5 Reasons Why Career Progression Is Key For Retention

When it comes to retaining talent, there are endless factors to consider. But outside of all these factors, employers can sometimes overlook the core factors that often matter most... one of those factors being career progression.

Think about it—when someone starts a career, they typically enter with a sense of ambition. They have goals, aspirations, and timelines they want to achieve in order to reach the position, salary, and influence they’re aiming for. If they feel like their career is stagnant where they are, it usually doesn’t take long for them to start looking elsewhere.

Why Employers Need To Adjust To Employee Ambitions More Than Before

It’s no secret that people are changing jobs more frequently than ever before.

In previous generations, it wasn’t uncommon for someone to stay with one company for decades, often in pursuit of stability. But today’s workforce has different expectations. They’re aware of what’s out there, they're being constantly headhunted, they have easy access to market salary data, and they can apply for jobs with just a click of a finger. Meaning, if they feel their career is stuck, it’s easier than ever to see if the grass is greener on the other side.

A 2020 study showed that employees aged 20-24 stay at a company an average of 1.3 years, while those aged 35-40 stay around 4.9 years. There are many reasons for this, but the study highlights one key point: employees are aware of the greater opportunities available when they job-hop.

As the study notes, “In order for someone to move around, they need enough options to find a better job.” (BBC)

This means a significant number of employees start thinking about moving on when they’re craving progression, rather than considering whether that growth could happen in their current role. And this is where you, as an employer, come in. It’s your job to create an environment where employees not only see but feel that there are great opportunities for progression within your company.

You might think that with the right work ethic and patience, employees should know that a promotion is likely in their future. But is that being communicated? Have you done enough to make them feel like they’re moving towards progression?

Or perhaps you’re offering modest annual pay increases. You might think that should be enough to keep people around—they’re getting stability, after all. But how does that structure compare to companies with strong performance management strategies that actively help employees work towards significant promotions?

So on that note, here are 5 points to consider when debating whether to improve the progression in your company.

Ambition Needs a Pathway

Most employees enter a job with goals. They’re ambitious, they want to climb the ladder, and they’re looking for a clear pathway to do so.

If your company isn’t providing a visible path for growth, those ambitions will quickly turn into frustration. And frustrated employees don’t stick around—they look for companies that will give them the opportunity to grow.

When you create clear, achievable pathways for progression, you’re not just meeting an employee's need—you’re showing them that their future matters to the company.

This turns ambition into loyalty.

Increased Engagement and Motivation

Career progression is one of the most effective ways to keep employees engaged. When people see that their hard work leads to growth, they’re more motivated to put in the effort.

Knowing that there’s a tangible reward for their dedication, whether it’s a promotion, a new title, or a raise, keeps employees focused and driven.

Without progression, motivation can quickly fade. Employees start to feel like they’re spinning their wheels, working hard but going nowhere. That’s when disengagement sets in, and with it, a higher risk of turnover.

Attracting Top Talent

The best talent wants to work for companies where they can grow. If your company has a reputation for promoting from within and offering clear career development opportunities, you’ll attract higher-calibre candidates.

On the flip side, if potential hires hear that there’s little room for advancement, they’re likely to look elsewhere. Career progression isn’t just about keeping your current employees—it’s also about attracting the next wave of talent that will drive your company forward.

Retention of Knowledge and Experience

When employees leave, they take valuable knowledge and experience with them.

If you’re not offering progression, you’re basically encouraging your best people to take that expertise to your competitors, leaving you with gaps that will take lots of time and money to fill.

By providing opportunities for growth, you retain those employees who have the skills and experience that are crucial to your business. They’re not just staying for a paycheck—they’re staying because they see a future with your company.

Stronger Company Culture

Career progression doesn’t just benefit the individual—it strengthens the overall company culture.

When employees see their peers being promoted, it sends a powerful message: hard work is recognised and rewarded here. This creates a culture of ambition, loyalty, and mutual respect.

Employees who feel supported in their career goals are more likely to invest in the success of the company. They’re more collaborative, more committed, and more likely to stay long-term, contributing to a positive and productive work environment.

- Written by Oliver Howson

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