Your internal career advancement may not be clear and it's a major problem.
Updated: Oct 11
The #1 reason employees quit is not low pay; it is lack of career advancement.
A new study conducted by CareerAddict, a prominent online career resource, indicated that advancement is believed to be more essential than salary, with an astoundingly high percentage of respondents (82.39%) stating that a lack of advancement would influence their decision to leave their current employer.
On a scale of importance, respondents were asked to rank various factors influencing their decision to quit. Lack of advancement and career development for job progress, followed by poor compensation and the absence of a wage increase, were the three primary causes of their choice to leave. In addition, 35% of those who had resigned from their jobs indicated they would consider returning if offered a higher income or a promotion.
Despite the stats, the path to advance internally at many companies is often unclear and mysterious. To make matters worse, it has become well known among employees that the wage increase they will receive by going to another company will be much more substantial than if they stay. Here are a few reasons why career advancement initiatives at our organizations have to become our #1 priority as HR leaders.
The Importance of Career Advancement
Career advancement is significant to employees. According to several studies, the two primary reasons why everyone continuously seeks advancement are to maintain market competitiveness and obtain personal and financial fulfillment.
According to a report published by Intech Open, career growth plans are the only method Intech Open to keep "advantage and high efficiency" in the marketplace. The growth of employees as a result of career advancement programs inspires confidence in their knowledge and abilities. Employees seek this development since it certifies their proficiency in their chosen field. For most employees, it is fulfilling to believe they are improving as they grow in their profession.
As professional growth satisfies individuals on a personal level, it also provides monetary benefits. People with greater knowledge and skill get compensated more. To increase knowledge, one must have career objectives in mind and engage in career development activities to help achieve these objectives. According to a survey conducted by SHRM in 2021, 49 percent of employees want their employers to create professional development plans for them. However, many organizations still struggle with making professional development plans effective & something engaging the employees can follow and buy into.
People don't want to work without a purpose.
Career advancement helps employees reach their goals at work. It helps them find a career path they like and a job that pays well enough that they don't have to worry about paying their bills. But they can only feel additional satisfaction if they can see how they can advance further in the future, establishing confidence that with increased investment in themselves and their skills will come further recognition, title, and compensation.
The Work Institute's Retention Report showed that 21% of employees left their jobs because they couldn't move up in their careers. When asked, these workers say they don't want to work in jobs that lead nowhere. Instead, they want to look for a better job to help them learn new skills and gain more experience.
In the same survey, 18% of people who quit their jobs did so because they were in school or were planning to go back. This shows that workers who don't see a clear path to growth at their current job try to learn more and get more education to find a better job that will give them this chance.
They discover opportunities for career advancement elsewhere.
It is a well-known fact: when employees at one business are not given the opportunity for professional advancement, they leave for opportunities at other companies. According to research conducted by the Pew Research Center, those who switched jobs reported experiencing positive changes. Specifically, 53 percent of workers discovered more opportunities for career advancement at their new jobs.
According to Zippia, the generation known as Generation Z (those born between 1997 and 2012) had the highest percentage of persons who had changed occupations during their lifetime. Forbes emphasizes that the same generation currently in the workforce is looking for employers who promote professional progression. This demonstrates that they would prefer to quit an organization without precise career mapping, even if this would mean abandoning individuals with whom they were comfortable or a wage that met their wants and needs.
They have the impression that organizations do not recognize how valuable they are.
There are a variety of ways that you may demonstrate that you value your employees, but one of the more effective ones is when you satisfy the employees' requirements for personal development. Employees' self-confidence, skill output, and, ultimately, trust in their surroundings are negatively impacted when they do not believe their contributions are valued. Because of this, workers who do not feel like they contribute anything significant to the company are more likely to consider leaving their jobs.
In a company where their presence feels "not needed," employees will see no need to remain there. According to a survey published by Forbes, 66 percent of workers are likely to leave their employment if they do not feel valued there. The percentage of millennials who feel this way is significantly greater, at 76 percent.
According to data presented in an article published by Yahoo Finance, nearly half (46%) of 2,000 employees who left their employment did so because they felt their contributions were not adequately acknowledged. Again, when asked where their employers could have improved, career advancement programs are among the most frequently listed areas that could have been improved.
According to the findings of an article, 86 percent of working professionals would move employment if another organization offered better prospects for professional advancement. On the other hand, this indicates that employees will remain with their existing firms if those businesses provide them with the opportunity for advancement.
Clear career paths can be your strategic advantage in 2023
The statistics make it abundantly clear; employees want the opportunity for career advancement and a clear understanding of how they can advance, or they will leave the company. It's also apparent that many companies are not emphasizing career planning with employees. This is your chance to gain an edge over your competitors.
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