The conventional path of career advancement is facing significant challenges in modern America.
In the past, a degree often led to steady employment and potential promotions within companies after several years of dedication. Eventually, if growth opportunities became scarce, employees had to decide between waiting, stagnating, or switching companies, creating gaps for employers.
This traditional system is increasingly ineffective for today’s workforce.
For employees…
- The soaring costs of higher education make degrees less appealing. Between 2000 and 2021, tuition fees soared by 65%. Many potential students now choose earning over learning (BestColleges.com). Consequently, about two-thirds of the workforce is without college degrees (U.S. Census Bureau).
- High student debt deters many from pursuing further education. Average student debt in 2023 hit $38,290, with national education debt surpassing $1.74 trillion (CNN). Many are now wary of accruing debt for uncertain career prospects,” says Gannon-Jones of Karat (HR Morning).
“I don’t have a degree,” reflects Gannon-Jones, “but I’ve gained essential tech and leadership skills through apprenticeship and experience.”
- Opportunities for advancement are shrinking. A survey by The Washington Post revealed that 43% of organizations foresee fewer promotional opportunities due to flatter structures. Employee dissatisfaction with stagnant roles is pervasive, with many contemplating leaving (TalentGuard).
A factory worker shares, “I’ve been at the same entry-level job for years. Openings are scarce, and promotions seem reserved for external hires with pre-existing management experience” (r/jobs).
Modern employees expect dynamic skill acquisition opportunities at work. Reports indicate that 74% prefer work-time learning (LinkedIn) and 73% favor accessible online learning modules (TechRadar). Without sufficient investment in staff development, employees are prone to move on (Aspen Institute).
For employers…
- An increasing number of employers find new hires lack requisite skills. Only 37% believe entry-level employees possess necessary soft skills (LinkedIn). The World Economic Forum suggests that over half the workforce needs significant reskilling soon (Workday).
- It’s costly and challenging to replace employees. Replacing staff can consume between one-half and two times the employee’s annual salary, with two years of lost productivity (SHRM). Many employees are frequently changing jobs, a trend set to persist (Forbes).
- The top reason employees leave is a lack of growth opportunities (Deloitte). Despite its importance, only 47% feel their employers provide necessary learning chances (APA).
Reimagining Career Development
As worker shortages loom, a proactive strategy is to nurture and retain your current team. College degrees aren’t the only path to competency; training can be more effective and less costly. Certification programs, online courses, and tailored upskilling provide quick, affordable routes to new skills and roles.
Here are three pivotal actions for harnessing career growth to engage and retain talent: 1) Facilitate “just-in-time” skill acquisition, allowing employees to learn when they need it most, 2) Boost internal job mobility, and 3) Deepen engagement to minimize turnover.
Emphasis on Real-Time Skills
Ongoing skill enhancement is critical, especially in developing soft skills, which are essential for career progression. Despite the overwhelming importance, only 31% of employers offer such training (Workrowd).
Seventy percent of the workforce feels unprepared for current demands (HBR). “Upskilling” programs, which improve or add to existing competencies, are vital for career advancement (APA).
Organizations focused on skills are empowering and responsive. Companies centered on skills over credentials see increased retention and can swiftly adapt to market shifts (Deloitte).
Foster Internal Mobility
New skills need application. Only 12% of newly acquired capabilities are applied to current roles (HBR). Employees should use their skills regularly and seek opportunities beyond their roles.
Support for internal talent mobility keeps employees engaged and fulfills organizational skill needs, combating a major reason for employee attrition (Gartner).
Tools like talent marketplaces guide career pathways, mapping out potential progression and opportunities (APA).
Feedback systems are essential. From mentorship to “skip level” meetings, clear paths to career advancement and visible appreciation move careers forward.
Boost Engagement to Curb Turnover
Employees value recognition and career advancement opportunities. A vast majority would remain longer at companies invested in their development (LinkedIn).
Continuous learning aligns with their drive for professional growth and resilience against job market fluctuations (Gartner).
Develop by Developing Yourself
Ultimately, the drive to learn lies within. Organizations can create environments that encourage self-driven growth, ensuring employees realize their potential.
Join Bob’s upcoming webinar, “The Secrets to Engage the Quiet Quitters,” on October 8, at 12 p.m. Eastern on TrainingMagazineNetwork.com.
Register here: https://www.trainingmagnetwork.com/events/3824
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