Happiness

Helps
Career development breeds
employee engagement, boosts
organizational performance
by Tom Becker

In 50 Words Boredom and discontent in the

Or Less workplace are serious business performance issues. In
• Having discontented
employees who don’t a recent international study of organizational effective-
feel engaged in the
ness,1 two-thirds of the 28,000 respondents said they were
workplace often leads
to lower retention and a less than fully engaged by their work and organization.
higher rate of absentee-
ism, which can affect In turn, these organizations could be failing to per-
an organization’s overall
performance.
form to their true potential because weak workforce
• A career development engagement can often lead to lower retention, greater
program can help
organizations retain absenteeism and poorer productivity.
and advance talented
employees while boost-
What can organizations do?
ing productivity and
business performance.
talent management

January 2011 • QP 17
 Offering employees career development opportu-
nities may be the answer. As the study shows, career
development not only builds skills and capacities that
can help organizations achieve their strategic goals,
but it also addresses the motivators driving employees
to put their skills and capacities to optimal use.
Employees are looking for challenges in their jobs.
They want to contribute meaningfully to their orga-
nization’s success. By equipping employees to find
greater challenges and meaning in their work, career
development promotes engagement and enhances the
performance of the individual and the organization.
According to a Right Management survey, oppor-
tunity for learning and development is a top driver of
engagement. In the study, respondents indicated their
level of agreement with 100 statements (individual en-
gagement drivers) that were grouped according to 10
general topics (general engagement drivers).
Among the 10 general topics that respondents
ranked, “learning and development opportunities” was
the second-highest ranked item they said could drive
engagement. In fact, respondents said “learning and
development opportunities” was more important than
leadership, culture and even compensation.
The following is the complete ranking of general en-
gagement drivers from the survey:
1. Work processes.
2. Learning and development opportunities.
3. Culture.
4. Senior leaders.
5. Communication.
6. Structure, roles and capability.
Career opportunities drive
employee engagement / Figure 1
Respondents were asked to agree or disagree with the following statement,
“There are career opportunities for me at my organization,” and then rate their
engagement in the organization.
Favorable
54%
46%
Unfavorable
9%
91%
0% 20% 40% 60% 80% 100%
Engaged Not engaged
Source: Right Management, “Global Benchmarking Study,” December 2009
Base: 28,810 global employees
18 QP • www.qualityprogress.com
7. Recognition and reward.
8. Customer focus.
9. Strategy.
10. Immediate managers.
Development pays off
The survey and research also revealed significant cor-
relations between the statement “There are career
opportunities for me at my organization” and several
topics addressing organizational effectiveness. Key
findings included:
Providing career opportunities drives engage-
ment. Organizations that provide career development
opportunities are six times more likely to engage their
employees than organizations that do not.
As shown in Figure 1, 54% of employees who re-
sponded favorably (that is, either agreed with or
strongly agreed with) to the statement, “There are ca-
reer opportunities for me at my organization,” reported
being engaged at work. That compares to an engage-
ment rate of only 9% among employees who responded
unfavorably to this statement.
Providing career opportunities drives reten-
tion. Organizations that provide career development
opportunities are more than four times less likely to lose
talent in the next year than organizations that do not.
As shown in Figure 2, only 5% of respondents who
agreed or strongly agreed that their organization pro-
vides career opportunities indicated they planned to
leave within the next year. By contrast, 22% of those
who did not agree that their organization provides ca-
reer opportunities said they planned to leave within a
year.
Providing career opportunities drives produc-
tivity. Organizations that provide career development
opportunities are almost 2.5 times more likely to be
productive than organizations that do not.
Figure 3 shows that 72% of employees who respond-
ed favorably to the statement, “There are career op-
portunities for me at my organization,” reported their
organization is productive. Among those who failed to
respond favorably, only 30% indicated their organiza-
tion is productive.
Providing career opportunities drives perfor-
mance. Organizations judged to be best performers
are almost three times more likely to provide career
development opportunities than those judged to be
below-average performers.
 talent management

Figure 4 (p. 21) shows that 63% of respondents who

identified their organization as “one of the best per-
Career opportunities drive
forming organizations in its sector(s)” also responded retention / Figure 2
favorably to the statement, “There are career oppor- Respondents were asked to agree or disagree with the following statement,
tunities for me at my organization.” By contrast, a “There are career opportunities for me at my organization.” Then they
indicated whether they planned to leave the organization within the next year.
favorable view of their organization’s commitment to
providing career opportunities was held by only 23% Favorable 5% 31% 64%

of those who identified their organization as a below-

average performer. Unfavorable 22% 37% 42%

The findings show a connection between pro-

0% 20% 40% 60% 80% 100%
viding career opportunities and all the links in the
Plan to stay for less than 1 year
performance chain: Career opportunities drive Plan to stay for 1 to less than 5 years
engagement, which, in turn, drives retention and Plan to stay for at least 5 years
productivity. Best-performing organizations are sig-

nificantly more likely to provide career development Source: Right Management, “Global Benchmarking Study,” December 2009
opportunities than below-average, average and even Base: 28,810 global employees

above-average performers because best performers

recognize providing such opportunities yields mea- tives link to their functional work area’s business plan
surable results. (No. 10).
Providing career development is also a means by
Individual engagement drivers which senior leaders can show they value employees
As noted earlier, the Right Management study con- (No. 7) and by which the organization—when pro-
sisted of 100 statements (individual engagement driv- grams are available universally—can demonstrate it
ers) grouped into general topics. Looking at the top treats everyone with respect, regardless of who they
individual engagement drivers (see the sidebar “Top 10 are (No. 8). In short, providing career development op-
Individual Engagement Drivers,” p. 22) offers insight portunities touches on at least six of the top 10 indi-
into how providing career opportunities can enhance vidual engagement drivers.
engagement.
Respondents indicated their level of agreement Talent attraction and mismatch
with nearly 100 different statements grouped into gen- Providing career development can also address talent
eral topics. We analyzed the correlations with engage- attraction. If organizations do, indeed, begin to see tal-
ment not only for each general topic, but also for each ented employees leaving in large numbers in the next
individual statement.
Of all the statements in the survey, “There are ca-
reer opportunities for me at my organization” showed
the 15th-highest correlation. That ranking alone dem-
Career opportunities drive
onstrates the connection between providing career productivity / Figure 3
opportunities and engagement. It is important to ap- Respondents were asked to agree or disagree with the following statement,
preciate, however, that providing career opportunities “There are career opportunities for me at my organization,” and then indicate
is also connected with individual engagement drivers whether they think their organization is productive.
even higher on the list. 72%
Favorable
7%
A well-designed career development program can
help employees arrive at a better understanding of the 30%
Unfavorable
36%
organization, including its core values (No. 1 on the
ranking) and of what it expects of each employee at 0% 20% 40% 60% 80% 100%
Productive Unproductive
work (No. 4). Through such a program, employees can

better understand how they can contribute to custom-
Source: Right Management, “Global Benchmarking Study,” December 2009
er needs (No. 5) and how their personal work objec- Base: 28,810 global employees

January 2011 • QP 19
 year, implementing effective career development ini-
tiatives could play a strong role in not only reversing
the trend, but also in filling vacant positions.
Another recent survey2 asked 236 employees, “What
is most important when considering a new employer?”
Respondents singled out career development pros-
pects by a wide margin, as shown in Figure 5. Organi-
zations offering career development opportunities at-
tract new talent by building their brand as an employer
of choice.
A talent mismatch also is driving the need for or-
ganizations to develop talent. The case for providing
career development must also be understood along
with trends in the world of work tied to changing de-
mographics. In many countries, for example, the work-
ing-age population is either growing more slowly than
in the past or showing an outright decline. One result
is an increasing talent mismatch.
As highly skilled employees retire and as the na-
ture of available work shifts, organizations are already
encountering difficulties in filling key high-skill posi-
tions even as they generally reduce their workforces.
Because this talent mismatch is likely to intensify as
the population ages, developing talent that can help
organizations meet evolving needs will become even
more important.
Career development enables employees to proac-
tively take charge of their career progression in view
of the new skills they will need in the changing world
of work. At the same time, employees are demanding
more choices and greater opportunities.
Another outcome of demographic trends is a more
varied, multigenerational workforce comprised of in-
dividuals with unique needs and desires. Especially
in high-skill work environments, individuals will ex-
pect—and be granted—more choices
and greater control over their work-
Tweetchats ing lives.
Are you on Twitter? Do you tweet? Even though organizations have
Have you ever used Tweetchat? shed jobs and placed increasing em-
Join ASQ and MyPath.com every phasis on employee productivity, they
Tuesday at noon CST to chat about
will increasingly find it necessary to
your career. Topics range from
adopt a new model that gives employ-
certification vs. degrees to tattoos
ees a more active role, offering higher
in the workplace.
Visit www.tweetchat.com, sign
levels of contribution and participa-
into your account and enter the tion.
hashtag #CareerChat. Highly talented employees will
look for workplaces where they can
20 QP • www.qualityprogress.com
express their individuality and realize their aspirations.
A workplace that doesn’t promote, enable and sup-
port personal interests and creativity—and isn’t inter-
ested in listening to new ideas—is unlikely to attract
many potential job candidates.
Recommendations
What are the building blocks of an effective career
development strategy? How do organizations demon-
strate their commitment to employees, ensure they
have the right people with the right skills to meet cur-
rent and future business needs, and ensure employees
understand how they can contribute to the organiza-
tion’s success? In short, what do organizations need
to do to provide employees with career opportunities?
Learning and development: The Right Manage-
ment organizational effectiveness study provides some
high-level guidance by identifying key drivers associ-
ated with the statement “There are career opportuni-
ties for me at my organization.”3 In order of impact, the
top seven are:
1. I am encouraged to take ownership of my own
development.
2. I receive the development I need to do my job well.
3. I know how to progress in my organization.
4. My organization invests in its people’s learning and
development.
5. There is sufficient incentive to perform well at my
organization.
6. My organization ensures there are people ready to
move into jobs when positions become available.
7. My immediate manager facilitates effective discus-
sions about my career development.
Investing in learning and development (No. 4) and
ensuring individuals receive the development they
need to succeed in their jobs (No. 2) are obvious steps
in creating meaningful career opportunities.
So, too, is providing performance incentives (No.
5): Employees must be given reasons for advancing
their careers. Clearly, organizations that ensure they
have people ready to move into newly available posi-
tions (No. 6) signal their commitment to providing ca-
reer opportunities for current employees rather than
hiring from the outside.
The most powerful driver of “There are career op-
portunities for me at my organization” is empowering
employees to take ownership of their development
(No. 1). In part, such empowerment must involve
 talent management

A talent mismatch is driving the need for

organizations to develop talent.
ensuring employees know how to progress (No. 3),
which, in turn, may depend on managers facilitating ef- Employee career opportunities and
fective career discussions (No. 7). organization performance / Figure 4
These drivers, then, can be reduced to four essential
Respondents were asked whether they identified their organization as “one of
recommendations for organizations: the best performing organizations in its sector(s),” and whether they agreed or
1. Develop from within to hire from the outside. disagreed that “there are opportunities for me at my organization.”
2. Ensure your investment in learning and develop-
One of the best performing
ment is meaningful. organizations in its sector(s) 63%
3. Provide employees with incentives to progress.
Above-average performer 55%
4. Make employees partners in their own develop-
Average performer 39%
ment. In other words, empower them.
Below-average performer 23%
Be systematic in your approach: How, then, do
you invest? How do you make employees partners in 0% 20% 40% 60% 80% 100%
Favorable
their own development? How do you ensure qualified
people are available internally to fill vacancies? Source: Right Management, “Global Benchmarking Study,” December 2009
Base: 28,810 global employees
An essential step is to create a formal career devel-
opment program. Depending on the needs of the orga-
nization, such a program could take a variety of forms, than 650 U.S. employees, 37% of respondents indicated
but certain features are universally applicable. they never engaged in career discussions with their
A distinction must first be drawn between the or- managers, while 29% said they engaged in such discus-
ganization’s accountabilities and those of employees. sions just once a year. Only 16% reported they have ca-
The organization also must undertake a rigorous analy- reer discussions once a quarter.4
sis of current workforce skills and future talent needs. Providing the skills and tools managers need for
Creating an inventory of current skills and future regular, meaningful, career-coaching conversations
needs is key to giving proper direction to individual with employees is a basic step in a systematic career
development. development program. Just as important to any sys-
Development cannot succeed for the individual, let tematic career development program is holding man-
alone for the organization, unless it is strategically ori- agers accountable for having those career conversa-
ented toward achieving larger business goals. Employ- tions.
ees who develop capabilities of little
relevance to their job or organization
won’t play an active part in the organi- “What is most important when
zation’s success. considering a new employer?” / Figure 5
The organization also must take the
lead in initiating and facilitating mean- Career development prospects 40%

ingful career discussions, which is an Work-life balance 21%

essential step in empowering employ- Innovative company culture 15%

ees to drive their own development. Competitive compensation and benefits 12%

Right Management research shows Good rapport with manager 8%

that career discussions between em-

0% 20% 40% 60% 80% 100%
ployees and immediate managers are

rare. In a recent poll involving more Source: Right Management’s online poll of 236 employees conducted in November 2009

January 2011 • QP 21
 talent management
Career discussions are not only vital to providing
career development opportunities for employees, but
they also offer managers an occasion to directly ad-
dress many of the top individual drivers of engagement
that were revealed in the organizational effectiveness
study.5 Career discussions, for example, can be used to:
• Explore and reinforce the organization’s core val-
ues.
• Demonstrate that employees’ opinions count.
• Show that senior leaders value employees.
• Help employees understand what is expected of
them at work and how they can contribute to meet-
ing the needs of customers.
This last point is especially important, given that im-
mediate managers are key drivers of employee engage-
ment. Integrating metrics that truly measure job perfor-
mance and an individual’s impact on the business while
allowing for recognition opportunities are ingredients
for a successful career discussion. In fact, 10 of the top
15 individual drivers of engagement can be tied to ca-
reer discussions.
Research implications
Workforces across multiple industry sectors are show-
ing increasing signs of being dissatisfied and disen-
gaged, even as a large and growing body of research
has drawn a direct line from engagement to retention to
productivity and, ultimately, to business performance.
Organizations that fail to address workplace dis-
content risk losing their competitive advantage, their
ability to respond quickly and effectively to changing
market conditions, their investment in key talent with
hard-to-replace skills and whatever productivity gains
they have achieved.
Career development can make a significant contri-
bution to defusing these threats. Career development
can provide employees with meaningful, interesting
and challenging work opportunities. Aligning the emp-
ployee’s skills and capabilities with the organization’s
business strategy satisfies the employee’s need to make
a difference and invest in the organization’s success. It
drives engagement, retention, productivity and perfor-
mance.
It is critical that individuals invest their time wisely
when pursuing avenues that will support their career
development. Examples include online training, pro-
fessional certifications and users groups. Participation
in professional online communities such as LinkedIn,
22 QP • www.qualityprogress.com
Top 10 Individual
Engagement
Drivers
“Providing career development opportunities”
touches on at least six of the top 10 individual
engagement drivers.
1. I am committed to my organization’s core
values (strategy).
2. Our customers think highly of our products and
services (customer focus).
3. My opinions count (communications).
4. I have a clear understanding of what is
expected of me at work (structure, roles and
capability).
5. I understand how I can contribute to meeting
the needs of our customers (customer focus).
6. I have been fairly rewarded (recognition and
reward).
7. Senior leaders value employees (senior leaders).
8. Everyone is treated with respect at work,
regardless of who they are (culture).
9. I can concentrate on my job when I am at my
work area (work processes).
10. My personal work objectives are linked to my
work area’s business plan (strategy). —T.B.
ASQ communities or MyPath, Manpower’s career man-
agement website, can help individuals take a proactive
approach to managing their career development. QP
REFERENCEs
1. Melvin J. Scales, “Developing Talent: How Career Opportunities Drive
Business Performance,” Right Management, 2010, www.right.com/thought-
leadership/e-newsletter/developing-talent-how-career-opportunities-drive-
business-performance.pdf.
2. Right Management, “Development Opportunities Most Important to Job
Seekers; Rapport With Manager Ranks Lowest,” Dec. 1, 2009, www.right.
com/news-and-events/press-releases/item1989.aspx.
3. Right Management, “Organizational Effectiveness: Discovering How to Make
it Happen,” 2010, www.right.com/thought-leadership/research/
organizational-effectiveness-discovering-how-to-make-it-happen.pdf.
4. Right Management, “Advancing Careers, Driving Results,” 2010, www.right.
com/thought-leadership/research/advancing-careers-driving-results.pdf.
5. Right Management, “Organizational Effectiveness: Discovering How to Make
it Happen,” see reference 3.
© 2011 Manpower/Right Management
TOM BECKER is senior vice president of recruiting for
COMSYS, a Manpower company that specializes in
professional employment services with an IT emphasis.
He received a bachelor’s degree in social sciences
from Northeastern University in Boston. Becker is also
a certified Six Sigma Green Belt.