The document discusses challenges with career advancement opportunities within organizations. It notes that 41% of employees feel they must change companies to advance, and 40% of high-potential employees feel the same. The document then outlines steps organizations can take to improve their career management programs, including defining a career strategy, building a foundation with a career framework and competency models, and providing development opportunities and visible career paths. Overall, it argues that better career management is needed to attract, engage, and retain top talent.

1. Stuck in neutral. That’s how many employees around the world would describe their career. In fact, according to the 2014
Global Workforce Study, 41% of employees say they must join another firm in order to advance. Even more troublesome, almost
the same percentage (40%) of employees who have been formally identified as high potentials by their organization say they
would need to leave their organization to advance their career. Overall, employees tell us career advancement opportunities
rank among the top reasons why they’d join or leave an organization.
Career Management
Making It Work for Employees and Employers

2. Career Management: Making It Work for Employees and Employers 2towerswatson.com
Rising talent mobility complicates this picture even
further. Globally, nearly half of employers (48%)
participating in the 2014 Talent Management and
Rewards Study say hiring activity has increased
compared with last year, and more than one-third
(35%) indicate that turnover is rising. At the same
time, nearly two in three respondents are experiencing
problems attracting top performers (65%) and high-
potential employees (64%), an increase from two
years ago. Additionally, more than half report difficulty
retaining high-potential employees (56%) and top
performers (54%).
In the face of these challenges, employers need to
understand what employees value if they are to attract
and retain the right talent. Our research shows that
employers do in fact agree with employees on the
critical importance of providing career advancement
opportunities to get and keep employees (Figure 1).
But this understanding is not translating into effective
career development and management programs. A
mere 46% of employees say their organization provides
useful career planning tools, and only 42% report that
their organization provides opportunities to advance.
Employers for their part recognize they are falling
short. Less than half (49%) report being effective at
providing traditional career advancement opportunities
to employees, while an even lower percentage (38%)
report being effective at providing career development
opportunities beyond traditional concepts. Moreover,
only 41% of employers agree their employees are
often able to achieve career advancement by moving
across organizational boundaries. And a disturbingly
low 35% say their employees understand how they can
influence their careers.
Organizations are clearly missing the mark when it
comes to career management — the process that
helps employees understand career opportunities and
chart a career path within their organization (Figure 2).
46% of employees
say their
organization
provides useful
career planning
tools.
42% report that
their organization provides
opportunities to advance.
say their employees understand how
they can influence their careers.
Employee view Employer view
Advancement in career is the 3rd
most cited reason they joined their
organization. Lack of career advancement
is the 2nd most cited reason to leave.
Advancement in career is the #1
reason employees join an organization.
Lack of career advancement is the 2nd
most cited reason they would leave.
Source: 2014 Global Workforce Study Source: 2014 Talent Management and Rewards Study
Figure 1. Career management is valued by both employees and employers, but many
organizations fall short in delivery
agree their employees are often able
to achieve career advancement.
Only
41%
Only
35%
Figure 2. What is career management?
Career management is a process to help employees understand career opportunities and chart
a career path within their organization.
Career management encompasses the strategy, tools, processes and technology that enable
talent development, agility and mobility.
Career
management
Overarching
career
management
strategy
Integrated
development
planning
process
Established
career
framework
Enabling
experiences
and
opportunities
Aligned
competency
framework
Visible
and viable
career path
alternatives
““Employers need to understand
what employees value if they
are to attract and retain the
right talent.”

3. Career Management: Making It Work for Employees and Employers 3towerswatson.com
While it might seem simple enough to organize jobs,
define competencies, provide career planning tools
and communicate opportunities, the reality is more
complicated. Our research reveals several key pain
points that employers face in developing and delivering
career management programs:
•• Career architecture and career paths are poorly
defined. Fewer than half of employers (48%) report
that their organizations have career architectures
and levels in place.
•• Managers are ill equipped to handle key aspects of
career management and development. Only 33% of
employers say managers are effective at conducting
career development discussions as part of the
performance management process.
•• Technology is not effectively leveraged for career
management. Less than half (45%) of employers
say their companies make effective use of
technology to deliver programs to help employees
advance their careers.
•• Most organizations don’t know if their career
management programs are working. A low 27%
of employers say their organizations monitor the
effectiveness of their career management programs.
In addition, we know from our experience that there
are other factors contributing to this challenge.
Information related to career management is often
communicated in a disjointed manner. In some
organizations, different parts of HR own different
elements of career management without clear
accountability or partnership. Finally, organizations
may lack the business buy-in for career management
programs, which can make career management the
sole domain of HR.
Given this situation, it’s critical for employers to step
back and think through the components of an effective
career management program.
Start by Defining Your Strategy
An overarching strategy is needed to anchor and guide
the development of a career management program.
This strategy should capture an organization’s high-
level perspective on career management, and reflect
its talent priorities and strategic business objectives.
Begin by defining the why and the how of your program
through:
•• An overall statement (why) of what the company
believes and wants to communicate about the value
and importance of career management. For example,
an organization pursuing a business strategy focused
on innovation might state that the goal of its career
management program is to provide employees with
the ongoing skill building and development needed
to enable breakthrough thinking and career success
while ensuring the talent pipeline to support the
company’s long-term growth.
•• A set of principles (how) that will guide the
direction and execution of career management
communications and tools. For example, one of
the guiding principles of the innovation-focused
organization cited above might include the importance
of building a culture of continuous learning and
professional development, which in turn leads to new
ways of addressing business challenges. Details on
the types of learning and professional development
opportunities that the organization invests in would
be showcased in the strategy.
A basic question to consider when developing a career
management strategy is who is responsible for the
career management process. According to our latest
research, almost half (48%) of employees report that
they have to take ownership of their own careers,
while 57% of employers indicate that employees
and managers should have joint ownership of the
career management process. An effective career
management strategy will help reduce employees’
feeling they are on their own when it comes to career
development and advancement opportunities.
48%of employees report
that they have to
take ownership of
their own careers.
57%of employers indicate
that employees and
managers should have
joint ownership of the
career management process.
““It’s critical for employers to step back and think
through the components of an effective career
management program.”

4. Career Management: Making It Work for Employees and Employers 4towerswatson.com
Building the Foundation
With its career management strategy in place, an
organization can begin to build the foundation of its
program, which should include three elements: a
career framework, scaled competencies and enabling
experiences.
•• Career framework. An organization’s career
framework consists of a series of career bands,
which represent how jobs contribute to the
organization, and levels, which show the relative
contribution of a role within a career band (Figure 3).
The framework is supported by the job architecture
(e.g., how jobs are organized by titles, functions
and families) and job leveling (i.e., the process for
determining the relative ranking of jobs). Given that
only 40% of employers globally have defined job
architectures, and a mere 39% have defined job
levels and a career framework, there is room for
improvement here.
A globally consistent career framework across all
functions and business areas of an organization
serves as a foundation for organizing jobs and
clarifying career paths. Additionally, in many
organizations, such a framework becomes a
platform for describing overall work requirements
and responsibilities. It also makes it easier for
managers and supervisors to clearly communicate
career opportunities and have more effective career
development discussions. Many organizations have
some type of career framework in place, often to
assign compensation grades and ranges. Being
transparent about the career framework can help
employees shift out of neutral and into first gear.
•• Scaled competencies and technical skills. While
the career framework describes what employees
at various levels do, competencies define the
how — the knowledge, skills and abilities required
for successful performance. We can think of
competencies as behavioral concepts that may
apply across job families, for example, analytical
thinking, creativity and project management. On the
other hand, technical skills refer to more discrete
knowledge areas that are relevant across fewer
job families, for example, application development,
database administration and requirement analysis.
Figure 3. Foundational element: Career framework*
The career framework sets the stage for clearly communicating careers and discussing career opportunities and development.
*Actual alignment of career bands and levels will vary based on types of jobs within each organization.
IndividualcontributorManagement
Production
W1 W2 W3 W4
Entry Intermediate Senior Lead
Business support
U1 U2 U3 U4
Entry Intermediate Senior Lead
Technical support
T1 T2 T3 T4
Entry Intermediate Senior Lead
Professional
P1 P2 P3 P4 P5 P6
Entry Intermediate Career Specialist Master Expert
Management
M1 M2 M3 M4 M5
Supervisor Manager Senior Group Senior group
manager manager manager
Executive
E1 E2 E3 CEO
Vice Senior vice Executive
president president vice president
Career band
Represents broadly
how jobs contribute
to the organization
Career level
Represents the relative
contribution of the role
within the career band
““A globally consistent career framework across all
functions and business areas of an organization
serves as a foundation for organizing jobs and
clarifying career paths.”

5. Career Management: Making It Work for Employees and Employers 5towerswatson.com
The scaling of competencies enables organizations
to show the changes in expected competencies and
associated behaviors at different career levels. For
instance, creativity at a lower level might involve
demonstrating a willingness to try new processes
and approaches. At a senior level, creativity might
involve creating opportunities for employees to
generate new ideas, products, methods or solutions
that enhance organizational effectiveness.
According to the findings of our 2014 Talent
Management and Rewards Study, 55% of
organizations have already implemented an
organization-wide competency model applicable
to all employees. Yet only 42% of all companies
participating in the study have implemented scaled
competencies, suggesting that many companies have
yet to realize the full benefits of using competencies.
•• Enabling experiences and opportunities. These
are the experiences and opportunities that help
prepare an employee to move from one career
level to the next. While enabling experiences and
opportunities help guide career development,
they are not intended to be used as a checklist
for promotion. For example, Figure 4 illustrates
the enabling experiences and opportunities for
an IT developer, from successfully managing new
projects with limited supervision, to participating
in the development of technical standards for
their organization. With increasing frequency,
organizations are supplementing the career
framework and scaled competencies with enabling
experiences and opportunities.
Visualizing the Possibilities
Once the foundational components are set, it’s time
to help employees understand what it all means for
them. Career path visuals will help bring your career
management program to life by illustrating potential
movements between roles (Figure 5, page 6). A career
path is unique to an individual and will vary depending
on business needs, career aspirations and capabilities.
There are typically two types of movement that career
paths are used to illustrate:
•• Progression — Movement to a role at the same/
equivalent level or a lower career level as the current
role; offers an employee breadth of experience
•• Promotion — Movement to a job at a higher career
level than the current role; requires demonstration of
increased competence and additional responsibilities
It’s important to note that the intent of a career path is
to provide a sense of what’s possible — not to chart
every potential course — and to remind employees
of what the organization values. These illustrations
serve as a very effective tool to help differentiate the
organization and illuminate the career management
strategy. Our research shows that only 43% of
companies have defined vertical career paths, and a
mere 27% have defined lateral career paths, which
could help explain why so many employees feel they
are on their own when it comes to career development.
Figure 4. Foundational element: Enabling experiences
Sample template for defining enabling experience opportunities
Question:
What are the enabling experiences to prepare an employee to move through the job family (i.e., from level to level)?
IT developer
I
1
IT developer
II
2
IT developer
III
3
IT developer
IV
4
IT developer
V
5
IT developer
VI
6
P1 P2 P3 P4 P5 P6
•• Demonstrate
success in
defining,
delivering and
implementing a
strategy
•• Participate in
the development
of company
standards or
capabilities
•• Speak at an
internal or
external industry
conference or
event
•• Serve in a
leadership role
for a cross-
functional
project or
activity
•• Participate
in special
assignments
to gain deeper
knowledge/
expertise in a
particular area
•• Successfully
manage a
few projects
independently,
under limited
supervision
•• Present technical
analysis/results
to a nontechnical
audience
•• Regularly
introduce
new ideas
and process
innovations to
own team
•• Coordinate
and assist
department
efforts

6. Career Management: Making It Work for Employees and Employers 6towerswatson.com
Integrated Development Planning
For a career management program to be effective,
it must be properly supported and linked to other
strategic HR initiatives and existing HR programs.
•• Tools and technology. Two of the most valuable career
management support tools include an employee
reference guide and an employee workbook. The
reference guide describes the career management
process and program fundamentals, while the
workbook enables employees to assess their
strengths and weaknesses, and to develop short- and
long-term career plans with their managers.
A technology platform that provides access to
current career information and tools, thereby
enabling employees to take an active part in
managing their careers, can facilitate effective
career management. Given that such a platform
typically captures performance management
information — e.g., performance objectives, reviews,
competency assessments — as well as career
management data, it shines a spotlight on the
aspirations and capabilities of the company’s talent
pool. It is necessary that this type of platform link to
an organization’s HR information system to ensure
seamless access to critical HR data including career
management information.
•• Manager training and support. Unfortunately, less
than half (47%) of organizations say they provide
their managers with career management training
and tools in the form of talking points or discussion
guides. This could help explain why only 41% of
employees rate their manager as effective in holding
career development discussions. It is important for
organizations to ensure that managers are trained to
have effective career conversations with employees.
Regardless of whether these conversations are
formally set at certain intervals or occur informally
at any point in the year, managers need to be
equipped with information on the organization’s
career management strategy and tools. This will
prepare them to ask the right questions as they
guide employees through the process of developing
actionable career plans.
Figure 5. Sample career path
Database
Database
Analyst I
Database
analyst and
developer II
Senior
database
analyst and
developer
Lead
Database
Project
Manager
Enterprise
database
architect
Information
security
Information
security
specialist I
Information
security
specialist II
Senior
information
security
specialist
Information
security
manager
Senior
Director,
Data and
Security
Systems
engineer
Systems
engineer I
Systems
engineer II
Senior
systems
engineer
Systems
engineering
project
manager
Systems
engineering
director
Senior
Director, IT
Engineering
Director,
Information
Technology
Systems
support
IT systems
support I
IT systems
support ii
Senior IT
systems
support
IT systems
support
manager
IT systems
support
director
Software
engineer
Software
Engineer I
Software
engineer II
Senior
software
engineer
Software
engineering
project
manager Software
engineering
director
Software
engineering
manager
Professional Illustrative
alignmentP1 P2 P3 P4 P5 P6
Management
M1 M2 M3 M4 M5
Gain foundational and
advanced experience
in database analytics
and development
Start in a
P1 job —
entry into
job family
Make a move
to gain people
management
experience
Identified as a destination role
due to the high degree of impact
this role has on the organization.
This is the top individual
contributor in the IT function,
with responsibility for designing
major components of the IT
infrastructure. This role requires
a high level of understanding
of databases, security and IT
systems. Individuals in this role
must manage large projects and
project teams.
47%of organizations say
they provide their
managers with career
management training
and tools in the form
of talking points or
discussion guides.
Move into systems
engineer to gain
broader organizational
IT knowledge
Move to more senior
role with continued
focus on gaining
technical knowledge
Gain experience
in IT security

7. Career Management: Making It Work for Employees and Employers 7towerswatson.com
•• Structured mentoring. Even a carefully planned
career management program may not sufficiently
prepare employees for all the challenges that come
with increased responsibility. For this reason, a
growing number of organizations are implementing
structured mentoring programs. The goal of
structured mentoring is to identify the deep and
often undocumented knowledge that senior people
have acquired over several decades, and transfer
that knowledge to those with less experience. This
reduces the risk of knowledge loss when senior
employees leave or retire. At the same time, it
provides an opportunity for employees to accelerate
the learning process, and reduce the amount of trial
and error they often face in new positions. Overall,
a structured mentoring program not only enhances
career development, but strategically fosters a culture
of rapid learning and growth needed to compete in a
complex, fast-changing business environment.
•• Linking and relating to other programs. In addition
to providing information and tools to employees
and equipping managers to have the right career
conversations, it is critical for an organization to
carefully link a career management program to
existing programs. Start by considering the following
questions:
•• How does your career management strategy
enhance or support your employment deal?
•• How does your career management program
support succession planning?
•• Have you clearly articulated how your career
management program differs from and/or
integrates with existing performance management
and development planning programs?
•• Does your career management program support
workforce planning, given the projected loss of
knowledge due to employee exits, and projected
knowledge requirements for sustaining and
growing the business?
•• Are mentoring roles and responsibilities integrated
into the expectations at various career levels to
enhance employee development?
If these linkages and distinctions are not made clear,
an organization risks having its career management
program be not well received and potentially regarded
negatively (for example, as a performance management
mechanism for determining who will lose their job in
a layoff).
Change Management and
Communication
A thoughtfully planned and executed change
management and communication process will help
sustain your career management program over the
long term. As with any program, it is essential to
secure ongoing support and sponsorship from senior
executives and business leaders.
In addition, organizations should reach out to
employees early in the process, even as the program
is being designed, to help them understand the value
of the program. Be sure to engage key influencers,
including skeptics or those with dissenting views, and
solicit their input as a way to give them “skin in the
game.” To provide employees a sense of ownership,
consider including them as subject matter experts in
helping design different program components such as
competencies and skills required for different jobs.
Employees can also offer feedback via focus groups
or pilot programs prior to program launch. Finally, it is
important to move beyond just tools and materials,
and create career development opportunities such as
mentoring programs or women’s forums to support an
employee’s growth.
Program monitoring is an essential part of the change
process. It is important to measure the effectiveness of
change or rollout activities (e.g., through surveys) and
make required course corrections. Organizations can
also monitor the effectiveness of career management
programs overall (e.g., through engagement surveys and
movement reports).
Getting Started
Before starting a career management program, it can
be helpful to do an inventory of career management
components (e.g., job functions and families,
competencies and career paths) that may already be in
place and determine the visibility these elements have
within your organization. It is not unusual to uncover
stand-alone career management components that are
not linked together in a meaningful way.
Most often, organizations start developing a career
management program within a specific area of the
organization (e.g., within a function such as sales).
Once a career management program is launched
in one part of an organization, it often generates
excitement and buzz so that other areas are shortly
asking for their turn as well.
““It is essential to secure ongoing support and sponsorship from senior
executives and business leaders.”

8. Copyright © 2014 Towers Watson. All rights reserved.
TW-NA-2014-38807
towerswatson.com
About Towers Watson
Towers Watson is a leading global professional services
company that helps organizations improve performance
through effective people, risk and financial management.
With more than 14,000 associates around the world,
we offer consulting, technology and solutions in the
areas of benefits, talent management, rewards, and
risk and capital management.
/company/towerswatson @towerswatson /towerswatson
There are various circumstances that provide
organizations with an impetus for starting a career
management program. In some cases, employers use
a career management program to help address talent
pain points (i.e., areas with current or projected talent
shortages) or to help valuable employees update their
skills in response to a changing work environment.
In other cases, an organization may decide to move
ahead with a career management initiative in response
to employee requests.
It is also not uncommon for an organization to focus
on career management after having gone through
a process of segmentation and differentiation.
Using insights from a workforce segmentation, an
organization can develop career programs tailored
to different employee groups, for example, by
stretching programs with increasingly complex projects
for employees in pivotal roles and high-potential
employees who are critical to business success.
A Win-Win Proposition
Finally, it is important to recognize that career
management is a key component of an organization’s
total rewards portfolio. An effectively designed and
implemented career management program delivers
benefits to both employees and employers (Figure 6).
Employees will have the tools and resources to chart
career paths and own their careers. And employers will
see a return in the form of a deeper bench of future
leaders, a more engaged workforce and an enhanced
employment deal, enabling them to attract and retain
top talent.
Employee view Employer view
Career management is the system
that enables employees to own
their careers.
Career management generates an
ROI in employee development.
Figure 6. Career management is important to both the employee and the employer
Career management provides:
•• Clarification of the organization’s
career management philosophy:
•• What types of skills are valued?
•• What are the roles of the
employee and manager in career
conversations?
•• Access to information on career
opportunities
•• User-friendly tools and resources to
chart career paths and develop a
career plan
•• Resources to enhance skill sets
and think about meaningful work
experiences
Career management provides:
•• Career paths that fill a robust talent
pipeline to meet business demands
•• Deeper bench of future leaders who
have had the requisite experiences to
fill key roles in the succession plan
•• Engaged employees meeting personal
career aspirations and making a greater
contribution to business results
•• An enhanced value proposition that
attracts and retains top talent
•• Reduced turnover costs in critical
positions and levels
•• Diminished search firm and training
fees