Career frameworks yield ROI, says Mercer

More than three-quarters of organisations using a formal career framework report it delivers a positive return on investment, according to research from Mercer. Half of global organisations currently use career frameworks and an additional 37% plan to introduce one in 2016, the survey-based research suggests.

The most common programmes covered by frameworks are:

  • training and development (covered by 73% of frameworks)
  • performance management (62%)
  • career pathing (61%)
  • succession planning (61%).

Not surprisingly given the popularity of talent frameworks, only 3% of employers plan to shift from an approach where they build talent from within to buying it in over the coming year.

The most common talent challenges employers face are:

  • increasing employee engagement and mobility (cited by 56% of organisations)
  • benchmarking rewards and compensation (56%)
  • accelerating talent strategies to meet business objectives (53%).

Kate Bravery, partner and global solutions leader for Mercer’s talent business, said:

‘Attracting and retaining the right talent continues to be a challenge for companies as a result of the competitive job market, flat compensation budgets, shortage in critical skillsets and a constantly changing business environment . . . By focusing on developing and outlining career paths, they can influence employees’ growth potential within the company, improve retention efforts and cost-effectively develop a workforce that contributes to higher business performance.’
‘2015 career frameworks in talent management survey’, Mercer, December 2015. To find out more about the survey, please visit: www.mercer.com/newsroom/career-frameworks-deliver-positive-return.html