Is it relatively easy for your employees to move up your organization?
If the answer is yes, then your company has strong upward mobility, which refers to the frequency at which a person improves their socioeconomic status.
Specifically, this most commonly refers to employers’ career development opportunities.
After all, the #1 way for someone to improve their standard of life is to either:
Receive a promotion at work
Land a higher-paying job at another organization
Both will allow them to improve their social class by A) earning more money and B) gaining access to even more opportunities for growth.
There are also significant benefits for organizations offering upward mobility to their employees.
The proof?
LinkedIn’s research found that 94% of employees stay longer at companies that invest in their personal development.
Also, companies that provide upward mobility to employees boast 2x better retention rates than organizations that do not.
So, it’s clear that it’s in your best interest to provide better economic mobility for your employees by providing growth opportunities.
Yet, doing so can be easier said than done, especially in America’s current employment landscape.
Upward mobility becomes more complex in declining economies, but you can still elicit a culture of learning and growth at your organization.
Stay tuned to learn more about the benefits of higher social mobility and how your organization can develop an upward mobility program.
What is upward mobility?
Upward mobility refers to how often someone can improve their social and economic standing.
In other words, it refers to an individual’s access to educational opportunities, promotions, and training programs that allow them to advance in their career paths.
The more upward mobility a workforce has, the more economic success it can achieve. Therefore, strong upward mobility is a necessary component of a thriving economy.
It’s also associated with better mental health and well-being and has positive effects.
In the United States, upward mobility has declined for decades.
According to the National Conference of State Legislatures (NCSL), American upward mobility has declined since the 1940s and is now largely unattainable for many low-income families.
Reasons for this vary, including:
The declining middle-class
The lingering effects of the COVID-19 pandemic and The Great Resignation
A sizable skills gap that continues to increase
Disruptive technologies like AI and automation
While the nationwide trend is downward, individual companies can still provide upward mobility programs to improve crucial HR metrics like retention, engagement, and productivity.
The main factors that affect upward mobility
Now, let’s examine the primary factors that affect the public’s ability to advance their socioeconomic status.
The availability of upward mobility doesn’t entirely depend on an organization’s will. Many other factors are at play, so let’s examine them all.
The economy
Most importantly, strong upward mobility is a sign of a healthy economy. Whenever the economy isn’t so robust, upward mobility becomes more challenging.
Most companies will need more resources to invest in upward mobility programs.
Organizations must invest in costly training and development programs to provide employees with continued education and growth opportunities.
The good news is that hiring from within is always possible regardless of economic conditions, so providing upward mobility is still a possibility in declining economies—it’s just not as grandiose.
Education
Access to education is a major deciding factor in determining someone’s eligibility for upward mobility.
Society members with access to the best schools and universities will find it easier to find higher-paying jobs and qualify for promotions.
Lower-income areas in the United States often have subpar educational facilities, making it more difficult for graduates to pursue upward mobility in society.
Racial inequities
Societal issues like race and social class must also be mentioned, as they significantly affect upward mobility.
This was especially true for the black population before 1964 when segregation was still in place. Racial minorities often suffered discrimination in the workplace and were denied opportunities for advancement.
Family and social connections
An individual’s family and social standing also impact their access to upward mobility. For example, those who choose to raise children often pass up promotions and other opportunities for career advancement in favor of raising their families.
Moreover, it’s difficult for low-income individuals to connect with high-income families, which only widens the disconnect.
The act of different classes mingling with each other is called economic connectedness.
Whenever there’s a need for cross-class connections, social mobility becomes more difficult for the lower-grade classes.
Employment access
The types of positions one qualifies for also significantly impact their upward mobility. More educated individuals from high-income families often have greater access to higher-paying positions than low-income families.
Organizations with higher-paying positions are also more likely to provide development opportunities, making it even more difficult for people with lower-paying jobs to climb society’s economic ladder.
Only 36% of employees with low-paying hospitality jobs have achieved upward mobility. This starkly contrasts the 66% of employees with higher-paying jobs who enjoy regular access to it.
Whether an individual works for a private company or the government also matters.
State employees have more access to upward mobility through promotions, continued education courses, and development programs.
Changes in the environment and natural disasters
It’s far more difficult for people to achieve upward mobility when they live in areas affected by environmental change or natural disasters.
The world experienced this during the COVID-19 pandemic, as many lost their jobs, took extended leave, and began working remotely.
It wasn’t exactly a time of miraculous job growth and economic expansion.
States like California, which are at frequent risk of earthquakes and wildfires, also see negative impacts on their population’s upward mobility.
What are the benefits of upward mobility for employers?
Implementing an upward mobility program at your organization will yield numerous benefits, particularly retention and engagement.
Not only does upward mobility embody the American Dream, but it also makes workers happier, more productive, and eager to work more hours at the office.
Here’s a closer look at the primary benefits of strong upward mobility.
Better employee retention rates
Want to know the top reason why employees leave their jobs?
Is it because of low pay?
Toxic bosses?
Having to work too many hours?
None of the above!
According to Work Institute’s 2023 Retention Report, the #1 reason employees leave their jobs is a need for more career development.
This heavily reinforces the need for upward mobility at your organization. The evidence suggests that providing internal growth opportunities will improve your retention rates since you’ll eliminate the #1 reason employees quit.
A highly engaged workforce
Besides retaining your employees, you’ll also want to keep them as engaged as possible.
Highly engaged employees provide wonderful benefits for organizations, such as boosted efficiency and increased revenue.
Not only that, but research by Gallup suggests that high levels of employee engagement are critical to organizations thriving in tough economic times.
How can you improve your employee engagement levels?
You guessed it: upward mobility.
Companies that offer formal career development programs see 50% higher employee engagement scores on their feedback surveys.
Boosted productivity
Great retention rates and high engagement levels are ways to improve organizational productivity.
Since your employees will be happy, healthy, and motivated to work hard, your productivity should shoot through the roof.
This means you’ll achieve your goals quicker, generate more revenue, and operate more efficiently.
How to develop an upward mobility program
It should be clear that providing upward mobility is in your organization’s best interest.
Yet, it would help if you had an action plan to implement it.
Here are the steps to implement an upward mobility program for your business.
Step #1: Promote from within
The initial step is promoting and hiring from within instead of exclusively bringing in outside talent.
While it’s okay to still hire externally for some positions, especially if you don’t have any suitable internal candidates, you should always look to your existing employees first.
This is the quickest, easiest, and most affordable way to provide upward mobility at your organization.
If your employees know they stand a chance at landing promotions and getting hired for other (better paying) positions at your company, they’ll be more likely to stay with you.
As a bonus, hiring internally is quicker and cheaper than recruiting externally.
This means that promoting from within will yield all the benefits of upward mobility and save you time and money.
Step #2: Offer or create career development programs
The next step requires a capital investment that may be outside the reach of smaller organizations.
Still, it’s a worthy investment, as providing development programs leads to better engagement, productivity, and retention.
In other words, you’ll make your money back and then some.
You can either A) find existing training programs to buy and offer or B) develop original programs in-house.
Whichever method you choose, ensure that the programs you provide relate directly to your employees’ career paths.
You don’t have to stick with development programs, either. You can also provide training modules, online courses, and opportunities for continued education (and certifications).
Step #3: Elicit a growth-focused culture at your organization
Lastly, your company culture needs to reflect your attitude toward upward mobility.
Specifically, you should foster a growth-positive mindset among your employees.
Don’t simply provide internal promotions and career development programs; remain quiet about them.
Instead, market them to your employees.
Remind them that if they feel stagnant in their current role, they can continuously pursue a promotion or a new role at your company.
Beyond that, provide regular reminders via emails and during 1:1 meetings that you have internal programs for career development and continued education.
Being vocal about these programs will heighten your enrollment rates, ensuring an even distribution of upward mobility benefits among your employees.
After all, it would be a shame to invest time and money into creating training and development programs that no one uses.
Also, reward employees who display a growth-focused mindset.
Whenever you see someone earning an internal promotion or signing up for a training program, give them a shout-out in your next company meeting to encourage others to do the same.
Before you know it, most of your workforce will start showing the benefits of strong upward mobility.
Concluding thoughts: Upward mobility programs
Providing upward mobility should be your secret weapon in these economically uncertain times.
The war for talent is genuine, so hiring and promoting internally is the best thing you can do. Doing so will have the added benefit of providing upward mobility to your employees, so there’s no reason not to do it.
Also, providing training and development programs will allow your employees to advance down their career paths, which is mutually beneficial.
More Resources:
Gainsharing: The key to rewarding smarter, harder work
Leadership weaknesses: How self-awareness & feedback drive growth
Quiet hiring: Pros, cons, and best practices for success
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