“A new employment deal is needed for the 21st century, where employers offer employees continuous development and job enrichment, free of the false pretense of a job for life.”
Rosabeth Moss Kanter
One of the clear implications of the new working world is that traditional structures, career paths and assumptions are no longer the default. Organisations are adapting to a landscape where rapid innovation, access to skills, productivity, and adaptability are paramount.
Simultaneously, employers are also dealing with employees’ increasing expectations regarding their career development, flexibility, and overall experience at work. For example, a 2024 study from Gartner, found that only 46% of respondents (opens a new window) felt supported by their current employer in their career development.
Developing a compelling career offering — that also provides the workforce and skills pipeline the organisation requires for the future — is not only a strategic business imperative, but also a key differentiator for employers aiming to attract and retain their industry’s top talent.
The changing nature of careers
The assumptions that once underpinned traditional career development and progression are being challenged, and have been for some time. The rise of artificial intelligence (AI), automation, remote working, and job redesign have disrupted the notion of work itself.
Employees increasingly seek flexible, personalised career journeys that align with their aspirations and values. Traditional roles are evolving into sets of skills and activities, often completed through diverse methods — including AI integration, gig working, and hybrid human-machine workflows.
Moreover, employees are no longer content with conventional, linear career progression. Instead, they want purposeful work, opportunities to grow laterally, to build diverse skill sets, and take on projects that inspire them — including after they ‘retire’ or take a career break. On the other hand, some employees are openly seeking ‘good work’ they can carry out at a pace and schedule that works for them. These developments require employers to rethink and adapt their career development strategies to align with modern workforce dynamics and future-of-work trends.
Careers as a core component of the employee value proposition
We see a well-defined career, skills and growth offering as a cornerstone of the overall employer proposition — and an area of priority for employees as they endeavour to future-proof their own careers (see figure 1). However, despite growing investment in talent development, Gartner’s research points out that nearly 60% of employees are dissatisfied with their career development opportunities. And the gap between the expectations and experience of employees versus what the employer is offering is also increasing.
Organisations that fail to prioritise the new, future-oriented dynamics of a career development system risk losing their top talent to competitors offering more appealing opportunities. Employees expect meaningful work, opportunities for growth, and clear pathways to achieve their goals. Addressing these expectations is crucial not only for retention, but also for fostering an engaged, motivated workforce.
Employers who prioritise career management systems create environments where employees feel valued, empowered, and somewhat insulated in an uncertain working world. This commitment enhances organisational reputation, improves employee satisfaction, and ultimately drives business success.
Refreshing career management ecosystems
To meet the demands of the modern workforce, proactive employers are reimagining their career management ecosystems. Key design considerations for discussion in every organisation, include:
Shift from roles to skills
Design career frameworks that focus on skill acquisition and application rather than rigid roles. Highlight how employees can build transferable skills to future-proof their careers.
Promote and foster internal mobility — laterally and vertically
Encourage employees to explore cross-functional opportunities within the organisation. Implement tools and systems that make it easy to identify and apply for internal roles or projects.
Integrate technology to help
Use internal, increasingly AI enabled talent marketplaces and talent analytics to match employees with development opportunities, identify skill gaps, and predict future workforce needs.
Offer continuous learning
Invest in upskilling and reskilling programs and supporting mechanisms that help employees stay ahead in their fields. Partner with educational platforms and provide on-demand learning resources.
Tailor the experience and challenge employees
Recognise that career paths are not one-size-fits-all. Provide personalised career coaching and development plans to address individual goals and aspirations. Challenge employees to take ownership of their career journeys, supported and enabled by what you provide as a leading employer.
Embracing generational diversity and changing needs
As part of a non-traditional employment model, acknowledge and creatively accommodate the diverse sources of talent, different life-stages and circumstances, including ‘return-ships’ and opportunities for older workers.
Refresh the career management support system
Consider alternative ways for employ
ees to get the career development support, coaching, and mentoring they need. This could be an opportunity to transform the traditional role of the manager, enabling employees to experience their career development, progression, and sponsorship from others in the organisation.
Practical steps your organisation can take
Engage with employees on this issue: Conduct listening exercises to better understand career expectations and gather feedback on existing career advancement processes and development programs. Use these insights to co-create career offerings that resonate with employees and ensure their role in achieving their own career mastery is also up to them supported and enabled by you as the employer.
Workforce, skills, and talent planning: Align career development strategies with organisational goals. Map out future skill requirements and develop plans to address gaps through hiring, training, or gig work. By integrating your strategies for career development, skills (including AI), and workforce planning into a combined, interconnected strategic ‘package’, you will ensure that this combined agenda gets the executive leadership attention and support it needs.
Review and enhance communication and delivery effectiveness: Develop clear messaging around career opportunities and support systems. Regularly share success stories to inspire employees and reinforce the organisation’s commitment to growth. Employees typically evaluate your career management system based on their own experience, so it is critical you ensure their experience is what you would like it to be.
Monitor and adapt: Establish a few simple metrics to monitor and evaluate the effectiveness of career programmes, interventions, and experiments. Stay attuned to workforce trends and novel solutions, continuously refining strategies to stay competitive.
Start small and experiment: Identify one function of the organisation with the appetite and mindset for change, as well as, the particular risk in terms of attraction, retention, and access to skills. Experiment, iterate, and scale as appropriate so that progress can be made and lessons learned without the need for a fundamental overhaul of all areas — some of which may be unsuitable for the changes you wish to introduce.
How can Lockton help?
By enhancing this element of the Employment Deal — and integrating it with the other elements of the wider brand and offering — employers can create robust and aligned career management systems that meet the needs of today’s workforce, while preparing for the demands of tomorrow. In the new world of work, a dynamic and attractive career offering is not just an advantage but a necessity.
As part of our Prosper services, we work with clients to, firstly, identify the gaps they have in their career offering and delivery system through our Employer Proposition Scan (EPS) and, secondly, using our Career, Skills & Growth System, we then co-create a simple roadmap for creating the career development model you need now and for the future.
