Providing a transparent framework for employee opportunities can make organizations more appealing to prospective hires and help retain existing employees. Career ladders are one way for employers to provide a clear pathway for career progression, with numerous benefits for both employers and employees. This article explains how organizations can use career ladders and details HR’s role in creating them.
WHAT IS A CAREER LADDER?
A career ladder is an organizational process that outlines an employee’s potential job progression. As employees demonstrate their abilities, they’re allowed the opportunity to move up the ladder, with each metaphorical “rung” providing greater responsibilities and opportunities.
Depending on the type of career ladder an organization uses, it may formally list the eligibility criteria for successive positions and salary raises, including requisite skills, knowledge and responsibilities. A career ladder may outline an employee’s trajectory from an entry-level job to a high-level position.
HOW SHOULD CAREER LADDERS BE UTILIZED?
Lack of growth opportunities is one of the primary reasons workers leave their jobs. A 2022 survey found that 63% of employees would be more likely to stay with their employer if they had better career advancement opportunities. By providing a clear path for professional development, employers may benefit from strengthened employee recruitment, engagement and retention.
Career ladders enable employees to understand the requisite skills needed for advancing to higher-level positions and the increased job responsibilities associated with a title change, but not everyone is suited for heightened responsibilities.
Employers can use career ladders to their advantage when there is a genuine need for a higher level of work and the employee in question is willing and able to perform work at a more advanced level.
WHY ARE CAREER LADDERS IMPORTANT?
Career ladders demonstrate the value of employees’ work and provide motivation by presenting attainable goals at each level of an individual’s development. They also foster knowledgeable employees by refining the training programs for each role.
Organizations that implement effective career ladders may experience numerous benefits, such as the following:
- Boosts employee retention and attraction Improves employee morale
- Decreases employee turnover Lowers hiring costs
- Promotes a culture of growth and advancement Encourages mentoring
- Increases efficiency when assigning tasks
- Facilitates the development of employee training systems
The uses and benefits of career ladders vary with an employer’s needs and the type of ladder they choose to implement.
WHAT ARE THE TYPES OF CAREER LADDERS?
There are three primary types of career ladders for employers to choose from:
- Predefined—This career ladder defines a clear set of requirements that an employee must meet to advance positions. Predefined career ladders generally contain two or three levels within a job family. For example, employers may list positions in numerical order, such as “Writer I” “Writer II” and “Writer III.”
- In-range— An in-range career ladder can be adopted when an organizations lack established job classifications. Employers who use in-range career ladders review employees case-by-case to determine if they’re ready for advancement. Employees deemed capable of heightened responsibility will be given more advanced duties, but their job titles will typically remain unchanged.
- Individualized—Employers may use individualized career ladders to promote employees to positions in separate job classifications. Employers commonly discuss individualized career ladders with employees on a case-by-case basis, especially for high-ranking positions like managers and directors. Career opportunities aren’t identical for every employee in the same job classification.
WHAT IS HR’S ROLE?
A practical career ladder can simplify career conversations between managers and employees by clearly documenting individual employees’ job responsibilities and professional trajectories.
Creating a career ladder for your organization may involve the following tasks:
- Determining the main objectives and primary responsibilities of job families
- Creating a hierarchal structure of positions within a job family and detailing the responsibilities expected of employees in those roles
- Consulting managers and supervisors for advice on the proposed hierarchy of positions
- Creating an evaluation rubric to measure employee performance in different positions
- Surveying employees to better understand their career goals and desires
Organizations can leverage career ladders to retain knowledgeable employees, promote growth and develop vital training resources. While providing growth opportunities is crucial to employee management, having proper evaluations is also important for success in advanced positions. If you have additional questions about creating a corporate career ladder in your organization or any other benefit questions, contact us to speak to a consultant. You can also follow us on Twitter or LinkedIn or here on the FBS Blog for more employee health and wellness trends.