The workplace of the 21st century looks vastly different than that of even just a decade ago. Globalization, rapidly advancing technologies, and shifting workforce demographics have disrupted long-held assumptions about careers, career progression, and the employer-employee relationship. Where once a linear, hierarchical career path within a single organization was the norm, flexibility, permeability between roles and industries, and continual learning have become increasingly important qualities for both individuals and companies seeking to thrive.
Today we will examine research on changes in the modern workforce and propose a reframing of traditional career trajectories to better support the needs of today's dynamic business environment. Through embracing alternative models that prioritize skills development, internal mobility, and lifelong employability, organizations can cultivate engaged, innovative employees and remain competitive.
Changes Shaping the Modern Workforce
A number of significant trends have converged to challenge standard career progression models. Research finds:
The average tenure at a single employer has declined from over 20 years in the 1980s to around 5 years today (Bureau of Labor Statistics, 2018). Workers born after 1980 are especially likely to change jobs frequently in their careers (Deloitte, 2018).
Skills are becoming obsolete more rapidly, requiring continual upgrading. Half of core skills in jobs today may not be relevant in 5-7 years (World Economic Forum, 2016).
Non-traditional working arrangements like freelancing, gig work, and portfolio careers are on the rise. As many as one-third of U.S. workers engage in some form of independent work (Intuit, 2020).
Younger workers especially prioritize having flexible, meaningful work over hierarchy and titles. Development opportunities are a leading driver of loyalty (Deloitte, 2018).
Diversity of thought and cross-functional teaming are increasingly important to innovation. Yet traditional paths limit exposure to varied experiences (Catalyst, 2004; McKinsey & Company, 2015).
Adapting Career Models for the Modern Era
Given these realities, it is clear traditional linear career trajectories - where advancement meant climbing step-by-step through a narrow function or division - are outdated. Forward-thinking organizations are rethinking how to develop, engage, and retain talent by embracing flexible, skill-based career development.
Breaking Down Silos Through Internal Mobility
Siloed job roles limit the cross-pollination of ideas and experiences vital to tackling complex challenges. Promoting internal mobility across functions exposes employees to new perspectives and opportunities for impact. Companies like Accenture have implemented skill-based career frameworks that prize versatility over seniority, with developmental moves decided based on matching an individual's evolving strengths to evolving company needs. Job portfolios are often redefined to allow fluid transitions between roles. This keeps talent engaged through novel challenges while maintaining institutional knowledge.
Continuous Learning is King
In the talent war, opportunities to continually build expertise and take on stretch assignments are table stakes for attracting and keeping top performers. However, traditional promotions often incentivized stagnation once a role was mastered. Companies now champion continuous learning and skill-building through initiatives like rotational programs, immersive online courses, conference sponsorships, and professional coaching. At Deloitte for example, all employees undergo quarterly skills assessments and work with managers to craft tailored development plans focused on long-term career currency, not just next steps up the ladder.
Embracing Alternatives Through Case Studies
Real world examples from diverse industries prove the effectiveness of adopting flexible career frameworks. Consider the following cases:
PwC - Skill-Based Advancement and Micro-Credentials: Once requiring undergraduate degrees and rigid pre-defined career paths, this accounting behemoth now emphasizes competency over credentials. Employees' annual reviews focus on skills acquisition, with 360 mentoring supporting customized development roadmaps. "Micro-credentials" are issued for mastery of niche skills like data analytics or AI to demonstrate versatile expertise - valuable both internally and externally. This has increased retention of top female talent who may start families earlier.
Salesforce - Flexi-Careers and “Tours of Duty”: This cloud CRM giant disrupted tradition by building careers centered around skills development and rotational assignments within and across departments. The "Tour of Duty" program allows employees to opt into rotational roles of 1-2 years in functions like product development or UX design. These "flexi-careers" unlock new opportunities while deepening institutional knowledge through distributed expertise. Salesforce reports higher engagement and more innovative thinking as a result.
Unilever - Skills Marketplace for Internal Mobility: The FMCG giant employs a sophisticated digital platform allowing employees to browse open roles, required competencies, and potential career paths company-wide. It facilitates internal transfers by connecting workers' profiles and interests to new assignments aligned with their professional goals. Managers have visibility into the breadth of talent across divisions. This has increased retention, productivity through more optimal job fits, and diversity in leadership as roles previously locked behind silos open up.
Conclusion
In today's business climate defined by constant disruption, those companies prizing flexibility, continuous learning, and fluid skill-building over rigid hierarchies will outcompete through more engaged, versatile workforces. While long-held assumptions about career progression are being upended, organizations able to adapt supportive frameworks grounded in developing human potential stand to gain loyal, high-performing talent and a competitive edge. Forward motion, not designation, should drive careers and company success in this new era. By reframing opportunities through skill-based mobility within and beyond traditional functions, organizations can cultivate the dynamic workforce required to thrive in changing times.
References
Bureau of Labor Statistics. (2018, January 30). Number of jobs held, labor market activity, and earnings growth among the youngest baby boomers: Results from a longitudinal survey. https://www.bls.gov/news.release/nlsoy.nr0.htm
Catalyst. (2004). The bottom line: Connecting corporate performance and gender diversity. https://www.catalyst.org/wp-content/uploads/2019/01/The_Bottom_Line_Connecting_Corporate_Performance_and_Gender_Diversity.pdf
Deloitte. (2018, September 18). The Deloitte global millennial survey 2018. https://www2.deloitte.com/global/en/pages/about-deloitte/articles/millennialsurvey.html
Intuit. (2020). Intuit 2020 report on the freelance economy. https://intuitfinancelifelab.com/wp-content/uploads/2020/12/2020_Intuit_Freelance_Economy_Report.pdf
McKinsey & Company. (2015, January). Why diversity matters. https://www.mckinsey.com/business-functions/organization/our-insights/why-diversity-matters
World Economic Forum. (2016, January). The future of jobs: Employment, skills and workforce strategy for the fourth industrial revolution. http://www3.weforum.org/docs/WEF_Future_of_Jobs.pdf
Jonathan H. Westover, PhD is Chief Academic & Learning Officer (HCI Academy); Chair/Professor, Organizational Leadership (UVU); OD Consultant (Human Capital Innovations). Read Jonathan Westover's executive profile here.
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