Empowering Employee Growth and Advancement: Rethinking Recognition and Development in the Workplace

In today's fast-paced and rapidly evolving work environment, the role of employers is changing. A growing number of employers are beginning to realize that investing in the development and advancement of their employees is not only the right thing to do, but it also makes good business sense. With several high-profile business leaders recently coming under fire for demonstrating a lack of empathy for their employees, it appears that the social contract between employers and employees is shifting - and that's a good thing.

The idea that companies exist solely to maximize profits for shareholders has been the dominant ethos in the corporate world for decades. However, in 2019, the Business Roundtable - an association of more than 200 CEOs of America's leading companies - redefined its statement on the purpose of a corporation to include a commitment to investing in employees. The new statement emphasizes that companies should not only compensate their employees fairly but also provide them with training and education that help them develop new skills for a rapidly changing world.

Recent media coverage notwithstanding, it is encouraging to see more employers investing in the development and advancement of their people. Employers are recognizing that their employees are not mere resources but the most vital factor in delivering on their strategies and priorities. They understand that the "bottom line" is an outcome of the effort and contributions of many, and that their effectiveness is intimately connected to their engagement. They are realizing that engagement is influenced not only by doing meaningful work but also by the organization's recognition of their worth and commitment to enabling their desire to progress intellectually, socially, and economically.

As a society, we need to elevate our mindset and recognize that every individual is innately talented, worthy, and motivated, with expanding promise and possibility. When employers accept this simple premise, they will not only focus on filling roles but also recognize that when they do so, they are hiring a person. It is their responsibility to help that person feel empowered to do their best work and thrive in their careers. They understand that human progress and upward mobility are the key measures of organizational effectiveness and that creating an environment for individuals to thrive serves to advance the enterprise itself.

Employers need to be asking themselves how they can ensure that no one gets stuck in an opportunity cul-de-sac. Practically speaking, this means helping each individual acquire the knowledge, skills, and abilities to take on an ever-expanding scope of responsibility. In turn, leaders can start thinking critically about the pathways that are available and their role in facilitating their employees' progress.

Every individual deserves the opportunity to experience self-actualization. To that end, leaders should consider the following questions with respect to their organizations:

Are we fair and equitable about how we evaluate, coach, and promote talent?

Commitment to equity doesn't end with equitable hiring practices or increased representation across diverse backgrounds; it's also about ensuring all individuals are able to experience mobility and satisfaction at work, no matter their identity. This starts with fair and consistent performance evaluation with a disposition for helping individuals leverage personal strengths while also developing greater strength in noted weaknesses. Fulfilling that commitment requires an understanding that each individual experiences unique circumstances and various social, emotional, and practical needs that call for personalized mentoring and individualized goals.

If an individual is underperforming or disengaging, leaders should assume the best. That is, that the person is capable, engaged, and motivated to do great work, but their contributions may be limited due to barriers that need to be addressed, or skills that are underdeveloped. No one works to be considered incompetent. The coaching conversation then becomes, what is the work you want to do? How does that align with the organization's needs and priorities? How do you want to acquire the skills you're lacking, and what is limiting your advancement? Supporting just one individual can have profound effects—for the individual, sure, but also for their families, perhaps even their communities, and certainly the organization where they work.

Do employees understand which pathways are available to them and which skills and abilities are needed to progress?

While managers can play a pivotal role in helping team members think through what they can do and want to do, individuals must ultimately decide for themselves which pathways they wish to pursue. However, for them to exercise that choice, they need to be empowered with information.

Unfortunately, studies suggest that there is significant room for improvement in providing greater transparency to employees about available pathways and needed skills. A Harvard Business School survey revealed a lack of career pathway clarity along the recruiting funnel, with a significant portion of respondents stating that their company rarely or never described pathways on the company website or during job interviews. This lack of clarity can hinder employees' ability to make informed decisions about their career progression.

Furthermore, research compiled by Degreed in their State of Skills 2021 report shows that a significant percentage of workers do not receive regular feedback on their performance or skills. This lack of feedback can leave employees feeling uncertain about their strengths and areas for improvement, making it difficult for them to chart their career development path.

To address this challenge, employers need to ensure that employees have a clear understanding of the skills and abilities required for advancement. They should provide transparent information about the various career pathways available within the organization and the specific skills and competencies needed to progress along those paths. By doing so, employers empower employees to make informed decisions about their career trajectory and take proactive steps to acquire the necessary skills.

Moreover, employers should invest in strategies that capture and assess employees' skills accurately. Relying solely on job descriptions and organizational data to infer employees' skills can be limiting and may not provide a comprehensive understanding of their capabilities. By implementing robust systems for capturing and evaluating employees' skills, employers can gain a more accurate picture of their workforce's potential and identify areas where skill development is needed.

Do employees understand how they can acquire the needed skills and abilities, and have we invested in pathways to increase alignment and engagement?

For individuals to advance, they not only need to understand which skills and abilities are needed to transition from one level to another but also how and where they can acquire those skills. Employers can take proactive steps to provide employees with resources and opportunities for skill development. This can involve offering training programs, workshops, mentoring initiatives, or supporting employees in pursuing external educational opportunities.

Major employers, including Amazon, Walmart, McDonald's, and KFC, have recognized the importance of investing in educational pathways. They have developed in-house educational programs or formed partnerships with online providers to offer their employees access to educational resources. These initiatives not only address the skills gap but also demonstrate a commitment to employee growth and development.

Investing in educational pathways is critical in today's economy, where there is a growing misalignment between educational outcomes and the skills needed in the workforce. According to McKinsey, a significant percentage of employers are experiencing or expecting to experience a skills gap. By supporting employees in acquiring the skills they need to succeed, employers not only enhance individual career prospects but also strengthen their workforce and increase organizational agility.

It is important to view retention as one of the metrics to gauge the success of education and development programs, but not the sole or primary metric. While retaining talented employees is crucial for organizational stability, engagement and mobility should be equally emphasized. Recognizing that some employees may leave to pursue other opportunities as a result of their growth and development is essential. It signifies that the organization has successfully empowered individuals to progress in their lives and careers, ultimately contributing to their overall fulfillment and success.

As leaders, our primary responsibility is to motivate and inspire individuals within our organizations to unleash their full potential. This involves fostering an environment where every individual feels valued, supported, and encouraged to excel. By embracing the concept that inherent worth exists in every individual, we can create a workplace culture that nurtures personal and professional growth.

When we acknowledge that everyone possesses unique talents, motivations, and aspirations, we take a significant step toward fulfilling the promise of a human-centered, democratic ideal. Each individual should have the opportunity to live a self-determined life and create a better future for themselves and their families. By investing in their development, providing clear pathways, and fostering a culture of recognition and support, employers can contribute to the realization of this ideal while reaping the benefits of a highly engaged, skilled, and motivated workforce.

The evolving dynamics between employers and employees call for a shift in mindset and practices regarding employee recognition and development. Employers must recognize the intrinsic value of each individual, invest in their growth, and provide opportunities for advancement. By doing so, organizations not only enhance their own effectiveness and success but also contribute to the overall well-being and progress of their employees and society as a whole.