Employee attitudes towards career advancement are changing rapidly, as is the workplace. In the past, the most important indicator of success was climbing the corporate ladder. This involved promotions and changes in job titles.
Today, however, an increasing number of employees are choosing to diverge from this more “traditional”, linear path and instead prioritize skill development and meaningful experiences.
In fact, Research found that nearly half of employees rejected promotions citing work-life concerns, inadequate compensation to add responsibilities and a preference for skills development over title growth.
This shift is both a challenge for HR leaders and an opportunity. HR leaders can future proof their workforce by rethinking skills and career development.
The economic and technological changes have led to uncertainty in traditional careers. Automation and AI is changing the way that we work. Employees are aware of this and strive to be flexible and receptive.
Purpose-driven work has become more important to employees. Deloitte found that millennials and Gen Z are more focused on purpose. 86% of Gen Z, and 89% of the millennials, said that this is’very important’ or a’somewhat significant’ factor in their job satisfaction and well-being. the majority of employees also prioritise a work-life balance. Promotions can come with increased stress and work, so it’s easy to understand why employees don’t take the chance.
Trust is now central to a positive workplace culture. To create a positive workplace culture, trust is essential. Personalised benefits, career development support and inclusive cultures are key for gaining employee confidence.
In order to achieve professional growth, workplace cultures are evolving. They should encourage lateral moves, continuous learning, and project-based work. Employees want meaningful roles, even if they don’t have a new title.
Aspirations at work are not limited to titles or hierarchical progression. In a world in which job structures are constantly changing, employees view skills as a currency that is durable. They want to ensure their own future, and expect that their workplaces will reflect this mindset.
We know that promotions alone are not the best way to motivate employees. But unfortunately, <a href="https://learning.linkedin.com/resources/workplace-learning-report#:~:text=Of%20course%2C%20promotions%20are%20not,and%20the%20hardest%20to%20replace.&text=of%20organizations%20are%20concerned%20about,1%20retention%20strategy." Only 15% of employees say they receive career planning assistance from their managers. This is a decrease from previous years.
Risks of not creating a talent pipeline that is future-ready
Businesses and HR departments are at risk if they ignore this new reality. Businesses that ignore the shift towards learning and upskilling and continue to promote traditional career paths may find themselves facing talent shortages and reduced employee engagement.
Lack of qualified employees in emerging roles can stop innovation and growth. Employees will also leave if they feel undervalued, or are stuck with outdated systems. The result is a decrease in morale, which will increase turnover costs. Businesses will find it difficult to compete with leaders in the industry who are investing in talent development if they don’t take a proactive approach.
HR leaders must shift their focus away from rigid career ladders and towards building agile talent pipelines that are future-ready.
Rethinking Career Growth as an Opportunity, Not a Burden
Growth doesn’t always mean promotions. To get employees excited about their careers, companies need to shift the conversation from “title changes” into “new opportunities to flourish”. Here are some ways HR leaders can encourage employees to view professional development as a positive experience, rather than one that is intimidating:
- Career paths tailored to you
The career development of every employee should be based on their unique strengths and aspirations. Flexible pathways let employees tailor their career growth to their own interests, whether it is learning a new skills, taking on cross-functional projects, or moving to a different department.
AI can be used to identify the skills that are critical for future roles in the business. You can then match these skills to the employers and employees to ensure they focus on the correct areas. An AI platform could detect, for example, that data literacy and agile project management skills will be critical in the future, and implement proactive training to those interested.
- Skill based development models
Change the focus from roles to abilities. Employees are more likely to be excited about the future of your company when they see that there are opportunities for them to learn strategic skills. Ask employees what they want. 40% of employees will quit their jobs if there are no upskilling options, particularly in AI. Knowing what your employees want is important. AI and emerging technologies have a huge impact on the workforce development. These innovations are changing the way companies engage and upskill their employees while also streamlining processes.
- Encouragement by mentorship and coaching
Mentors and coaches can be a great source of support for employees, particularly at critical career moments. It encourages employees to view challenges as opportunities to learn and not failure.
- Celebrating milestones beyond promotions
Recognise your progress in unconventional ways. Celebrate your successes, whether it is mastering new technologies or running a successful marketing campaign.
- Align the work with the purpose
More employees are seeking meaning in their jobs. HR leaders can help employees connect their roles with the company’s mission and foster a sense purpose.
It is also important to take into account employees who work outside of the traditional office setting – particularly remote workers or employees working onsite instead of in an office. Cloud-based platforms allow employees to develop their skills on their terms, while digital learning tools ensure that training is accessible. Platforms like these can offer AI insights that provide HR leaders with data about how their workforce develops, allowing them to track progress, identify any gaps and measure the ROI of development initiatives.
The way forward
People who are happy with their careers are twice as likely to enjoy a fulfilling life. Gallup study shows that only 20% of respondents strongly agree that they enjoy their work and 15% believe they have opportunities for growth in their career. It’s important for companies to retain their employees, but it is also time to change the way they view upskilling. Businesses should not view it as just a means to promote employees, but as a way of equipping their workforce with critical skills to thrive in a world of rapid change.
The worry that this investment will be lost when employees leave is also misplaced. Upskilling initiatives are a great way to boost adaptability and expertise, which will have immediate benefits for the entire organisation. Even if the employees leave, their contribution to a strengthened talent ecosystem and a knowledge-sharing culture will create lasting value. This forward-looking strategy not only meets immediate business requirements, but also positions organizations as leaders by preparing them for the future.
The modern workforce requires a paradigm change. HR leaders that view career development as a dynamic process, one that is personalised and skill-focused, will be in the best position to attract, retain and develop top talent. HR leaders can help employees thrive by moving away from rigid structure and embracing emerging technologies.
It’s not just a nice thing to have a future-ready team; it is a necessity for business. Companies that survive the rapid change we see in businesses around the world will be those that are successful in this new age.
