Why careers should matter to employers

It takes more than compensation to attract and keep great talent, and economic realities naturally constrain pay. Beyond pay and core benefits, employees are looking for flexible work arrangements and work that gives them a sense of purpose and supports their personal development, our research shows. And employers that provide effective career management are better able to attract and retain talent than their competitors.

Many employees today are thinking beyond the traditional employer-defined, linear career path. They also are prioritizing whether their employers share their values and offer flexibility and support.

These factors create an opportunity to rethink how you define and support your employees’ careers. And this requires a career ecosystem.

What is a career ecosystem?

A career ecosystem provides your employees with a clear path forward. It also provides employers a clear framework to support the governance of HR programs.

Ultimately, a career ecosystem is a comprehensive system that creates a meaningful and fulfilling work experience for employees. It encompasses all aspects of an individual’s professional journey within an organization, from recruitment and onboarding to growth and development, and rewards and recognition. By fostering a supportive and dynamic career ecosystem, you can:

• Engage and retain top talent
• Drive innovation and productivity
• Achieve long-term organizational success

One key function of a career ecosystem is providing clear guides for work, growth and rewards programs. This includes well-defined career paths that employees can aspire to, transparent criteria for advancement, and opportunities for professional development and skill enhancement. When employees understand expectations and can access the resources they need to succeed, they’re more likely to be motivated, productive and satisfied in their roles.

Other vital aspects of a career ecosystem include transparency, equitable access to opportunities and consistent performance expectations. This means ensuring that all employees, regardless of their background, gender, race and so on, have equal opportunities to progress and develop their careers. It also involves establishing clear and fair performance standards that ensure evaluations are conducted objectively and consistently. When employees feel valued and treated fairly, they’re more likely to be committed to your organization and perform their best.

Your career ecosystem defines and guides work, growth and rewards. It links your people strategy to your company’s purpose. It also ensures that your people programs are connected and effective while meeting your organization’s needs.

Optimize your workforce with career analysis

The foundation of your career ecosystem is the career framework. A well-structured career framework is the heart of creating a meaningful career experience for employees. The framework serves as a roadmap that organizes, illustrates and integrates various people programs, creating a comprehensive approach to talent development.

Career frameworks provide a systematic and consistent process to organize jobs and classify their varying contributions across your organization more easily. And you can use them to design or update your talent and total rewards programs or integrate an acquisition during a merger.

The risks of an ill-defined career framework

The career framework helps employees understand available opportunities across your organization. Without a defined career framework, the definition of a promotion often is unclear. The pay grade often is the qualifier in determining a promotion, and that can cause inequities in career advancement and pay. In contrast, employers with a career framework can use job levels as the basis for a promotion with a job change because job levels within the framework are based on well-defined leveling criteria.

Career experience is connected to employee experience

Employee experience makes a significant difference in attracting and retaining top talent. A career experience, shaped by effective career design, forms a large part of the employee experience, as it helps employees put together the pieces of the puzzle:

• The work they do
• The contribution and impact they make to the organization
• Their performance
• Their career development opportunities, including upskill, reskill and growth

Getting careers right as part of a relevant and meaningful employee experience can help deliver a tangible competitive advantage. Our research reveals that a superior employee experience is proven to drive financial success. Companies with a more effective employee experience outperform their peers in the areas of top-line growth, bottom-line profitability and return to shareholders.

Overall, a well-structured career framework, driven by strategic career design, acts as the backbone of effective people programs.