A Future of Jobs report by the World Economic Forum found that one of the top factors that has the potential to drive employee retention up in Australia is career development. The study said that “improving talent progression and promotion process” and “effective reskilling and upskilling” are the top two factors that will improve talent availability nationwide.

The trend is not isolated in Australia alone. In 2022, an in-depth study by research company Workplace Intelligence found that nearly three-quarters of US Millennial and Generation Z employees are likely to quit within the year because of the lack of career growth opportunities in their organisation. 

Most of these employees expressed concern about how their employers failed to provide upskilling and educational opportunities that would help them advance their careers, making them feel unprepared for the evolving nature of work today. 

These studies only show how climbing the career ladder is as essential as competitive pay and work-life balance regarding employees' priorities. The employees involved in the study do not see career advancement as something separate from competitive pay and well-being.

“In addition to higher pay (cited by 59% of employees), people hope that advancing their career will lead to better work-life balance (48%) and a sense of purpose (41%),” the research firm said, noting a sizeable number of employees who also want to grow as leaders within their companies. 

People want to grow professionally and personally and often want to do so within the organisation they belong to. If the company fails to respond to this need, then it only follows that employees will quit and look for opportunities elsewhere.

The numbers are clear: If organisations want engaged, happy, and loyal employees, they need to provide pathways for career development so they can reach their full potential and, in return, help the company grow further. 

READ MORE | A data-driven approach to career development and employee retention

Crafting personalised career paths

One fundamental principle of employee engagement is acknowledging that each team member is on a distinct professional journey. By embracing this diversity and implementing personalised career paths, organisations can create an environment where people feel seen, valued, and understood.

This personalisation extends beyond generic job roles, diving into each employee's specific skills, interests, and aspirations. It involves proactive communication between employees and management to identify individual strengths and areas of interest. 

It's about understanding the unique blend of skills and passions that make each employee an asset to the organisation. Through this dialogue, organisations can then map out development plans that align with the employee's ambitions and the company's strategic goals.

A personalised approach to career development contributes significantly to employee satisfaction and motivation. When employees perceive that their professional growth aligns with their personal goals, they are more likely to be invested in their work and committed to the organisation's success. 

This alignment also forms a powerful bond between the employee and the company, fostering a sense of loyalty that transcends traditional employment relationships.

In a world where one size does not fit all, organisations that invest in understanding and supporting the unique journeys of their employees are better positioned to create a workforce that is not just productive but deeply engaged and committed to the organisation's success.

Investing in skill development programs

Investing in skill development programs is a crucial and mutually beneficial strategy for employers and employees. 

The core of this strategy lies in recognising that employees are the most valuable assets of any company and empowering them with the tools and skills needed to navigate an increasingly complex business environment, which is an organic part of organisational growth. 

Skill development programs go beyond traditional training initiatives. They encompass a holistic approach to enhancing the workforce's competencies, ensuring they stay relevant and adaptable in a rapidly changing world.

Companies that invest in skill development foster a culture of innovation and resilience. As employees acquire new skills, the collective capability of the workforce expands, enabling the organisation to stay agile and competitive in the face of industry shifts. 

Moreover, by demonstrating a commitment to employee growth, organisations enhance their attractiveness to top talent and bolster employee retention.

Implementing successful skill development programs involves strategic planning, collaboration between departments, and a keen understanding of the evolving needs of the workforce and the industry.

One approach to crafting a solid skill development program is to create a committee that will map out the company's direction in the next decade and align this with some research about the skills and technology of the future. 

A separate McKinsey study also showed that having multiple formats of learning and upskilling available for employees increases the success rate of skill development programs. Some of the formats the study suggested are the following:

• Digital learning
• In-person or virtual workshops
• Individual or team assignments
• Peer learning teams
• Expert coaching
• Sponsor or manager coaching
• Experience-led change supports
• Organisation-led change supports
• Performance support
• Experiential learning
• Fieldwork
• Organisational or individual diagnostics

Investing in skill development programs represents a strategic imperative for organisations seeking a win-win scenario. By empowering employees with the skills they need to thrive and adapt, companies enhance individual professional growth and fortify their competitive position in the market. 

Mentorship and coaching: Nurturing careers and fostering loyalty

Mentorship involves imparting wisdom, experience, and invaluable insights from seasoned professionals to employees in the earlier stages of their careers. By creating these meaningful connections, employees benefit not only from the guidance of a trusted advisor but also from exposure to diverse perspectives and a wealth of tacit knowledge. 

This mentoring process becomes a cornerstone in the development of well-rounded professionals who not only excel in their roles but envision a long-term future with the organisation. It also ensures continuity by passing down institutional knowledge from the seasoned veterans to the young ones. 

Coaching, on the other hand, is a targeted and personalised approach to skill enhancement. It involves one-on-one interactions to identify and address specific challenges or areas for improvement. 

Through coaching, employees receive constructive feedback, set achievable goals, and receive the support needed to overcome obstacles. This individualised attention contributes to skill mastery, confidence-building, and personal and professional growth.

The impact of mentorship and coaching on employee loyalty is profound. Employees who experience mentorship feel a deeper connection to the organisation, viewing it as a workplace and a community invested in their success. The guidance received from mentors and coaches creates a sense of belonging and commitment that transcends the transactional nature of employment.

Organisations that actively promote mentorship and coaching initiatives witness a tangible increase in employee engagement and loyalty. A Gallup study in 2022 found that employees are twice as likely to be engaged with the organisation if a mentorship program is available. The same research also found that employees are 98% more likely to recommend the company to others. 

Mentorship and coaching represent more than developmental tools; they are the threads that weave a tapestry of loyalty within an organisation. As employees find guidance and support in their professional journey, they, in turn, become invested stakeholders in the success and longevity of the organisation, solidifying a bond that extends beyond the realms of daily tasks and job responsibilities.

With all the rapid changes happening in the business landscape today, employee retention is a crucial strategy for organisations moving forward. Having a solid career development plan for the employees not only ensures retention but also helps organisations develop talent that will allow them to adapt to the future of work.