The Value in Creating Career Paths

Offering professional development opportunities is quickly becoming the norm for employers, and most employees and job seekers expect it.

• A 2006 employee retention survey conducted by the Society for Human Resource Management (SHRM) shows that 52% of employers surveyed considered professional development programs successful in retaining employees. Organizations have also shown that they have decreased turnover by up to 70% by providing training and development opportunities to staff.

Talent retention, which includes employee development programs, is particularly important to employers in the Washington D.C. metropolitan area, as it continues to be a job seekers’ market. Although the national unemployment rate reached 5.5% in June, the current unemployment rate in the Washington metropolitan area is 3.1%. Washington also boasted a 1.44% job rate increase in 2007, well above the national average of .8%.

• Employee development opportunities serve as key drivers for employee engagement. Employee engagement is defined as the extent to which employees commit to something or someone in their organization, how hard they work and how long they stay as a result of that commitment."(1)

An October 2007 regression analysis of data in Towers Perrin’s database showed that companies with the highest percentage of engaged employees collectively increased operating income by 19% and earnings per share by 28% year-to-year. Companies with the lowest percentage of engaged employees showed year-to-year declines of 33% in operating income and 11% in earnings per share.

Critical to offering meaningful employee development opportunities is providing a tool that maps development needs and aligns employee development interests with organizational goals. One of the most widely used tools is a career path, which allows managers and employees to analyze knowledge, skill, ability, and competency gaps.

By defining gaps, employees and managers are able to create a plan for targeted professional development that will help close the gaps, and ultimately assist employees in progressing through their chosen path. Career paths are also the foundation for other initiatives, including compensation structures, performance management systems, and succession plans.

Author: Robert Krajewski, Associate HR Business Partner, Helios HR

(1) Corporate Leadership Council. (2004). Driving Performance and Retention through Employee Engagement. Washington, DC: Corporate Executive Board.

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Also This Month...

Continuing Education Units (CEUs) now available through George Mason University for the Emerging Leader Institute (ELITE) program!
The next session begins September 10, so register your managers now!

The attendance at the “Emerging Trends in HR” seminar held on June 26th exceeded room capacity!
Register now for “Minimizing the Risk & Cost of Employee Related Litigation” to ensure your seat today!

About Helios HR

Helios HR client-focused delivery models include:

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