Creating career paths, or “career pathing” is the process of aligning opportunities for employee career growth with organizational talent priorities. This process includes discussions with employees to develop potential career moves on the farm based on vertical, lateral and cross-functional roles. Career pathing is driven by the individual’s skills, interests, and career objectives, within the current and future needs of the farm.
Why should we care about career paths?
Employee turnover costs money:
- Costs associated with employee departures (losses in productivity, extra management time spent covering for the open position, filling out necessary paperwork, lost employee expertise, unemployment insurance premiums, etc.)
- Hiring and recruiting costs: (advertising, interviewing, screening, background checks, etc.)
- Training costs: (materials and time training)
- Lost Productivity: (It will take a new employee time to learn the position and get up to speed, along with the extra time that is lost by management that could be spent in other areas of the business.)
- New Hire costs: (Extra time and paperwork that is necessary when onboarding a new employee.)
Labor shortage:
- According to the Bureau of Labor Statistics (November 2023) there were 212,000 job openings in Wisconsin. At 3.2% unemployment, there are 100,400 unemployed residents to fill those available jobs.
What are the benefits to the farm business?
Aligning an employee’s career goals with the strategic goals of the farm not only helps the organization achieve its goals but also helps the business in the following ways:
Differentiate itself from labor market competitors. Research by WorldatWork shows that organizations that do not invest in training and development of their human capital lose valuable employees to their competition. Employers can easily differentiate themselves from competitors by investing in their employees’ career development. Even a relatively small employer investment has a positive impact on loyalty.
Retain key workers. Managing employee perceptions of career development opportunities is a key to enhancing engagement and loyalty among employees. Organizations should identify workers who are central to the execution of the business strategy and then develop or update retention plans to meet the needs and expectations of these employees. Critical workers include those who have roles in key business outcomes, significantly influence the farm’s value chain, or are in short supply in the labor market. Providing identifiable career paths is an important aspect of retention plans, along with coaching and mentoring employees with high potential and moving proven performers into new roles that fit skills developed over time.
Keep younger workers. Employees’ views of work and growth opportunities vary by generation. For example, Generation Y workers (those born between 1981 and 1996) are the least likely to be motivated by pay increases and most likely to be interested in learning new skills. They are also more likely to value a career path than any other generation. Research findings show that high percentages of Generations Y and X (those born between 1965 and 1980) want pathways to personal growth.
Decrease turnover after an economic downturn. When the economy recovers from a downturn, employers should be concerned about losing critical and high-potential talent. A spike in voluntary turnover typically occurs during economic recovery. The cost of voluntary turnover can be significant, and it includes loss of productivity, lost institutional knowledge and relationships, and added burdens on employees who must pick up the slack.
What if new opportunities are limited on my farm?
Farms with small teams and/or flat organizational structures may not have abundant opportunities for new positions for employees to move into. Farms with limited options for new jobs should look to cross-functional skill-building opportunities. For example, an employee with mechanical aptitude may be a great candidate for a lateral move into your equipment maintenance team. If you are considering an investment in new farm automation, look to your existing team for ways that individual employees can grow to support that technology. Look for ways to invest in training for valued employees to move into other important positions on the farm.
The bottom line is that employees want to know what job opportunity is next. If you do not have a career path in place, you risk losing the employee to another employer who does. Invest in your employees by providing training to improve their skills and consider their individual goals as you define a long and productive career on your farm.
