Connecting the Dots: Driving Engagement through Career Development
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Transcript of Connecting the Dots: Driving Engagement through Career Development
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In partnership with:
Connecting the Dots:Comprehensive Career Development
as a Catalyst for Employee Engagement
2
011HCI
Research
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Connecting the Dots: Comprehensive Career Development as a Catalyst for Employee Engagement
iiiCopyright 2011 Human Capital Institute. All rights reserved. iii
Table of Contents
Executive Summary ................................................................................................. 1
About this Research ................................................................................................ 3
Denition of Key Terms .................................................................................................................3
Introduction............................................................................................................. 4
Current Talent Environment .................................................................................... 5
Conventional Wisdom: Engagement & Organizational Impact .................................... 6
Examining Engagement Through a Fresh Lens: TPOs & PPOs .............................. 7
Drivers of Employee Engagement ......................................................................... 9
Key Survey Findings: Differentiating TPOs from PPOs ........................................ 12
Assessing Employee Engagement ..............................................................................................12
Dening Career Development ....................................................................................................13
Determining Roles & Responsibilities Related to Ownership ....................................................15
Structuring Career Development Strategies and Programs ......................................................17Leveraging Multi-Directional Career Movement ........................................................................20
Key Barriers .......................................................................................................... 25
Conclusion ............................................................................................................. 26
Appendix A: About the Research Partners .......................................................... 28
About the Authors ......................................................................................................................29
Appendix B: Respondent Demographics ............................................................. 30
Appendix C: Works Cited ..................................................................................... 32
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1Copyright 2011 Human Capital Institute. All rights reserved.
Executive Summary
The Human Capital Institute (HCI) and Lee Hecht Harrison (LHH) partnered to develop an
original research report examining the relationship between career development strategies and
employee engagement in the current economic environment and talent landscape.
This research builds on the body o work centered on the impact that employee engagement
can have on talent retention, organizational productivity and overall perormance. Specifcally,this report uncovers true levers that aect employee engagement in the modern organization
namely career development and planning.
Todays organizations look dierent than they did fve years ago traditional hierarchies dont
exist as they once did, and frms have gone through a attening process in an eort to contain
costs and streamline processes. This has had a dramatic eect on the way that todays worker
relates to his/her organization, understands his/her role in that organization, and plans his/her
career within the organization. In addition, with signs o economic recovery on the immediate
horizon, organizations are becoming acutely aware that their top talent is beginning to look
elsewhere or career opportunities that will satisy their needs or career growth, development
and advancement. Employment opportunities that simply did not exist only a ew short years ago
are becoming increasingly available. Organizations that are committed to talent retention must
consider the risk that this economic shit poses, and adapt specifc human capital strategies that
will have the greatest impact on engagement and, eventually, retention.
This report describes the important impact that these economic changes have had on the talent
landscape and provides recommendations or organizations to implement in order to enhance
career development and thereore, ultimately increase employee engagement and retention.
Connecting the Dots:Comprehensive Career Developmentas a Catalyst for Employee Engagement
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HCI Research
2 Copyright 2011 Human Capital Institute. All rights reserved.
A 36-item survey exploring the post-recession talent landscape, employee
engagement drivers, and career development programs was developed and
distributed to more than 10,000 HCI members to produce the oundational
knowledge or this research. More than 440 responses were received rom
organizations around the world and the data reveals a unique split between
types o organizations that have engaged employees and satisactory retention
rates (Top Performing Organizations TPOs) versus those that do not (Poor
Performing Organizations PPOs).
Key research fndings uncovered the distinct dierence between the way that
these two types o organizations handle and manage certain elements o their
human capital initiatives and programs, namely the way they:
Assess employee engagement
Defne career development
Determine roles and responsibilities related to ownership o career
development
Structure the career development strategy
Leverage multi-directional career movement (versus strictly vertical
movement) as a core career development strategy
The data also revealed real challenges aced by organizations to adopt
comprehensive, best-practice career development programs at their organizations.
This report presents actionable recommendations or overcoming these obstacles
by incorporating some o the strongest dierentiators that TPOs embody.
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Connecting the Dots: Comprehensive Career Development as a Catalyst for Employee Engagement
3Copyright 2011 Human Capital Institute. All rights reserved.
About This ResearchThe ollowing research report was developed in partnership between the
Human Capital Institute (HCI) and Lee Hecht Harrison (LHH) between May
and June o 2011. A survey o 36 items was distributed to approximately
10,000 HCI members. Four hundred and orty-six surveys were received.
The results o the survey orm the basis o this research and are summarized
in this paper. In addition, several in-depth interviews were conducted with
talent development and employee engagement thought leaders rom top
organizations. To supplement the primary research methods described
above, HCI researchers also reviewed relevant inormation rom a variety o
secondary sources, including white papers, articles, books, interviews and
case studies. Many o these are cited in the report and all are reerenced in
HCIs Talent Development & Leadership Practice Areas, to which interested
readers are encouraged to visit or additional reading and online events.
Denition of Key Terms
Employee Engagement
The extent to which people are satisfed with their work; have a positive
attitude towards their employer; are committed to the organizations success;
and eel valued or their work.
Career Development
The organization has a defned process to establish and manage long-termcareer plans or all employees that align employee strengths and interests
with career goals and opportunities within the organization. As part o this
process the organization provides skills development, coaching and mentoring
to ensure employee career growth and goals are met. Career development is
employee-driven, manager enabled and supported by the organization and its
guiding talent management strategy.
Top Performing Organizations (TPOs)
For this research, Top Performing Organizations (TPOs) are defned as those
respondent organizations that strongly agree or agree that their employees
are engaged and that their business leaders are satisfed or somewhat satisfed
with their retention rate.
Poor Performing Organizations (PPOs)
For this research, Poor Performing Organizations (PPOs) are defned as
those respondent organizations that strongly disagree or disagree that their
employees are engaged and that their business leaders are not satisfed with
their retention rate.
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HCI Research
4 Copyright 2011 Human Capital Institute. All rights reserved.
IntroductionFor years, organizations have been concerned with employee engagement
and retention, specifcally as it relates to their top-tier talent. In response,
human capital practitioners and business leaders have designed a whole host
o engagement and retention strategies, processes, and programs in an eort
to meet the needs o their organizations. Typical initiatives include recognition
and reward programs, exible work arrangements and work-lie balance
initiatives, enhanced benefts and compensation structures, and most recently,
career development programs.
The topic o employee engagement has received increased interest in recent
years due to the Great Recession that began in late 2007. During that
tumultuous time period, dramatic changes were made within organizations in
order to reduce the workorce; streamline workows; identiy new efciencies;contain costs related to compensation, benefts and training programs; and
atten the layers o management. In other words, those employees that did
remain at their organizations, and weathered the storm, were expected to do
more with less, oten resulting in lower employee morale, motivation, and,
ultimately, engagement.
Today, in this post-recession environment, organizations are still struggling
with employee engagement, only now they have the added risk o losing
their key talent. While beore, the core challenge related to the workorce and
engagement centered on morale, motivation, productivity, and perormance
todays risks associated with engagement are even more acute, and could
likely lead to key talent departures. With signs o economic recovery on the
immediate horizon, employees are more aggressively looking or new career
opportunities outside o their organizations that will satisy their needs or
better work-lie balance, larger compensation packages, and more compelling
growth, development, and advancement opportunities. Employment
opportunities that simply did not exist only a ew short years ago are now
becoming increasingly abundant.
Organizations that are committed to talent retention must consider the risk
that this economic shit poses, and adapt specifc human capital strategiesthat will have the greatest impact on engagement and, eventually, retention.
Given the ragile state o the current economy, organizations are still ocused
on impacting employee engagement and retention by employing initiatives,
tactics, and strategies that are cost-eective.
The Human Capital Institute (HCI) and Lee Hecht Harrison (LHH) partnered to
develop the ollowing research to examine the state o employee engagement
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Connecting the Dots: Comprehensive Career Development as a Catalyst for Employee Engagement
5Copyright 2011 Human Capital Institute. All rights reserved.
and retention at this critical economic inexion point. Specifcally, this report
sought to investigate the true drivers o employee engagement, and zeroed in
on Career Development as a low-cost, eective driver that has the potential
to really move the needle. The research revealed a unique split between
two distinct types o respondent organizations those that have engaged
employees and satisactory retention rates (Top Performing Organizations
TPOs), and those that do not (Poor Performing Organizations PPOs). Finally,
the research provides a set o actionable recommendations or organizations
to consider in order to transorm their organization into a TPO, one that has
engaged employees and satisactory retention rates.
Current Talent Environment
The economic recession is coming to a close, and or many, that means the
career moves that were on the backburner just a ew short years ago have
again taken center stage. Recent research has shown that key employees are
currently eyeing new positions, primarily at competitive corporations, and our
own research has bolstered this fnding.
More than hal o this studys respondents (52%) stated that their organization
reduced the size o their workorce within the past two years due to the
recession, and those downsizing eorts did not come without cost. Among
many organizations, existing employees have been shouldered with extra
duties, and or many, there have not been any adjustments in pay or benefts.
As the tide begins to turn toward a recovering labor market, more employees
are quitting their current positions in lieu o bigger and brighter positions now
available to them. A key indicator used to gauge opportunities within the labor
market are the number of people discharged (layos and terminations) versus
those who quit their job for other opportunities. Prior to the recession, the
number o employees leaving their positions voluntarily consistently exceeded
the number o employees discharged. During the recession however, this
relationship was reversed as layos and discharges outnumbered quits. This
recessionary period was characterized by many people who chose to remain
in their current positions, hesitant to explore other opportunities because othe weak economy and poor job market growth. But, the job market appears
to be changing in 2011. At the end o 2010, the number oemployee quits
exceeded the number o employees discharged and the gap continues to
grow. This empirical evidence indicates that the labor market is entering a
period o increased workorce transitions, and such transitions are saddled with
more employees choosing to explore other career opportunities i they are not
satisfed with their current job or its opportunities. 1
1 Bureau o Labor Statistics, JobOpenings and Labor TurnoverSurvey Highlights April 2011 June7, 2011
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6 Copyright 2011 Human Capital Institute. All rights reserved.
HCI Research
Today, employees who remained with their organizations during the
recession are now preparing to make the career moves. Indeed, nearly 3 in
4 (73%) o our survey respondents agreed that there are more opportunities
now or their employees to fnd work outside their organization, compared
to one year ago.
Jack Katzanek, a thought leader in this space, observed in 2010, As the
economy starts to pick up some energy, workers who have not had any new job
opportunities or two years or longer might now be seeing light at the end o a
long tunnel. But what seems encouraging to employees could cause a dierent
kind o headache to their bosses. I a resh crop o job prospects does come
along, it could signal a round o departures by critical workers. Employees who
were not laid o because o the recession were asked to do much more work
with little or no fnancial reward.
2
As organizations are aced with this new talent environment, they must
ask themselves what steps can be taken to minimize the local eect o this
trend. And, as the relationship between employee engagement scores and
organizational perormance continues to grow, what can companies do to
ensure that their employees are engaged in their work and the organization?
Conventional Wisdom: Employee Engagement &Organizational Impact
Employee engagement is a topic that has received a signifcant amount o
attention in the last ew years and most people in a business or human capital
context have heard the term and understand it on a undamental level. In
general, engagement is about workers consistently distributing discretionary
eort to help their organization achieve its production and perormance goals.
2 Katzanek, Jack Companiesmay lose top talent as economyrecovers December 25, 2010,Enterprise Media
Figure 1:
To what extent do you agreeor disagree: There are moreopportunities or employees
to fnd work outside yourorganization compared to
one year ago?
3%
6%
18%
48%
25%
73%
0% 20% 40% 60% 80%
Not sure
Strongly disagree
Disagree
Agree
Strongly agree
NET AGREE
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HCI Research
8 Copyright 2011 Human Capital Institute. All rights reserved.
To better understand our respondents and their organizations, we asked
them a number o baseline questions, the frst o which was whether they elt
employees in their organization were engaged. Nearly 3 in 4 (71%) respondents
agreedthat their employees were engaged; however, only 1 in 10 strongly
agreedwith this assessment.
The next baseline question ocused on retention rates, asking respondents
whether their business leaders were satisfed with the current employee
retention rate at their organization. More than a third o respondents (36%)
stated that their business leaders were satisedwith the current employee
retention rate in their organization, and an additional 35% stated they were
somewhat satised.
As the ollowing chart illustrates, there is a compelling connection between
these key metrics. Organizations with engaged employees are more satised
with their employee retention rate and those who strongly agreed their
employees were engaged, had a retention satisfaction rate of 92%. The
retention satisaction rate dropped to 40% among those who disagreed that
their employees were engaged. Thus, the relationship between employee
engagement and retention rates is a positive correlation as one increases,
the other also improves.
Figure 2: Based on thedefnition o employee
engagement:
The extent to which peopleare satisfed with their work;
have a positive attitudetowards their employer;
are committed to the
organizations success; andeel valued or their work.
How much do you agree ordisagree: Employees in myorganization are engaged.
4%
4%
21%
60%
11%
71%
0% 20% 40% 60% 80%
Not sure
Strongly disagree
Disagree
Agree
Strongly agree
NET AGREE
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Connecting the Dots: Comprehensive Career Development as a Catalyst for Employee Engagement
9Copyright 2011 Human Capital Institute. All rights reserved.
Are Employees Engaged?
Satisfaction with Retention Rate
Satisfed SomewhatSatisfed
NETSATISFIED
Strongly Agree 67% 25% 92%
Agree 39% 41% 80%
Disagree/Strongly Disagree 12% 28% 40%
Given this important correlation, we segmented our respondents into two
categories in order to urther isolate the key fndings o this survey and
examine engagement through a resh lens. In the remaining portion o
the report, we will reer to Top Performing Organizations (TPOs) those
respondents who strongly agreed or agreed that their employees are engaged
AND that their business leaders are satised or somewhat satised with their
current organizational retention rate; and Poor Performing Organizations
(PPOs) those respondents who disagreed that their employees are engaged
and that their business leaders are not satised with their current organizational
retention rate.
In this analysis, 58% o the survey respondents are classifed as TPOs and 42%
are PPOs.
Drivers of Employee Engagement
Typically, when we think about employee engagement and the drivers
associated with it, we consider the traditional elements o compensation,
benefts, and perks to be the most meaningul levers o engagement or
employees. Not only does our research demonstrate that this is untrue, but it is
increasingly difcult or organizations today to maintain these types o perks
given the ragile economic environment that we now live in, even in the post-
recession economy. Taking these two actors together, we aimed to identiy thetrue levers that impact employee engagement the most, especially through
the lens o TPOs and PPOs to gain valuable insights about best practices and
dierentiators rom our respondent organizations.
This inding implies that engagement may be best created through the
use o holistic strategies that interconnect an organizations talent with
accentuating supportive interpersonal relationships, as well as working
Poor Performing
Organizations (PPOs)
Respondents who disagreed
that their employees are
engaged and that their
business leaders are not
satised with their current
organizational retention rate.
Top Performing
Organizations (TPOs)
Respondents who stronglyagreed or agreed that their
employees are engaged AND
that their business leaders
are satised or somewhat
satised with their current
organizational retention rate.
Figure 3: Data synthesis oorganizations with engagedemployees and satisaction
level o employee retentionrates.
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HCI Research
10 Copyright 2011 Human Capital Institute. All rights reserved.
to oster a connection between employees and the strategic goals o the
organization. Further demonstrating that TPOs have a comprehensive
understanding o what drives employee engagement in their organization,
our research ound that they are better prepared to implement several o
these strategic oerings rather than relying on just one or two.
Furthermore, while the importance o ostering positive relationships to
impact engagement has been requently highlighted in past research
studies, the act that this is a signifcant dierentiating eature or TPOs in our
current study underscores the efcacy o this practice to impact employee
engagement and retention. One research study remarked, As organizations
battle to get the most rom their existing people in an environment
characterized by skill shortages, the role o human resource practices in
ostering employee engagement and commitment is paramount. 5
One o the respondents in our survey underscored this fnding when stating,
The organization has a responsibility to be a shepherd o organizational
talent and to create the conditions that help talent thrive. When talented
people eel they are valued and that the work they do has meaning, they
become passionate and engaged.
Figure 4: How eective arethe ollowing in regardsto impacting employee
engagement in yourorganization?
% Who RespondedEective
0% 20% 40% 60% 80% 100%
Top Performing Organizations (TPOs)
Poor Performing Organizations (PPOs)
20%
27%
21%
21%
33%
19%
34%
42%
38%
55%
39%
65%
Compensation/Pay/Benefits
Career Development
Training provided
Connecting work to the larger
organizational strategy
Relationship with
Manager/Supervisor
Coworker relationships/support
5 Chew, Janet and Girardi, AntoniaIs Career Management thePanacea to Retaining Vital Sta?2008. International Journal oManagement and MarketingResearch
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Connecting the Dots: Comprehensive Career Development as a Catalyst for Employee Engagement
11Copyright 2011 Human Capital Institute. All rights reserved.
As mentioned above and perhaps a bit surprisingly, our survey uncovered
that the least effective means or impacting employee engagement was
compensation, pay and benefts. While these benefts are certainly important
to an employee, it is the interpersonal relationships and ability to connect
work to the organizations strategy that are the most eective means or
impacting engagement.
Chris Grams, Partner and President o New Kind, elaborated on this fnding
in his statement that providing a belie in the work conducted is the most
eective means or impacting engagement. For me, cultural ools gold is
when an organization has really good benefts, a cool workplace, lots o perks
those things are great, but they only create the illusion o engagement.
Someone can always create an environment thats a little bit better and steal
people away. But cultural gold is when you create a purpose or a missionthat inspires people to do great work because they believe and because they
want to be a part o something amazing. My experience is that companies
with a mission worth believing in have one o the most powerul engagement
tools there is.
To develop unique and eective techniques or retaining current talent and
perhaps attracting outside talent, many frms are looking toward career
development as a method or impacting employee engagement and retention.
Throughout the thought leader interviews conducted or this report, a
common theme that emerged was the need or employees to understandwhat is available to them rom a career development perspective, because
anecdotally, this seemed to be a key driver o engagement. Our survey
fndings underscored this trend, and 25% o TPOs agreed that providing
career advancement opportunities is a signifcant method to increase
employee engagement.
In the ollowing sections o this report, we delve deeper into this element o
career development as a true driver o higher employee engagement.
Real employee engagement
It almost makes things
like your job title and rising
up the corporate ladder
not matter anymore. In my
world, we care a little less
about rising up the ladder,
and more about are you
making major contributions
to important things and
when you lead, are people
going to follow you? Its
about meaningful leadership
and meaningful work.
Chris Grams, Partner and
President, New Kind
We conducted an
Appreciative Inquiry
regarding what people
would change at Red Hat
and the answer was that
our employees want more
clarity around the career
opportunity discussion. As
a result, while we are not
promising a cookie cutter
development path, we arehelping employees see the
opportunities available as our
company grows.
DeLisa Alexander,
Chief People Ofcer,
Red Hat
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HCI Research
12 Copyright 2011 Human Capital Institute. All rights reserved.
Key Survey Findings: Differentiating TPOs from PPOs
Now that we have identifed TPOs, PPOs, and the core drivers o engagement,
it is important to understand how TPOs dier rom PPOs in key areas o boththe engagement process and the career development process in order to draw
some conclusions around next practices.
In the ollowing section o the report, we will examine what dierentiates TPOs
rom PPOs in our survey data. These areas include the way they:
Assess employee engagement
Defne career development
Determine roles and responsibilities related to ownership o career
development
Structure the career development program/strategy
Leverage multi-directional (i.e., lateral) career movement into overall
career development/advancement process
Assessing Employee Engagement
William Costellano o the Center or HR Strategy at Rutgers, pointed to the
pitalls associated with improperly defning and assessing engagement: I one
does not know what one is measuring, the action implications will be, at best,
vague and, at worst, a leap o aith. 6
Unlike PPOs, TPOs tend to use multiple methods to assess employee
engagement. These organizations are proactive in gathering inormation on
their employees levels o engagement by relying on several means to gather
inormation, including: turnover rates, in-house employee surveys, annual
perormance reviews, and organizational meetings and employee ocus
groups. Furthermore, they are more likely then PPOs to use more methods
that involve leaders regularly reaching out to their employees or coaching and
perormance discussions.
It is important to note that the multiple methods o assessment TPOs rely on
to get an accurate measurement o employee engagement are not necessarily
more costly than the measures taken by PPOs, but they are indeed more
comprehensive. By using every resource available to them, TPOs are able
to have more inormation and a more holistic perspective on the state o
employee morale, motivation, and engagement. The key to managing employee
engagement and subsequently deriving and developing appropriate strategies
or impacting engagement begins with eectively gathering this inormation.
6 Castellano, William G. ANew Framework o EmployeeEngagement 2009. RutgersCenter or Human ResourceStrategy
After we conducted an
employee engagement
survey in 2010, we
recognized that people
felt a bit frustrated. They
wanted to know, where
can I take my career now
that those traditional ladders
and positions have been
attened? through the
partnership that we launched
with LHH we developed a
response. Were trying to
put a little more structureto those discussions about
individual development and
job opportunities.
Margo Armstrong,
Assistant Vice President of
Talent Practices,
MassMutual Financial Group
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Connecting the Dots: Comprehensive Career Development as a Catalyst for Employee Engagement
13Copyright 2011 Human Capital Institute. All rights reserved.
Dening Career Development
Another key dierentiator between TPOs and PPOs is the way in which they have
defned (i at all) career development at their organizations. The importance
o consistently and clearly defning human capital strategies at an organization
is an element that is paramount to these strategies success. Without a true
understanding o what the organization means by a given term or program,
employees are less likely to be able to take ull advantage o these programs.
Our survey fndings demonstrate another key distinction between TPOs
and PPOs as it related to the defnition and communication around career
development programs and strategies at respondent organizations. Less than
hal o the PPOs have notdefned Career Management and/or Development at
their organization, which is considerably higher than the 1 in 4 TPOs who have
defned this at their organization.
Not only do organizations dier dramatically on the topic owhether they
have formally dened career developmentor their employees, but they also
vary in terms ohow they refer to this concept. This fnding is noteworthy
because it suggests that the topic o career development is not uniormly
understood or reerred to across the human capital feld, and by extension, at
todays organizations.
Figure 5: How do you assesswhether your employees areengaged or not?
0% 20% 40% 60% 80% 100%
Top Performing Organizations (TPOs)
Poor Performing Organizations (PPOs)
51%
45%
35%
52%
38%
53%
68%
73%
65%
75%
Have a gut feel regarding howemployees feel about our organization
Review of annualperformance appraisals
Conduct organizational Town Hallmeetings and/or employee
focus groups
Employee survey results
Review Turnover/Retention rates
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HCI Research
14 Copyright 2011 Human Capital Institute. All rights reserved.
This speaks to the somewhat nebulous nature o this particular area o talent
management.
Indicative o this, our survey revealed that the organizations polled are using
no ewer than 36 different terms to reer to career path strategies in their
organization and a quarter were unsure as to what term their organization
was using, i any.
Career Developmentis the term used by slightly more than hal o the
respondents.
Figure 6: Have you defnedCareer Management and/
or Development at your
organization?
Figure 7: Organizationsoten times have dierent
names or employee careerpaths. How are these
strategies and/or planscommonly identifed in your
organization?
0% 20% 40% 60% 80% 100%
Top Performing Organizations (TPOs)
Poor Performing Organizations (PPOs)
9%
9%
65%
45%
26%
46%
Not sure
No
Yes
0% 10% 20% 30% 40% 50% 60%
52%
7%
11%
1%
24%
5%
Career Development
Career Management
Other: 34 different
names mentioned
In the process of developing
Not sure
NA/Not defined/No career paths/None
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Connecting the Dots: Comprehensive Career Development as a Catalyst for Employee Engagement
15Copyright 2011 Human Capital Institute. All rights reserved.
Now that weve established that TPOs assess employee engagement dierently
and more comprehensively, and that they more clearly and directly defne career
development or their employees, we can begin to see that these actors have
contributed to their TPO status. But what about the career development
programs themselves? How do the career development programs at TPOs dier
rom those at PPOs, and what elements do they incorporate?
TPOs assess employee strengths, weaknesses and career aspirations more
requently than PPOs, which is in alignment with their proactive approach to
employee engagement and the development o their employees careers.
Determining Roles & Responsibilities Related toOwnership
Another key element o career development programs is around determining
the roles and responsibilities associated with the ownership o these
programs and the work involved. As with all strategic human capital endeavors,
there is a key responsibility or a number o stakeholders in the organization:the employee him/hersel, the manager, and the organization as a whole.
According to our survey fndings, this was another key dierentiator between
TPOs and PPOs. A higher percentage o the TPOs indicated career development
was an activity and process among the employee, the manager and the
organization. We believe this to be a best practice, one in which an environment
of engagementis created rather than a compartmentalized process devoid o
Figure 8: How oten areassessments conducted withemployees to understand
their strengths, weaknessesand career aspirations?
Your career is all about
your journey its an
exploration of your talents,
your opportunities, and
your potential you own
your interests and your
values and you own your
career. Your manager is in a
place to support and guide
you along that journey
and be honest and realisticwith you, while you are in
the drivers seat.
Scott Cohen,
Vice President of Talent
Practices, MassMutual
Financial Group
0% 20% 40% 60% 80% 100%
Top Performing Organizations (TPOs)
Poor Performing Organizations (PPOs)
Other
Not sure
Not done/Rarely
As needed/Depends on manager
Annually or more often
5%
2%
2%
18%
12%
9%
1%
8%
82%
60%
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HCI Research
16 Copyright 2011 Human Capital Institute. All rights reserved.
interaction and consideration o organizational opportunities and needs. Again,
TPOs consistently demonstrate uency around the need or interconnectivity
and shared responsibility or career development. This relationship is vital in
order to oster a comprehensive strategy that prepares employees or the career
development opportunities available to them within the organization.
One survey respondent pointed to the positive impact an involved manager
can have on satisaction and retention. The best supervisors who present a
way or employees to develop themselves have seen the greatest retention
and satisaction scores among their employees. It defnitely makes a dierence
in the engagement o employees.
Much o the research in the past decade has revealed that there is a positive
correlation between organizational career development paths and individual
career growth, including a 2009 report rom the European Journal of Work
and Organizational Psychology. First, evidence is provided or the idea that
the career sel-management initiatives employees undertake to manage
their career within the organization cannot be considered as a substitute
or Organizational Career Management. Individuals taking responsibility or
managing their own careers also expect an active contribution rom their
employer. Both complement one another and they are positively related.7
Figure 9: In yourorganization, who has
the responsibility or
owns the managementand development o an
employees career?
0% 20% 40% 60% 80% 100%
Top Performing Organizations (TPOs)
Poor Performing Organizations (PPOs)
8%
2%
1%
1%
3%
3%
3%
10%
3%
27%
23%
20%
22%
35%
47%
Other
Not sure
The organization
The employees manager
The employee
Shared responsibility between
the employee, the manager
Shared responsibility betweenthe employee,the manager
and the organization
7 De Vos, Ans and Dewettinck,Koen. The proessional career onthe right track 2009. EuropeanJournal o Work and OrganizationalPsychology
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Connecting the Dots: Comprehensive Career Development as a Catalyst for Employee Engagement
17Copyright 2011 Human Capital Institute. All rights reserved.
Structuring the Career Development Strategy
But what about the programs and strategies themselves? How do TPOs
structure career development versus the way that PPOs do (i at all)?
When asked to describe their organizations approach to Career Management,
a signifcantly higher percentage o TPOs indicated that they had developed
general and/or individual plans and policies or employee career development/
advancement. This fnding once more illustrates the holistic perspective TPOs
take to career development.
In the same way that there must be shared ownership o career development
among the organization, manager, and employee, the creation o both individual
and general development and/or advancement plans must supplement the
other development activities organizations provide or their employees.
Figure 10: Which o theollowing best describes yourorganizations approach toCareer Management?
Top Performing Organizations (TPOs)
Poor Performing Organizations (PPOs)
2%
0%
45%
30%
31%
44%
10%
10%
16%
12%
20% 40% 60% 80% 100%
Not sure
Some combination of the above
We do not have specific plans
and policies for career
development/advancement
this is addressed on an as needed basis
We have developed individual plans
for specific employee career
development/ advancement
We have developed general plans
and policies for employee career
development/ advancement
0%
53%
70%NET Developed General
and/or Individual Plans
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HCI Research
18 Copyright 2011 Human Capital Institute. All rights reserved.
With 45% o the PPOs treating career management as an ad hoc practice,
these organizations will have to conront the outcomes o this defciency, which
will likely lead to lower levels o engagement, compromised retention levels,
and, ultimately, poor business perormance and proftability.
In combining the data o those organizations that have developed Career
Management (CM) plans and those who have defned Career Development
and/or Management (CDM), the results are quite groundbreaking. Of those
organizations that do both dene Career Development and/or Management
and have developed career management plans 89% stated their current
approach to career development and/or management is effective. By contrast,
those organizations that have developed plans and have NOT defned CDM
have a much lower eectiveness rate.
How Effective
is Approach
to Career
Development
and/or
Management
HaveDevelopedPlan(s) AND
Have DenedCDM
HaveDevelopedCM Plan(s)/Have NOT
Dened CDM
Have NOTDevelopedCM Plan(s)AND Have
Dened CDM
Have NOTDevelopedCM Plan(s)/Have NOT
Dened CDM
Eective 11% 5% 12% 2%
Somewhat
eective
78% 62% 25% 31%
NETEFFECTIVE
89% 67% 37% 33%
Ineective 11% 30% 63% 64%
Not sure 0% 3% 0% 3%
The data clearly show that the eectiveness o a career development and/or
management plan improves with each additional element incorporated (those
elements being a plan AND a defnition or career development and/or
management). Intuitively, this makes sense. The more ocused a plan is, and
the more its executors understand its goals, the more eective they are at
achieving them.
Those organizations that have not defned CDM prior to implementing a
CDM plan are not able to ully develop an appropriate strategy, nor are they
able to truly gauge whether or not its eective in achieving its goals. These
organizations ounder when compared to those with both a defnition and
plans. Furthermore, it is these organizations that have the most to gain rom
Figure 11: Data synthesiso how eective an
organizations approach tocareer Development and/
or Management (CDM)is, and whether or not anorganization has defned
CDM and/or developed aplan or it.
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Connecting the Dots: Comprehensive Career Development as a Catalyst for Employee Engagement
19Copyright 2011 Human Capital Institute. All rights reserved.
ully developing their career development defnitions and aligning them with
career development plans.
Organizations with unsuccessul Career Management strategies may notnecessarily be doing the wrong thing, but rather are just not doing enough,
and have not strategically aligned their organizational goals with the career
development plans that have been successul or other organizations. Inaction
seems to be a more common ault than counterproductive measures, even
amongst organizations that recognize the value o Career Management.
Ater uncovering many o the elements o career development plans, it is
important to distinguish what works holistically rom what does not. So,
what does an effective Career Management/Development plan look like or
organizations?
More than hal o the TPOs (57%) agreed that the comprehensive defnition
o Career Management provided in the survey represents their organizations
approach to Career Management/Development.
However, only 1 in 4 o the PPOs agreed with this defnition (see Figure 12).
And, while not all organizations have embraced this type o career
development planning, a majority elt this plan would have an impact on
employee engagement and retention, which, as defned above, has a direct
correlation to increased organizational perormance.
Figure 12: How much do youagree or disagree that thisdefnition represents yourorganizations approach toCareer Management and/or
Development:
The organization has adefned process to establishand manage long-term careerplans or all employees thatalign employee strengths andinterests with career goalsand opportunities within theorganization. As part o thisprocess the organizationprovides skills development,
coaching and mentoringto ensure employee careergrowth and goals are met.Career development isemployee-driven, managerenabled and supported by theorganization and its guidingtalent management strategy.
5%
3%
6%
44%
34%
22%
48%2%
9%
27%
0% 20% 40% 60% 80% 100%
Strongly disagree
Not sure
Disagree
Agree
Strongly Agree
25%
57%NET AGREE
Top Performing Organizations (TPOs)
Poor Performing Organizations (PPOs)
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20 Copyright 2011 Human Capital Institute. All rights reserved.
EmployeeEngagement
EmployeeRetention
Signicant impact 55% 51%
Moderate impact 35% 39%
No Impact 3% 3%
Not sure 7% 6%
Recent research rom Deloitte makes a similar conclusion. As employees
eye the exit signs ollowing a hard hitting recession, employers need to tailor
and target their talent strategies to satisy each employee group rom baby
boomers to Millennials. Firms can separate themselves rom their competitors
i they step up their talent programs now and refne their strategies to engage
workers and to ocus on specifc employee needs. 8
Leveraging Multi-Directional Career Movements
The fnal compelling distinctive element o TPOs versus PPOs relates
specifcally to career pathing or advancement. This is a particularly
complicated process to defne or todays modern organization mostly because
organizations are atter than they once were, and the traditional concept
o moving up the career ladder is no longer something that is necessarily
possible or even straightorward.
There is an emerging belie that eective career advancement is not limited
to a linear progression up the corporate ladder, and is rather defned by
a series o lateral, as well as upward, moves to impact an employees career
development. The increasing interconnectivity among organizational unctions
calls or a more interconnected method o movement within an organization
and within individual career advancement, and muti-directional career
movement oers this exibility.
The survey results indicate a prevalence o these multi-directional moves
is taking place more regularly among TPOs. A combination o lateral moves
and upward moves were mentioned more requently by TPOs as a means or
career advancement within their organization, as opposed to the standard
corporate ladder.
This trend was frst observed in 2001, and was described in the ollowing
excerpt, Organizational career development programs started being
developed in response to the changing nature o employees career
Figure 13: What impactwould this Career
Management and/or
Development plan have onemployee engagement and
employee retention?
8 Hollon, John Deloitte Survey:Two Out o Three Workers ActivelyLooking or New Job May 3, 2011.TLNT.com
Multi-Directional Career
Movements
Helping employees to
navigate through todays
environment of atter
organizations, reducedvertical opportunities and
shifting organizational
priorities requires similar
maneuvers to ultimately
move an employees career
forward.
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expectations and desires. The traditional psychological contract between
employers and employees in which lielong employment was guaranteed has
ended. Employers ocus more on helping employees build employability
so that they are able to make any number o career changes vertically or
laterally. The hierarchies that once made straight career paths simple are
disappearing, and organizations have become atter. 9
It is paramount or organizations to embrace and capitalize on this shit i they
aim to ensure that career development opportunities remain a key lever or
increasing employee engagement and satisaction.
By contrast, nearly 1 in 3 PPOs continue to utilize the corporate ladder to
describe career advancement in their organization. This ailure to change the
development strategies to align with current workorce trends will arguably
impede these organizations in the uture and likely result in lower employee
engagement and increased rates o turnover. As top talent continues to look
elsewhere or opportunities and organizations that allow them to move more
reely and advance their knowledge and skills more readily, organizations
would be wise to adapt.
Connecting the Dots: Comprehensive Career Development as a Catalyst for Employee Engagement
21Copyright 2011 Human Capital Institute. All rights reserved.
Figure 14: Which o theollowing best describescareer advancement within
your organization?
10%
8%
3%
4%
35%
17%
48%
77%
Other
Not sure
Career advancement in ourorganization is typified by moving
up the corporate ladder withinspecific department or functional silos
Career advancement in ourorganization features lateral
moves as well as upward movesto develop an employees career
20% 40% 60% 80% 100%0%
Top Performing Organizations (TPOs)
Poor Performing Organizations (PPOs)
With the trend moving
towards atter
organizations, it is critical to
provide managers with a way
to explore the different career
options, such as lateral moves
or enrichment activities,
within the company. An
employee whos aware
that the organization wants
them to grow there tends
to have increased levels of
engagement.
Kristen Leverone,Global Talent Development
Practice Leader,
LHH
9 Greene, Barbara Competitiveemployers make careerdevelopment programs a priorityJune, 2001. San Antonio BusinessJournal.
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22 Copyright 2011 Human Capital Institute. All rights reserved.
One survey respondent pointed to the need or this exible career movement
to attract and retain talent. Employees can come into the organization with
one set o ideas about career movement, and then based on experience and
additional maturity, fnd another area o ocus. In the coming talent crunch, those
organizations that provide multiple ways to advance and learn and contribute will
be the most successul organizations in attracting needed talent.
Organizations that are willing to move employees laterally and provide roles
or assignments in departments other than the ones they are currently in
are fnding the strategy to be a unique and eective method o engaging
their workorce, developing their competencies and careers, and ultimately,
retaining them longer than those who maintain the traditional, unidirectional
corporate ladder approach.
Additionally, it can be advantageous or the managers and leaders to take
an active role in guiding employees through potentially complex career
trajectories as the employee may not be aware o opportunities that exist and
how their talents and passions will best meet the needs o the organization.
Furthermore, lateral movements can serve as an alternative to upwards
promotions, which have become difcult to support due to current economic
conditions. Hewitt Associates reiterated this point in their recent study when
they stated, As companies report limited career opportunities or upward
As employees grow and
develop, their interest might
evolve in directions other
than vertical lanes. We
encourage employees to
pursue their passion, so that
might take them in a non-
linear direction.
Survey Respondent
Figure 15: Based on thisdefnition:
The traditional corporateladder symbolizesupward promotion as theprimary means or careeradvancement within anorganization. The corporate
lattice symbolizes adierent method o careeradvancement. The latticerepresents the idea thatemployees can move inseveral directions within theorganization rather than
just upward. This movementprovides employees withthe opportunity to gainexperience in new areas othe organization and diversiy
their skill set and as a meansor developing their career.
How likely would yourorganization be to use thecareer lattice approach tocareer advancement within
your organization?
8%
9%
8%
13%
35%
8%
32%
44%
16%
28%
0% 20% 40% 60% 80% 100%
Not sure
Already use career lattice
Unlikely
Likely
Very Likely
48%71%
NET LIKELY
Top Performing Organizations (TPOs)
Poor Performing Organizations (PPOs)
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23Copyright 2011 Human Capital Institute. All rights reserved.
growth, other types o growth are increasingly considered as a basis or career
development or example, growth within an existing role and within the
unction are indicated at 75% and 76% o respondents, respectively.
When presented with the concept o multi-directional career advancement
nearly 3 in 4 TPOs (71%) are likely to use this approach to career advancement.
Among those likelyto use this approach, many mentioned that there are
limited vertical growth opportunities available in their organization. This
approach would be a method to provide movement within their organization,
when it may otherwise not be possible. Many also cited the benefts oemployees gaining experience and broadening their skills, and being able to
provide their employees with the opportunity to pursue their passions.
Among those unlikelyto use multi-directional career advancement (mostly
PPOs), many noted the approach would be counter to their organizations
culture, upper management would not support this endeavor, and it would be
contrary to the organizational philosophy in place.
Organizations rst need
to focus on the how of
career conversations theyneed to help their managers
initiate these conversations
with their employees.
Once the conversations are
happening, they can then
focus on the what
how to help their managers
improve the content, quality,
and effectiveness of these
conversations.
Kristen Leverone,Global Talent Development
Practice Leader, LHH
My own career path at
Red Hat is an example of
the opportunities that are
offered here I started
off in the ofce of General
Counsel and moved over
to lead the People Team
ve years ago, and my role
has denitely evolved. By
far, the opportunity for
continuous learning is one
of the most engaging things
about working at Red
Hat. Responsibilities may
grow, shrink, then grow,
then move laterally my
career experience at Red
Hat has undulated naturally
in this way.
DeLisa Alexander,
Chief People Ofcer,
Red Hat
Limitations on upward
movement due to greater
span of control and atter
organizational structure
have restricted ladder
movements; therefore,
lattice movements are more
prevalent these days.
Having breadth
of experience
and knowledge
is important to
understand the
interconnectivity
of all areas of our
organization.
Why Likely?
Organizational structure
is very hierarchical with
strict and traditional
expectations around
reporting. The lattice
model would require
a signicant shift in
management culture.
Why Unlikely?
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24 Copyright 2011 Human Capital Institute. All rights reserved.
In addition to the recognition regarding the importance this comprehensive
planning would have on employee engagement and retention, there is
signifcant intent regarding developing this type o planning by TPOs
and PPOs in the next 1-2 years. Thereore aspirationally, this is something
organizations plan to incorporate in the uture.
Top Performing Organizations (TPOs)
Poor Performing Organizations (PPOs)
8%
5%
31%
18%
36%
29%
13%
16%
33%
12%
0% 20% 40% 60% 80% 100%
Not sure
Unlikely
Likely
Very Likely
We already have this type of plan
49%
45%NET LIKELY
Figure 16: How likely isit that your organization
will develop a CareerManagement and/or
Development plan as wehave defned it within the
next 1-2 years?
Employee Engagement
can be very challenging,
especially with a very young
workforce. People often
enter into this industry and
are looking for a promotion
every two years. So it is
critical that we rst set
expectations because whenpeople are not moving up
or developing as they see t,
it will negatively inuence
their engagement.
Russell Lobsenz, Director of
Talent Development, Orbitz
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25Copyright 2011 Human Capital Institute. All rights reserved.
Key Barriers
Among those unlikelyto adopt this plan, a lack o budget and training were
the primary barriers to adopting this plan among TPOs. Among PPOs, primarybarriers included a lack o talent management inrastructure and management
buy-in, in addition to a lack o budgets and training.
While lack o budget and resources was mentioned most requently as a barrier
to developing these kinds o programs, there may be also a lack o awareness
regarding the value o implementing a program such as this and what the key
benefts that can be derived rom it are.
Figure 17: What wouldprevent your companyrom adopting a CareerManagement and/orDevelopment plan as wehave defned it?
0% 20% 40% 60% 80% 100%
Top Performing Organizations (TPOs)
Poor Performing Organizations (PPOs)
7%
7%
18%
10%
24%
30%
49%
29%
46%
37%
52%
59%
67%
69%
Other
We don't have enterprise-wide
planning for talent
Would not fit our organizations culture
Not prepared to adopt a CareerManagement and/or Development
plan because we do not have the fundamentalsin place (i.e., an integrated talent management
system, new competency model, etc.)
Lack of budget/resources
Lack of manager coaching/mentoring/careermanagement and/or development skills
Lack of Senior Manager buy-in
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26 Copyright 2011 Human Capital Institute. All rights reserved.
HCI Research
26
Conclusion
The modern organization, whether a TPO or a PPO, exists in a world that
looks very dierent than even a ew short years ago. Employee engagementhas been a hot-button issue or most organizations or a variety o reasons.
One such reason is the proven relationship between employee engagement,
retention, and organizational perormance.
The ocus o this study was to profle the types o organizations that do
employee engagement well, i.e., TPOs, and glean some lessons and best
practices to apply to organizations that may not yet eel its employee
engagement and retention practices are satisactory or ully eective.
While typical drivers o employee engagement might have traditionally been
thought o as enhanced compensation packages, better benefts, uniqueperks, etc., our research has shown that these are not the most eective ways
to enhance employee engagement. Through surveys and SME interviews we
have identifed that the relationship o the individual to the organization, the
support o management and leadership, and transparent, comprehensive
career development opportunities and plans are actually the more eective
means to aecting employee engagement.
In examining employee engagement rom a resh perspective TPOs vs.
PPOs we were able to identiy a number o key dierentiators that can
arguably make the dierence in terms o true employee engagement and real
satisaction related to retention rates.
TPOs, those organizations with high employee engagement and high
satisaction with retention rates, demonstrated consistently dierent talent
management practices with respect to the ollowing aspects o employee
engagement strategies, as well as career development processes. The most
dramatic dierences were noteworthy, and centered on the way that these
organizations:
Assessed employee engagement
Defned career development
Determined roles and responsibilities related to ownership o career
development
Structured the career development strategy
Leveraged multi-directional career movement as a core career
development strategy
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Connecting the Dots: Comprehensive Career Development as a Catalyst for Employee Engagement
27Copyright 2011 Human Capital Institute. All rights reserved.
These dierentiating practices represent next practices related to both
career development and employee engagement. Human capital practitioners
should assess these elements at their organizations to determine where
their organization alls with respect to TPO vs. PPO. By ocusing on these
elements, organizations can become TPOs and enjoy the benefts o increased
engagement, retention, and organizational perormance.
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Appendix A: About the Research Partners
The Human Capital Institute
The Human Capital Institute (HCI) is a catalyst or innovative new thinking in
talent acquisition, development, deployment and new economy leadership.
Through research and collaboration, our global network o more than 138,000
members develops and promotes creativity, best and next practices, and
actionable solutions in strategic talent management. Executives, practitioners,
and thought leaders representing organizations o all sizes, across public,
charitable and government sectors, utilize HCI communities, education, events
and research to oster talent advantages to ensure organizational change
or competitive results. In tandem with these initiatives, HCIs Human Capital
Strategist proessional certifcations and designations set the bar or expertise
in talent strategy, acquisition, development and measurement. www.hci.org
Lee Hecht Harrison
With over 270 ofces worldwide, Lee Hecht Harrison is the global talent
development leader in connecting people to jobs and helping individuals
improve perormance. LHH assists organizations in supporting restructuring
eorts, developing leaders at all levels, engaging and retaining critical talent,
and maintaining productivity through change. Lee Hecht Harrison is a part o
Adecco Group, the world leader in workorce solutions with over 6,000 ofces
in over 70 countries and territories around the world. For more inormation, visit
www.lhh.com.
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29Copyright 2011 Human Capital Institute. All rights reserved.
About the Authors
Katie Sokol Ratkiewicz, MPA is a Practice Leader at the Human Capital
Institute who is responsible or managing the Organizational Developmentand Leadership Product Team. Katie brings over 5 years o Human
Capital Consulting experience or leading companies, most recently at
Deloitte Consulting. Her consulting experience has ocused on enhancing
organizational and people perormance through competency development,
career management programs, learning and development programs,
training design and delivery, succession and workorce planning, assessment
processes or sourcing and selection, and overall program administration.
Recent research highlights have ocused on innovative talent practices
related to generational dierences in the workplace, diversity and inclusion
best practices, virtual teaming capabilities, and developing practical
approaches or work/lie balance in the new economy. Katie earned her
bachelor and Master o Public Administration degree rom Clark University.
She is currently based in Newport, RI.
Aubrey Krekeler Wiete, MA is a Research Analyst at the Human Capital
Institute. She most recently worked at the University o Kentucky, where
her research included the use o social media as a recruiting tool and the
business imperative o Global English. Aubreys areas o interest include
leveraging employee satisaction and perormance through organizational
leadership and development planning, and ostering creative business
cultures. She earned her bachelors degree rom Saint Louis Universityand a Masters degree in Organizational Communication and Health
Communication rom the University o Kentucky. Aubrey is currently based in
Cincinnati, OH.
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30 Copyright 2011 Human Capital Institute. All rights reserved.
87%
2%
2%
1%
4% Human Resources
Operations
Strategy
Sales
Finance
Research and Development
Marketing
Customer Service
Other
87%
1%
2%
7%
3%
North America
Central/South America
AfricaAsia/Pacific
Europe
42%
16%
7%
8%
27%
Less than 1,000
1,000-3,000
3,001-5,000
5,001-10,000
10,000+
Function
Region
Number of Employees
Appendix B: Respondent Demographics
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Connecting the Dots: Comprehensive Career Development as a Catalyst for Employee Engagement
31Copyright 2011 Human Capital Institute. All rights reserved.
10%9%
8%
6%
6%5%4%4%
3%
2%
1%
20%
Healthcare
Technology
Government
Professional Services
Financial Services
Non-profit/Charity
Aerospace & Defense
Banking
Insurance
Retail
Automobiles & Parts
Food & Beverage
Oil and Gas
Pharma/Life Sciences
Industrial Goods & ServicesUtilities
Construction & Materials
Leisure
Media
Personal & Household Goods
Real Estate
Chemicals
Forestry and Paper
Industrial Metals and Mining
Other
24%
20%
15%
12%
9%
6%5%
3%2%
1%
4%
Director
Manager
Team Member
Middle Manager
Vice President
Senior Director
C-Level (CEO, CHRO, CIO, etc.)
Executive
Senior Vice President
President
Other
13%
11%
8%
11%5%5%
21%
6%
3%
1%17%
Less than $10 million
$10-50 million
$50-100 million
$100-500 million
$500-750 million
$750 mill-1 billion
$1-10 billion
$10-50 billion
$50-100 billion
>$100 billion
N/A -Government or Nonprofit
Industry
Level
Revenue
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32 Copyright 2011 Human Capital Institute. All rights reserved.
Appendix C: Works Cited
BlessingWhite (January, 2011). 2011 Employee Engagement Report, BlessingWhite Corporation.
Boyd, Sandra and Spurgeon, Kim (2010). Engaged Employees and the Bottom Line, Knightsbridge HCM
Bureau o Labor. (June 7, 2011). Job Openings and Labor Turnover Survey Highlights April 2011, Bureau of Labor
Statistics.
Casserly, Meghan (May 16, 2011). Quitting Is On The Rise. And Thats A Good Thing, Forbes.com.
Castellano, William G. (2009). A New Framework o Employee Engagement, Rutgers Center for Human Resource
Strategy.
Chew, Janet and Girardi, Antonia (2008). Is Career Management the Panacea to Retaining Vital Sta?,
International Journal of Management and Marketing Research.
De Vos, Ans and Dewettinck, Koen (2009). The proessional career on the right track, European Journal of Work
and Organizational Psychology.
Greene, Barbara (June, 2001). Competitive employers make career development programs a priority, San Antonio
Business Journal.
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