Professional Development Spending Most Effective When Tied to Career Advancement Opportunities
Journal of Applied Psychology (forthcoming, 2011)
Not available online
A study by researchers at the University of Iowa Tippie College of Business finds that employees feel little compulsion to stay with an employer that provides professional development if they don't see any career advancement opportunities. This suggests that successful employee development is more than just providing development opportunities – for those investments to pay off, employers need to also show they offer adequate career advancement opportunities.
Researchers surveyed 246 matched employee and supervisor pairs at a Fortune 500 firm. They asked whether their employer provided adequate professional development programs, and if they believed the organization offered future career opportunities that were of interest to them. They found that employees who participated in professional development opportunities were more likely to say they would stay with their employer only if they saw attractive career possibilities. Few felt a responsibility to stay with their current employer if they saw no career advancement opportunities.
They concluded that more developmental support is associated with higher performance and lower turnover generally. Yet, when career opportunities are low, development support was not related to performance and it actually increased turnover. As a result, much of the $134 billion that businesses spend on employee development each year could be wasted if companies don't assure their employees that they have a promising career with the company. This is compounded by the costs associated with hiring and training the employees who replace those who leave for better jobs.
The good news is the survey found that not all employees interpreted career advancement opportunities as the traditional climb up the management ladder, such as promotions or raises. They found that programs like mentoring and job rotations as well as good relationships with their immediate boss can create the feeling that career opportunities are available.
The study, "Antecedents and Outcomes of Organizational Support for Development: The Critical Role of Career Opportunities," will be published later this year in the Journal of Applied Psychology. It was co-authored by researchers at the University of Illinois-Chicago and Jesus Bravo of Arizona State University.
