Why Employee Development is a Priority

Career Development Programs

A career development program can be a win-win for both employees and employers. In fact, those employees who can expedite their advancement beyond the industry average stand to gain a significant earnings advantage, with a six-figure difference compared to their peers. This additional employee income is often accompanied by increased revenue for their company, creating a win-win scenario where both the employee and the company benefit from higher earnings and corporate growth.

To provide a comprehensive understanding of the financial implications, we reviewed the average annual earnings data for the first 20 years of a typical career from the US Bureau of Labor Statistics website. These figures encompass salary, bonuses, and employer contributions to retirement accounts. The key factors are the pay increases corresponding to major promotions (Project Engineer, Project Manager, and Group Leader) during a standard career trajectory.

Suppose an employee can achieve each promotion period just one year earlier than the industry average. In that case, they would receive these pay raises sooner in their career, resulting in a favorable deviation from the average pay structure. This advantage is then compounded by annual raises. When these cumulative benefits are tallied, the amounts turn out to be surprisingly significant. Over the first 20 years, the after-tax difference amounts to nearly $300,000. If the annual windfall is invested wisely, the total value in the first half of an employee's career can reach approximately $500,000. And over an entire career the value could be in the millions. Such benefits for simply earning a promotion one year ahead of the average are undeniably substantial.

It's important to note that the advantages are not limited to the employee alone. Businesses also reap the benefits of nurturing internal leadership at an accelerated pace, which directly drives organizational growth. By actively supporting and encouraging employees' career development, a business can experience a 25% boost in both their growth rate and market value. This symbiotic relationship creates a win-win situation for both the employee and the company.

Embarking on this journey is relatively straightforward. Drawing on over 30 years of experience observing employee development, we have identified three key actions that have the most significant impact on accelerating professional careers: effective mentorship, having a well-defined career plan, and regularly monitoring progress and making necessary adjustments.

Good luck with your career endeavors or building your staff, and please don't hesitate to contact us with any questions.