A career ladder is a structured framework that provides employees with clear pathways for career progression. By defining specific roles and the skills required to advance, career ladders help employees grow within an organization while fostering trust and engagement. This blog explores different career ladder programs across industries like healthcare, manufacturing, and energy field services, highlighting their benefits for employees and organizations.
Table of Contents:
What is a Technical Career Ladder?
A technical career ladder is a structured pathway that outlines the progression of roles and responsibilities within a profession. In technical fields like Engineering, Healthcare, Manufacturing, Oil and Energy, and Field Service Operations, career ladders offer clear benchmarks for growth, helping employees navigate from entry-level positions to more advanced roles. These programs often go by various names, such as Engineering Technical Career Ladder (ETCL), Clinical Ladder in Healthcare, and Fixed-Step Progression in Manufacturing. Each career ladder framework helps employees navigate career mobility by outlining the specific knowledge, skills, abilities, qualifications, performance expectations, and experiences required for advancement while supporting organizational growth.
Career ladders also foster trust between employees and organizations by offering transparency in performance expectations, growth opportunities, and the rewards associated with career progression.
Example Technical Career Ladders Across Industries
Frontline Career Pathing and Workforce Challenges
Industries with frontline workforces, like Healthcare, Manufacturing, and Energy Field Services, face unique challenges. Issues such as employee burnout, rapidly evolving technology, and the perception that upward career mobility is limited are common. These challenges significantly impact the business, including revenue loss, employee turnover, reduced productivity, and eroded trust between the workforce and the organization. For example:
- The average cost of turnover for a staff RN increased by 7.5% in the past year to $56,300, with a range of $45,100 to $67,500. This is up from the average cost of turnover for an RN in 2022, which was $52,350. (Source: 2024 NSI National Health Care Retention & RN Staffing Report)
- In oil and gas, 87% of the almost 12,000 energy professionals in 149 different countries surveyed by GETI, would consider switching jobs, but most (61%) would stay in oil and gas. Among the other 40% that would go elsewhere in the industry, the most popular option was the renewables sector. Job switchers were mostly motivated by opportunities for career progression, highlighting that the “battle for oil and gas skills will be fought on home turf with skills mostly circulating within the sector.” (Source: The Global Energy Talent Index Report 2024)
- Four in ten organizations (41%) have cited revenue losses as a long-term consequence of the labor shortage, according to new research by Visual Components. The developer of 3D simulation software surveyed more than 300 manufacturing decision-makers in the U.S., U.K., and Germany. In further findings, increased labor costs (54%) are also identified as the main short-term consequence, alongside delays in projects (36%), inability to meet customer demand and production targets (31%), and profit or revenue declines (29%). (Source: Food Engineering)
One way organizations can help mitigate these issues is to implement career pathing programs, such as technical career ladders to enhance trust and promote internal growth. These programs offer clear pathways for career progression in frontline industries, helping employees feel more engaged, motivated, and confident to pursue higher-level roles within the organization. In turn, this helps to reduce turnover, improve productivity, and boost overall organizational success.
Healthcare
Career ladders enable clinical staff like nurses, medical technicians, and administrators to advance through specialized training and certifications, outlining the steps required for employees to grow in their roles, ensuring transparency and accessibility for career development.
Manufacturing
Career ladders guide and progress employees from entry-level positions to skilled trades. These career progression programs often promote certifications in areas like machinery operation and quality control to progress up the ladder, expand their expertise, and pursue higher-paying roles.
Energy & Field Service
Technical career ladders are crucial in creating a workforce that dynamically responds to fluctuating customer demands. These ladders emphasize safety certifications, technical skills, and customer and project-specific competencies to ensure workforce readiness.
Career Ladders: Mutually Beneficial for the Frontline Workforce and Organizations
How Career Ladders Build Trust With Frontline Workers
Technical career ladders can significantly impact trust between the frontline workforce and the organization by offering a clear career advancement and skill development pathway. These ladders also help to prove the organization’s investment in the employee’s future. Here are some key ways a career ladder contributes to building trust.
Prioritized Skill Development
Organizations use career ladders to prioritize the skills and competencies aligned with the business strategy. This allows employees to focus their development efforts on areas that will be most impactful to the business and their growth within the organization.
Career Roadmap for Advancement
A clear progression path acts as a career roadmap offering guidance on what steps to take to advance. This motivates frontline workers to be more aspirational in their development, enhancing employee engagement, retention, and job satisfaction.
Structured Training
Using validated skills and competency insights about each employee’s proficiency level, organizations can implement targeted training programs that align with the ladder’s progression requirements. This ensures employees are well prepared for advancement.
Recognition of Expertise
A defined career pathing framework and ladder acknowledges an employee’s existing technical skills and contributions, validates their role within the organization, and recognizes them for their growing expertise.
Transparency and Ownership
A well-defined career ladder promotes transparency in expectations and provides a visible path for growth within the business. Employees can take ownership of their career progression and see tangible opportunities for their future within the company.
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How Career Ladders Benefit Organizations
Technical career ladders offer key benefits for employees as they navigate their development and place within the business and these benefits also extend to the organization. Investing in structured career pathing frameworks helps the business be more competitive and efficient in operations. Here are key ways career ladders benefit organizations.
Improved Employee Retention and Turnover Costs
Employee turnover can be costly, especially in technical industries where skilled labor is critical. Gallup estimates that U.S. businesses spend nearly a trillion dollars each year on employee turnover as replacing an employee can be one-half to two times the employee’s annual salary. Career ladders clarify growth opportunities and increase engagement, making it more likely they’ll stay with the company. This reduces recruitment costs, training time for new hires, and the loss of institutional knowledge.
Improved Performance and Productivity
As employees strive to meet job role requirements for career advancement, the structured approach to skill development leads to a more capable and efficient workforce. Employees working to achieve specific goals are more likely to stay engaged, take initiative, excel in their training, and work more efficiently and safely, boosting overall performance and productivity. When focusing on people levers to drive productivity, such as enhancing talent through skills building, McKinsey reports the best performers are 800% more productive than the average employee in highly complex roles.
Cultivating a Leadership Pipeline
Career ladders help create a leadership pipeline by identifying and nurturing top talent. Organizations have a career roadmap of individuals within the business who can fill management or senior technical roles, ultimately helping to retain critical knowledge and create a smoother, reliable succession planning process.
Alignment With Business Strategy
Organizations that establish career ladders can align employee skill development with the overall business strategy. For example, energy might emphasize technical training for renewable energy technologies to support the shift towards wind energy, healthcare might focus on certifications in critical care or advanced practice roles to support the increasing demand for highly skilled nursing staff, and manufacturing might focus on automation or lean manufacturing skills to support the shift towards increased digitization and robotics in the industry. Ultimately, this alignment helps ensure the workforce evolves alongside the organization’s strategic business goals, creating agility and adaptability.
Strengthened Organizational Reputation
Organizations committed to developing their employees through structured career development programs can gain a competitive advantage for talent acquisition and retention. A strong career ladder program can enhance the organization’s reputation as a top workplace, ultimately attracting top talent.
Building Trust, Transparency, and Driving Strategic Business Success
The most effective career ladder programs do more than provide advancement opportunities—they establish trust between the employee and the organization. This trust is built on three critical elements of transparency: transparent expectations, progress tracking, and employee recognition when advancement criteria have been met. By fostering these elements, career ladders contribute to a mutually beneficial relationship. Employees experience greater career mobility and job satisfaction, while the organization benefits from improved retention, increased productivity, and enhanced operational efficiency. Investing in skills-based career progression strengthens trust and is a strategic approach that drives long-term organizational success.
Competencies and Beyond: A Holistic Career Pathing Framework
Technical competencies form the backbone of most career ladders, and a true validation of an employee’s proficiency is essential if these competencies form the basis for advancement. But beyond simply meeting the technical requirements of proficiency, organizations may require additional activities and experiences to enhance an employee’s readiness for progression up the ladder. For example, presenting a technical topic to an industry group can serve as evidence of both deep technical proficiency and more broad skills such as communication and leadership.
This more holistic approach to career pathing can transform a career ladder into a “choose your own adventure” development experience for employees, offering varying opportunities to prove proficiency in a particular skill outside of the routine competency assessment and validation. This provides a more engaging skill development experience, helping employees own part of their advancement journey, while still ensuring that in the end, these skills have been executed and validated, and the individual is ready for advancement.
Most importantly, this approach fosters trust between employees and the organization by providing transparency, support, and recognition. Both parties invest time and effort into development, and in the end, employees are fully equipped for career progression while the organization benefits from improved retention, productivity, and efficiency.
Frequently Asked Questions About Technical Career Ladders
What Is a Career Ladder?
A career ladder is a structured pathway that helps employees understand the progression of organizational roles and responsibilities. Career ladders focus on the technical skills and competencies required for a specific role, and any experiences, research, certifications, educational criteria, etc. that are necessary for advancement.
How to Create a Career Ladder?
To create a career ladder, organizations must identify key skills, competencies, and experiences required for each role, establish clear performance expectations, and implement a structured training program to support employees in their journey toward career advancement.
What is Career Pathing?
Career pathing is the mapping out the various career opportunities available within the organization. Tools like career ladders support these programs and help guide employees through a specific development journey.
What is the Difference Between a Career Path and a Career Ladder?
A career path refers to the general progression of roles someone might take. A career ladder is a more structured, step-by-step set of guidelines that leads an individual in a progression journey to meet specific career goals in line with an organization’s overall needs and goals.
Why is Career Mobility Important?
Career mobility is important because it provides employees with opportunities to grow. This growth can occur as upward mobility promotions and lateral movements across departments. This broader view of career mobility allows employees to gain a more diverse set of skills and experiences, and explore new roles or fields within the organization. By offering upward and lateral mobility, companies can foster a more flexible, engaged workforce better equipped to adapt to changing business needs. It also may lead to higher job satisfaction and stronger retention.
More Resources for Skills and Competency Management
- Your HRIS Wasn’t Built for Technical Competency Management
- Skills Management Tool for HR and Operations with Josh Bersin
- Identify, Analyze, and Close Skills Gaps with Skills Management
- Nurse Retention: Impacts on Quality of Care and Strategies to Improve
- Skills Fuel Competency Assurance and Energy Innovations
