Executives are increasingly recognizing the high cost of overlooking internal talent. Research consistently highlights that employees crave opportunities for growth, and when these are absent, they look elsewhere. A significant 63% of respondents in a Pew Research survey cited a lack of career advancement as a primary reason for leaving their jobs in 2021. Similarly, a McKinsey study in 2022 pinpointed the absence of career development and advancement as the leading cause of employee attrition. This data underscores a critical need for companies to actively invest in their employees’ professional journeys. New research from MIT Sloan Management Review emphasizes that nurturing employee growth and facilitating career advancement is not just beneficial—it’s essential for retention and organizational success. The research, based on a survey of over 1,000 workers and interviews with talent leaders across more than 25 organizations, reveals a significant gap: while 67% of individual contributors aspire to advance their careers, nearly half (49%) feel hindered by a lack of adequate career guidance. Often, companies, under the guise of empowerment, leave employees to navigate their career paths unaided, leading to uncertainty and stagnation. Alternatively, mentorship responsibilities might fall upon managers who are ill-equipped or unmotivated to provide effective support. A more structured and systematic approach is paramount. This involves equipping employees with the right tools to identify, prepare for, and seize internal opportunities, coupled with consistent feedback and coaching. While some companies implement such programs for high-potential employees, the critical question remains: why aren’t these resources available to everyone? Here are key tools that companies can implement to empower every individual to determine their career path and foster internal growth.
1. Visibility Tools: Making Internal Opportunities Clear for Everyone
One of the most crucial steps a company can take is to enhance the visibility of internal growth opportunities. Employees cannot pursue paths they are unaware of. Human Resources departments, in particular, need to shift their perspective towards internal talent pools first. Instead of immediately seeking external candidates, HR professionals should proactively assess whether roles can be effectively filled by internal candidates across different departments or regions. Ideally, a system should be in place where HR, managers, and employees can readily identify suitable roles for current employees based on their existing skills and experience. This proactive approach allows employees to discover new career avenues within the company without needing to look externally.
Alt text: Statistic from Pew Research survey showing 63% of employees who quit jobs in 2021 cited lack of career advancement opportunities, emphasizing the need for career path tools.
Furthermore, the detail and accessibility of internal job postings play a vital role. Often, job descriptions inadvertently deter potential internal applicants by emphasizing skills they may lack, even if they possess transferable skills and the capacity to learn. Job postings should be transparent about bridging potential skill gaps, outlining available training or development resources. Companies can leverage internal tools to streamline this process. For instance, GE Digital’s Career Discovery tool allows employees to input their skills and interests. The system then intelligently identifies relevant roles within the company, including opportunities that might deviate from their current trajectory. Crucially, it also highlights any competencies an employee may need to acquire and directs them to relevant training resources. Similarly, Pernod Ricard North America utilizes Workday, a talent management tool, to empower employees to explore both vertical and horizontal career moves. Employees can visualize organizational charts, connect with local HR business partners, and access HR teams in other locations. This transparency allows employees to see all available positions across different levels throughout the entire company, fostering a clear understanding of internal mobility. Beyond formal postings, companies should actively facilitate broader employee networks. These networks enable employees to explore diverse job options, connect with managers in different departments, and build relationships across the organization. These connections can be instrumental in encouraging managers to consider internal transfers seeking growth opportunities, rather than solely relying on external candidates who may appear to possess all required skills on paper.
2. Development Tools: Providing Opportunities to Learn and Practice New Skills
Identifying potential career paths is only the first step; employees require robust tools for development to bridge skill gaps and prepare for new roles. This necessitates providing accessible opportunities to learn and practice new skills. Simply pointing employees towards relevant courses or training programs is insufficient. They need practical application, opportunities to learn by doing, and a safe space to learn from mistakes and reflect on their experiences. Fidelity Investments provides a compelling example of integrating learning with practice. Their customer support representatives engage in morning learning sessions focused on new skills, followed by afternoon sessions where they apply these skills in live customer interactions, with managerial observation and support. Crucially, they conclude the day with reflection sessions alongside peers learning the same skills, fostering a collaborative learning environment. Formal rotation programs are another valuable tool, often incorporated into new hire onboarding or high-potential leadership development programs. These structured experiences provide immersive learning opportunities in different roles or departments. Schneider Electric innovatively launched an open talent marketplace in 2018, further expanding development tools. Managers can post opportunities for short-term projects, full-time positions, or mentorships within this marketplace. Employees can then engage with opportunities that align with their interests and career goals. These short-term assignments and mentorships act as invaluable tools, allowing employees to test-drive new roles and assess their suitability for future full-time positions. This approach also mitigates risk for managers, providing access to a diverse internal talent pipeline. Managers can observe and assess employees on short-term projects before making long-term hiring commitments, fostering informed internal mobility decisions.
3. Feedback and Coaching Tools: Delivering Rich and Actionable Guidance
Consistent and constructive feedback and coaching are indispensable tools for career progression. This extends beyond routine performance reviews and necessitates a focus on understanding employees’ career aspirations and providing tailored guidance on developing essential skills. HR plays a pivotal role in establishing policies and ensuring consistent implementation of these practices by managers. Furthermore, HR should proactively solicit feedback from employees regarding the quality and effectiveness of career development support they receive from their managers, ensuring accountability and continuous improvement.
While employees benefit immensely from career-focused feedback and coaching, managers themselves also require development in their coaching abilities. To facilitate this process and enhance the quality of feedback, companies can implement user-friendly feedback tools. UPMC, a healthcare provider, adopted “Anytime Check-in,” a tool that empowers anyone within the organization to easily provide feedback to any colleague at any time. This can be triggered by observing a colleague’s contribution to a project or witnessing noteworthy performance. Feedback providers can choose to make comments visible only to the recipient or also to their supervisor. Supervisors can also utilize the tool to maintain private notes, serving as valuable reference points during annual reviews. This real-time feedback mechanism ensures employees receive honest and timely insights from both peers and supervisors, fostering a culture of continuous improvement and open communication regarding career development.
Ultimately, proactively helping employees explore and navigate new career paths within the organization is a strategic investment that directly benefits the company. While developing internal candidates might sometimes be perceived as a risk, neglecting their potential carries far greater consequences, exacerbating talent gaps and hindering organizational growth. Ignoring internal candidates not only shrinks the pool of qualified applicants for open positions but also sends a detrimental message to current employees, signaling that external opportunities are the only avenue for advancement. This can significantly deflate morale and increase employee turnover. By implementing robust tools for career pathing, companies can cultivate a thriving internal talent ecosystem, fostering employee engagement, retention, and long-term organizational success.
Read the article: why employees should help every employee chart a career path
