Finding and retaining talent: what used to be a daily routine is now considered a top priority in executive suites and HR departments. Employee retention is more than ever a key to business success. And in a highly competitive labor market, it is a real challenge, especially for small and medium-sized enterprises. Attractive and transparent development paths play a major role in employee retention.
From the employee's perspective
As is well known, management has a wide range of monetary and motivational offers at its disposal to retain employees: good pay, attractive benefits, flexible working models, and more. A particularly compelling argument for employees to join and stay with a company is the career and development opportunities available. For many employees, personal development and individual career prospects rank right alongside a good salary. After all, logically, an employee will only stay with a company if they can see a future for themselves there. Consequently, according to the "Employee Retention 2030" trend study conducted by F.A.Z. Business Media in 2022 on behalf of Cornerstone, a lack of career opportunities is the most frequent reason for resignation, alongside inadequate compensation.
From the company's perspective
From the company's point of view, building and expanding competencies is fundamental to economic growth and competitiveness. It is therefore worthwhile for medium-sized companies to pay special attention to internal development options and innovative learning concepts. Standardized development paths are not only relevant for retention; they are also essential in the context of succession planning for developing employees for relevant roles. When career paths are linked to strategic competency management, internal knowledge can be optimally transferred and managed for future relevant roles and positions within the company. At the same time, by developing and qualifying staff internally, a company creates an additional, manageable alternative to the difficult path of external recruitment.
Development paths: thinking in terms of skills
Being able to develop one's own competencies in a planned way with clear goals is an important criterion for choosing—and staying with—a company. Re-skilling and upskilling offers, i.e., the opportunity for further training and retraining, are gaining in importance. It is therefore an essential pillar of HR for companies to design potential development paths that keep pace with the times. Opportunities and career paths should be presented transparently and communicated clearly. This shows every individual employee how they can grow within the company and what further training options are available to them. Continuous development opportunities not only bind employees to the company in the long term; they also provide a sense of security, transparency, and fairness by demonstrating that everyone on the team has the same opportunities for advancement. Ideally, career options should be linked to modern compensation models. Fair, equal, and transparent pay, which is, for example, variably linked to targets, creates additional incentives to continue developing and remain loyal to the company.
Taking a strategic and agile approach to individual development
Employees—regardless of their role—want to know what opportunities they have to develop within the company. A clear qualification profile should vividly illustrate which skills and competencies need to be built for specific goals and what the company offers for employee training and development. What learning content is available for this? Or in what way is it possible to acquire these competencies? Traditional career paths do not leave much room for this. They run strictly straight ahead and are hierarchically structured. Modern career and development paths, on the other hand, are more democratic, equitable, and flexible. They do not map the employee's individual path as a straight line, but rather outline it in a more organic and variable way. Future-proof development paths are no longer just about hierarchical career steps toward management positions—a classic example being the rise from apprentice to plant manager. They are also about professional development toward becoming a senior expert without a management position. Future-proof development paths have become much more permeable and flexible in dealing with lateral entries, retraining, or parental leave. Successful implementation requires internal development models that pursue clear professional and leadership goals with an individual learning strategy, while at the same time leaving enough room for flexible and individual adjustments. This very much meets the demands of Generations Y and Z for a balanced work-life design.
THE MAK'ED TEAM implements a strong framework for attractive career paths and tailored roles using agile competency management. An important instrument for the goal-oriented implementation of development models is regular check-ins and feedback: Where does the employee stand on their personal roadmap? What worked well—and what didn't? Which mandatory stations and required qualifications are already in their portfolio? Development paths are regularly reviewed to acquire the competencies needed for individual career planning and to close competency gaps. Constant individual adjustment of further training options is important to reach personally set milestones. THE MAK'ED TEAM supports companies with experienced HR experts in the successful development, implementation, and communication of dynamic HR structures. Agile development models move not only the employees forward in a focused way, but the entire company as well.
More information on the topic of Competency Management
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