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CAREER DEVELOPMENT

An often overlooked, yet primary driver of employee engagement is linking the employee to their future within the organization.

The second most significant driver of employee engagement is career development, that is, learning, development, and advancement opportunities that are provided to employees. Employees need to know that their managers are interested in their development, and managers must periodically take the time to specifically discuss and encourage employees' progress in their career, including career options and potential career paths that are available to each employee.

Managers need to support their employees in learning new skills and allow them to participate in special assignments, problem-oriented initiatives, and various other work tasks and activities. Managers should develop learning goals with each employee for the year and even for specific projects, then discuss learnings attained in the debriefing of any completed project.

Since development opportunities are a traditional motivator for most employees, as organizational needs arise, managers should ask, “Who can best learn from this opportunity?” and approach that individual. I learned this lesson early in my career when my first manager delegated an assignment to me with the words “I could do this assignment faster than you, but I thought there'd be some learnings for you in doing it.”

Later I saw the same principle in practice when I worked with American Express. They developed a delegation technique they called Label and Link that they trained all their managers to use. When delegating work, managers were asked to label the task as an opportunity and link it to something that's important to the employee being considered for the assignment. To some people, this might seem like a trick of some sort, but it's the essence of employee engagement: aligning the needs of the organization with those of the employee.

Another developmental approach comes from giving employees an opportunity to experience different roles. For example, networking company 3Com believes that allowing those who work behind the scenes—especially engineers—to get out and sell to or visit customers gives them a greater appreciation for the value of the work they do. The employees in technical roles often receive customer feedback second- or third-hand and rarely, if ever, have the opportunity to sit down with a customer directly. How beneficial it is for them to engage in a dialogue that helps them do their job better and not feel as though they are operating in the dark with piecemeal information. Furthermore, when they can hear positive customer feedback first hand, it means much more.

This chapter offers a range of developmental activities and practices that organizations are currently using to maximize learning and enhance employee engagement.

“It seems to be a growing trend that employees are looking to be challenged with more amplified projects at work and rewarded with greater job responsibility,” says David Kovacovich, an engagement strategist in San Francisco, California. One of David's clients, a technology company based in Silicon Valley with more than 10,000 employees implemented a known performance management strategy called SCARF, which allowed employees and managers to agree on stack ranking the employee's preferences for career development: status, certainty, autonomy, relatedness, and fairness.

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Through the SCARF methodology, managers were able to better understand employee individual needs and requirements and set them on a course for development accordingly. Status-oriented employees were looking to participate in high-visibility projects, whereas certainty-oriented employees simply wanted weekly updates on their progress to goal and company progress reports.

This company found that taking performance management from one-size-fits-all to being individually structured at the employee level created a career development path that was easy for managers to help plan and follow. Promotions increased, and voluntarily leave was greatly reduced.

Software firm Full Beaker provides $1,500 per year to each employee for an educational fund to encourage them to grow professionally throughout the year. “Employees can spend the budget on books, online courses, professional conferences, coding boot camps, and so on—basically anything that makes the employee better at what he or she does for the company,” says Shavkat Karimov, the company's director of SEO.

Wouldn't it be great to hire employees who are already responsible for their career development? To get a head start on maintaining an entrepreneurial spirit in your workforce, don't forget to look for partnerships with your local community colleges. For example, in the Bay Area of California, employers in eleven industry sectors rely upon the Electrical Power Systems and Instrumentation Certificate (EPSIC) program offered through the College of San Mateo. These organizations include Pacific Gas and Electric, Bay Area Rapid Transit, East Bay Municipal Utilities District, the San Francisco Public Utilities Commission, Lawrence Livermore Labs, Lockheed, Lam Research, Siemens, Chevron, and Tesla.

Continuous learning drives everyone to find a better way, every day. It's not an expense; It's an investment in continuous renewal.

—JACK WELCH, FORMER CEO, GENERAL ELECTRIC

Maureen E. White, who works in the Sacramento-based Career [Technical] Education Practices area in the California Community Colleges chancellor's office shares some exciting returns on the state's investment of $900 million. Students who participate in EPSIC boost their earnings by 81 percent, and 92 percent attain the regional living wage. EPSIC is so successful because it is one of the only programs in the state that provides hands-on training in large-scale electrical power systems. Several years ago, the college revised its forty-six-unit program to create a streamlined nineteen-unit certificate with an embedded apprenticeship. Faculty were given externship opportunities to learn the latest business needs. Curriculum was reviewed by the International Society of Automation, and the college's facilities were rebuilt from the ground up to provide state-of-the-art equipment. Students finish the apprenticeship portion of the program earning $70,000 and quickly move up a career ladder, earning $90,000 after three years.

Marketing software startup Hubspot and World Wide Tech offer their employees extensive training programs to learn and grow their careers.

CASE STUDY: COACHING IN THE FREIGHT/TRUCKING INDUSTRY

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Coaching is an excellent form of focused development that companies should take greater advantage of. Dr. Terence Jackson, COO of Jackson Consulting Group, shares how he helped coach key senior-level managers for TTT Trucking, a division of CRST International Trucking, located in Warrenton, North Carolina. The company is publicly held with $275 million in annual revenues.

Dr. Jackson worked with the firm's CEO, who identified three senior-level managers for future executive leadership positions and made the commitment to provide the resources necessary to help them acquire the skills to advance. Using appropriate diagnostics, a customized one-on-one coaching process was created for each of the three individuals directly addressing their strengths and areas for improvement. Subject areas included concepts of leadership, executive leadership, strategic planning, and business development.

Each of the individuals made tremendous strides in both personal and professional development, and each has since been promoted into an executive leadership position within the company.

Results from the intervention included:

  • Employee #1 is running an entire business unit within the division. The CEO is amazed that she has been able to double revenue within eight months.
  • Employee #2 wrote her own personal and professional strategic plan with calculated ROI and proposed to the CEO the specific role she wanted to play at the firm. She subsequently was able to double revenue for the firm and had a huge impact on customer retention and growth.
  • Employee #3 was a twenty-five-year employee feeling stuck in his position. The coaching process got him unstuck, and he now runs the largest department within the division.

With the enhanced leadership stemming from this coaching intervention, the company was able to rebound from an economic downturn and are now on track to meet enhanced financial goals.

Software development services company Belatrix invests in over 120 hours of formal training per employee per year. Belatrix has one of the lowest attrition rates in the tech industry, averaging less than 12 percent, attributed in part to the attention to employee development.

Credit Karma has over 500 employees (about 80 percent of the company) enrolled in courses that run from September through November and are taught by other employees. Among the offerings are an “Intro to Coding” course for nonengineers taught by a senior engineer; “Negotiation,” taught by cofounder and chief revenue officer Nichole Mustard; and a management class led by chief product officer Nikhyl Singhal. Lindsey Caplan, head of talent development at Credit Karma, says Credit Karma University is much more than a lunch-and-learn. “It also encompasses mentorship programs that help our employees develop faster here than they potentially would anywhere else.”

We believe that most people have capabilities beyond those they are called on to demonstrate in their jobs.

—AON HEWITT STATEMENT OF PHILOSOPHY

The Boeing Company offers extensive career and leadership mentoring programs to over 150,000 employees. In one program, interns and new employees are paired with senior management who help them identify career goals and plans for various departments within the company. Diversity is the focus of the 1-to-1 Learning Program, where peers from different backgrounds meet to share perspectives and learn essential skills. The Boeing Leadership Center pairs high-potential employees with current leadership to learn interpersonal skills.

Retail giant Walmart takes career development so seriously that Walmart Academy is now one of the largest employer training programs in the United States. Faced with rebranding itself as a company focused on the needs of its employees and the needs of small towns and economically challenged cities, they have invested $2.7 billion in their training programs. They have raised wages for one million store employees. In recent years, more than 150,000 store supervisors and department managers have completed several-weeks-long training. These programs teach merchandising and motivational skills. Managers also learn how to better understand employees on a personal level.

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An additional 380,000 entry-level workers have taken part in a separate training program called Pathways. Most of these workers receive a $1-per-hour raise for completing the course. Pathways offers retail math skills that employees need for stocking shelves and working cash registers. The academy, designed for experienced supervisors and managers, focuses on managing departments like a small business, such as preparing profit-and-loss statements.

One result that Walmart is especially proud of: An employee who started as a store janitor making $7.50 per hour was promoted after two years to meat department manager making $15 per hour and recommended by his former supervisor to start the assistant store manager program. This program could open opportunities for future store manager positions. Annual pay for store managers averages $170,000.

Walmart chief executive Doug McMillon predicts fewer salespeople at his stores, but says, “They'll be better paid and better trained.” Results show that managers who go through the training academies have better retention rates than those who do not. Employees who report to those managers stay longer. And entry-level workers who complete a new training program are more likely to remain.

Walmart, Best Buy, Target, McDonald's, and Bloomingdale's closely analyze how job roles are changing and need to change to accommodate the latest consumer buying preferences. Their training programs are designed to ensure employees in new roles will be competent and committed to serving their customers.

At Hireology, a hiring and talent management platform, two employees were promoted a total of ten times over a four-year period. Each promotion came with new titles, responsibilities, salaries, and opportunities. This example appears to demonstrate the rule at Hireology, not the exception. The company actively encourages employees to take responsibility for developing their careers.

Joanne Denenberg, currently manager of the implementation team, who was promoted four times, says:

I started in 2014 as a sales development manager. I would basically make 100 cold calls daily to get someone on the line, hopefully, who would, hopefully, set a demo for my account executive. I did that for four months. At that point, Hireology was creating a new role for an account representative. I was asked if I wanted to do it, and I did.

One of our responsibilities is to make sure employees are given the skills and experience to progress either inside or outside the company.

—JOHN KROL, CEO, DUPONT

Julie [Rodgers, COO] gave me great advice. She said that the way to get promoted is to do really well in the job you're doing now, ask what's next, and make life easier for the people who have the role you want. I followed her advice. I did really well in every job I had. And then I asked for something new based on the needs that I saw in the company. None of the jobs I've had here really truly existed until I helped create it.

Investopedia, an online source for financial information and education, hosts biweekly lunch-and-learns led not only by leaders but by more junior employees to encourage everyone to take leadership roles and teach others their areas of expertise.

For the past decade, Navy Federal Credit Union (NFCU) has sponsored job rotations for the organization's top management team. Each rotation lasts nine months, and successful applicants for the twenty slots are chosen on a competitive basis by Navy Federal's COO. These managers spend part of the rotation doing hands-on work in branch offices and the call center, and part of their rotation in a classroom setting. According to NFCU, these rotations of top management help the company grow its talent internally and provide participants with a real sense of accomplishment.

Computer networking subsidiary Cisco Systems GmbH, based in Hallbergmoos, Germany, enables its 3G values of grow the business, grow your team, and grow yourself by ensuring employee access to the vital 3Es: education, experience, and exposure.

Hong Kong's Trade Development Council (TDC) provides its 800 employees with more than 100 different classroom courses each year, along with an additional forty-three courses offered via its e-learning platform. One course, Staff Training and Refinement (STAR), is open to their career goals while increasing their performance and effectiveness. The course—which lasts between three days and two weeks, depending on the employee—includes training in seven broad areas, including such things as core competencies training, external seminars and conferences, functional training, and continuing education.

EVALUATE YOUR HIGH POTENTIALS

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According to the Corporate Leadership Council, three attributes are necessary to evaluate high-potential employees:

  • Ability: The most obvious attribute. To be successful in progressively more important roles, employees must have intellectual, technical, and emotional skills (innate and learned) to handle increasingly complex challenges.
  • Engagement: No less important, however, is the level of personal connection and commitment the employee feels toward the firm and its mission. This attribute should not be taken for granted; just asking employees if they are satisfied with their jobs isn't enough. Instead, ask a powerful question: “What would cause you to take a job with another company tomorrow?” This prompts people to share underlying criteria for job satisfaction and say what's currently missing.
  • Aspiration: The desire for recognition, advancement, and future rewards—and the degree to which what an employee wants aligns with what the company wants for them—can be extremely difficult to measure. Be direct and ask pointed questions about what they aspire to and at what price: How far do you hope to rise in the company? How quickly? How much recognition would be optimal? How much money? And so on.

Shortcomings in even one of the three attributes can dramatically reduce candidates' chances for ultimate success. And the cost of misidentifying talent can be high. You might, for instance, invest dollars and time in a star who jumps ship just as you are looking for them to take the lead on a project or problem.

AMN Healthcare has built their annual talent-assessment processes around these attributes. Each year, when they draft their succession-planning process, they interview more than 200 up-and-coming leaders. Results from the interviews allow management to gauge the level of aspiration and engagement for each employee. Then, together with each manager's assessment of an employee's abilities, the company gains a comprehensive understanding of its workforce's capabilities.

Managers at Johnson & Johnson health-care products company select high-potential individuals they believe could run a business (or a bigger business) in the next three years to participate in their development program they call LeAD. The program lasts nine months and during that time, participants receive advice and regular assessments from a series of coaches brought in from outside the company. Each participant must also develop a growth project—a new product, service, or business model—intended to create value for their individual units. Each candidate's progress is evaluated during a leadership session that is held in an emerging market such as China, India, or Brazil in order to increase participants' knowledge of the company's global operations. Graduates leave the program with a multiyear individual development plan and are periodically reviewed by a group of senior HR heads for further development and reassignment across the corporation. Johnson & Johnson managers believe that the LeAD process has accelerated individual development. More than half of the LeAD participants moved on to bigger positions in the company during the first three years after graduating from the program.

Procter & Gamble's flagship Family Care division identified a set of complex, high-impact positions that offered particularly quick development and learning opportunities for its high-potential candidates, for instance, “brand manager for a leading product” or “director of marketing for a new segment or region.” Division managers dubbed these key positions “crucible roles” and began a concerted effort to fill 90 percent of those positions with high-potential employees. Candidates had to pass through three screenings to be eligible: (1) adequate qualifications to perform well in the particular crucible role, (2) stellar leadership skills, and (3) a clear developmental gap the crucible role could help them fill. Through this program, P&G has measurably increased the percentage of employees qualified for promotion: More than 80 percent of P&G's high-potential employees are ready to take on critical leadership roles each year—putting the company at a tremendous talent advantage when leadership roles need to be filled.

There's no doubt that the largest percentage of an employee's development often comes from the job they are doing, challenges they have to overcome, and new skills they have to develop. Pharmaceutical giant Eli Lilly of Indianapolis, Indiana, structures learning and development opportunities for new MBA grads accordingly: Their chairman and CEO John Lechleiter describes the recipe for the company's approach to leadership development as two-thirds coming from job experience, one-third from mentoring and coaching, and a pinch of classroom training.

Eli Lilly has found a unique way to provide its managers with the benefits of participating in different jobs while staying in their same positions. The company offers managers short-term work assignments outside their field of interest or expertise, while remaining in their current jobs. According to Lilly, managers are happy about the opportunity to expand their career skills and company knowledge without having to move to a different location or take on a long-term assignment elsewhere.

Always assume each and every person wants to do a better job and grow.

—STEVE FARRAR, SENIOR VICE PRESIDENT, WENDY'S INTERNATIONAL

At Epson, the Japanese electronics company, employees can do “executive internships” in which they spend a dedicated period of time working with company executives at different levels, learning how they spend their time, decisions they make, and so on before returning to their original position. Such a practice helps employees to see how their job relates to larger objectives in the organization.

Well-trained and dedicated employees are the only sustainable source of competitive strength.

—ROBERT REICH, FORMER U.S. SECRETARY OF LABOR

UPS makes employee development a primary management responsibility for all its managers, who work on developing specific development plans in collaboration with each of their direct reports.

At Land's End in Dodgeville, Wisconsin, any employee requesting to work in another department are placed there for two weeks, after which they can chose to make the move permanently.

At Duke Energy in Charlotte, North Carolina, professional employees of similar pay grade can swap positions with each other. These strategies make it easier to keep employees who might otherwise choose to leave the companies.

Gerard Kleisterlee, former executive vice president and co-chief operating officer of Phillips Electronics, had three priorities when he traveled: meet local management, meet a key customer, and have lunch with a high-potential manager.

A five-year study of 1,000 Sun Microsystems employees found that 25 percent of mentored employees received salary grade changes, compared to only 5 percent of the control group. Those who were mentored were found to have been promoted six times more often than others.

Brazil's largest cosmetics company, Natura Cosméticos of Sao Paulo, identifies promising leaders from within the organization and assigns them to shadow a high-level Natura executive for three to six months.

We're not softhearted. It's in our interest to have an educated workforce.

—GEORGE DAVID, CEO, UNITED TECHNOLOGIES

Rather than singling out individuals to develop as leaders, mobile telephone manufacturer Nokia Corporation of Espoo, Finland, focuses on developing teams of leaders—building their interpersonal communications and consensus decision-making skills.

To help improve the effectiveness of its leadership training efforts, General Electric Corporation of Fairfield, Connecticut, now trains entire teams of employees rather than just individuals. Chairman and former CEO Jeffrey Immelt believes this approach is having a significant impact on how much of what gets taught actually gets used on the job. Says Immelt, “At the GE I grew up in, most of my training was individually based. I could use only 60 percent of what I'd learned because I needed others—my boss, my IT guy—to help with the rest.” With the change to team-based training, according to Immelt, “There's no excuse for not doing it.”

Food manufacturer General Mills makes serving on a nonprofit board of directors a part of their development plans. The company believes that the service is a good way to build leadership skills among employees.

CEOs at two of America's top companies are personally involved in monitoring the development of promising employees. General Electric chairman and CEO Jeffrey Immelt keeps tabs on the development of the company's top 600 managers, while McDonald's CEO Jim Skinner regularly reviews the development of the company's top 200 managers.

Rockwell Collins, the aviation and defense company based in Cedar Rapids, Iowa, matches mentors and high performers using a web-based program.

Home-improvement chain Home Depot has implemented their Product Knowledge Recognition program to help get employees excited about learning detailed information about products carried in the company's stores. Each of Home Depot's departments, such as electrical or plumbing, has its own guide that contains more than 100 product-related questions. To be considered an expert in a particular department and receive a product-knowledge badge, employees have to correctly answer these questions. New employees are given ninety days to become an expert in their department's product knowledge, at which time they earn an increase in their base salary. After becoming an expert in their own department's offerings, Home Depot provides additional financial incentives to encourage employees to become experts in and receive product-knowledge badges for other departments.

Training is everything. We believe education is the cornerstone by which we are surviving.

—ANITA RODDICK, CEO, THE BODY SHOP

IBM has three distinct mentoring programs: expert mentoring, career mentoring, and for new hires, socialization mentoring.

At high-end resort The Phoenician in Scottsdale, Arizona, employees are encouraged to cross-train as sommeliers, experts in wine. At last count, more than fifty Phoenician employees had passed the Court of Master Sommeliers' introductory international sommelier examination including pool attendants, an accountant, and a front desk clerk. The result is an increase in both the engagement of employees who aren't normally part of the wine team and the quantity and price of wine sold to guests of the resort. Says Sean Marron, The Phoenician's director of wine, “We've been serving a lot more great Champagne pool-side—I can't keep my Cristal in stock.”

At Merrill Lynch Realty/Relocation Management Division of White Plains, New York, the company splits its in-house training programs into two different pieces: one for new employees and one for experienced employees. New employees are given forty hours of teaching in every part of the real estate and relocation field—all during regular working hours. Experienced employees are provided with training designed to help them move up in the organization. Aside from extensive formal classroom training, Merrill Lynch Realty/Relocation uses on-the-job training and pairs new employees up with experienced employees to accelerate the training process.

I think as an employee, much of your professional development will focus on setting personal professional goals and putting the training provided by your company to good use. Learning more about your company's goals and objectives should also be a part of your professional development, particularly if you intend to remain with the same company and work your way up the ranks.

—DEBRA DUNLAP, D&D INTERIOR & FASHION HOUSE

5 IDEAS FOR EMPLOYEE DEVELOPMENT

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Sidney Harman, CEO of Harmon International Industries, shares his thoughts on employee development:

  • Before they attend a course, take the time to meet with employees to discuss what you hope they will learn from it. After they attend a course, take the time to meet with employees to see what they learned and how they will apply their new knowledge.
  • Have employees share what they learned at a seminar or conference with the rest of the group.
  • Create individual development plans for each employee detailing the skills they want to learn and the development opportunities available, including potential next jobs.
  • Allow employees to select and attend the training course of their choice.
  • Encourage employees to work on an advanced degree.

What I absolutely believe is that honoring the people who do the work can produce stunning results for the company. If the people in the factory believe there's a real effort to help improve their skills, provide opportunities for advancement, and job security, they can do things that will blow your mind.

The Yellow Pages Group of Verdun, Quebec—Canada's largest publisher of electronic and print telephone directories—subsidizes up to $2,000 of employee tuition fees for courses taken outside the company each year.

When an employee at Home State Bank in Loveland, Colorado, decided she wanted to eventually open her own jewelry store, the company's human resources manager encouraged her to view her work at the bank as a training ground for the skills she would need to someday run her own business. As a result, the employee's attitude shifted from “I'm not where I want to be” to “I'm learning the things I need to eventually succeed with my long-term dream of owning my own business.” Home State Bank's openness with employee goals—both within and outside of the business—has led to higher worker morale and a turnover rate that is half the industry average.

Education is an essential bridge between awareness and action; it provides employees with specific tools and techniques to achieve goals.

—BAXTER HEALTHCARE CORPORATION QUALITY LEADERSHIP GUIDELINES

When it became apparent that it would be difficult for Red Robin Gourmet Burgers, the casual-dining restaurant chain based in Greenwood Village, Colorado, to continue to improve its already well-honed systems, senior vice president and chief knowledge officer Michael Woods decided to run a group of the company's vice presidents through Six Sigma training. None of the vice presidents worked on the operations side of the business. After the training, Woods assigned a project to test their Six Sigma skills. The project dealt with the delivery of milk shakes, which took more than four minutes to get to customers from the time they were ordered. Initially, the team consulted with the experts. One expert said the problem was the milk shake machines; the machine's capacity could not meet customer demand. Another expert said the problem was an insufficient number of spindles. The third expert felt it was a labor shortage during peak hours. The team used Six Sigma to measure all parts of the process, from the time the milk shake was ordered to the time it was delivered. Upon data analysis, the team discovered that the problem wasn't with making the milk shakes quickly, it was that no one took the milk shakes to customers after they were made. After implementing a small change to the order pickup system, Red Robin went from 32 percent on-time milk shakes to 76 percent.

The Routes of Knowledge training program for employees at automobile manufacturer Ferrari S.p.A. of Maranello, Italy, uses the themes of travel and exploration as it covers topics from computer and language skills to technical training. Specific training is linked to individual explorers: Marco Polo for worker's training, Charles Lindbergh for manager's institutional training, and Neil Armstrong for leaders' continuous training. At Campus Ferrari—a meeting that focuses on teaching Ferrari's rich history—employees participate in multimedia presentations with titles such as “Do You Know Your Company?” and “Travel Into Ferrari's History.” The event ends with a dinner at which employees explore innovation and creativity. The company's Creativity Club uses employee meetings with artists, actors, chefs, and others to stimulate worker creativity and innovation.

I think business increasingly recognizes that having a workforce that is trained, that is educated, that has the right skills is important to maintaining the great competitive steps we've made in the last few years.

—STEVEN RATTNER, MANAGING DIRECTOR, LAZARD FRERES

New York financial services firm Citigroup created the Mobility Initiative to better identify and take advantage of its large pool of internal talent. The Mobility Initiative consolidated the company's eighteen different job-posting websites into one global job-posting site—making it far quicker and easier for employees to search for open jobs throughout the company. The initiative also established a set of mobility guidelines with criteria for moving to different positions and the creation of more effective career development tools.

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At Valero Energy Corporation of San Antonio, Texas—the largest independent oil refinery in the United States—promising junior employees are placed on the management fast track via the company's accelerated development program. Selected employees are assigned to mentors and specifically trained to fully assume their responsibilities when they retire or move up in the organization themselves. Coupled with an aggressive college recruitment program, Valero is able to offer young employees a clear career path to upper-management ranks—keeping them active and engaged in their jobs.

Merck, Sharp, and Dohme, the UK-based subsidiary of pharmaceutical company Merck in Whitehouse Station, New Jersey, uses their Talent Management Wheel program to develop future leaders. Through this program, the director group is given a list of ten future leaders within the organization whom they are responsible for providing with developmental opportunities.

At North Shore-Long Island Jewish Health System of Great Neck, New York, employees at every level of the organization are encouraged to expand their skills. In a recent year, the organization invested $10 million in worker training and tuition reimbursement to help facilitate the process. As a result, the organization has increased its one-year retention rate to 96 percent, patient satisfaction scores have been on the upswing, and it's not rare to encounter surgical team technicians who started out as housekeepers or secretaries.

Online-gaming company World Golf Tour pairs every employee of the company with a senior manager whose job it is to mentor the employee during the course of weekly meetings set up specifically for this purpose.

Every three months the human resources department of Home State Bank sends an email to all employees asking if they're feeling stuck in their jobs or want to acquire new job skills. Employees who respond yes to the email messages receive a personal visit from one of the bank's training or human resources specialists to review career and training options.

At FKP Architects in Houston, Texas, employees are paired with a company principal through the My Principal program. The principals help their assigned employees with career development, and they discuss salaries and prospects for promotion within the firm.

Realizing that hiring from outside can send a powerful message to junior employees about the lack of future opportunities within a company, German industrial and steel company ThyssenKrupp AG of Dusseldorf designed several rigorous processes to ensure that promising junior employees were ready to advance to opportunities of greater responsibility. To create cross-segment transparency and consistency, the company identified and clarified seven key management competencies. Subsequently, they developed a standardized appraisal process. In addition, the company created a central placement process for its top 300 managers. This process serves to promote mobility among the company's five business segments while accelerating the development of leaders throughout the organization.

Life is sort of a buffet of learning and some things work better for others. . .so we have an array of things.

—ANDREW CHERNG, FOUNDER AND CEO, PANDA EXPRESS

At Beaverbrooks the Jewellers, most managers and assistant managers have been promoted from within the organization and not recruited from outside of it.

Computer networking subsidiary Cisco Systems GmbH has created a variety of employee networks to help underrepresented groups rise up the company ranks. These networks include the Women Access Network (WAN), Cisco Black Employee Network, Gay Lesbian Bisexual Transgender Resource Group, and the Conexión network for Latino employees.

At Quicken Loans, employees receive 100 percent reimbursement for continuing professional education, and scholarships are available for children of employees.

I don't want people to sit there and passively accept leadership. I want them to become active in leadership, and that means giving them a constructive path to follow. I don't think management should be a glorified cheerleader.

—JACK STACK, CEO, SRC

Some companies take employee development to an extreme. Shipping giant Maersk sends its people overseas for three years to attend classes and learn more about the world of global shipping.

The Container Store cites its employee training programs as a major factor in retaining employees. New hires get 185 hours of training during their initial year. No other company in the industry offers as much training.

The Container Store pays based on an employee's contribution to the success of a store rather than on their position. This permits employees in nonmanagement positions to earn as much as those in management positions. Fernando Ramos was in a manager position for three years and had been promoted to it from a sales position. But Ramos wanted to be on the floor selling, so a new position for selling and training was created for him. “I go to all the store openings to show the new people how to generate excitement on the sales floor,” explains Ramos.

You can and you should shape your own future. Because if you don't, somebody else surely will.

—JOEL BARKER, PARADIGMS: THE BUSINESS OF DISCOVERING THE FUTURE

Executives at Razorfish noticed a troubling trend. During exit interviews, exiting employees complained that their main reason for leaving was that they didn't see good career opportunities. Dee Fischer, director of organizational development, and her colleagues conducted the company's first annual Career Month in September 2010. It provided employees with access to thought leaders, career-related learning opportunities, cross-discipline networking, and an online CareerLab portal. “We want our employees to take charge of their own careers,” says Fischer.

Juniper Networks, a manufacturer of high-speed switching routers, was finding that they had too much voluntary attrition. In exit interviews, they learned that people were leaving because they wanted to grow their capabilities and careers. Steve Dolan, senior director of leadership and organizational effectiveness, says:

We revised our career architecture so that we have a dual career ladder: a management path and a professional path.

Juniper trains its managers to support individual ownership of their careers and creates a curriculum that teaches managers ways to develop skills that allow conversations with colleagues about their careers. Managers meet periodically with their direct reports to discuss career aspirations.

CASE STUDY: PLACING A DEVELOPMENT PHILOSOPHY INTO PRACTICE

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“My favorite example that has driven my employee engagement over the past two decades is simple: Give employees the freedom to work on tasks or provide training for things they are passionate about, even if it is not totally related to their current job,” says Mike Schneider, CEO of mschneiderONE in Vancouver, Canada. Mike is a business consultant with over twenty years of experience specializing in information technology strategies, customer satisfaction, user experience, leadership training, and development. He is also a stakeholder-centered executive coach certified by Dr. Marshall Goldsmith.

Here are a couple of examples of this philosophy in practice:

About ten years ago I had an employee who showed great potential, and I knew that he had skills that were desirable to other organizations that were looking for new talent. I did not want to lose this employee. I needed to find a way to keep him engaged and uninterested browsing the want ads and job sites. He was a level-1 helpdesk agent, and simply raising his salary wasn't an option at that time.

Through one-on-one discussions, I knew he was interested in programming, so I devised a plan that would benefit us both. We were going through a lean exercise at that time looking for ways to cut out the fat and eliminate repetitive tasks. I provided him with the programming tools he would need and asked him if he was interested in programming one script that would reduce the amount of time the help desk spent on tasks. He was shocked and excited that I was offering him an opportunity to break up the monotony of his day with something that he was passionate about.

Not only did he do this with great excitement, he continued to complete his day-to-day tasks. He also worked on the project in his own time (not required—his decision). He went on to create many other programs that saved the team a lot of time and the company thousands of dollars in man-hours. This employee rapidly became a senior agent, then a team lead, then a manager, and is currently a senior manager at the same company. I believe offering him the opportunity to stay engaged by assisting the team using other skills he had outside of his job description made a big difference.

Another example is an employee who wanted to take a project management course. Project management was not in their job description, but they were passionate about the concept of project management and wanted to become a project manager in the future.

I paid for this employee to take a certification course and while they were taking the course, a large North American project came up. I needed someone to represent my team and be devoted to the project. This also allowed them to practice their new skills. As it turned out this employee learned fast—likely due to their passion on the subject—and ended up representing the entire information technology department in Canada for this project. The project was a major success, and this employee also rose up the ranks at this company very quickly.

I truly believe that allowing employees to use their existing skills and/or giving them the opportunity to learn new skills that interest them, no matter how small they may seem, will benefit the employer, but more importantly, it will allow an employee to grow and become a valuable and loyal asset to that company. It will keep them interested and engaged and wanting to contribute in a positive manner.

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All eighty employees at Techmetals, a small metal-plating company in Dayton, Ohio, are involved in plant layout, scheduling, and delivery; rather than having just one piece of the puzzle, they work in teams.

After every team meeting, Diane Belcher, senior director of product management at Boston-based Harvard Business Publishing, asks team members to share their learnings from the meeting. More importantly, she asks them how the learnings can help further develop their roles and how they can improve client service.

Norse, a soft facilities management company, originally set up a learning program to improve literacy and numeracy among frontline workers, but its success led Norse to establish a training academy to support career development. Tricia Fuller, group HR director, says it has been important in changing the psychological contract between employees and managers, with employees reporting that they feel valued and believe they have a future with the organization.

Microsoft India tries to provide opportunities to all its employees to work across various roles, such as sales, marketing, business process outsourcing, software development, and research.

Taj Hotels established potential assessment centers to ensure career growth. The centers, along with managers, identified high performers and sent them to intensive mini-MBA programs that train them outside their area of work experience to develop them for future management positions. Taj also provides opportunities for supervisory and managerial personnel through a Career Development Committee that grooms them to prepare for higher-level positions.

After realizing that as many as 25 percent of employees quit to pursue higher education, many Indian business process outsourcing companies (companies that provide outsourced services for US companies), such as Wipro Spectramind and TransWorks formed partnerships with educational institutions and designed courses to meet the needs of the industry, allowing employees to keep working while attaining an education and providing a deeper talent pool for the companies.

Hotel management firm Winegardner & Hammons invests in its people and their long-term growth with training and internship opportunities to help them reach their professional goals. The company is also committed to promoting qualified candidates from within.

At Tata Consultancy Services, employees have the opportunity to work in multiple sectors, with different technologies, and across diverse teams in order to gain exposure to all aspects of the company and industry. Employees are always learning and experiencing something new and developing new talents and skills, according to HR director Nupur Mallick.

A Mars employee in the Netherlands explains his company's career paths: “Mars gives everyone in the business the chance to grow. Each year, we are given the opportunity to develop our skills and prepare ourselves for our next move within Mars. Everything is possible career-wise: horizontal, vertical, cross-segment, cross-site, cross-department moves are all strongly supported by management.”

The message we give employees is that they're responsible for their career development, but we'll help them figure out which paths are the best for them to take.

—ADELLE DIGIORGIO, CORPORATE EMPLOYEE RELATIONS DIRECTOR, APPLE

Google has pledged $1 billion to its Grow with Google initiative that will help retrain people who may lose their jobs due to artificial intelligence. Google is sponsoring 50,000 Udacity scholarships for Android and web development, split between new and experienced developers. To help retrain 1.2 million people over a three-year period, the company has engaged Goodwill Industries.

Owens Healthcare offers employees the chance to shadow their coworkers for up to half a day. This program allows employees who are interested in a career change a chance to see what other positions in the company are actually like.

Ask people what they want to do. The workplace offers so many opportunities, and when we pair them with the right people, the results are amazing.

—CHERYL HIGHWARDEN, CONSULTANT, ODT

Employees at Let's Play Sports in San Diego have an opportunity to meet with executives every Friday to discuss MBA-level content. Executive coaching is offered to employees who meet certain qualifications, and an annual conference is offered to improve leadership abilities.

At UK-based Norse Group, any manager can request a meeting with the group HR director to request training and support for personal development. Frontline employees also have the opportunity for additional training. Norse has its own training academy, which supports career development, health and safety, and cost reduction. The results are very promising. Employees feel more valued by the company, and they see themselves having a future there.

To provide career development for their employees, LinkedIn offers a global job rotation program called [in]cubator, an idea incubator. Four times throughout the year, anyone or any team can present a product idea to executive management. The only stipulation is that the proposal must serve the needs of customers or fellow workers. Once an idea is approved, an executive mentor is assigned to the individual or team. They are allocated a maximum of three months to work exclusively on the project.

To help employees learn more about its products, Wegmans supermarkets, based in Rochester, New York, provides flexible work hours, special assignments, world travel, and college scholarships. The company is also committed to promoting from within, with two-thirds of job vacancies filled by current employees. As a result, turnover has dropped to 4 percent, compared to 100 percent for the industry overall.

According to a report issued by the Center for Creative Leadership, five key business experiences can develop employees:

  • Challenging jobs.
  • Other people, mostly bosses.
  • Hardships.
  • Coursework.
  • Off-the-job experiences.

Employees at Whole Foods have greater control of their career path compared to employees of competitor stores. To help increase awareness of career options, the company posts all promotional opportunities and new jobs. They also encourage employees to select their teammates. Company statistics show that 90 percent of management were promoted from within.

New York–based Deloitte & Touche offers the Future Leaders Apprentice program to new hires. The program is designed to help employees plan their future and further develop essential skills they will need.

Saudi Telecom of Riyadh, Saudi Arabia, rotates 25 percent of its organization into different positions each year.

At REI, surveys revealed that skill building was very important to twentysomethings, whereas older employees wanted clear opportunities for career advancement. To satisfy the hunger for growth, REI no longer relies solely on on-the-job training, but also offers formal management training and development classes. The result has been lower turnover costs than industry averages for retail.

Each month at REI's headquarters and distribution center in Kent, Washington, the training and development team hands out copies of business-related and other books to each department. The Pass It Forward reading program makes it easy—and free—for employees to absorb ideas in classic business tomes, as well as the latest bestsellers.

Flight Centre UK, a travel agency headquartered in New Malden, United Kingdom, puts its money where its mouth is when it comes to promoting from within for its top positions, believing that doing so enhances employee engagement. Says managing director Chris Galanty, “Four of the six directors started as travel consultants in our shops. This shows people in our organization that providing opportunities is not just something we say we do—we actually live by it.”

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