Creating career pathways: How to foster long-term loyalty

Why do people leave their jobs? That’s the million dollar question – literally. Replacing an employee can cost up to 150% of their total salary, and that’s not even counting the lost productivity and knowledge drain when experienced staff simply walk out the door.  

“It takes 8-12 weeks to replace a knowledge worker,” says Stephen King, CEO of GrowthForce, “and then another month or two before the replacement gets to full productivity mode. External hires also demand 18-20% more in salary than internal hires.”  

According to surveys conducted by the Pew Research Centre, one of the big reasons employees quit, along with low pay (63%) and feeling disrespected at work (57%), is lack of opportunities for advancement (63%). Many staff simply don’t see a future at their current organisation, because that organisation never took the time to sell one. There’re no clear path towards growth. No established metrics. Nothing to motivate employees or foster long-term loyalty. 

So how do you build an effective career pathway for your employees? Here are some tips to get you started. 

1. Define clear progression pathways 

This is crucial. You need to literally map out the pathway for progression and growth, and tailor that pathway to specific individuals (their goals, their skills, their professional development targets etc.) The biggest missing ingredient for most staff is simply clarity. Give people a tangible roadmap in terms of promotions, lateral moves, and even cross-department opportunities.  

2. Provide regular skill development 

The numbers don’t lie: the longer you leave an employee to stagnate in their current role, without any meaningful professional development, the more likely they are to leave. Employees who feel their company is invested in their development are 34% more likely to stick around. There are flow-on benefits, too. Deloitte research indicates that organisations with a strong learning culture are 92% more likely to develop new products and 52% more productive.  

3. Implement structured mentoring 

And we mean structured. The odd coffee isn’t enough. You need to pair employees with mentors (either within or outside the organisation) who can guide their professional development and provide insight into possible career pathways. Try and set a regular cadence for these meetings, including clear goals and timelines for growth. And the result? Employees who participate in mentorship programs have a 10% improved turnover rate.   

4. Offer internal mobility opportunities  

The days of sticking to your vertical or niche role for 20 years are pretty much done. Not only is employee mobility a good thing for the organisation, it’s great for staff too. Internal mobility between departments has been shown to improve retention rates, reduce recruitment costs (internal movement is always cheaper than external recruitment), and boost employee engagement. So give staff the opportunity to apply for cross-departmental roles. Advertise these positions internally and back them up with hands-on skills training.   

5. Recognise achievement  

Lack of recognition is directly tied to attrition, which means the less you celebrate your staff and their achievements, the less loyal those staff are going to be. And the stats tend to back this up. Employees who are recognised monthly are 22% more likely to commit to their role. They’re also 40% more engaged and productive, according to some sources. This recognition can be as simple as a shout-out in the weekly WIP, or you can invest in a structured rewards program with monthly winners. The nature of the recognition isn’t so important – the important thing is to get into a habit of regular acknowledgment. Celebrate the little wins.  

6. Conduct regular career pathing sessions  

Every manager should hold regular one-on-one sessions with their direct reports. This is Staff Retention 101. It’s important that these meetings be structured, and include things like long-term goals, professional development opportunities, any skills the employee wishes to develop, and the next potential career steps. If you’re concerned about your organisation’s retention rate, chances are you need to improve either the frequency or the quality of these meetings. Set regular calendar invites, so neither party forgets, and try not to postpone or reschedule these for more ‘business critical’ activities. Employee retention is business critical.