The workplace is rapidly evolving, and with it, so are employee attitudes toward career progression. Historically, climbing the corporate ladder – marked by promotions and job title changes – was the ultimate indicator of professional success.
But today, a growing number of employees are stepping off this linear, more “traditional” path, instead prioritising skill development and meaningful work experiences.
In fact, research has found that nearly 50% of employees are rejecting promotions, citing reasons such as work-life balance concerns, inadequate compensation for added responsibilities, and a preference for skill development over title growth.
For HR leaders, this shift presents both a challenge and an opportunity, as HR leaders can future-proof their workforce by rethinking career growth and skills development.
Why employees are prioritising skills over promotions
Economic and technological shifts have created uncertainty around traditional careers, especially as automation and AI are changing the way we work. Employees recognise this and want to be receptive and adaptable – hence the push for wanting to develop new skills.
On top of this, purpose-driven work is now more of a priority for employees than before. In fact, Deloitte revealed that the younger generation – millennials and Gen Z – are more purpose-driven, with 86% of Gen Z and 89% of millennials stating that it’s ‘very’ or ‘somewhat important’ to their overall job satisfaction and wellbeing. As well as this, the majority of employees now prioritise work-life balance – and as promotions can traditionally come with more work and stress, it’s clear to see why employees are less likely to grab the opportunity with both hands.
But there has also been a shift in what we expect from our workplace. Trust is now central to positive workplace culture, and so personalised benefits, career growth support, and inclusive cultures are now key to gaining employee trust.
As such, evolving workplace cultures should favour lateral moves, project-based work, and continuous learning as effective ways to grow professionally, given that employees want roles where their contributions feel meaningful, even if it doesn’t come with a new job title.
Essentially, workplace aspirations are no longer confined to titles and hierarchical advancement. Ultimately, employees see skills as durable currency in a world where job structures can change overnight. They want to future-proof themselves personally, and they expect their workplaces to mirror that mindset.
Of course, we know that promotions aren’t the only way to make employees feel valued. But unfortunately, only 15% of employees report receiving career planning support from their managers, a decline from previous years.
The risks of not having a future-ready talent pipeline
Ignoring this new reality comes with significant risks for businesses and HR teams. Companies that continue to push traditional career paths without recognising the changes towards learning and upskilling might find themselves dealing with talent shortages, reduced employee engagement and, therefore, struggle to keep pace with evolving competitors.
The lack of skilled employees for emerging roles can halt innovation and growth, and employees will leave when they feel undervalued or stuck in outdated systems. This, in turn, will erode morale and increase turnover costs. Without a proactive approach to skill-building, businesses will struggle to keep pace with industry leaders who invest in talent development.
To avoid these pitfalls, HR leaders need to shift their focus from rigid career ladders to building agile, future-ready talent pipelines.
Rethinking career growth as an opportunity, not a burden
Growth isn’t always synonymous with promotions. For employees to feel excited about their career development, companies must shift the dialogue from “title changes” to “new opportunities to thrive”. Here’s how HR leaders can help employees view professional growth as an energising experience rather than a daunting one:
- Personalised career pathways
Career development should reflect the unique aspirations and strengths of each employee. Whether it’s learning a new skill, taking on a cross-functional project, or transitioning to different departments, flexible pathways allow employees to tailor their growth to their interests.
You can use AI to help identify skills that will be critical to future roles for the business and match them to guide both employees and employers to focus on the right areas. For example, an AI platform might detect that data literacy or agile project management will be crucial in the coming years, allowing proactive training for those who are interested in this area to be implemented.
- Skill-based development models
Shift emphasis from roles to skills. When employees see opportunities to develop strategic skills that open up new possibilities, they’re more likely to get excited about their future within your business. And don’t be afraid to ask what employees are after; 40% of employees would quit if upskilling opportunities, especially in areas like AI, are lacking, so knowing exactly what employees want is vital. As well as this, the impact of AI and other emerging technologies on workforce development cannot be overstated. These innovations are reshaping how companies approach upskilling and engagement while streamlining the process for employees.
- Encouragement through mentorship and coaching
Pairing employees with mentors or coaches can provide guidance and support, especially at pivotal career moments. It helps employees view challenges as an opportunity to learn, not fail.
- Celebrate milestones beyond promotions
Recognise progress in non-traditional ways. Whether it’s mastering a new technology or leading a successful campaign, celebrating these wins reinforces the value of growth.
- Align work with purpose
With more employees seeking meaning in their work. HR leaders should help connect individual roles to the company’s broader mission, fostering a sense of purpose that motivates growth.
It’s also important to consider employees working out of traditional office settings – especially remote workers or those onsite as opposed to an office. Digital learning tools can ensure training remains accessible, and cloud-based platforms can give employees the freedom to expand their skillset on their own terms. The added benefit is that platforms like this can also offer AI insights which provide HR leaders with clear data on how their workforce is developing, helping track progress, identify gaps, and measure ROI on development initiatives.
The path forward
People with high career wellbeing are more than twice as likely to be thriving in their lives overall. Yet, Gallup research reveals that only 20% strongly agree they enjoy their daily work, and just 15% feel they have clear opportunities for career growth. While retaining employees is a natural priority for businesses, it’s time to shift the mindset around upskilling. Instead of viewing it solely as a pathway to employee promotions, businesses should see it as a way to equip their workforce with the critical skills needed to thrive in an era of rapid change.
Worries about losing this investment when employees move on are also somewhat misplaced. The accelerating pace of innovation means upskilling efforts deliver immediate, organisation-wide benefits by fostering adaptability and expertise. Even if employees eventually leave the strengthened talent ecosystem and knowledge-sharing culture they contribute to creates lasting value. This forward-looking approach not only addresses immediate business needs but also positions organisations as leaders in preparing their people for what’s next.
All in all, the modern workforce demands a paradigm shift. HR leaders who view career growth as a dynamic, personalised, and skill-focused process will be best positioned to attract, retain, and develop top talent. By moving away from rigid structures and leaning into emerging technologies, HR can set the stage for employees to thrive – not just within their roles but within their lifelong careers.
A future-ready workforce is not a nice-to-have; it’s a business imperative. The companies that succeed in this new era will be the ones that will survive the rapid changes we are seeing throughout businesses worldwide.
Dr Aaron Taylor has been involved in teaching and training for over 20 years, both in the UK and internationally. During this time, he has built up expertise in teaching and learning specifically across postgraduate HRM programmes.
Before becoming Head of Department of HRM at Arden University, Aaron was a Principal Lecturer at the University of Sunderland and a Principal Lecturer in HRM at Coventry University London. Aaron is an External Examiner for HRM programmes at the University of Suffolk and the University of Sussex.
He is a CIPD academic member, a Senior Fellow of the HEA and a certified management and business educator (CMBE).