Lack of growth opportunities is a big reason why employees leave jobs. Here’s how to change that

APA’s 2024 Work in America survey found that nearly a quarter (23%) of American workers are not satisfied with their opportunities for growth and development at their place of work. What’s worse is that this lack of opportunity for advancement is one of the top reasons why Americans quit their jobsopens in new window, according to a 2022 survey by the Pew Research Center.

By investing in employee growth, companies can reduce costly turnover and increase job satisfaction among employees at all levels. Here are some key workplace strategies that successfully foster growth:

“Organizations should talk about the three Es: experience, expertise, and exposure,” said Jeff McHenry, PhD, principal of Seattle-based Rainier Leadership Solutions. An industrial-organizational (I/O) psychologist, McHenry works with companies to create a culture centered on employee growth. “To grow someone’s skills effectively, you need to provide them with assignments that stretch them,” he said. Design projects that involve multiple departments so employees can cross-pollinate their skills and understand the company’s bigger picture.

This management mindset is difficult for leaders who “hoard” their talent, added Rich Cober, PhD, an I/O psychologist and managing vice president at Gartner, a research and advisory firm that helps companies develop and implement human resource strategies. “To create an ecosystem of development—which is often on the experiential side—you have to give great workers the space to work in other areas.”

To keep top performers, more companies today are developing talent marketplaces—online portals where employees can see current openings, read job descriptions, and understand the organizational hierarchy. These tools allow employees to map out their personal career trajectory, said Tim McGonigle, vice president at the Human Resources Research Organization. What’s more, the tools provide organizational transparency, thus fostering inclusion and diversity.

“In the past, employees may have relied [solely] on a mentor/manager to help navigate their careers,” he said. With a career-path system, employees have accurate, up-to-date information to do it themselves.

Career-pathing tools also benefit employees who don’t aspire to be the CEO someday. “It’s good to think in terms of a career ladder but also think of a career lattice—with lateral moves,” Cober said. Companies “can win by showing employees a path to becoming stronger and well-rounded,” he said. “It’s important in a world where change is constant.”

“The holy grail of performance management is for leaders to have really good conversations with their people about how they’re doing,” Cober said. That involves managers giving frequent, honest assessments, but also listening when employees talk about their needs. “The pandemic has created a moment where there’s much more appreciation for the total person as an employee. If you take care of them and their families, they will perform better and be more engaged.”

A holistic approach also considers employees’ psychological well-being, he added. “Mental health used to be taboo, but companies now want an open dialogue about the support people need,” Cober said.

With an emphasis on learning, companies can create a fluid, flexible workforce. One approach is “upskilling,” internal programs that teach new skills or upgrade existing skills. Notably, upskilled workers are more likely to report career advancement into a good job, experts say.

Separately, offering college-tuition benefits helps employees earn a degree debt-free and accomplish long-term career goalsopens in new window. This benefit is particularly attractive to entry-level workers in fields like fast food, retail, and health care.