Beyond the Paycheck: The New Frontier of Total Rewards
Let’s cut to the chase – we all know competitive compensation matters. But something fascinating is happening in the world of Total Rewards that deserves our attention: employees are taking control of their professional destinies in ways we haven’t seen before.
In our recent consulting work with organisations, we’re finding leadership teams increasingly concerned about a shift in candidate priorities. When we speak with HR and Total Rewards leaders, they tell us that top talent is now prioritising career development opportunities alongside compensation packages. During interviews, candidates are asking pointed questions about career frameworks and growth potential – not just salary bands. This isn’t just anecdotal feedback from our clients – the data backs it up.
The Numbers Tell the Story
McKinsey’s latest Workplace Report revealed that 65% of employees now rank career development opportunities above compensation when reviewing job offers. Similarly, Gartner’s 2024 HR Leaders Survey found that organisations offering robust career development frameworks experience 34% higher retention rates among high performers.
The message is clear: while compensation gets talent through the door, it’s career opportunities and organisational buy-in that keeps employees motivated and engaged.
The Employee-Driven Career Proposition
Today’s employees are not waiting for permission to advance. According to Deloitte’s Human Capital Trends report, 71% of employees expect to drive their own career trajectories rather than following predetermined paths set by their employers.
We believe that this is not a shift. Instead we are proposing that this has been happening for sometime and we want to call this out as excellent practice for organisations that truly want to leverage their talent and realise competitive gains. But why is this important for you and your organisation?
For one, career longevity. With many professionals expecting to work well into their 60s or beyond, the traditional linear career path feels increasingly restrictive. People want flexibility to pivot, explore adjacent skills, and continuously reinvent themselves.
Second, the rapid pace of technological change has created an environment where adaptability holds sway over stability. Employees know that staying relevant requires constant skill evolution – they’re seeking employers who will partner with them in this journey. Employees are searching for this connection within their chosen organisation.
Where Career Structure Meets Total Rewards
This is where forward-thinking Total Rewards professionals can make a real difference. By integrating thoughtful career frameworks into the overall rewards strategy, we create something more valuable than just another HR programme – we create a partnership for growth.
What does this look like in practice?
Comprehensible Career Competency Gateways
The best career structures aren’t complex mazes – they’re clear pathways with visible milestones. From our recent observations, effective organisations implement “career competency gateways” – defined transition points marking meaningful progression through skill demonstrations, impact measurements, and capability markers.
Each gateway represents a genuine evolution in capability and contribution, removing the mystery from career progression.
Flexibility Without Chaos
While clear pathways matter, the most effective career structures also accommodate shifts in direction. People change, business needs evolve, and new opportunities emerge.
Gartner’s research indicates that organizations with “dynamic career frameworks” – those that allow for lateral moves and skill-based progression in addition to traditional upward mobility – see 29% higher employee satisfaction scores.
We’ve observed organisations moving away from rigid job hierarchies toward skills-based models. This allows employees to build personalised career paths that honour their evolving interests while still meeting organisational needs.
Navigating the Career Ceiling
A significant challenge many organisations face is the “career ceiling” – the point at which structural limitations prevent further internal advancement. This is particularly evident in smaller or flatter organisations where leadership positions are limited.
We’ve observed innovative approaches to address this ceiling effect:
- Creating specialist tracks with equivalent status to management paths
- Implementing project leadership opportunities that provide growth without permanent promotions
- Developing cross-functional mobility programmes that broaden experience horizontally
- Establishing “expert” designations that acknowledge depth without requiring organisational ascent
The most successful organisations are transparent about these ceilings and offer alternative growth paths that don’t rely solely on upward movement.
The Sweet Spot: Where Employee Interest Meets Organisational Need
The real magic happens at the intersection of what employees want and what the business needs. When employees pursue growth directions that align with strategic priorities, organisations are far more willing to invest in their development.
In this shared space, we’ve seen organisations offer:
Amplified Mentorship Programmes
Not just casual coffee chats, but structured knowledge transfer between experienced leaders and emerging talent. We’ve observed “skills transfer” mentoring programmes where senior specialists commit to developing specific capabilities in their mentees – with measurable outcomes tracked over time.
Targeted Learning Pathways
Beyond generic learning libraries, progressive companies are creating curated development journeys tied directly to future roles and business needs. We’re seeing “capability accelerators” – focused six-month learning experiences that combine formal training, project work, and mentorship to rapidly develop needed organisational capabilities.
Community Practice Structures
We’re seeing a renaissance of the guild concept – communities of practice where people with similar professional interests collaborate across organizational boundaries. These peer-learning networks often prove more valuable than formal training, creating organic knowledge marketplaces within organisations.
Career Accelerators for Early-Stage Talent
We’ve observed that career accelerator programmes yield the highest return when targeted at early-career professionals. Entry and junior-level employees show the greatest appetite for rapid progression, driven partly by the significant compensation increases associated with early promotion steps.
These accelerators typically combine intensive skills development, exposure to senior leadership, and stretch assignments. Early-career professionals respond enthusiastically to these structured pathways, often doubling engagement scores compared to peers without such opportunities.
Organisations as Learning Centres
Some forward-thinking companies position themselves as genuine learning environments where professional growth is central to their value proposition. The concept of “career acceleration” is emerging as a core element of the employee value proposition.
This approach involves trade-offs:
For Employees:
- Greater ownership of development
- Higher performance expectations
- Commitment to organisational knowledge sharing
For Organisations:
- Significant investment in learning infrastructure
- More fluid internal talent movement
- Greater transparency around business strategy
A Two-Way Street
What makes this new approach to career development different from traditional programmes is the explicit acknowledgment that it’s a mutually beneficial exchange. It’s a true partnership where success depends on shared commitment and it’s mutually dependent.
The employee brings ambition, adaptability, and commitment to growth. The organisation provides infrastructure, opportunity, and resources. When both fulfil their side of this unwritten contract, remarkable things can happen.
Reality Check: What We’re Seeing in the Field
A pattern we frequently observe is that organisations implement job architectures – establishing levels and salary bands – but stop short of developing comprehensive career frameworks. As one CHRO told us, “We’ve mapped out where people sit, but haven’t built the roads they can travel.”
Implementing a robust career framework undeniably feels like heavy lifting for many organisations. The cross-functional collaboration and sustained effort required can seem daunting compared to the relative simplicity of compensation structures. However, our experience shows that this extra effort delivers immediate benefits in engagement and retention, not just long-term gains.
The most common pushback comes from leaders wanting immediate ROI evidence before committing resources. Despite compelling data showing improvements, the “prove it first” mentality remains a significant barrier.
What’s Your Experience?
We’re particularly curious about how you’ve positioned career structures to stakeholders. What approaches have proven effective in demonstrating immediate and medium-term value? How have you overcome resistance to these initiatives? Connect with us to share your perspective. Figen Zaim is a Total Rewards professional specialising in integrated compensation and career frameworks. Paul Henriques focuses on talent development strategies that drive organisational performance.
Co-authored between
Paul Henriques & Figen Zaim