July 15, 2019
Succession Planning 15 November 2017
How to Prevent Employee Turnover with ProSky Pathways
Matthew Ang
<a href='https://www.freepik.com/free-photo/planning-risk-and-strategy-in-business-businessman-gambling-placing-wooden-block-on-a-tower_1202142.htm'>Designed by Freepik</a>

Remember the excitement, the energy, and the motivation that your brand new hires brought into the company on his or her first day? They walk in the office with a bright face and a wide smile, full of ambition, ready to hit the ground and find success in their new job. You as an employer are ecstatic about the possibilities and both you and your new employee have bright hopes for the future. 

Fast forward some time and the bright-faced, wide-smiling, full of ambition employee loses that excitement, energy, and motivation.  

And then, he or she quits.

What happened?! You are left perplexed, frustrated, and worse, encumbered with a very costly problem.

If it makes you feel better, you are not alone! Here are some stats from Access Perks and SHRM that show how prevalent employee turnover is and how costly employee turnover can be:

·      Average employee turnover in 2016: 19% of the total workforce

·      $11 billion is lost annually due to employee turnover (Bloomberg BNA)

·      Millennial turnover costs the U.S. economy $30.5 billion annually (Gallup)

·      Cost of replacing entry-level employees: 30-50% of their annual salary (ERE Media)

·      Cost of replacing mid-level employees: 150% of their annual salary (ERE Media)

·      Cost of replacing high-level or highly specialized employees: 400% of their annual salary (ERE Media)

Let’s quickly break down the math to determine the cost of replacing employees:

·      An entry-level employee with an average salary of $40,000 with a replacement cost of 40% (the median) of their annual salary would cost $16,000 per entry-level employee.

·      A mid-level employee with an average salary of $80,000 with a replacement cost of 150% of their annual salary would cost $120,000 per mid-level employee

·      A high-level employee with an average salary of $120,000 with a replacement cost of 400% of their annual salary would cost $960,000 per high-level employee

Now that we have painted the terrifying reality of employee turnover, let’s quickly pinpoint the biggest problem that leads to it. According to a study by LinkedIn, the number one reason people leave jobs is that they fail to see development and advancement opportunities in their career in their current job. In that same study, LinkedIn found that the number one reason people took new jobs is that they saw more opportunity and a stronger career path for themselves in the new position.

This is backed up by a survey done by InsideOut Development showing that more than 75% of Gen Z members believe they should be promoted in their first year on the job. Employers see similar patterns among younger millennials in their late 20s and early 30s. 

On the other hand, managers often don't see new employees performing at a level that justifies such a promotion. Pay raises can't be given if the employee isn't contributing enough to the company. So then the question becomes:

How do you let employees know they can develop and advance in your company without having to offer undue raises or promotions?

The answer is ProSky’s Pathways.

Here are a few ways ProSky’s Pathways can help organizations:

1.     Create Career Path Transparency for Both Employers and Employees

Employees don’t know what types of skills or the amount of experience it will take them to be able to take the next step in their career. Over time, this will cause employees to doubt if they are even progressing or if the organization is recognizing their growth. 

It's the responsibility of the manager or department head to shape employee expectations with constant feedback and establishing realistic career paths that provide guideposts or milestones for their employees to follow. 

Pathways is a system of Continuous Performance Management where employers are able to create pathways for different employees in different walks of their careers. You can fill your employee pathways with training, projects, challenges, mentoring sessions, evaluations, various types of feedback, and other ways that can help employers develop employees. There are different pathway templates available for employers to choose from or they can easily customize their own pathways.

Employees have access to their pathways and can see their progress occur. Each time a step is complete, it is automatically marked off in the pathway and both employee and employer are notified. Progress becomes tangible to the employees, as they are able to track where they are in their current pathway. Employees will also develop the vision for their career in the company because they see how they fit in the organization’s current and future schemes.

Employers are also able to track the progress of each employee. In addition, they are able to track the quality of work each employee has put forth. This will allow them to pinpoint employees who have managerial and leadership potential. This information can guide hiring and recruiting needs and more importantly, help employers make wise human capital decisions in the coming years.


2.     Develop Employees Talent and Skillsets

When creating a ProSky pathway, employers often ask themselves:

·      How can I determine which employees have the qualities for future positions?

·      How can I help employees reach the level I need them at for future positions? 

Employers are able to develop their employees and mold them into future leaders of the company by inserting trainings, projects, and challenges into employee pathways.Employers can upload different forms of training for their employees to complete in a certain pathway. Training can come in the form image or text files such as PDFs, videos, or links to other sites. Employers are able to track the progress of each employee as they go through the training. They will be notified as employees complete their trainings.

Employers can then see how well employees have internalized the training and help employees practice and develop the skills they attained through the trainings. By inputting projects or challenges that employees can work on, employers provide a way for employees to further develop their skills and gain meaningful experience. 

Employers can track the progress of projects and challenges, and evaluate how well each employee performs. They can even see in real-time what the employees are working on, evaluate their thought-process, and see how they derive their solutions.


3.     Increase Communication

Open discussions and transparency about performance and advancement opportunities should be a priority. Employees want to feel connected to their managers. By communicating with employees frequently, employees are assured that they are valued. Scheduling time to meet with employees to discuss feedback, evaluations, career goals, etc. will help employers build a stronger rapport with their team.ProSky’s pathways allows employees to see when and how different forms of communications will happen with different managers. This gives them something to look forward to and work towards. Having these meeting insights will motivate employees to consistently improve themselves and hone skills leading up to the meeting, in hopes of impressing their employers. This type of increased effort is infectious and will spread throughout the company, creating a powerful working environment.

Employers are able to evaluate their employees in various ways through ProSky’s platform. These evaluations will then become available to both employers and employees on ProSky’s pathways. Employers can also keep some evaluation matters private from employees and are able to share them with other managers. This type of communication and feedback is crucial and brings a positive impact on company morale.


Remember that you have invested a lot of time and resources into your employees. They are some of your most important assets. Don’t risk them leaving your company because they struggle to see their place in your company. Increase transparency, especially with your employees regarding their career paths. 

Make sure that they CANNOT MISUNDERSTAND their place in your organization and how they can accomplish their career goals in your organization. If all goes well, you will not only retain your talent, but also develop and prepare your best talent to be future leaders in your organization.


ProSky’s Pathways can help a company accomplish many things. Limiting its capabilities to a single article is unfair and impossible to do. We encourage looking deeper into how ProSky can help your organization. We love to listen and talk so please come find us!