Create an action plan for Career Growth to increase retention

The 'Career Growth' theme is often a top Opportunity with a strong correlation to retention. Employees who feel that their role will lead to career growth opportunities are significantly more likely to retain longer than employees who do not feel like their role will lead to career growth opportunities.

This is a common issue across the supply chain industry. There is a perception in our country that supply chain jobs are not a career. According to the National Association of Manufacturers and the Manufacturing Institute, “only 3 in 10 parents would consider guiding their child toward a career in the field.” The perception gap is leading to a skills gap in the supply chain and higher turnover.

With Covid, the perception of supply chain jobs is changing. Supply chain workers are now being seen as essential workers that are a crucial part of the global economy. And, supply chain roles make great careers.

According to ASCM’s survey, U.S. supply chain professionals with a bachelor’s degree earned a median annual salary of $78,750 in 2019, which is 24% higher than the median of other U.S. workers with the same degree. The bottom 10th percentile of those in the supply chain profession earned $52,130; in the highest 90th percentile, they made $158,000 per year. In addition to their base salaries, 91% of supply chain professionals report receiving supplementary compensation, most commonly in the form of bonuses, profit sharing, and overtime pay.

For the question, "I believe there is room to grow at {company}," WorkStep found an 18% retention lift between favorable and unfavorable respondents across the industry. This is the difference in retention between employees who feel favorable for this question compared to employees who feel unfavorable for this question.

For the question, "I believe I can build a successful career at {company}," WorkStep found a 22% retention lift between favorable and unfavorable respondents. This means that employees who feel like they can build a successful career are 22% more likely to stay at the company for more than 90 days.

A study by the Manufacturing Institute found that 65% of people under the age of 25 consider career opportunities a motivating factor in their decision to remain with their current employer. “Career progression is the new minimum wage,” said Ardine Williams, a vice president of workforce development at Amazon.

What can you do to take action?

Awareness is half the battle. Raise awareness of the career growth opportunities in your organization.

  • A great time to do this is during your employee onboarding. Have someone in your organization that has worked their way up in the organization speak to associates in new hire onboarding so new hires are aware that growth is attainable and to give them an idea of what career paths are available in your organization.
  • Post job openings in your organization in an easily accessible location so associates are aware of the opportunities. This could be the breakroom, common area, or a career computer where associates can search for openings.
  • Discuss job openings in your all-hands meetings.

Saint-Gobain, a manufacturer of innovative building material solutions, has had to adopt proactive approaches to recruit talent. Its recruitment strategy focuses on touting positions in which employees can design their own careers and taking advantage of pilot programs that incorporate a holistic approach to people and families.

Questions? Reach out to our support team at (213) 377-0974 or email us at employers@workstep.com


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