Career development is crucial to a positive employee experience.
Today’s employees crave new challenges and learning opportunities. Employees who feel they aren’t progressing in their careers quickly enough change employers. Even less than a year (10 months) of perceived stagnation increase the likelihood of resignation.
When asked why they’re leaving their current positions, 22 percent of employees cite career development (or lack thereof) as their number one reason for departure. That turnover costs a company anywhere from 21 percent of an employee’s salary to two times the full annual salary, and those tens of thousands of dollars add up quickly.
Offering clear opportunities for development and career advancement via transparent, individualized career paths reduces that turnover and increases companywide profitability. Dynamic and customizable career pathing programs enable employees to dream big, explore options, and plot their next steps all from within the same organization. Companies who institute these programs – and make creating, maintaining, and discussing them a priority between management and personnel – instill a culture of development that recognizes and rewards ambition and reduces wandering eyes.
Research indicates that 62 percent of employees could be tempted to take a new job. This is especially true for high potential employees who are attracted to positions that offer the chance to learn skills, take on more responsibilities, and try something new. Companies that want to retain these high potential employees must continually attract them by prioritizing individual advancement and development. Career pathing programs are an ideal way to do this.
To foster development effectively, a career pathing program should offer a wide range of flexible career journeys, such as dual career ladders, lateral career paths, career lattices, and upward and dialed-down path options. It also needs to include robust skills and gap assessments, as well as accessible training and mentoring resources. Together, these features ensure employees have the tools necessary to chart their own paths based on their individual skills, interests, and priorities while acquiring the competencies and experiences necessary to move them toward their goals.
Businesses often make the mistake of thinking retention is all about salary and benefits.It isn’t. It’s about attraction and motivation. Motivated employees are engaged employees. By fostering ambition and offering simple, practical resources for achieving employees’ career goals, companies can maintain attraction and motivation no matter how long the employee-employer relationship has existed and no matter who else comes calling. Development is the key to success.
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