9 min read
In this blog series, Arthur Ransier, Director of Business Strategy at nTech Workforce, explores the transformative impact of career advancement.
In a time where talent acquisition and employee retention are paramount, the importance of career advancement and its Return on Investment (ROI) cannot be overstated. Elisa Burgos-Ojeda, Learning and Development Manager at nTech Workforce, sheds light on the tangible benefits of investing in career progression, both for employees and organizations.
Quantifying the ROI of employee career advancement hinges on specific outcomes organizations aim to achieve. Burgos-Ojeda explains: “One ROI factor is the cost savings of promoting from within versus hiring someone new for a higher-level position. In both cases, some training and onboarding into the new role will be required, but institutional knowledge of the internal employee makes for a much shorter learning curve and quicker ROI on the position.” Burgos-Ojeda also notes that focusing on specific KPIs in career advancement, such as sales targets, allows for a clearer measurement of ROI post-intervention.
Indeed provides an example of calculating a Learning ROI percentage: “Assume your company spent $10,000 teaching your sales, marketing and customer service teams how to use a new CRM tool. Once the training is over, employees use their newfound knowledge to make more sales and provide a higher level of service to every customer. As a result, your company’s profit increases by $30,000. To calculate the ROI, divide the increase in profit by the cost of the program: $30,000 divided by $10,000. In this scenario, your ROI is 300%. For every $1 you spent on the training, your company’s profit increased by $3.”
Providing career advancement opportunities significantly boosts employee satisfaction and retention. "Investing in career advancement is a huge bonus for employee satisfaction and retention. Turnover is higher when employees don’t see a future for themselves," says Burgos-Ojeda. She further adds, "Employees value professional development and growth, so in addition to improving their skills, providing development opportunities greatly improves their level of satisfaction and engagement."
For employees, professional development is critical to growth and success. According to Wharton Online: “Professional development also helps employees stay up-to-date with the latest trends and best practices in their field. This may improve their chances of earning a promotion or make them a more attractive candidate for future career opportunities.”
Employers also gain a lot when they provide their teams with opportunities for growth. According to a Gallup study: “68% of workers believe employer-provided upskilling is crucial when considering a new job.”
Career advancement opportunities are a critical aspect of an employer's brand, playing a significant role in attracting top talent. Burgos-Ojeda notes: "Talented candidates weigh the potential opportunities for career advancement and professional development when considering employers, making growth opportunities an attractive aspect of an employer brand."
An article from Coursera notes: “According to a 2022 study from Workplace Intelligence, 74 percent of millennials and members of Generation Z plan to quit their jobs due to the lack of career development opportunities. That means focusing on career growth may help you attract a large portion of the current talent pool.”
According to Corporate Wellness Magazine: “Resilience is defined as the ability to bounce back from adversity and to adapt to change. Resilient individuals are better able to cope with stress, maintain positive relationships, and maintain a sense of purpose and meaning in their work.”
Ongoing professional development is key to building a workforce that is both skilled and resilient. "Many technical or job-specific skills become outdated so quickly. Companies benefit from supporting employees who have a drive to learn and grow. They’ll likely need it as technology and ways of working continue to evolve. Investing in transferable skills pays off for companies. For example, ‘how to effectively give and receive feedback’ is a strategic thinking skill that enhances employee performance across roles and job functions both in the short and long term," Burgos-Ojeda emphasizes.
Tailoring career advancement programs to business goals requires a collaborative approach. "HR teams provide insights into skills gaps, succession planning, and opportunities, helping align career paths with business objectives. Understanding these goals allows employers to proactively develop employees in directions that support future needs," Burgos-Ojeda advises.
PushFar recommends offering mentorship programs as a way to ensure employee career goals align with that of the business, noting: “Mentorship opportunities are crucial for fostering professional development, knowledge transfer, and a positive workplace culture.”
“Mentors are able to give back to their company, learn active listening skills, strengthen interpersonal skills, and develop a strong sense of self-worth. Mentees retain an important and trustworthy mentor, improved confidence, and increased respect for their employer. And in the process, employers create a healthier, more positive work environment and foster essential leadership skills in employees,” notes a previous edition of nSider.
The ROI of career advancement is multifaceted, impacting employee satisfaction, retention, talent acquisition, and the overall resilience of the workforce. Organizations that strategically invest in these programs not only foster a more engaged and skilled workforce but also align employee growth with their long-term business objectives. This is crucial for CHROs, managers, and employees focused on growth, underlining the importance of career advancement in today's dynamic job market. Discover how to build winning teams through nTech Workforce's talent solutions or visit the nTech Resource Hub for more insights of professional growth.
7 min read
Some say that the future of work is here, but I say that’s silly. The future is never here, and so for this last blog of the series, nobody can ever...
5 min read
Creating a positive workplace culture is a key focus for managers and people leaders across industries. A significant element of this is peer-to-peer...