Employee Benefits for Retaining and Attracting ...Read more
Create Employee Career Paths that Increase Retention
Employee turnover is costly to organizations in many ways.
Financially, it costs an estimated 21% of an employee’s annual pay, according to the . Additionally, turnover means the loss of experience, organizational knowledge, and a potential hit to morale for remaining employees.
According to Glassdoor chief economist Andrew Chamberlain, Ph.D., one of the key factors in increasing employee retention is providing a viable career path. have found that employees who stay in a job without a title change are more likely to look for their next step at another company. Creating a career path for your employees increases the likelihood that your top talent will remain in your organization – reducing your hiring and training costs.
A sense of stagnation at a company is often what sends people out of the door, Chamberlain says. A clear career path tells a different story, particularly when employees can regularly move through job titles over time. Developing a career path for employees is more than just a strategy to increase employee retention. Implementing a career plan for your employees can also mean:
- When employers invest in their employee’s career development, it’s easy to differentiate from the competition. This investment shows employees that their organization has a vested interest in their future with the company.
Traditionally, a career trajectory looked more like a ladder. However, the states that career paths can now include dual career ladders, horizontal options, and encore careers. While advancement into new levels of responsibility is one aspect of a career path, job redesign can also enrich an employees’ role. This helps employees refine skills to better prepare for more traditional advancement opportunities when they are available.
Similarly, a dual career ladder can offer a path for advancement without mandating supervisory or management positions. This is generally more applicable in a science, IT, medical, or engineering field. In these fields, professional training and expertise can become quite advanced. This means that innovation is essential and credentials or licenses can differentiate employee skill-sets.
For organizations, providing resources and tools to assist employees in creating their career path is the important focus. To create an employee career path, organizations must:
- By providing employees the tools and resources needed to track their progress, your organization can analyze and measure career management data. This allows you to see how employee career paths, and development, are making a difference.
Insala can help. With more than 30 years of experience, we’re equipped to help you identify all the potential roadblocks you haven’t considered, and the key value adds your employees will appreciate. Increase employee retention by developing a career path for your employees that keeps them invested in your business for years to come.
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