Promoting versatile career paths to higher levels

At the end of the year, HR reshuffling in many companies leads to promotions, transfers, and, often, celebrations. While some employees ascend, others quietly transition to roles vacated by their peers or juniors. Increasingly, individuals find themselves overshadowed by 'exceptional appointments' that prioritize youth and competence. This approach is sometimes lauded for empowering younger managers.

In many of the pyramid-structured organizations, managerial roles are scarce. Missing out on a promotion can be seen as a setback or lead to sidelining, as these promotions represent career pinnacles. The limited higher-up positions drive many employees to prioritize promotion as their career goal. A global research institute, Gartner, discovered that two-thirds of employees in multinational companies aspire to climb the corporate ladder into managerial roles now or in the future.

Individuals missing out on leadership roles may voluntarily or involuntarily leave their organizations, losing years of valuable experience and expertise. This departure represents a significant loss for companies. To tackle this issue, how can competent talent be encouraged to diversify their career goals beyond management positions?

Hyundai Motor Group's HR approach sets a positive example. At its Namyang R&D Institute, tech talents can pursue a technical expert career track rather than an executive role. They can choose this path by self-application or supervisor recommendation. Those on the expert track can continually build expertise and be recognized as research experts without advancing to a managerial level.

Restricting the career path to very few high-level managerial promotions is detrimental to the organization and the individual. It can lead to undue stress for managers who may lack the necessary capabilities or interest in leadership roles. In the Gartner survey mentioned earlier, one out of every five managers expressed a desire to leave their current positions, while half reported struggling with work-related fatigue and stress.

U.S. healthcare insurer WPS Health Solutions presents an alternative approach. Employees in this company can volunteer for managerial positions through a six-month manager hiring program. During the period, the applicants can judge on their own whether they are apt to be a manager. The experiment offers an excellent opportunity for the applicants to see whether they have the will to keep improving despite current shortcomings, whether the position aligns with their career goals, and even whether they have a genuine interest in the job. Company statistics indicate that 75% of participants found the program valuable for career development and management.

Organizations must offer diverse career paths to retain top talent, ensuring they can reach their full potential without being discouraged by a scarcity of managerial roles. This approach fosters mutual growth for individuals and the organization.