and seniors who face affordability barriers. In partnership with ISPs, ISED will continue to facilitate access to affordable Internet plans for the hundreds of thousands of households that need it most. Specifically, in 2024–25, ISPs will provide the newest service package of 50/10 Mbps Internet speeds for $20 per month, along with the previous package (10/1 Mbps) at $10 per month.

To enhance awareness and access among those who are eligible , the CFI will be promoted through mailouts to eligible individuals and households, inviting them to register through the program's web portal. Working with the Canada Revenue Agency and Employment and Social Development Canada, ISED will explore additional means beyond mailouts to reach the target population, potentially through emails. A social media campaign, coupled with other social media engagement strategies and webinars with community-based partner organizations, will also help broaden awareness of the CFI. These efforts will serve to provide more information about the program and support organizations in helping those who have language barriers or digital literacy challenges to register and to participate in the CFI.

In addition to improving Internet access, ISED, through the Digital Literacy Exchange Program (DLEP), will continue to support not-for-profit organizations in developing and delivering digital literacy skills training for those who face barriers to participating in the digital economy. The program's second phase, DLEP 2.0, aims to provide digital literacy training to 100,000 individuals, including persons with disabilities, Indigenous people, individuals who do not speak English or French at home, seniors, individuals who have not completed high school, individuals with low-income, residents in rural and remote areas, newcomers to Canada, and individuals from official language minority communities.

Through these collective efforts and their focus on tackling systemic barriers to economic participation, the Department will help foster an increasingly accessible, and inclusive digital economy by providing everyone in Canada with the access, tools, skills, and affordable services they need.

Diversifying Canada's entrepreneurial ecosystem

As Canada's entrepreneurial landscape continues to evolve, various groups, including women, Indigenous people, and other racialized minorities, remain under-represented in the entrepreneurial ecosystem. In 2024–25, ISED's programs will continue to dismantle the barriers faced by these groups by providing access to financing, business tools and support services so that all equity-deserving groups have equal access to the resources needed to start and grow their businesses. By investing in diverse entrepreneurs, ISED will unlock new and existing potential in the business community, making Canada's entrepreneurial ecosystem more accessible by providing opportunities and support for individuals from equity-deserving groups to start, scale, grow, and maintain their businesses.

Through the Women Entrepreneurship Strategy (WES), the Black Entrepreneurship Program, and the newly established 2SLGBTQI+ Entrepreneurship Program, ISED will continue to facilitate access to financing, networks, mentorship, and business supports, such as financial planning services and training, for under-represented entrepreneurs across Canada.

In 2024-25, the WES Ecosystem Fund will continue to strengthen capacity within the entrepreneurship ecosystem and offer business supports to diverse women entrepreneurs, as well as those in rural and remote areas. An investment of $65 million will fund 24 projects led by not-for-profit organizations to offer supports such as training, mentorship and financial literacy. Furthermore, the WES Ecosystem Fund will continue to strive to serve at least 12,000 women entrepreneurs across Canada annually. The WES Ecosystem Fund will support the École des entrepreneurs du Québec FAIR.E project, which will deliver three transformational learning programs—free-of-charge—to help women entrepreneurs launch, boost and grow their businesses. The project will serve up to 1,800 women in six provinces: Quebec, Ontario, Prince Edward Island, New Brunswick, Nova Scotia, and Newfoundland and Labrador. Finally, financing and access to capital will be offered to women entrepreneurs through the $55 million Women Entrepreneurship Loan Fund, which provides individual loans of up to $50,000.

To bolster the representation of under-represented groups in Canada's entrepreneurial ecosystem, the $160 million Black Entrepreneurship Loan Fund (BELF)—made up of $30 million from the Government of Canada and $130 million from the Business Development Bank of Canada (BDC)—will continue to provide individual loans of up to $250,000 for Black business owners and entrepreneurs. The BELF administrator, the Federation of African Canadian Economics (FACE), in partnership with BDC, has approved over 500 applications, representing more than $46 million in loans. In 2024-25, the Black Entrepreneurship Ecosystem Fund will continue to support 43 not-for-profit organizations across the country, in providing training, mentorship, networking and financial literacy services to Black entrepreneurs and business owners. Entrepreneurs who identify as 2SLGBTQI+ (Two-Spirit, lesbian, gay, bisexual, transgender, queer, intersex, or other sexually or gender diverse people) make sizable contributions to the Canadian economy, yet they continue to face systemic barriers to starting and growing their businesses. Through the 2SLGBTQI+ Business Scale-Up program, totalling $13.5 million in funding, and in partnership with Canada's 2SLGBTQI+ Chamber of Commerce (CGLCC), ISED will help 2SLGBTQI+ entrepreneurs across Canada grow their businesses by implementing a national mentorship program, improving access to corporate procurement opportunities, and helping 2SLGBTQI+ entrepreneurs and businesses become export ready. The Business Scale-Up program plans to support 250 small and medium-sized enterprises (SMEs) by March 31, 2025, including 55 SMEs owned and managed by 2SLGBTQI+ individuals who also identify as members of another equity-deserving group.

Within the venture capital (VC) ecosystem, women entrepreneurs continue to face systemic barriers to accessing venture capital funding. To address these barriers and build a more inclusive risk and venture capital environment for women in Canada, the Venture Capital Catalyst Initiative (VCCI) will continue to increase women entrepreneurs' access to VC funding, contribute to increasing the representation of women in the VC industry, and help ensure that the VC industry is sensitive to gender and potential unconscious bias. VCCI's projects seek to facilitate capacity building and skills development opportunities as they relate to training and education, mentorship and coaching, and advisory services.

Additionally, the Small Business and Entrepreneurship Development Program (SBEDP) General Fund received $101.4 million, as announced in Budget 2021, to support national/pan-Canadian not-for-profit organizations into assisting SMEs across Canada, including those led or owned by members of equity-deserving groups, to develop and grow. The SBEDP General Fund has been used to support several entrepreneurship initiatives, including the $25 million 2SLGBTQI+ Entrepreneurship Program and the renewal of the Trade Accelerator Program

The Department will also continue to build knowledge and collect data on under-represented entrepreneurs to create a more inclusive and supportive business environment through the Women Entrepreneurship Knowledge Hub (WEKH), the Black Entrepreneurship Knowledge Hub (BEKH), and the 2SLGBTQI+ Knowledge Hub, which conduct research on the state of the entrepreneurial ecosystem for each group. To provide evidence-based research to inform the design and delivery of targeted supports for women entrepreneurs, the WEKH, led by Toronto Metropolitan University, will continue to publish the State of Women's Entrepreneurship annual report, as well as reports and articles on women entrepreneurs across a variety of sectors, such as cleantech, agriculture, arts and culture, and procurement. To further dismantle the barriers experienced by women entrepreneurs, the WEKH will continue to add more women entrepreneurs to its See It. Be It. database of over 1,800 diverse Canadian women entrepreneurs.

The BEHK, administered by Carleton University's Sprott School of Business and the Dream Legacy Foundation, will continue to work with community partners to advance research on the state of Black entrepreneurship in Canada and help identify barriers to success, as well as opportunities for growth, for Black entrepreneurs. To support this work, the BEKH will conduct a range of research activities. BEKH will also continue to convene Black Entrepreneurship Program stakeholders, building on the successes and lessons learned from its annual symposiums in 2022 and 2023. Similarly, the 2SLGBTQI+ Knowledge Hub will conduct research and collect data to create a clearer picture of the entrepreneurship landscape for the 2SLGBTQI+ community and the challenges 2SLGBTQI+ entrepreneurs face.

In 2024–25, ISED will continue to challenge Canadian organizations to increase the representation and inclusion of diverse groups in senior leadership positions through the 50 – 30 Challenge, which aims to achieve gender parity (50% women and/or non-binary people) and significant representation (30%) of members of other equity-deserving groups on Canadian boards and/or in senior management. The five Ecosystem Partners — Colleges and Institutes Canada, UN Global Compact Network Canada, the Ted Rogers School of Management's Diversity Institute, the Women's Economic Council and Egale Canada— will continue to support challenge participants by delivering tools, services and resources to help them meet the 50 – 30 Challenge objectives.

Bolstering the digital presence of Canadian businesses

ISED is committed to helping Canadian businesses, especially SMEs and businesses owned by under-represented entrepreneurs, take advantage of digital technologies. Through the Canada Digital Adoption Program (CDAP), ISED will provide funding opportunities and expert advice to help SMEs digitalize their operations. In 2024–25, the Department will continue to help SMEs establish a digital presence and to provide job opportunities to youth—by hiring and training them as e-commerce advisors—through CDAP.

Through its Grow Your Business Online component, CDAP will continue to provide eligible businesses with micro-grants of up to $2,400 for costs associated with the adoption of digital technologies and with assistance and e-commerce advisory services. By focusing on awareness-building activities and user-centric enhancements, CDAP will continue to increase its uptake to maximize the value and impact of the program for participating businesses.

Through CDAP's Boost Your Business Technology component, additional incentives will be offered in the form of interest-free loans through BDC and individual wage subsidies of up to $7,300 for youth employment placements, to support SMEs in implementing their digital adoption plans to improve their productivity and competitiveness.

ISED, through the Trade Accelerator Program (TAP), will continue to help SMEs take advantage of international market opportunities by increasing their exporting capabilities. TAP is delivered by six regional chambers of commerce across Canada and will support these organizations in guiding participating SMEs to achieve an increase in the value of their exports over the course of their participation in the program through access to networks, training and advice from Canada's top export advisors.

Due to ongoing procurement and supply chain challenges, labour shortages, and inflation, combined with unexpected events such as extreme weather and wildfires, there is a risk of delays and cost overruns for some projects under the UBF and Telesat's LEO satellite constellation. ISED will continue to monitor the progress of these projects and to work closely with funding recipients to mitigate risks on a case-by-case basis to ensure that the programs remain on track to meet the government's connectivity targets.

Given the systemic barriers that people from under-represented groups continue to face in accessing financial and non-financial support services, there is a risk of insufficient program uptake or use by eligible recipients. In addition, there is a risk that ISED's programs may not sufficiently address the needs of their target populations because of the changing economic climate, the evolving needs of SMEs and entrepreneurs, and the limited availability of data on the specific entrepreneurship barriers that some equity-deserving groups face. To mitigate these risks, ISED will undertake targeted outreach and engagement activities to ensure that programs reach their audience and that eligible individuals benefit from key services. ISED will also continue to leverage research and data from the various knowledge hubs and work closely with community-based organizations to co-develop services and supports, such as training, to ensure that programming is relevant, useful and culturally appropriate for the target audience.

• Planned spending: $703,840,962
• Planned full-time resources: 178

ISED will continue to foster an inclusive and representative modern digital economy by focusing on closing gaps in connectivity and Internet access for Canadian households, improving digital literacy skills, and providing financial and business supports to under-represented entrepreneurs.

Certain groups may face barriers to accessing DLEP and CFI services—for instance, those with limited access to technology due to financial constraints, lack of access to the Internet to register for the program, language barriers, lack of transportation or lack of awareness of the program. To address these limitations, the programs will continue to target low-income families, seniors, and official language minority communities. DLEP will continue to offer services free of charge, support multilingual training and translation, offer training in various facilities, and provide transportation to individuals in need. In partnership with the YWCA, the CFI will continue to offer services in multiple languages and to train staff in non-profit organizations that support low-income families and seniors on how to assist eligible participants with program registration.

Programs committed to closing the connectivity gap such as the UBF, will continue to work towards providing households in rural and remote and Indigenous communities with access to high-speed Internet. The UBF will continue to target under-served communities, including Indigenous communities.in order to bridge the digital divide by bringing reliable Internet access to these regions and groups.

Barriers to accessing financial and non-financial support services are further amplified for entrepreneurs with multiple intersecting identities (i.e., those who identify as belonging to more than one under-represented group). With a reduced awareness of these programs or a lack of knowledge in navigating government resources, these entrepreneurs may not benefit from federal supports. Entrepreneurs from equity-deserving groups and/or those in rural, remote, and northern communities may also face additional barriers to growth due to small local markets, remoteness, and infrastructure challenges. Furthermore, individuals who do not wish to identify as a member of an equity-deserving group may not benefit from ISED's programs and services.

To dismantle these barriers, ISED will ensure that the self-identification process in applications is secure and confidential and will enhance its outreach and communication activities —through platforms like the Business Benefits Finder, for example—to build awareness of all entrepreneurship programs. Furthermore, disaggregated data collected on diverse groups will be used to fuel research on Canada's entrepreneurial ecosystem and to improve programming for under-represented groups. The Department will also encourage recipient organizations to refer clients and to share information with eligible applicants to bolster the reach of their programs. In addition, ISED will continue to assess recipient organizations' projects to ensure that those benefitting individuals with intersecting identities and living in rural and remote communities are prioritized.

ISED is a strong supporter of Canada's efforts to develop and implement the United Nations 2030 Agenda for Sustainable Development and Sustainable Development Goals (SDGs). While ISED supports multiple SDGs, its programs and initiatives under the People, Skills, and Communities core responsibility primarily advance action on SDG 9—Industry, Innovation and Infrastructure to "build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation." ISED's programs and initiatives in support of this SDG include Canada's Connectivity Strategy, the Universal Broadband Fund, Connect to Innovate), and the Canada Digital Adoption Program.

ISED's People, Skills, and Communities programs also advance other SDGs, such as:

• ensuring inclusive and equitable quality education and promoting lifelong learning opportunities for all; and
• promoting inclusive and sustainable economic growth, full and productive employment, and decent work for all.

More information on ISED's contributions to Canada's Federal Implementation Plan for the 2030 Agenda and the Federal Sustainable Development Strategy can be found in ISED's Departmental Sustainable Development Strategy . Footnote v

People, Skills, and Communities is supported by the following programs in the program inventory:

• Support for Under-represented Entrepreneurs
• Bridging Digital Divides

Supporting information on planned expenditures, human resources, and results related to ISED's program inventory is available on GC InfoBase . Footnote xii

Internal services are the services that are provided within a department so that it can meet its corporate obligations and deliver its programs. There are 10 categories of internal services:

• management and oversight services
• communications services
• legal services
• human resources management services
• financial management services
• information management services
• information technology services
• real property management services
• materiel management services
• acquisition management services

Our Workplace

In 2024–25, ISED will continue to ensure that its workspace, tools, and technology are accessible, and that they continue to evolve to meet changing needs of employees in the hybrid work environment. The Department will continue to modernize the built environment to meet GC Workplace standards, and to remove barriers identified in ISED's 2023-2025 Accessibility Plan. In 2024‒25, employees will see the creation of a variety of accessible spaces within the workplace including community boardrooms, multi-faith prayer rooms and reflection rooms. ISED will also continue to increase the number of all-access and gender-neutral washrooms that are available to employees. Finally, ISED will continue to equip its boardrooms with hybrid meeting technology and will continue to ensure Wi-Fi access in regional offices.

In many cases, the delivery of projects in the built environment are dependent on external partners such as building management companies, Public Services and Procurement Canada, Shared Services Canada, among others. As such, there is a risk that projects could be delayed if project stakeholders are unable to align with ISED's timelines. To mitigate this risk, ISED will continue to monitor its progress and reprioritize investments as required to responsibly manage its funds and continue to deliver on its requirements.

ISED's Future of Work Office (FOWO) has been critical to the Department's successful transition to the hybrid work environment. FOWO will continue to ensure that all employees have signed telework agreements and will monitor ISED's compliance with the Direction on Prescribed Presence in the Workplace to meet the reporting requirements set out by Treasury Board of Canada Secretariat (TBS).

Our Workforce

ISED is committed to being a leader in anti-racism, diversity, equity, inclusion and accessibility, and fostering organizational well-being. ISED's 2023-2025 Employment Diversity and Inclusion (EDI) strategy emphasizes equity by providing fair opportunities and access, while also highlighting accountability and reporting mechanisms to ensure effective behaviors and tangible results across the organization. As an integral part of the strategy, ISED is piloting a new corporate onboarding program designed to develop a greater sense of belonging within the organization. This program will offer new employees personalized resources, tailored onboarding as well as the opportunity to engage in specialized networking events with ISED's various employee networks.

Through the 2023-2025 Accessibility Plan, ISED is working to identify, remove and prevent barriers not only in the built environment, but also in the areas of culture, employment, accessibility, and communication, with the aim to combat ableist attitudes, enhance inclusive hiring practices, and improve accessibility. To improve the accommodations process, ISED will empower managers to autonomously handle accommodation issues, when possible, provide support when needed and continue to foster awareness, and encourage the pursuit of innovative, inclusive solutions. ISED will continue to implement its 2023-2026 Official Languages (OL) Strategy, incorporating OL policy into departmental strategies, promoting collective leadership, and integrating planned OL improvements to foster linguistic duality within ISED.

In 2024‒25, ISED will implement its updated 2023-2026 Mental Health Strategy which aims to improve psychological health and safety in the workplace; prioritize employee well-being, leading to a healthier and more productive workforce. The strategy also seeks to integrate diversity, equity, and inclusion principles, emphasizing their critical role in creating a supportive work environment where every individual is acknowledged, respected, and valued.

To further support employee mental health and well-being, the Canadian Innovation Centre for Mental Health in the Workplace will continue to offer mental health workshops to ensure managers and employees are aware of the tools and services available to support mental health in the workplace, including but not limited to the Employee Assistance Program (EAP).

In addition to EAP, ISED also offers Ombuds Services and Information Conflict Management Services (ICMS). This year, ISED will work to ensure that its services are accessible and inclusive, and that members of underrepresented groups feel safe and secure in accessing them. Specifically, the Office of the Ombud will reach out to all internal EDI networks to answer questions, address concerns, identify any potential barriers to access, and establish ways to overcome them. The goal of this work is to ensure that employees can discuss any issue—including racism, inclusion, equity, discrimination, or accessibility—in complete confidence and without fear of reprisal.

This year, ISED will undertake a three-year review of the Harassment and Violence prevention program, with a focus on preventative measures and program improvements and to assess program effectiveness. At the same time, the Department will continue to offer employee support regarding harassment, violence, and discrimination issues, including sessions on addressing microaggression while preserving positive working relationships. Additionally, ISED will facilitate safe space discussions with executives, so that they are equipped to facilitate conversations on EDI, harassment, and discrimination with their own teams.

Over the past two years, ISED has implemented phases I and II of its Financial Management Modernization Initiative, to improve financial stewardship and optimize financial management practices as well as to improve access to timely and effective financial management information to support decision making and risk management. To date, ISED has also reinforced accountabilities within the Department and centralized key functions to ensure better alignment under the Chief Financial Officer model. In 2024‒25, ISED will focus on optimizing the model to ensure maximum benefit for the organization. This will be especially important as the Department moves to a risk-based approach to better manage the variety and scope of its Grants and Contributions programs.

ISED will also transition to multi-year budget planning to ensure the Department is well positioned to achieve the Government of Canada saving targets announced in Budget 2023. ISED's finance and human resources teams will work together closely to maximize savings from attrition and realign resources to ensure ongoing program delivery.

To support the advancement of departmental and government priorities across Canada, ISED's regional offices will continue to serve as ISED's ambassadors across the country, providing substantial support to the Department's five ministers by organizing and executing ministerial visits. Regional offices will also continue to gather critical regional intelligence, facilitate relations with ISED's key regional partners, and conduct policy analysis to support the delivery of ISED's programs and services across the country.

In 2024‒25, ISED will continue to modernize and improve its Information Management and Information Technology (IM/IT) infrastructure, tools and services to improve users' digital experience, while maintaining a secure technical environment. In alignment with ISED's recently developed Service & Digital Strategy and Service Improvement Road Map, the Department will continue to monitor service criteria such as online end-to-end access, real-time performance measures, accessibility, service improvement based on client feedback and performance against service standards.

ISED will continue monitoring its cloud-based landscape to ensure that all internal and external services, databases and platforms remain available to users and function without interruption. To enhance its security posture, ISED will continue to advance its detection and response capability, ensuring that the organization is able to respond to cyber threats, and minimize any related impacts.

There is a strong demand within the organization to build a data pipeline and create tools for ISED's programs to enable evidence-based program delivery. Building on the successful development of Power BI dashboards for CDAP, ISED will continue to develop data visualization tools that put real-time program information in the hands of ISED's decision makers. To further support the management and utilization of organizational data, ISED will continue to implement data standards and data integrity measures to ensure the reliability of its data, improve digital information management practices, and manage information sprawl across the organization.

• Planned spending: $182,467,251
• Planned full-time resources: 1,651

Planning for contracts awarded to Indigenous businesses

To achieve and exceed the 5% Indigenous procurement targets and meet our economic reconciliation obligations, ISED continues to take the following actions:

• Communicate ISED's Indigenous Procurement Policy and related processes to advocate and encourage procurement with Indigenous businesses;
• Impose mandatory training for Procurement Functional Specialists, Acquisition Cardholders, and staff with low-dollar procurement delegations;
• Conduct ISED's Annual Procurement Planning exercise to enable early client engagement with key department officials to maximize opportunity with Indigenous businesses;
• Publish Requests for Information to determine if Indigenous capacity exists, as needed;
• Apply Procurement Strategy for Indigenous Business (PSIB) and include evaluation criteria in solicitation documents to maximize opportunity for Indigenous businesses to the greatest extent possible;
• Award sole source contracts under $40K to Indigenous businesses where capacity and market presence exists and above $40K direction to Indigenous businesses is encouraged.
• Unbundle larger contracts when Indigenous capacity exists;
• Attend Indigenous job expos to better understand the market and help Indigenous businesses navigate procurement within the federal government; and
• Utilize corporate controls and reporting to monitor compliance and achieve the targets.

ISED's targets were determined by analyzing past contracting data. Using this information, procurement opportunities were identified, and ambitious targets were established. 

ISED reviews purchasing activity and compares it with the Indigenous Business Directory (IBD). Where no capacity exists, ISED established exempted commodities, for Deputy Minister (DM) approval. ISED annually reviews the Indigenous Business Directory IBD to determine if updates to the exemptions apply.

The potential challenges in meeting the minimum 5% target for ISED's commonly purchased commodities include lack of competitive pricing, limited capacity and gaps in expertise.

In 2024–25, ISED plans to establish a means to report acquisition card purchases with Indigenous businesses with the goal of increasing ISED's procurement results.

Planned spending and human resources

This section provides an overview of ISED's planned spending and human resources for the next three fiscal years and compares planned spending for 2024–25 with actual spending from previous years.

Table 6: Actual spending summary for core responsibilities and internal services ($ dollars)

The following table shows information on spending for each of ISED's core responsibilities and for its internal services for the previous three fiscal years. Amounts for the current fiscal year are forecasted based on spending to date.

Table 6 Notes

The variance primarily reflects actual spending under the Universal Broadband Fund, which was lower in 2022–23 as a result of the proposal assessment process and contribution agreement negotiations.

Also reflected is the funding profile for the Canada Digital Adoption Program: Stream 1.

Return to table 6 note 1 referrer

The increase reflects the actual spending related to the implementation of the Strategic Science Fund and the National Quantum Strategy.

Return to table 6 note 2 referrer

The increase in actual spending primarily reflects the funding profiles of the Strategic Innovation Fund, the Canada Digital Adoption Program: Stream 2 and the Canada Foundation for Sustainable Development Technology.

Return to table 6 note 3 referrer

The variance in actual spending primarily reflects spending to support various departmental initiatives such as Diversity & Inclusion, Workload Migration and Future of Work.

Return to table 6 note 4 referrer

Table 7: Budgetary planning summary for core responsibilities and internal services (dollars)

The following table shows information on spending for each of ISED's core responsibilities and for its internal services for the upcoming three fiscal years.

Table 7 Notes

The variance in planned spending reflects a fluctuation in the approved funding profile of the Universal Broadband Fund, offset by the end of funding for several programs such as the Canada Digital Adoption Program: Stream 1, the Small Business and Entrepreneurship Development Program and the Women's Entrepreneurship Program.

Return to table 7 note 1 referrer

The variance in planned spending primarily reflects a decrease in the approved funding profile of the Digital Research Infrastructure Strategy. Also reflected is the winding down of several programs such as Genome Canada, adMare Bioinnovations, Stem Cell Network.

Return to table 7 note 2 referrer

Planned spending primarily reflects new funding announced in Budget 2023 for the Strategic Innovation Fund to support battery manufacturing in Canada. Also reflected is the end of temporary funding for several programs such as the Canada Digital Adoption Program: Stream 2, Upskilling for Industry Initiative, New Generation Wireless Technology Initiative, Zero Emissions Vehicles and Fuels Regulatory.

Return to table 7 note 3 referrer

The budget reduction related to the Refocusing Government Spending is reflected among all core responsibilities, to reach $191.6 million by 2026–27.

Return to table 7 note 4 referrer

Table 8: 2024–25 budgetary gross and net planned spending summary (dollars)

The following table reconciles gross planned spending with net planned spending for 2024–25.

ISED's 2024-25 Budgetary Planned Gross Spending is $6.5 billion, which includes $374.4 million in vote netted revenues, accounting for total planned net spending of $6.1 billion.

The ISED vote netted revenue authorities are those referred to in paragraph 29.1(2)(a) of the Financial Administration Act (i.e. revenue received by the department in a fiscal year through the conduct of its operations, which the department is authorized to expend in order to offset expenditures incurred in that fiscal year) from the following sources:

• the provision of internal support services under section 29.2 of that Act, and the provision of internal support services to the Canadian Intellectual Property Office;
• activities and operations related to communications research at the Communication Research Centre;
• services and insolvency processes under the Bankruptcy and Insolvency Act at the Office of the Superintendent of Bankruptcy;
• activities and operations carried out by Corporations Canada under the Canada Business Corporations Act, the Boards of Trade Act, the Canada Cooperatives Act and the Canada Not-for-profit Corporations Act; and
• services and regulatory processes for mergers and merger-related matters, including pre-merger notifications, advance ruling certificates and written opinions, under the Competition Act at the Competition Bureau.

The following graph presents planned spending (voted and statutory expenditures) over time.

The variance in future years is primarily related to the fluctuations in the cashflow profiles of transfer payment programs.

Estimates by vote

Information on ISED's organizational appropriations is available in the 2024–25 Main Estimates . Footnote xiii

The future-oriented condensed statement of operations provides an overview of ISED's operations for 2023–24 to 2024–25.

The forecast and planned amounts in this statement of operations were prepared on an accrual basis. The forecast and planned amounts presented in other sections of the Departmental Plan were prepared on an expenditure basis. Amounts may therefore differ.

A more detailed future-oriented statement of operations and associated notes, including a reconciliation of the net cost of operations with the requested authorities, are available at ISED's website . Footnote xiv

Table 9: Future-oriented condensed statement of operations for the year ending March 31, 2025 (dollars)

The expected variance in total expenses year-over-year is mainly attributable to increases in transfer payments, particularly in the Strategic Innovation Fund, the Canada Foundation for Innovation, the Digital Research Infrastructure Strategy and the Universal Broadband Fund. Given the complexity of some of ISED's programming, and the requirement to align the funding profile with the recipients forecasted spending, further changes to the 2024–25 planned results could occur during the fiscal year.

Total revenues (net of those earned on behalf of government) are projected to increase year-over-year, mainly as the Canadian Intellectual Property Office (CIPO)'s revolving fund expects to collect higher revenues due to fee increases and increased examination capacity.

Table 10: Actual human resources for core responsibilities and internal services

The following table shows a summary of human resources, in full-time equivalents (FTEs), for ISED's core responsibilities and for its internal services for the previous three fiscal years. Human resources for the current fiscal year are forecasted based on year to date.

Table 10 Notes

The increase in actual and forecast FTEs is due to new temporary employees in support of the implementation of the Canada Digital Adoption Program: Stream 1 and the Universal Broadband Fund.

Return to table 10 note 1 referrer

The increase in actual and forecast FTEs is due to the implementation of the Strategic Science Fund Program and the launch of the National Quantum Strategy.

Return to table 10 note 2 referrer

Table 11: Human resources planning summary for core responsibilities and internal services

The following table shows information on human resources, in full-time equivalents (FTEs), for each of ISED's core responsibilities and for its internal services planned for 2024–25 and future years.

Table 11 Notes

The decrease is due to the winding down of funding for the Canada Digital Adoption Program: Stream 1 and the Universal Broadband Fund.

Return to table 11 note 1 referrer

The decrease is due to the winding down of funding for the Canada Digital Adoption Program: Stream 2 and the funding for the Budget 2021 measures entitled Charging and Fueling Zero Emission Vehicles; and Supporting the Production and Use of Clean Fuels.

Return to table 11 note 2 referrer

FTE totals may not add due to rounding.

Return to table 11 note 3 referrer

The reduction in Full Time Equivalent related to the Refocusing Government Spending, which will be achieved by not backfilling certain positions as they vacate through attrition, is reflected among all core responsibilities, to reach 94 FTE by 2026–27.

Return to table 11 note 4 referrer

Return to table 11 note 5 referrer

Appropriate minister(s):

Minister of innovation, science and industry.

The Honourable François-Philippe Champagne, P.C., M.P.

Minister of Export Promotion, International Trade and Economic Development

The Honourable Mary Ng, P.C., M.P.

Minister of Tourism and Minister responsible for the Economic Development Agency of Canada for the Regions of Quebec

The Honourable Soraya Martinez Ferrada, P.C., M.P.

Opportunities Agency

Minister of small business.

The Honourable Rechie Valdez, P.C., M.P.

Deputy ministers:

Simon Kennedy

Francis Bilodeau

Ministerial portfolio:

Innovation, Science and Economic Development Footnote xv

Enabling instrument(s):

Innovation, Science and Economic Development Canada's founding legislation is the Department of Industry Act , S.C. 1995, c.1. Footnote xvi

Year of incorporation / commencement:

Mailing address:.

Corporate Management Sector Innovation, Science and Economic Development Canada 235 Queen Street 2nd Floor, East Tower Ottawa, ON K1A 0H5

613-954-5031

1-866-694-8389

613-954-2340

ic.info–info.ic@ised–isde.gc.ca

Website(s):

https://ised-isde.canada.ca/site/ised/en

The following supplementary information tables are available on ISED's website:

• Details on transfer payment programs
• Gender-based analysis plus
• Horizontal initiatives
• Up front multiyear funding

Information on ISED's departmental sustainable development strategy can be found on ISED's website . Footnote x

ISED's Departmental Plan does not include information on tax expenditures.

Tax expenditures are the responsibility of the Minister of Finance. The Department of Finance Canada publishes cost estimates and projections for government‑wide tax expenditures each year in the Report on Federal Tax Expenditures . Footnote xvii

This report provides detailed information on tax expenditures, including objectives, historical background and references to related federal spending programs, as well as evaluations, research papers and gender-based analysis plus.

For the purpose of the 2024–25 Departmental Plan, government-wide priorities are the high-level themes outlining the government's agenda in the 2021 Speech from the Throne: building a healthier today and tomorrow; growing a more resilient economy; bolder climate action; fighter harder for safer communities; standing up for diversity and inclusion; moving faster on the path to reconciliation and fighting for a secure, just, and equitable world.

An initiative in which two or more federal organizations are given funding to pursue a shared outcome, often linked to a government priority.

Net outlays and receipts related to loans, investments and advances, which change the composition of the financial assets of the Government of Canada.

What an organization did with its resources to achieve its results, how well those results compare to what the organization intended to achieve, and how well lessons learned have been identified.

The articulation of strategic choices, which provides information on how an organization intends to achieve its priorities and associated results. Generally, a plan will explain the logic behind the strategies chosen and tend to focus on actions that lead up to the expected result.

For Departmental Plans and Departmental Results Reports, planned spending refers to those amounts presented in the Main Estimates.

A department is expected to be aware of the authorities that it has sought and received. The determination of planned spending is a departmental responsibility, and departments must be able to defend the expenditure and accrual numbers presented in their Departmental Plans and Departmental Results Reports.

Individual or groups of services, activities or combinations thereof that are managed together within a department and that focus on a specific set of outputs, outcomes or service levels.

An inventory of a department's programs that describes how resources are organized to carry out the department's core responsibilities and achieve its planned results.

An external consequence attributed, in part, to an organization, policy, program or initiative. Results are not within the control of a single organization, policy, program or initiative; instead, they are within the area of the organization's influence.

Expenditures that Parliament has approved through legislation other than appropriation acts. The legislation sets out the purpose of the expenditures and the terms and conditions under which they may be made.

A measurable performance or success level that an organization, program or initiative plans to achieve within a specified time period. Targets can be either quantitative or qualitative.

Expenditures that Parliament approves annually through an Appropriation Act. The vote wording becomes the governing conditions under which these expenditures may be made.