In a labour-starved Australian job market, providing growth opportunities to employees is increasingly crucial for
attracting and retaining top talent.
When we polled our networks about what mattered most to them when choosing an employer, out of more than 500 respondents, 36 per cent named “opportunities for growth” as their number one priority. It was the most popular response, ahead of things like culture, purpose and flexibility.
Furthermore, Australian employees who are given opportunities for career progression are more likely to be satisfied with their jobs and feel more engaged in their roles. In September 2022, SEEK’s Resident Psychologist Sabina Read listed career progression as one of the top five factors driving job satisfaction. It was listed higher even than salary and job security.
As such, opportunities to learn, develop and progress play a key role in employee engagement and employee retention. Deloitte's eProfitFocus 2022 report noted that companies investing in the training and skill development of their people were experiencing a strong return on investment not only in terms of retention, but also in higher profit margins.
But career pathways need to go beyond simply opportunities for internal promotion. Since people are less likely to stay in any job for as long as they used to, conversations about career pathways need to take a holistic view. Managers should work with team members to consider what their overall career goals are, what opportunities there are for progression within the company, what professional development opportunities would assist them in taking the next step, and whether they have any other overall life goals the company can help them achieve.
From these discussions, employers can then develop a clear and transparent job family or competency framework, so employees can see exactly what career progression is available to them, and what competencies are required to progress.
Providing opportunities for progression is key both to employee satisfaction and retention, and benefits the business in the long run too. Here are our top reasons – beyond employee attraction and retention – why you should be making career progression a top priority within your business.
Enhanced productivity and performance
Employees who see a clear path for career advancement are more motivated to excel in their roles. According to Gallup, 87 per cent of millennials say professional growth and career development are very important, and 76 per cent of employees are looking for opportunities to expand their careers. Provide those opportunities and it translates to higher engagement, and higher performance.
Attraction of top talent
In a competitive job market, attracting skilled professionals is essential for business growth. "Top talent is looking for opportunities to grow and advance in their careers,” notes a recent article from LinkedIn. “Offering professional development programs, mentoring, and career advancement opportunities can help attract ambitious candidates.”
Skill development and knowledge transfer
Providing career growth opportunities allows employees to enhance their skills and expertise, benefiting both the individual and the organisation. Organisations are the sum of the individuals who work there. By providing employees with opportunities to enhance their skills you increase the overall knowledge pool within the business and opportunities for knowledge transfer within teams.
Cultivating a learning culture
Encouraging career progression fosters a culture of continuous learning and development within the organisation. Having a strong culture of continuous learning is likely to both boost productivity, and create opportunities for more creative collaboration and innovation. This is important, because organisations that have highly aligned business and innovation strategies, alongside a pro-innovation culture, can have up to 30 per cent higher growth than those that don’t.
Improved employee morale and loyalty
Employees who perceive that their organisation values their growth and development are more likely to be loyal and committed. That’s got benefits not only in the short-term, by improving morale and productivity on a day-to-day basis, but also in the long-term. If they have been supported to grow and flourish, employees are more likely to continue to be ambassadors for your brand even after they leave the company, which enhances your overall reputation as a great place to work.
In short, offering employees opportunities for career progression is not only beneficial for individual growth but vital for an organisation's success. Providing growth prospects enhances job satisfaction, improves retention, attracts top talent, and cultivates a culture of learning and innovation.
Leaders should work with team members to understand and plan towards their career goals, and help them establish a clear idea of how the role supports their overall objectives in work and in life. Learning and development, combined with opportunities for internal progression, should be provided in line with the employee’s career pathway plan.
As the Australian job market becomes more competitive, companies that prioritise career development are better positioned to thrive in the future.
