How to create a meaningful career path in the financial services sector

Amidst the uncertainties of today’s post-COVID business landscape, job hunters in the financial services industry are looking for much more than high salaries. They’ve also got a host of other expectations for potential employers, including everything from workplace flexibility to corporate social responsibility.  Opportunities for growth and development top the list for many aspiring employees. That’s where career progression paths come in. When it comes to attracting, engaging, and retaining employees in financial services, creating clear career development paths is a winning strategy.

What is a career progression path?

“Getting a foot in the door” has long been used as a metaphor for entry level job seekers. While this is still a factor, the next generation of financial service talent is looking for more than an inside edge to getting a job. They also want to know that the metaphorical door will open to a future with opportunities for career advancement.

In fact, prospective employees should be able to see exactly what their opportunities will look like three to five years into the future, according to Savvi Recruitment Partner & Co-Founder Therese Cadell.

Career progression paths are maps (both literal or figurative) that clearly delineate learning and advancement opportunities—and where they lead. They demonstrate exactly how employees can improve their skills and knowledge to master their current jobs and move on to new or different positions.

In doing so, they serve as an invaluable tool for companies to showcase their commitment to supporting their employees’ career goals.

Importance of progression for candidate attraction

While career progression paths are important for all job seekers, they’re vital for sought-after Millennials.

Because these employees know they’ve got options (either with your firm or elsewhere), they're demanding much more than "good jobs." They’re looking for careers and companies that connect with the things that matter most to them. They’re also happy to walk away from job opportunities that don’t meet what they’re looking for.

Career progression paths enable job seekers to not only see themselves at a particular company, but to envision themselves on the path to leadership roles in the future. Given the choice between accepting a job at a company where the path forward is unclear and one where they can visualise various forms of career progression, potential employees will favour the option with an appealing and foreseeable future. Giving them this perspective can be what differentiates your company from your competition.

Career progression paths also speak to a positive company culture, where learning and development are embraced and supported

The importance of progression for employee retention

The Millennial workers of today are challenging the idea of the ‘job for life’.  They’re not as concerned about moving onto the next role after a couple of years and are keen to develop quickly. So it stands to reason that when asked about their reasons for exiting a particular role, lack of advancement is one of the top answers. It follows that creating advancement opportunities—and clearly communicating their existence—can compel them to stay.

Indeed, career progression paths are a win-win for employers and employees alike. When employees feel more engaged and supported in their roles, morale, motivation, productivity, and responsiveness to organisational goals all increase.

And then there’s the fact that employee retention costs much less than employee recruitment. Just last year, it was reported that employee turnover could cost Irish businesses an average of €4,759 each.

Communicating progression paths effectively

Career progression paths can only be used as an effective recruitment and retention tool if communicated well.  After all, how can someone use something that they don’t even know exists? Ultimately, the key to harnessing the power of career progression paths lies in raising awareness about them.

There are many ways to get the word out about career progression paths at your company, including sharing information about career advancement opportunities, skills training and development programs, and career planning resources. These conversations can—and should—be both formal and informal. Savvi Recruitment Director John Ennis recommends that managers routinely sit down with their employees for causal check-ins regarding their job satisfaction, in addition to during annual reviews.

In the fast-moving financial services industry it’s also critical to address the speed of change. Make sure to cover the mechanisms your company has in place to adapt to everything from evolving technologies to new products—and how your career progression plans accommodate changing dynamics.

The better you articulate your company’s career progression paths, the more valuable they become in terms of encouraging workers to see themselves at your company at multiple levels.

One last thing to keep in mind about communicating your career progression paths? While transparency is universally beneficial, it’s uniquely advantageous toward diversity, equity, and inclusion (DEI) efforts. Open lines of communication about skills- and competency-based career paths can help mitigate isolation and concerns about bias for diverse and underrepresented employees.

Where to start when creating career paths for employees

All of which begs the question: How can companies go about creating career paths for their staff? The answer is to start with some strategic thinking about your organisation, roles, and trajectories. Key questions to ask include:

• What “entry-level” or other positions do most people take with your business?
• What upward or lateral movements are common from there?
• What knowledge and skills are necessary to move between specific positions?
• What types of opportunities already exist within your company?
• How can you facilitate more internal movement between these opportunities?

You can use the answers to these questions to formulate a clear career map detailing exactly what steps are involved in progressing all the way up to leadership positions. This turns ambiguity about the possibility of career advancement into assurance.

While positioning your financial services company to attract and retain the best and brightest talent is always beneficial for your business, it’s more vital than ever at this point in time due to the current workers’ market and the resulting steep competition for top hires. Creating and communicating career progression paths can help you not only show prospective employees the opportunities that will be available to them if they join your company, but also help them see the career advancement and success they crave.