Your Guide to Developing Employee Career Paths and Ladders

Did you know one of the main reasons employees leave their jobs is that they have little or no advancement opportunities within the organisation?

This leaves companies with low retention rates and high onboarding and training costs, which negatively impacts business health.

Luckily, there’s a way for businesses to avoid this — by developing employee career paths and ladders. 

This article will explain an employee’s career path and why businesses need it. It will also give you the step-by-step process to develop talent with career paths and ladders in your business. 

What are career paths and career ladders?

Career paths and career ladders are two approaches used in business management and human resources to develop a professional’s career within or outside an organisation. 

Career path

A career path is a roadmap for your employees that shows them where they can go in their careers. It consists of short- and long-term benchmarks that map the route they need to take to advance their careers within or outside your company.

In other words, it’s a map that gives them all the career options they can pursue. 

It represents an employee’s broader journey based on their interests, skills, goals, and available opportunities. 

Career paths can take three forms: 

• Horizontal career path: This involves moving across different roles or departments within the same level of responsibility, often to gain a broader skill set. For example, an employee might move from a marketing role to a sales role.

• Vertical career path: This involves moving upward in the organisation, typically into higher responsibility or leadership roles. For example, progressing from a junior manager to a department head.

• Non-linear career path: This can include lateral moves, job changes across industries, or roles that don’t follow a traditional progression, reflecting the evolving nature of many modern careers.

Career ladder

Career ladders are more structured and show hierarchical progressions within a specific role or field — often within the same organisation. They usually follow the exact steps to move from lower-level positions to more senior roles in the same field.

For example, starting as an entry-level marketing assistant, progressing to a marketing coordinator, and finally becoming a marketing manager.  

Career ladders are usually developed through collaboration between employees and the HR manager. 

By looking at a series of aspects, including each employee’s skill set, experience, qualifications, and interests, the HR manager and employee will identify opportunities and pathways they can follow to reach their full potential. 

These career paths and ladders are highly beneficial for your business because they keep employees happy and show them that they have a bright future within your company. 

Let us look at other advantages you can expect from career paths, ladders, and employee training. 

Benefits of career pathing

Career paths are vital to the success of your organisation. Here are some of the main reasons:

1. Higher employee retention

Having a career path for all your employees means they’ll know there’s a future for them within your company and that they don’t have to worry about having a dead-end career. 

They will likely stay at your company and grow to high-level positions. 

Continued training and development to help your employees reach their full potential and dream roles will keep them motivated, inspired, and excited to come to work every day. 

2. Better company culture

Happier employees mean a better, livelier work environment where employees are excited to do their jobs. 

This means your entire company culture will improve, and your reputation as a quality employer will grow. 

In turn, you will easily attract quality candidates whenever you need new employees. It becomes a snowball effect. 

3. Better results

Giving your employees a clear view of what they can achieve within your organisation will inspire them to work harder. They’ll be more than willing to participate in corporate training to improve their skills and knowledge. 

As a result, their output will be better, and you will be able to deliver exceptional quality work to your clients every single time. 

Steps to develop talent with employee career paths and ladders 

Here are the steps to develop career paths and ladders so your employees remain loyal to your company and provide better quality work. 

Step 1: Identify your company’s structure

Determine and chart down the type of employee structure your company has. Look at your hierarchy and relationships between different positions. This will tell you whether your company has a traditional, flat, or other type of structure and will make career pathing easier. 

Step 2: Define job requirements

Look at the requirements for each job position. All employees should know the skills, knowledge, training, and qualifications needed to acquire a job. The requirements also indicate success in a particular role so employees can have realistic expectations. 

Step 3: Develop a road map for different positions

You need to make a road map for each role to know the advancement of different careers within your company. What does it take for employees to attain a senior position? 

For example, what would an employee need to do to become a senior manager? How will they get from job A to job B?

Step 4: Identify training needs

Determine the training you can provide your employees to reach these positions sooner. Often, it’s best to hire internally since these employees already know the ropes. 

They know your company, your clients, and what standards you expect. That being said, ensure you also identify training opportunities for external hires.  

Step 5: Implement training and development programs

Once you’ve identified the type of training your employees need, you can pinpoint the exact training and education you want to give them to reach their desired roles within your organisation. 

Here, you’ll discover specific courses or programmes you want them to enrol in — for example, a Higher Certificate in their field. 

Discover how business schools can help your employees fast-track their careers. 

Step 6: Create employee career paths and ladders

Once you know how your internal training and career development look, you can have your HR manager and employees develop their career paths. This way, you’ll know which employees need to receive what type of training to grow within your organisation. 

FAQ

How can managers support their team in achieving their career goals?

Managers can support their teams by providing the right guidance and resources. Here is a deeper look: 

• Regular career development conversations: Managers can have one-to-one meetings with employees to discuss their career aspirations and progress. They can also develop personalised development plans that outline the steps workers need to take to advance. 

• Provide learning and development opportunities: Managers can send employees for corporate training to help them upskill and reskill. 

• Set clear goals and provide feedback: Leaders can set SMART goals for employees to help them stay focussed and motivated. They can also praise successes and provide constructive feedback to help employees achieve their goals. 

What tools or resources can help in mapping out effective career paths?

To create effective career paths, managers can use different software, including: 

• Career development software is designed to help companies and employees map out career paths, set goals, and track progress. 

• Skills assessment software to help employees identify their strengths and areas for development. 

• Mentorship platforms that connect employees with experienced professionals who can help guide their career development. 

Start investing in employee development

Now that you know how vital investing in your employee’s development and training is, you must consider what type of training you want. 

Look at the career paths and ladders of each employee to guide you.

At REGENT Business School, we offer corporate and workforce solutions to help develop your workforce’s skills so they can drive your business into the future.