What is Career Progression?

Before diving in, it’s important to distinguish between career progression and career development. Two terms that are often used interchangeably but mean different things.

Career progression is about moving up within a company, typically into higher positions with more responsibility and better pay. It’s the structured path employees take to grow their careers, such as moving from a junior to a senior role or from a team member to a manager.

On the other hand, career development is about expanding an employee’s skills, knowledge, and experience, regardless of whether they move up the ranks. This could include lateral moves, skill-building, or personal growth opportunities that make an employee more well-rounded in their field.

Both are important, but career progression focuses specifically on helping employees advance within your business.

Define what career progression looks like in your business

In larger corporations, career paths are often well-documented—entry-level roles lead to mid-level positions, which lead to senior leadership. But in small and mid-sized businesses, these structures aren’t always obvious.

That’s why it’s important to define what moving up looks like within your company. Consider:

What are the leadership or higher-level positions available?
Are there gaps where employees could take on greater responsibility?
Could new positions be created as the business grows?

Even if there isn’t an immediate opening, showing employees that there is somewhere to grow within your business gives them something to work toward.

Create a clear path to promotion

It’s frustrating for employees when they want to advance but don’t know how to get there. A lack of clarity can lead to disengagement and, eventually, turnover.

To avoid this, set clear expectations for career progression:

Outline the skills, experience, and achievements required for each level.
Establish timelines, how long does it typically take to move from one level to the next?
Make sure employees know what’s expected of them to be considered for a promotion.

Even if you don’t have formal policies, simply providing a career pathway can help employees feel more in control of their career growth.

Identify leadership potential early

Not every employee is looking for a leadership role, but for those who are, it’s important to recognise and nurture their potential.

Look for employees who:

Take initiative and solve problems without being asked
Show strong communication and collaboration skills
Are respected by their peers and naturally take on a mentoring role

Once you’ve identified employees with leadership potential, start involving them in higher-level discussions, giving them small leadership responsibilities, or encouraging them to lead projects.

Provide opportunities for increased responsibility

Promotions don’t always happen overnight, but that doesn’t mean employees have to wait years to move up. Giving employees progressive increases in responsibility helps prepare them for higher-level roles and keeps them engaged.

Ways to do this include:

Assigning them to lead a team or project
Giving them ownership over a key business function
Involving them in strategic decision-making

This way, when a higher position does become available, they’re already prepared to step into it.

Be transparent about what’s possible

Not every business has constant room for upward movement, especially smaller companies where leadership roles are limited. But that doesn’t mean employees should be left in the dark.

If promotions aren’t immediately available, be upfront about:

When new opportunities might arise
What steps they can take in the meantime to prepare
Whether they need to wait for business growth or restructuring

Honesty goes a long way. Employees are more likely to stay engaged if they understand why progression might take time rather than feeling like they’re stuck with no future. This could be an area of discussion within your employee one-to-one meetings.

Making sure each employee knows their potential career path within the business and can aim towards this as part of setting their goals and objectives.

Recognise and reward growth

Career progression isn’t just about promotions. It’s also about making sure employees feel valued as they grow. If someone is taking on more responsibility, even if they haven’t officially moved up yet, acknowledge their efforts.

Recognition can include:

A salary increase to reflect increased responsibilities.
A new job title, even if it’s not a major promotion.
Public acknowledgment in team meetings, internal communications or recognition platform.

When employees see that their hard work is noticed and rewarded, they’ll be more motivated to continue growing within your business.

Get the right tools to help your staff with career progression

Career progression is one of the biggest factors in employee retention and motivation, yet it’s often overlooked in small and mid-sized businesses. While you may not have the rigid corporate hierarchy of a large business, you can create clear pathways for employees to grow, take on more responsibility, and advance within your business.

But where to start? Managing career progression effectively can be challenging without the right tools. That’s where performance management software comes in. Streamlining this process by providing clear goal setting, regular feedback functionality and actionable development plans.

By defining career paths, setting clear expectations, and recognising employees’ growth, you’ll build a team that’s engaged, motivated, and ready to take your business to the next level.

So, when was the last time you talked to your employees about their career path? Now’s a great time to start.