Growth over Promotion: Next-Gen at Work pt. 3

The corporate ladder was inevitable.

After ages of royalty, religion, and military, hierarchy was all we knew.

It is no surprise, then, that at the dawn of the Industrial Age, organizations took the form that they were most familiar with.  

The corporate ladder was inevitable.

After ages of royalty, religion, and military, hierarchy was all we knew.

It is no surprise, then, that at the dawn of the Industrial Age, organizations took the form that they were most familiar with.  Unity of leadership and chain of command were the orders of the day.

Founders and owners were kings and queens.  Rulers of their own realms.

CEOs at the top were commanders in chief, while those on the bottom were the “front lines.”

Work happened at the bottom, while power resided at the top.

The goal for the workers in this system was clear: climb.  Get as high as you can, and hopefully leave a legacy that will allow your children to climb even higher.

But things are shifting.  They’ve been shifting for some time.

Kingdoms and thrones are reserved for fiction.  Military enlistment has been on a steady decline since the days of conscription.  The younger generations have likely never met a veteran of the world wars.

Culturally, the concepts of social stratification and power imbalances are increasingly intolerable.  A system that reserves power, information, and access to only a few feels like an archaic leftover of some social caste system.

Organizational forms are changing, as a result.  Self-managed teams, open-book management, networked organizations, agile, holocracy, – the language and the focus has shifted.

The unspoken rules of organization, held up by previous generations, are no longer taken for granted.

Hierarchy still exists, but its hold is weakening.

Millennials and Gen Z are deconstructing what we thought we knew to be true.  They’re deconstructing the corporate ladder.

Climbing is no longer the goal.

Another driver is rising up in its place.  A stronger one, a healthier one, an older one.

Growth.

Almost all of the great motivational theories and philosophies refer to some deep-seated need for achievement, mastery, and forward momentum.  The problem is that this intrinsic motivation for progress has gotten all tangled up with titles, positions, and upward mobility.

At the heart of our motivation is not a desire for a promotion, but a desire to grow.

Among all the prospects which man can have, the most comforting is, on the basis of his present moral condition, to look forward to something permanent and to further progress toward a still better prospect.

Immanuel Kant

As bureaucracy, hierarchy, and traditional organizational forms shift under our feet, we are rediscovering this underlying motivation.  As org charts become flatter and the average tenure of employment decreases, we are finding new ways to define progress in our careers.

We are learning that growth does not equal promotion, and promotion does not equal growth. Share on X

The Second Shift:  Growth over Promotion

We are in the middle of a series here that examines the trends and research regarding Millennials and Gen Z in the workplace.  While there are many similarities across generational lines, we cannot deny that there are some very real shifts taking place that affect how the younger generation approaches their work.

For a fuller introduction to the five shifts I’ve identified, you’ll have to read part one.  Today, we’re jumping into the second shift: Growth over Promotion.

Now hear me out.  It’s not as though the younger generation is opposed to being offered a promotion or stepping into management (they’re not), it’s just that they’re embracing other mile markers of progress as well.

According to the Gallup Millennial 2016 report,  “opportunities to learn and grow” is one of the top three drivers of retention among millennials and the only factor of retention that separates millennials and non-millennials.

In other words, if they’re growing, they’re probably staying (longer, anyway).  With an average employee tenure of 2.8 years among those under 35, learning how to keep your team members around is increasingly important.

Here’s a bright spot.  Millennials and Gen Z don’t want to hop around from job to job that quickly.  According to Deloitte’s research, the majority of next-gen workers want to stay with their employer for at least five years. 

Next-gen at work
The question is, then, “What’s happening, or not happening, that’s causing them to disengage sooner than anticipated?”  There is a disconnect between what they expected and what they experienced.

For the younger generation, this disconnect is often related to the fact that they’re not learning and growing like they thought they would, so they start looking elsewhere.

If you think this high turnover among Millennials and Gen Z is inevitable, I’ve got good new for you.

Deloitte’s 2020 NextGen survey revealed that job loyalty rose as employers focused on their employees’ needs and personal development goals.  In fact, “More than six in 10 employed respondents of the pulse survey said their employers’ actions have made them want to stay where they are for the long term.” 

If you think that your employees are going to move on after a few years regardless of what you do, think again.  Your actions can make the difference.

 

Action step ideas

As we move forward and embrace the shift away from a promotion-centric work culture, here are a few suggestions as to what this could look like:

1. Don’t use performance or tenure as the primary metrics for promotion. 

Only promote people who are the right fit for the open position.  Excelling in one role does not mean they will excel in the next.  What talents, skills, and knowledge does this person need to possess?  If promotions are seen as a reward, you could easily end up promoting people into positions they don’t like (and they’re not good at).  This is called the “Peter Principle,” a term coined in 1968 by sociologist, Lawrence J. Peter.  He states:

“In a hierarchy every employee tends to rise to his level of incompetence.”

Once this has happened, the employee is stuck – moving back “down” is humiliating, and moving up again will never happen.  The organization is now stuck as well – you’ll either lose this previously high-performing employee, or perhaps worse, they’ll stay in this poorly-fit role and drag everyone down.

2. Find a different way to keep score. 

Promotions are rewarding because they feel like progress.  This is how we know who’s “winning” at their career, isn’t it?  Alternatively, we can create a different set of milestones geared around growth. 

In the 1980s, Allied Breweries partnered with Gallup and created the One Hundred Club that would recognize bartenders who had memorized the names and corresponding drink orders of 100 of their guests.  They also created a level for those who memorized 500, though they didn’t expect anyone to get there.  A few years later, Janice, a bartender from Britain, blew past all these levels and hit 3000. 

Whether it’s names memorized, skills gained, hours logged, or certifications awarded, there are plenty of ways to acknowledge mastery and growth that don’t require a promotion.

3. Don’t tie your compensation scale directly to your hierarchy. 

It’s pretty hard to say no to a promotion that comes with a fat raise, even if you know it’s not a great position for you. 

Link your compensation strategy to value instead.  Someone who has achieved mastery at one level may easily be more valuable than their new manager.  Create a pay structure that rewards growth, mastery, and performance without requiring someone to take on a new title as well.

4. Create prestige at every level

Most people accept promotions not only for pay, but also for the increased social prestige that comes with the move.  If the only people with real status or power in an organization live at the top, than of course that’s where people will aspire to go. 

Find ways to create heroes that are admired and respected in every area of the organization.  This may happen through things like awards, accomplishments, recognition, or certifications, but will also include rethinking power dynamics like who has a seat at the table and how you grant access to information.

5. Keep people on the curve

The classic “learning curve” is shaped like an “S.”  At the top, people plateau and become bored and complacent, thinking they’ve reached the peak and mastered their domain.  There are at least two strategies you can take here to avoid this loss of momentum:

  • Multiply the curves. Developing new skills and diving into new areas of knowledge places us on a new curve and ensures we’re always in the middle of the “S” somewhere.
  • Extend the curve upward. The top isn’t really the top.  It often represents perceived mastery, as they compare themselves to others in their workplace or to the expectations placed on them.  Give them a new picture of what excellence could look like, and you’ll stretch the middle section and give people a new target to shoot for.

 

Growth over Promotion
6. Encourage lateral movement

This is a great way to challenge and hold on to key employees who may be ready to try something new.  This not only enhances their learning, but also builds a workforce with a broader understanding of how the different parts of the organization need to work together.

7. Create communities

Connecting employees with peer groups, networks, and communities of practice is a powerful way to accelerate their growth and learning in a way that training sessions never will.  Groups and networks have the potential to stimulate new ideas and open people’s eyes to new perspectives and new levels of what’s possible.

8. Provide coaching

Both peer coaching and coaching from a manager can be highly effective.  If there are clearly established goals and expectations, and a high degree of psychological safety in the relationship, providing timely feedback is a proven way to engage your people and improve performance (more on that in the next shift: Coaches over Bosses).

9. Build on their strengths

Giving feedback for growth doesn’t need to focus on weaknesses.  Most of the time, weaknesses are connected to innate characteristics of a person that are unlikely to change.  In other words, telling them they suck won’t make them better.  Instead, help them discover the areas that they are naturally talented in, and then leverage those for success.

10. Talk to them

Don’t decide for them what they need in order to grow.  The best way to help someone move forward is to engage them directly in their own development journey.  Find out what they’d like to learn about and what new work experiences they’d like to have.  Ask them about their future career aspirations and how you can set them up for what’s next.  Use this to create an intentional learning and development plan for employees that moves them ahead in their career path.

As you may have realized, this shift requires a high level of investment in people.  Hesitation to place such a heavy emphasis on the employee’s growth most often comes from a fear over the bottom line.  If you sink so much time and money into your workforce, will you really see a return on the investment?

Here are my two responses to that hesitation:

  1. Yes, you will see a return. Not right away, and not with all employees, but the research is clear: engaged employees increase productivity, improve profitability, lower turnover and absenteeism, decrease safety incidents, and strengthen customer relationships.  An investment in people is an investment in your business.
  2. It’s the right thing to do. Regardless of short term ROI, you’re leading human beings, who deserve to be treated with respect and dignity.  Our job as managers and leaders is not to squeeze every last drop of productivity out of people while they’re with us, but to ensure they leave better than they came.  Employees have chosen to give us their most precious resource – time – and it is up to us to steward that resource responsibly, in a way that doesn’t just benefit the company, but all stakeholders.
An investment in your people is an investment in your business. Share on X

My hope is that this series motivates you and gives you the tools to engage your people and create a culture where everyone can thrive.

What about you?

What does it look like to grow and develop in your context?  What tips and best practices have you discovered in helping people continue to learn and move forward?

Share your ideas and stories!  Leave a comment below or let’s start a conversation on social media.

This is the second of the five shifts we’re discussing when it comes to the younger generation at work. 

Next up: Coaches over Bosses.

Let’s keep learning together.

Dan

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