Why Career Development is REALLY good for Business.
Let’s explore why career development is really good for business.
A 2021 survey found that better career development opportunities helped retain employees by 43.4%. This has been proven not just in Canada but in almost every other country in the world. In fact, according to the Association for Talent Development (ATD), comprehensive career development training programs provides for a realized increase of 24% higher profit margin for publicly traded companies. So, let’s understand how talent management and leadership development coupled with career development can help employees and organizations scale better.
What is career development?
Career development is a lifelong process of learning new skills and developing your knowledge. So, if someone wants to become an accountant, they can take courses in accounting to get familiar with basic business principles and prepare for the Chartered Professional Accountant (CPA) certification.
Career development is also about identifying an employee’s strengths and areas for improvement with respect to their career goals. For example, let’s say that one day the employee decides that instead of being an accountant, what really would make sense for their career development would be becoming a marketing executive for a large corporation like IBM or Amazon.
This doesn't mean that all their hard work is wasted: They still have those basic business principles under their belt. Now, all they need to do is figure out how to build on those skills and land that new job as a marketer.
That’s career development: utilizing your existing skillets while learning new skills to crack better professional opportunities. Career development supports the growth of internal talent which is great for succession planning and of course this support retention of this talent. In today’s world of work, leaders need to work hard to retain talent and career development is key.
The four stages of career development and what it means for business
The career development process has four distinct stages and the rewards are two-sided; employee and employer. Let’s dive in!
Exploration
The exploration stage is the first phase of an individual’s career where they identify the gaps between their present position and their goal. In this stage, they are still learning about themselves as a worker, their skill-set, their interests, and what kind of work environment suits them best. It is in this phase where both internal and external motivators are explored. For example, employees who thrive in organizations are those who align with company values. Values like “ability to influence”, suggest the individual wants a role where they can make decisions. Understanding underlying motivators will help both the employee and employer to have a long-standing relationship. In short, understanding key motivators will increase employee retention. In this article individuals can explore a variety of exploratory questions in support of making a career move. A great way to support an employee in the exploration stage is though mentorship programs. Mentoring is a win-win for both parties. The employee feels supported in their career exploration and the employer gains insights into what could be an up and coming rock star who can help the organization grow.
2. Establishment
The establishment stage occurs when an individual begins to figure out what it will take for them to stay in their chosen field for the long haul—this could mean looking into educational opportunities or making sure that their skills are up-to-date with best practices. This is where the support of an in-house career development program can benefit both the employee and employer. Individualized attention, a tailored curriculum, and hands-on learning are all benefits in that the employee will recognize their employer wants to invest in them and the employer will have a happy, engaged employee who wants to stay.
3. Maintenance
The maintenance stage is a period during which most people are satisfied with their careers and do not feel the need to make any major changes or adjustments. It is still very important to provide feedback and review performance. While in the maintenance stage, the employee may not want to undertake an MBA, for example, but further training and certifications are important to explore. Career development is important for the entire lifecycle of the employee. Continuous training and upskilling will enhance client deliverables and ensure employees continue to stay engaged at work. This again speaks to retention of top talent.
4. Retirement
Finally, there's retirement: This is the final stage before someone moves on from their career entirely! People retire at different times depending on their age, health, and personal circumstances. This stage looks different for everyone: some people might decide they want full-time leisure; some might start consulting or doing part-time work; others might choose early retirement after reaching a certain age or milestone in their lives.
To aid in smooth transitions for their employees, every organization needs to be equipped to provide their employees with support during each stage of their careers.
Business benefits of career development.
Let’s look more closely at these four benefits that drive business growth.
Business benefits of career development
Having a career that employees enjoy is one of the most important parts of life. It provides them with an opportunity to learn and grow, which can be hard to find elsewhere. Additionally, from an organizational perspective, there are four key benefits of career development to business
Improve employee retention
Manage downsizing and succession planning
Prepares executives in-house
Upskill the workforce to adapt to the changing landscape
Let’s break each of these down.
Improve employee retention
Employees who have a system in place to help them grow and learn are more likely to see their jobs as a long-term investment, which means they are also more likely to stick with you for the long haul. This is especially valuable for businesses that rely on high-quality talent to succeed. A lot of companies report that they lose employees because they aren't giving them opportunities to grow—and this is especially true for millennials, who are more likely than other generations to seek out jobs that offer growth and development opportunities.
Demographics aside, there are immediate benefits of putting time into your employees’ career development.
Boost employee confidence and improve job satisfaction - Employees who feel good about themselves when working towards a goal, even if that goal is just "doing better at their job" or "getting an interview," are more productive at work.
Retain employees - Fatigue and burnout are common these days. But employees tend to remain motivated despite stressful conditions if they are happy doing what they do.
Understand your employees’ competence - Organizations that treat employees as an asset are likely to be more successful. When you support your employees into becoming a better version of themselves, they reciprocate it by contributing to the growth and success of your company.
If your company doesn't have a career development system, it might be time to consider implementing one. Not only will it help your employees feel valued and motivated, but it will also help you retain those valuable employees for years and years to come!
Manage downsizing and succession planning
Career development programs help your organization manage downsizing and succession planning – two pillars of any growing company, regardless of how profitable it is.
When you have a career development system in place, you are able to identify employees who are ready to be incentivized with promotions as well as those who might need to be released because they aren't a good fit for the organization. This is also why having a career outplacement system is necessary. Especially in case of downsizing, it is always good to take a person-first approach with your employees by helping them transition out of your organization with career outplacement support.
Prepare executives in-house
The long-term benefits of having a career development system in your organization are many: career development will help you create opportunities to grow within the company.
As a result, you will have qualified applicants ready for promotion; your people will improve their skills by working on projects that are challenging them, allowing you to pick up on advanced-level work unlike others in your industry; and most important, your team will be happier because they will feel like they are being rewarded for their hard work and commitment.
What’s also essential to note is that training employees for executive roles in-house can actually save an organization anywhere between $15,000 to $120,000/hire. Outside recruitment is found to cost 33% of an employee’s annual salary. So, a career development system can directly affect your bottom line, as well.
Upskill the workforce to adapt to the changing landscape
As the world changes, so does the way we need to work. In such a scenario, you are only as valuable as your team. And the only way for employees to stay relevant and competitive is through continuous training and education.
It is no longer enough for an employee to graduate from college and then just stay put in their job. If you want your employees to advance in their careers and be more efficient, they need to be constantly learning new skills on top of their existing ones.
With a career development system, you can give your employees the tools they need to succeed. It will ensure that no one feels like they are getting left behind or forgotten and allow them to build their careers in a way that aligns with their personal needs and goals.
Summary
It is easy to get caught up in the present and forget about how much our future depends on upskilling. Future-proofing is at the core of any successful business as well as its workforce. Career development focuses on an individual’s strengths and areas for growth to help identify where they need improvement so that they can take advantage of opportunities in the market.
In short, it doesn't matter if you are dealing with a fresh college graduate or an experienced 20-year veteran looking to make a change—everyone can benefit from career development and that includes you and your business growth.
Curious to learn more, book a complimentary call today and let’s discuss the future of your team and company.