An Overlooked Solution to Labor Shortages: Career Pathing

The most severe worker shortages on record largely were expected to ease in September with the reopening of schools and expiration of enhanced unemployment benefits. But as organizations continue to navigate labor shortages, many are finding themselves continuing to struggle with attracting candidates. Those returning to the workforce following the COVID-19 pandemic are at the wheel—and are expecting more from their employers. Beyond increasing pay, financial bonuses and improved health care or tuition incentives, companies should offer career pathing as part of their recruitment and employee engagement strategies.

Career pathing, the concept of creating a tangible journey for an employee to move “up the ladder” of a company, can help attract and retain employees by enabling them to see themselves as a true member of an organization that represents the future of the company. For many, the focus is less about bargaining for a higher salary in a tight labor market and more about finding a position with a brighter future. This emphasis could reshape many organizations to see their workforce as a true asset to the company’s growth.

While career pathing should be considered as more than just a solution to a tight labor market (but instead a positive evolution for employees and their respective organizations), here are best practices to get started.

Earth isn’t flat, but your culture’s structure should be.

An organizationally flat culture, meaning employees have a voice that is valued and equal whether new or tenured, lends far more benefits than you would expect. Beyond providing younger employees with empowerment to speak up and share fresh ideas, the structure enables individuals to feel that their feedback will be taken seriously and not just collected and disregarded.

For instance, employee satisfaction surveys should be conducted on a regular basis; getting a pulse of the organization and allowing employees to put their thumbprint on the company. In return, the company moves beyond a focus on metrics or KPIs toward a more sustainable priority: relationships and the importance of people.

Invest, train and mentor new employees

While it starts with an organizational shift in practice, those who have been successful in career pathing are largely at companies that believe in investing in their own and hiring from within. Employers should spend the same resources – if not more – on junior staff, empowering them to also take it upon themselves to go the extra mile.

For instance, consider creating a supervisory skills development program as an investment in first-level leaders and their respective teams. Or, create a mentoring program (or simply maintain a culture that allows all to have exposure to senior leadership), where employees can envision themselves climbing the corporate ladder within the organization. Further, encourage regular conversations with managers about next steps in younger employees’ careers.

By creating a culture where all employees feel valued, encouraging continued education and putting relationships at the forefront, recruitment and employee retention will improve. Because it’s only when organizations are able to shift employees’ mindsets and attitudes that better performance, productivity and preferred business outcomes can be expected.

Ross Duff is senior vice president of operations at HGS.  He has been in the industry for more than two decades and with the company for 16 years, starting as a customer service representative and working his way up.