How career clarity drives employee retention

Do you want to build a future-ready workforce while retaining top talent? It’s the ideal scenario, isn’t it? If your members of staff are clear on their next steps with their career development, it’s going to help them – and it will help your business to keep hold of them in the long term. Why would they want to move elsewhere, to a company they don’t know, when they have all they need with your organisation?

It’s a fact, according to the Chartered Institute of Professional Development (CIPD), that the average employee turnover rate is 35% of UK workers leaving their jobs each year. That’s over a third, made up of 27% of workers moving to other organisations and the rest leaving the workforce altogether, due to retiring, taking a break, or taking up study.

By introducing career clarity into your organisation:

• Churn can be reduced
• Costs can be cut
• Staff engagement will be improved
  
  

A powerful tool in driving employee engagement, motivation, and retention, career clarity is defined as a worker’s true understanding of their career path, including any progression possibilities and the potential of long-term opportunities within the business.

So, why is it important? Career development and employee retention go hand-in-hand nowadays. Having career clarity is not an add-on anymore. A Workable study showed an increase in the percentage of UK employees citing job clarity as more important, rising to 22.5%, up from 16.8% two years before, with the importance of career advancement leaping from 28.3% to 37.8%.

Employees are keen to know:

• What level of roles are available to them
• What skills they need to build in order to make the next step up
• How their performance will be measured
• How accessible and inclusive career development opportunities are

If they aren’t receiving transparent answers to the above queries, then employees – even top talent – might look elsewhere for the answers… at another organisation. 

In another survey, it was calculated that 48% of UK employees believed that advancing in their job was a possibility, with 49% feeling they had adequate training. If there are no clear pathways for growth, then staff feel like they aren’t moving forward.

The same study showed that those employees who were happy with growth opportunities at work were far more engaged in their job, with “moderately satisfied” workers being seven times more likely to have access to professional development, mentoring, and learning opportunities.

If there are promotion opportunities and clear processes within an organisation, this can boost employee satisfaction nine-fold, with consistent communication on promotion criteria improving it 12-fold.

If there is a lack of access to learning and development tools, this can cause a high turnover of staff. According to a 2024 study from Randstad, while 69% of employees valued reskilling, over half (57%), said there were no development opportunities available at their workplace. Those members of staff that hadn’t had training were almost twice as likely (42% versus 25%) to leave.

There’s another compelling reason where career development and employee retention correlate, as it costs, on average, £30,614 to replace a staff member that earns £25,000, according to these UK employee retention statistics. Having career clarity that leads to higher staff retention makes sense, as it reduces the costs of the business.

But it’s not just about signing employees up to as many training courses as possible. They need to be targeted to the individual. This can be done by incorporating career pathing journeys into career frameworks that marry up mentoring, learning, and constructive feedback, funnelling each employee onto a journey that gets them to where they want to be in their career.

Here are some practical steps that can be done to build systems that deliver career clarity, reduce staff turnover, and improve career development and employee retention.

Create visible progression maps across departments and key roles within the organisation. This can be done by identifying relevant skills, defining timelines, and having benchmarks for advancement. By regularly communicating this to staff, they will feel more invested in their own role and their career progression.

To avoid having to lay off employees, create a mix of peer learning, mentorship, formal training, and position shadowing, ensuring that all of these advancement opportunities are available to everyone, across all levels of the company.

If employees don’t feel there is any room for growth, and they can’t see the next level up within the organisation, productivity will drop and motivation might peter out. In order to prevent this from happening, clarify what promotions are available and what each worker needs to do in order to move to the next stage of their career. Part of this drive can include offering training or coaching to get them to where they want to be.

Your middle managers will be at the heart of ensuring career development and employee retention, so make use of them by equipping them with the tools to have regular career development discussions with individual members of their teams, especially those relatively new to the workplace such as Gen Z workers.

Showing respect to the workforce is key, especially to those workers who might not feel so involved because they are part time or work remotely. It’s wise to include them just as much in these career advancement plans, so support those workers with customised progression plans that align with modern working expectations.

Promote a long-term commitment amongst staff by encouraging them to invest in the company’s mission. Illustrate success stories, celebrate promotions, and reinforce inclusion, so nobody feels left out and staff come to work every day with a smile on their face.

None of the above will work if you don’t track how all of this is panning out. To achieve this, send out employee engagement surveys and plan regular career-focused chats, to gauge how staff are feeling. If there are any warning signs or trends within the workplace, it would be worth acting on these quickly to prevent any further disruptions.

Having clarity on career development is a competitive advantage. Investing in a structured career journey that is inclusive and transparent leads to:

• Higher staff engagement
• More robust internal mobility
• Reduced staff turnover
• Lower overheads
• Increased organisational loyalty

The challenge isn’t just to retain staff, it’s to build careers for them so they stay with the company. When employees can see a future within a business they are more likely to remain, gaining experience and the skills that will benefit the business in the long run.

If your organisation is considering outplacement services, contact us at the earliest opportunity to find out more. 

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Elizabeth Openshaw

Elizabeth is a diligent, articulate, and versatile Blogger and CV Consultant with over 13 years of experience in the job search sector, including extensive expertise in outplacement services and CV reviews, supporting job seekers and all of those involved in the recruitment process. With a personable and self-assured outlook, Elizabeth consistently produces work to a high standard and hits deadlines 100% of the time. Showcases excellent organisational and time management skills, proven by 17 years as a Journalist on numerous national publications including as Features Editor on a monthly glossy magazine and as a regular contributor to Men’s Health, Slimming World and Candis. As Director of her own company, OpenDoor CV Expertise Ltd, Elizabeth displays a high level of professionalism, demonstrated by the positive recommendations and testimonials from many previous clients. Additionally, she is an active member of both the British Association of CV Writers (BACVW) and the Institute of Employability Professionals (IEP), supporting people to gain work, progress in work, and retain work.