Career Management. Making It Work for Employees and Employers

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1 Career Management Making It Work for Employees and Employers Stuck in neutral. That s how many employees around the world would describe their career. In fact, according to the 2014 Global Workforce Study, 41% of employees say they must join another firm in order to advance. Even more troublesome, almost the same percentage (40%) of employees who have been formally identified as high potentials by their organization say they would need to leave their organization to advance their career. Overall, employees tell us career advancement opportunities rank among the top reasons why they d join or leave an organization.

2 Rising talent mobility complicates this picture even further. Globally, nearly half of employers (48%) participating in the 2014 Talent Management and Rewards Study say hiring activity has increased compared with last year, and more than one-third (35%) indicate that turnover is rising. At the same time, nearly two in three respondents are experiencing problems attracting top performers (65%) and highpotential employees (64%), an increase from two years ago. Additionally, more than half report difficulty retaining high-potential employees (56%) and top performers (54%). In the face of these challenges, employers need to understand what employees value if they are to attract and retain the right talent. Our research shows that employers do in fact agree with employees on the critical importance of providing career advancement opportunities to get and keep employees (Figure 1). But this understanding is not translating into effective career development and management programs. A mere 46% of employees say their organization provides useful career planning tools, and only 42% report that their organization provides opportunities to advance. Employers need to understand what employees value if they are to attract and retain the right talent. Employers for their part recognize they are falling short. Less than half (49%) report being effective at providing traditional career advancement opportunities to employees, while an even lower percentage (38%) report being effective at providing career development opportunities beyond traditional concepts. Moreover, only 41% of employers agree their employees are often able to achieve career advancement by moving across organizational boundaries. And a disturbingly low 35% say their employees understand how they can influence their careers. 46% of employees say their organization provides useful career planning tools. 42% report that their organization provides opportunities to advance. Figure 1. Career management is valued by both employees and employers, but many organizations fall short in delivery Employee view Advancement in career is the 3rd most cited reason they joined their organization. Lack of career advancement is the 2nd most cited reason to leave. Source: 2014 Global Workforce Study Figure 2. What is career management? Employer view Advancement in career is the #1 reason employees join an organization. Lack of career advancement is the 2nd most cited reason they would leave. Source: 2014 Talent Management and Rewards Study Only 41% Only 35% agree their employees are often able to achieve career advancement. say their employees understand how they can influence their careers. Career management is a process to help employees understand career opportunities and chart a career path within their organization. Career management Overarching career management strategy Visible and viable career path alternatives Integrated development planning process Organizations are clearly missing the mark when it comes to career management the process that helps employees understand career opportunities and chart a career path within their organization (Figure 2). Established career framework Enabling experiences and opportunities Aligned competency framework Career management encompasses the strategy, tools, processes and technology that enable talent development, agility and mobility. Career Management: Making It Work for Employees and Employers 2

3 While it might seem simple enough to organize jobs, define competencies, provide career planning tools and communicate opportunities, the reality is more complicated. Our research reveals several key pain points that employers face in developing and delivering career management programs: Career architecture and career paths are poorly defined. Fewer than half of employers (48%) report that their organizations have career architectures and levels in place. Managers are ill equipped to handle key aspects of career management and development. Only 33% of employers say s are effective at conducting career development discussions as part of the performance management process. Technology is not effectively leveraged for career management. Less than half (45%) of employers say their companies make effective use of technology to deliver programs to help employees advance their careers. Most organizations don t know if their career management programs are working. A low 27% of employers say their organizations monitor the effectiveness of their career management programs. In addition, we know from our experience that there are other factors contributing to this challenge. Information related to career management is often communicated in a disjointed manner. In some organizations, different parts of HR own different elements of career management without clear accountability or partnership. Finally, organizations may lack the business buy-in for career management programs, which can make career management the sole domain of HR. Given this situation, it s critical for employers to step back and think through the components of an effective career management program. Start by Defining Your Strategy An overarching strategy is needed to anchor and guide the development of a career management program. This strategy should capture an organization s highlevel perspective on career management, and reflect its talent priorities and strategic business objectives. Begin by defining the why and the how of your program through: An overall statement (why) of what the company believes and wants to communicate about the value and importance of career management. For example, an organization pursuing a business strategy focused on innovation might state that the goal of its career 48% of employees report that they have to take ownership of their own careers. 57% of employers indicate that employees and s should have joint ownership of the career management process. It s critical for employers to step back and think through the components of an effective career management program. management program is to provide employees with the ongoing skill building and development needed to enable breakthrough thinking and career success while ensuring the talent pipeline to support the company s long-term growth. A set of principles (how) that will guide the direction and execution of career management communications and tools. For example, one of the guiding principles of the innovation-focused organization cited above might include the importance of building a culture of continuous learning and professional development, which in turn leads to new ways of addressing business challenges. Details on the types of learning and professional development opportunities that the organization invests in would be showcased in the strategy. A basic question to consider when developing a career management strategy is who is responsible for the career management process. According to our latest research, almost half (48%) of employees report that they have to take ownership of their own careers, while 57% of employers indicate that employees and s should have joint ownership of the career management process. An effective career management strategy will help reduce employees feeling they are on their own when it comes to career development and advancement opportunities. Career Management: Making It Work for Employees and Employers 3

4 Building the Foundation With its career management strategy in place, an organization can begin to build the foundation of its program, which should include three elements: a career framework, scaled competencies and enabling experiences. Career framework. An organization s career framework consists of a series of career bands, which represent how jobs contribute to the organization, and levels, which show the relative contribution of a role within a career band (Figure 3). The framework is supported by the job architecture (e.g., how jobs are organized by titles, functions and families) and job leveling (i.e., the process for determining the relative ranking of jobs). Given that only 40% of employers globally have defined job architectures, and a mere 39% have defined job levels and a career framework, there is room for improvement here. A globally consistent career framework across all functions and business areas of an organization serves as a foundation for organizing jobs and clarifying career paths. Additionally, in many organizations, such a framework becomes a platform for describing overall work requirements and responsibilities. It also makes it easier for A globally consistent career framework across all functions and business areas of an organization serves as a foundation for organizing jobs and clarifying career paths. s and supervisors to clearly communicate career opportunities and have more effective career development discussions. Many organizations have some type of career framework in place, often to assign compensation grades and ranges. Being transparent about the career framework can help employees shift out of neutral and into first gear. Scaled competencies and technical skills. While the career framework describes what employees at various levels do, competencies define the how the knowledge, skills and abilities required for successful performance. We can think of competencies as behavioral concepts that may apply across job families, for example, analytical thinking, creativity and project management. On the other hand, technical skills refer to more discrete knowledge areas that are relevant across fewer job families, for example, application development, database administration and requirement analysis. Figure 3. Foundational element: Career framework* The career framework sets the stage for clearly communicating careers and discussing career opportunities and development. Individual contributor Management Career band Represents broadly how jobs contribute to the organization Business support U1 U2 U3 U4 Entry Intermediate Lead Production W1 W2 W3 W4 Entry Intermediate Lead Technical support T1 T2 T3 T4 Entry Intermediate Lead Management M1 M2 M3 M4 M5 Supervisor Manager Group group Professional P1 P2 P3 P4 P5 P6 Entry Intermediate Career Specialist Master Expert Executive E1 E2 E3 CEO Vice vice Executive president president vice president Career level Represents the relative contribution of the role within the career band *Actual alignment of career bands and levels will vary based on types of jobs within each organization. Career Management: Making It Work for Employees and Employers 4

5 Figure 4. Foundational element: Enabling experiences Sample template for defining enabling experience opportunities Question: What are the enabling experiences to prepare an employee to move through the job family (i.e., from level to level)? 1 I 2 II 3 III 4 IV 5 V 6 VI P1 P2 P3 P4 P5 P6 Regularly introduce new ideas and process innovations to own team Coordinate and assist department efforts Successfully manage a few projects independently, under limited supervision Present technical analysis/results to a nontechnical audience Participate in special assignments to gain deeper knowledge/ expertise in a particular area Speak at an internal or external industry conference or event Serve in a leadership role for a crossfunctional project or activity Demonstrate success in defining, delivering and implementing a strategy Participate in the development of company standards or capabilities The scaling of competencies enables organizations to show the changes in expected competencies and associated behaviors at different career levels. For instance, creativity at a lower level might involve demonstrating a willingness to try new processes and approaches. At a senior level, creativity might involve creating opportunities for employees to generate new ideas, products, methods or solutions that enhance organizational effectiveness. According to the findings of our 2014 Talent Management and Rewards Study, 55% of organizations have already implemented an organization-wide competency model applicable to all employees. Yet only 42% of all companies participating in the study have implemented scaled competencies, suggesting that many companies have yet to realize the full benefits of using competencies. Enabling experiences and opportunities. These are the experiences and opportunities that help prepare an employee to move from one career level to the next. While enabling experiences and opportunities help guide career development, they are not intended to be used as a checklist for promotion. For example, Figure 4 illustrates the enabling experiences and opportunities for an, from successfully managing new projects with limited supervision, to participating in the development of technical standards for their organization. With increasing frequency, organizations are supplementing the career framework and scaled competencies with enabling experiences and opportunities. Visualizing the Possibilities Once the foundational components are set, it s time to help employees understand what it all means for them. Career path visuals will help bring your career management program to life by illustrating potential movements between roles (Figure 5, page 6). A career path is unique to an individual and will vary depending on business needs, career aspirations and capabilities. There are typically two types of movement that career paths are used to illustrate: Progression Movement to a role at the same/ equivalent level or a lower career level as the current role; offers an employee breadth of experience Promotion Movement to a job at a higher career level than the current role; requires demonstration of increased competence and additional responsibilities It s important to note that the intent of a career path is to provide a sense of what s possible not to chart every potential course and to remind employees of what the organization values. These illustrations serve as a very effective tool to help differentiate the organization and illuminate the career management strategy. Our research shows that only 43% of companies have defined vertical career paths, and a mere 27% have defined lateral career paths, which could help explain why so many employees feel they are on their own when it comes to career development. Career Management: Making It Work for Employees and Employers 5

6 Figure 5. Sample career path Database Information Gain foundational and advanced Database experience in database Analyst analytics I and development Information Move into systems specialist to gain I broader organizational IT knowledge I Database analyst and developer II Information specialist II II database analyst and developer information specialist systems Make Lead a move to Database gain people management Project experience Manager Information Gain experience in IT ing project Enterprise database architect ing director Identified as a destination role due to the high degree of impact this role has on the organization. This is the top individual Director, contributor in the IT function, Data and with responsibility for designing Security major components of the IT infrastructure. This role requires a high level of understanding Director, of databases, and Information IT systems. Individuals in Technology this role must manage large projects and Director, IT project teams. Engineering support IT systems support I Start in a P1 job entry into job family Engineer I Move to more senior IT IT systems systems support ii role with continued focus on gaining support technical knowledge II software IT systems support ing project ing IT systems support director ing director Professional Illustrative P1 P2 P3 P4 P5 P6 alignment Management M1 M2 M3 M4 M5 Integrated Development Planning For a career management program to be effective, it must be properly supported and linked to other strategic HR initiatives and existing HR programs. Tools and technology. Two of the most valuable career management support tools include an employee reference guide and an employee workbook. The reference guide describes the career management process and program fundamentals, while the workbook enables employees to assess their strengths and weaknesses, and to develop short- and long-term career plans with their s. A technology platform that provides access to current career information and tools, thereby enabling employees to take an active part in managing their careers, can facilitate effective career management. Given that such a platform typically captures performance management information e.g., performance objectives, reviews, competency assessments as well as career management data, it shines a spotlight on the aspirations and capabilities of the company s talent pool. It is necessary that this type of platform link to an organization s HR information system to ensure seamless access to critical HR data including career management information. Manager training and support. Unfortunately, less than half (47%) of organizations say they provide their s with career management training and tools in the form of talking points or discussion guides. This could help explain why only 41% of employees rate their as effective in holding career development discussions. It is important for organizations to ensure that s are trained to have effective career conversations with employees. Regardless of whether these conversations are formally set at certain intervals or occur informally at any point in the year, s need to be equipped with information on the organization s career management strategy and tools. This will prepare them to ask the right questions as they guide employees through the process of developing actionable career plans. 47% of organizations say they provide their s with career management training and tools in the form of talking points or discussion guides. Career Management: Making It Work for Employees and Employers 6

7 Structured mentoring. Even a carefully planned career management program may not sufficiently prepare employees for all the challenges that come with increased responsibility. For this reason, a growing number of organizations are implementing structured mentoring programs. The goal of structured mentoring is to identify the deep and often undocumented knowledge that senior people have acquired over several decades, and transfer that knowledge to those with less experience. This reduces the risk of knowledge loss when senior employees leave or retire. At the same time, it provides an opportunity for employees to accelerate the learning process, and reduce the amount of trial and error they often face in new positions. Overall, a structured mentoring program not only enhances career development, but strategically fosters a culture of rapid learning and growth needed to compete in a complex, fast-changing business environment. Linking and relating to other programs. In addition to providing information and tools to employees and equipping s to have the right career conversations, it is critical for an organization to carefully link a career management program to existing programs. Start by considering the following questions: How does your career management strategy enhance or support your employment deal? How does your career management program support succession planning? Have you clearly articulated how your career management program differs from and/or integrates with existing performance management and development planning programs? Does your career management program support workforce planning, given the projected loss of knowledge due to employee exits, and projected knowledge requirements for sustaining and growing the business? Are mentoring roles and responsibilities integrated into the expectations at various career levels to enhance employee development? If these linkages and distinctions are not made clear, an organization risks having its career management program be not well received and potentially regarded negatively (for example, as a performance management mechanism for determining who will lose their job in a layoff). Change Management and Communication A thoughtfully planned and executed change management and communication process will help sustain your career management program over the long term. As with any program, it is essential to secure ongoing support and sponsorship from senior executives and business leaders. In addition, organizations should reach out to employees early in the process, even as the program is being designed, to help them understand the value of the program. Be sure to engage key influencers, including skeptics or those with dissenting views, and solicit their input as a way to give them skin in the game. To provide employees a sense of ownership, consider including them as subject matter experts in helping design different program components such as competencies and skills required for different jobs. It is essential to secure ongoing support and sponsorship from senior executives and business leaders. Employees can also offer feedback via focus groups or pilot programs prior to program launch. Finally, it is important to move beyond just tools and materials, and create career development opportunities such as mentoring programs or women s forums to support an employee s growth. Program monitoring is an essential part of the change process. It is important to measure the effectiveness of change or rollout activities (e.g., through surveys) and make required course corrections. Organizations can also monitor the effectiveness of career management programs overall (e.g., through engagement surveys and movement reports). Getting Started Before starting a career management program, it can be helpful to do an inventory of career management components (e.g., job functions and families, competencies and career paths) that may already be in place and determine the visibility these elements have within your organization. It is not unusual to uncover stand-alone career management components that are not linked together in a meaningful way. Most often, organizations start developing a career management program within a specific area of the organization (e.g., within a function such as sales). Once a career management program is launched in one part of an organization, it often generates excitement and buzz so that other areas are shortly asking for their turn as well. Career Management: Making It Work for Employees and Employers 7

8 There are various circumstances that provide organizations with an impetus for starting a career management program. In some cases, employers use a career management program to help address talent pain points (i.e., areas with current or projected talent shortages) or to help valuable employees update their skills in response to a changing work environment. In other cases, an organization may decide to move ahead with a career management initiative in response to employee requests. It is also not uncommon for an organization to focus on career management after having gone through a process of segmentation and differentiation. Using insights from a workforce segmentation, an organization can develop career programs tailored to different employee groups, for example, by stretching programs with increasingly complex projects for employees in pivotal roles and high-potential employees who are critical to business success. A Win-Win Proposition Finally, it is important to recognize that career management is a key component of an organization s total rewards portfolio. An effectively designed and implemented career management program delivers benefits to both employees and employers (Figure 6). Employees will have the tools and resources to chart career paths and own their careers. And employers will see a return in the form of a deeper bench of future leaders, a more engaged workforce and an enhanced employment deal, enabling them to attract and retain top talent. Figure 6. Career management is important to both the employee and the employer Employee view Career management is the system that enables employees to own their careers. Career management provides: Clarification of the organization s career management philosophy: What types of skills are valued? What are the roles of the employee and in career conversations? Access to information on career opportunities User-friendly tools and resources to chart career paths and develop a career plan Resources to enhance skill sets and think about meaningful work experiences Employer view Career management generates an ROI in employee development. Career management provides: Career paths that fill a robust talent pipeline to meet business demands Deeper bench of future leaders who have had the requisite experiences to fill key roles in the succession plan Engaged employees meeting personal career aspirations and making a greater contribution to business results An enhanced value proposition that attracts and retains top talent Reduced turnover costs in critical positions and levels Diminished search firm and training fees About Towers Watson Towers Watson is a leading global professional services company that helps organizations improve performance through effective people, risk and financial management. With more than 14,000 associates around the world, we offer consulting, technology and solutions in the areas of benefits, talent management, rewards, and risk and capital management. Copyright 2014 Towers Watson. All rights reserved. TW-NA /towerswatson

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