Chief Strategy Officer, SEI Boston.
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The pandemic, as we all know, has ushered in a new era of work. Gigs, hybrid and remote models, and a growing cultural emphasis on redefining the work-life balance have afforded employees the flexibility to change not just how they work but how they live. Gone are the days when employees looked to the next rung on the career ladder for their progression. Increasingly, they expect a career path that allows them to explore new skills, experiences and opportunities—something more like a career portfolio. But for those working at companies that favor the traditional approach to career progression, these opportunities are few and far between.
The labor landscape will only continue to shift in this direction as younger talent enters the market. A report from Snap Inc. projects that Gen-Z workers will triple by 2030, amounting to more than 51 million new voices joining the job market. If business leaders hope to acquire and retain talent in the coming years, they must acknowledge and adapt to the reality that this new workforce has a very different idea of what the ideal career trajectory is.
The Attraction Of Gigs And Passion Projects
While gigs and passion projects have been on the scene for many years, they’re becoming increasingly popular. It’s estimated that, today, 52% of the American workforce has had a gig at some point. What's more important to note is that 84% of those gig workers reported feeling a greater sense of purpose. You won’t see those numbers from employees in a traditional office setting.
So why do conventional job positions continue to be the norm if gigs and passion projects are so appealing? The answer is simple: money, stability and security. When people feel that the risks of gig work (like fluctuating income) outweigh the rewards (like personal fulfillment), they opt for the well-trodden path of traditional working. It’s a disheartening tale that's led to quiet quitting, burnout and an alarming rise in job dissatisfaction.
The cry that “people don’t want to work anymore” is categorically false. People simply don’t want to keep doing the same type of work for decades on end. We all deserve to be at a place in our careers where we feel satisfied, and embracing the career portfolio is the first step toward making that a reality for our employees.
The Benefits Of A Career Portfolio Culture
As Gen-Z enters the labor force, they're challenging the status quo and setting new expectations for the labor market. According to LinkedIn's Workforce Confidence Index, 75% of survey respondents ages 25 and under said they were willing to switch industries or job functions. In a traditional setting, this may sound like a "flight risk," but what it really suggests is that young people crave fresh challenges in their careers.
Corporate ladders are rigid and outdated, stifling the variability, experience and novelty that excites employees and nurtures commitment. A career portfolio approach allows for lateral movement. This means that employees have the chance to acquire new skills, pursue a bubbling interest and significantly expand their lifelong career options. Put simply, when an organization allows lateral mobility, it creates an internal marketplace that’s bursting with potential.
Consider these other benefits of the career portfolio approach:
• Dynamic Workers: Portfolio employees are flexible and quickly adapt to new tech, systems and work models.
• Better Retention Rates: Employees stay longer if they can forge their professional identities and explore new opportunities within a company.
• Decreased Burnout: Internal movement offers an exciting change of pace for employees who are exhausted from performing the same responsibilities for years at a time.
• Improved Cost Savings: Talent marketing, hiring and training can cost thousands. Encouraging lateral career mobility creates multi-skilled professionals capable of taking on open roles, so companies have fewer external hires to make.
• Stronger Culture And Productivity: When people feel comfortable, supported and seen in the workplace, it shows.
Embracing The Lateral At Different Levels
As employers, we've been taught to look for progression, not variability, when reviewing a candidate’s experience. But more so every year, candidates perceive this vertical progression path as one devoid of excitement. By embracing the career portfolio approach, we can revive that feeling of freshness that comes with starting a new job without ever having to lose talent.
But how does an organization adopt this new model after sticking to the conventional ladder structure for so long? Shifting to a portfolio mindset is easier for some companies than others, depending on how long they have been established.
Established Businesses
Supporting lateral movement within a well-established organization starts from the top. If leadership isn’t committed to this mindset, it won’t last. This means changing review forms, reward systems and more, which inevitably requires some monetary investment.
Developing Businesses
Businesses still finding their market share might be in the best position to implement a career portfolio approach. Allowing existing employees to explore alternative career responsibilities within the organization can immediately spark innovation and motivation to fast-track growth.
New Businesses
Many executives may think a new company with no baggage is the easiest for launching the career portfolio approach, but I argue it’s actually the hardest. It can create chaos if leaders aren’t cautious, spurring a lack of consistency and commitment. Employees may view getting looped into extraneous tasks as a requirement for job security, not an opportunity for career development.
Kicking The Ladder Down For Good
We know the world of work is always changing, yet we still cling to tradition. There will come a time when the norm begins to hold us back—and that may very well be now. By embracing a career portfolio approach, organizations can foster a corporate culture that favors the curious and supports growth, development and an improved employee experience.
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