Career Paths—A Key to Attracting and Retaining Talent

Various research studies have estimated the cost of replacing employees as a range from one-half to two times the employee’s yearly salary. Combine this fact with details from other studies conducted by The Conference Board and McKinsey & Company, both indicating a main driver of employee engagement and retention is the ability to provide development and opportunities for growth in an organization. Contrast these statistics with a 2023 Pew Research Center study whose results indicate that only 33 percent of employees believe they are provided opportunities for promotion. The net result makes a convincing case for creating career paths for your employees.

A high-level definition of career path(ing) is the series of jobs an employee may hold during their tenure with your company. It plays an integral role in an organization's talent management strategy by identifying an employee’s unique skills, interests, and career objectives, and developing a roadmap to assist them in achieving their goals. Basic career pathing in a small organization may include vertical, horizontal, and latticed paths, tailored to meet the needs of both the company and the employee. They are valuable to the organization in gaining an understanding of employees’ skills and goals within the organization, facilitating growth, and better supporting both recruiting and succession planning efforts. Employees better understand the organizational opportunities and the development they will need to move along the path.

Vertical paths are hierarchical, working much like a ladder, with employees moving up the rungs as they gain experience, expertise, and responsibility. For example, a new graduate with a degree in accounting may start as an Accountant I (entry-level), then progress to an Accountant II (experienced), Accountant III (advanced), Accounting Supervisor, Accounting Manager, Accounting Director, etc. The number of levels will depend on the size and complexity of the organization.

Horizontal paths involve employees moving laterally, generally at the same level, to different departments within the organization. An example of a horizontal path would be an Accountant I moving to the Operations team as an analyst to increase knowledge of the organization, its processes, and needs. Horizontal paths support gaining broader skillsets and enriching organizational knowledge.

Lattice paths are more flexible, allowing employees to move vertically, horizontally, and diagonally within the organization. Under this scheme, an employee may move from one department to another at the same level, and then receive a promotion in that department before making another lateral move to a third department. An example of a lattice path is the Accountant I who moved horizontally to a position as an Operations Analyst and is then promoted to a Manager of Operational Analysis.

Developing Career Paths

An effective career path structure and process supports the organization in its current form and for the future. Among the factors contributing to the development of a successful program consider:

• Support and input from company leaders and management. Career pathing requires understanding on the part of leadership that this type of program is a long-term investment in the company and its employees. It is not a quick fix.
• An assessment of current and future business needs. Identifying critical needs, gaps, and opportunities.
• A solid organizational structure. Whether a complex or flat structure, a clear depiction of the organization creates a roadmap of future opportunities for employees.
• Clear and concise job descriptions that reflect the span of control, scope, essential functions, competencies, requirements, education, specific skills, and experience, are used to demonstrate the responsibilities and requirements for the positions along employees’ paths. Utilizing job descriptions in combination with your current organizational chart and any near- and long-term plans assists employees in envisioning their future in the organization while understanding the additional talents, skills, education, and experience they will need to attain to move through their path.
• Tools to document employees’ current status, their goals and path, development plans, progress tracking, and other factors that may impact decision-making regarding employees’ future. For example, tracking information related to whether an employee is open to relocation can be valuable information in organizations with multiple locations or plans to expand to new locations.
• Determine internal resources that may be available. Will internal coaches and mentors play a role in your career path initiative? If so, what qualifications will you require for these roles?
• Identify training, educational, and experiential opportunities associated with employees’ paths. Highlighting your company’s tuition reimbursement program helps ease employee’s potential concerns about costs. Additional training costs should be built into your annual budget to support learning and development opportunities.

Although implementing career pathing may seem overwhelming, it need not be. The process, once defined, can be implemented over time. Start by addressing areas of current and future critical need. Learn from and improve your process as you progress.

If you need assistance, MRA professionals are here to help. Whether your needs are strategic, such as determining an optimal organizational structure, to tactical activities such as writing or updating job descriptions, our professionals can provide the assistance you need. We also can support your learning and development initiatives through our wide range of trainings, seminars, and events. Contact us for more information!