The Argument for Career Pathways

Effective career pathways are a win-win for both employees and employers. Establishing a clear career path for your employees can empower them to achieve their professional goals. Career pathing is also instrumental in helping you build a high-performing team.

• Career pathways increase employee productivity and morale. According to a report by PwC, 67% of Canadian employees said that upskilling opportunities made them more productive and confident in their organization’s leadership. Career development instills employees with a sense of ownership in the organization’s success. It’s a tangible link between the success of the business and the personal achievements of the employee.

• Career pathways increase engagement and retention. Lack of career development and advancement is the top reason cited by 41% of employees in Guild’s American Worker Survey Report, that cause employees to quit a previous job. 39% of the same sample say they are unclear about career paths or plans with their current employer. The numbers tell us that by making sure employees have a clear sense of their future potential in the organization, we can reduce turnover and increase engagement. This makes career pathways an easy win for improving engagement and retention.

• Career pathways help with talent planning and cost control. Internal recruitment is an often overlooked but highly beneficial practice. It takes less time and money to hire someone internally and the starting salary of an external hire is on average 7-20% more than that of internal candidates. Perhaps more importantly, the time required to recruit, hire and onboard an external employee can have an economic impact, estimated to be well above the annual salary according to SHRM. As evidence, according to the Saratoga Workforce Index it takes 168 days to recruit an employee, then on average, another twelve months to reach productivity according to Gallup. By providing career pathways and upskilling your existing employees, it becomes much easier to maintain a robust internal talent pipeline.

Effective career pathways are a strategic imperative for both employee satisfaction and organizational success. They not only empower employees to achieve their professional goals but also drive productivity, morale, and a sense of ownership in the company’s success. With clear career development opportunities, organizations can significantly enhance employee engagement and retention, addressing key reasons for turnover. Moreover, internal recruitment through well-defined career pathways offers substantial cost savings and efficiency gains, creating a more agile and high-performing workforce. Another advantage of recruiting and developing from within is that existing employees have already demonstrated their ability to adopt the organization’s culture. By investing in career pathing, companies can build a resilient talent pipeline, ensuring long-term growth and stability.

Click here to read part two and learn why traditional career pathways have become obsolete.