Dr. Gleb Tsipursky – The Office Whisperer
Nirit Cohen – WorkFutures
Angela Howard – Culture Expert
Drew Jones – Design & Innovation
Jonathan Price – CRE & Flex Expert
- Modern work demands are driving individuals to seek out roles that align with the values they hold both in their personal-life and at work.
- 29% of employees quit their jobs within a month after their first promotion.
- Deloitte finds that a sense of belonging in the workplace can lead to a 56% increase in job performance, a 50% reduction in turnover risk, and an overall increase in employee job satisfaction.
In the time after giving an employee a promotion, many managers probably feel really great. They were able to give good news to someone they work with, showing recognition for hard work and hopefully offering a raise that will make a difference. That’s a high point as a supervisor.
In a surprising 29% of these stories, though, that same promoted employee quits — quickly. That’s a low point for those same supervisors, who may then be asking themselves what happened.
The connection between promotion and resignation
A substantial number of employees are now demanding more from the work culture that surrounds them, especially when weighing out opportunities and benefits provided from their company versus other employers who may be knocking at the door.
A recent ADP survey of 1.2 million U.S.-based employees revealed that 29% of employees quit their jobs within a month after their first promotion.
It’s worth noting that the rate of employees who resigned without receiving a promotion stood at 18% — which is 11% less than those who received promotions.
A promotion is a moment that can entirely change the outcome of an employee’s motivation and engagement within a company — for better or for worse. But, if a better paycheck or a fancy new title to put on business cards, a Linkedin profile, and digital resume, isn’t enough, then what is?
For today’s workforce, a promotion needs to be more than just a change in title, and (hopefully) pay. What actually gives a promotion the meaning so many employees now expect?
Why adding meaning matters
Studies reveal that the art of creating meaningful promotions requires more of an individualistic approach — one that aligns the employee’s personal aspirations with the overall business culture that surrounds them.
Drawing from research, here are five key strategies to make promotions more meaningful and effective in 2024.
1. Align Promotions with Work-life Aspirations:
Modern work demands are driving individuals to seek out roles that align with the values they hold both in their personal life and at work. Flexible work environments and a culture that aligns with one’s own personal beliefs can contribute to higher retention rates.
An example that comes to mind is whether a company is environmentally friendly, or not. A recent study published by Yale reveals that 51% of job seekers would accept lower salaries in order to work for an environmentally responsible company.
Effective managers should recognize this and engage in meaningful dialogues with individual team members to understand their unique aspirations.
More stories for you
According to an article published by workplace management platform Leapsome, this tailored approach ensures that promotions align with individual career paths, thereby enhancing their relevance and impact on employee retention.
2. Integrate Meaningful Work Practices:
Research cited by McKinsey & Company reveals that when employees are able to find meaning in their work it can boost individual performance by up to 33%.
The increase in productivity that results from this heightened performance is estimated to be valued by as much as $10,000 per individual, according to an article published by Fast Company.
The author of the article, Tamara Myles (who has researched the impact of productivity and published a book on it called “The Secret to Peak Productivity: A Simple Guide to Reaching Your Personal Best”) elegantly lays out three factors that make work meaningful.
She suggests work is meaningful if we:
- Feel we’re contributing to something that matters.
- Are given challenging opportunities to grow and improve our skills.
- Experience belonging as part of a community.
Promotions, therefore, should be structured not just as a step up, but as a gateway to more meaningful work. This means not just adjusting a title to recognize work already being done, but also updating the employee’s responsibilities to reflect a higher level of expertise.
To be clear, this doesn’t mean piling on to what they were already doing, it may mean reevaluating responsibilities among others on the team to open up room on the promoted employee’s plate for new tasks.
By establishing a culture that feeds meaningful work, leaders can help mitigate higher attention rates and promote a true sense of belonging.
3. Mentorship Opportunities:
With Gen Z employees expected to outnumber Baby Boomers in the workforce in 2024, mentorship opportunities is something that could be of increasing value in the coming years.
In fact, a recent study published by StaffCircle found that a majority (73%) of Gen Z workers are likely to leave an organization if they do not receive frequent feedback and communication from their managers — compared to 52% of non-Gen Z employees.
The data suggests a clear demand for managerial interactions and feedback.
Mentorship opportunities then, have the potential to enrich one’s experience of getting promoted.
Deloitte’s 2023 Gen Z and Millennial Survey adds credence to this notion. The survey’s data reveals apprehensions from younger workers related to flexible work environments on their concerns to make meaningful connections.
According to Deloitte, “[S]imilar to last year, they have concerns about its impact on their ability to make connections, find mentors and sponsorship opportunities with leaders, and progress in their careers.”
In fact, 13% of Gen Z and 12% of Millennial employees shared concerns that flexible work environments would actually hinder their ability to find mentorship opportunities within their organization.
By ensuring access to mentorship programs in a promotion, one is likely to contribute to a positive attrition rate for younger employees who are just kick-starting their professional careers.
According to Leapsome, these kinds of initiatives help to facilitate personal development, skill acquisition, and a broader understanding of the organization’s fundamental operations. They encourage employees to see their roles in the context of the company’s larger goals, leading to a more interconnected and informed workforce.
4. Be More Open and Inclusive Regarding Decision-Making:
Managers should communicate how decisions are made and involve employees in discussions about their new roles. More involvement contributes to a foundation of trust.
According to a 2023 research report published by Cornerstone, “73% of workers today want to know about career opportunities inside their organization, and employees who don’t have visibility into internal career opportunities are nearly three times more likely to say they wouldn’t be interested in other jobs at the company.”
This inclusive approach helps in demystifying the promotion process, ensuring that employees feel valued and are more committed to their new roles.
5. Create a Sense of Belonging:
People want to wake up and work within a company culture where they feel they belong.
Surveying 1,000 working adults, professional services organization EY sought to better understand the emotional impact of belonging in the workplace. The organization published its findings in the Harvard Business Review revealing that “40% of U.S. respondents reported feeling physically and emotionally isolated in the workplace.”
Deloitte finds that a sense of belonging in the workplace can lead to a 56% increase in job performance, a 50% reduction in turnover risk, and an overall increase in employee job satisfaction.
The study also found that a sense of belonging contributed to “2X more employee raises, 18X more employee promotions, and a 75% decrease in sick days.”
Suffice to say, meaningful promotions should contribute to the creation of a positive work environment where employees feel they are an integral part of the team — valued for their professional contributions, and connected to the organization’s culture and mission. They should never feel alone.
Meaningful promotions are a strategic tool for promoting employee motivation and retention. By aligning individual work-life aspirations, integrating meaningful work practices, promoting mentorship opportunities, being more open and inclusive in decision-making, and creating a sense of belonging, organizations can increase the effectiveness of their promotion policies and retain top talent at their firms.
This approach not only benefits employees but also contributes to a more available, productive, and committed workforce, opening doors for organizational success in a competitive global market.
