The telecoms industry lags on diversity and inclusion, but CSPs can improve employee satisfaction and retention, especially among underrepresented workers, by offering well-defined, clearly communicated pathways to advancement.
How clear career paths can help telcos strengthen retention—and diversity
Across many benchmarks, the telecom industry lags other industries when it comes to diversity, equity, and inclusion (DEI). The Kantar Inclusion Index ranks telcos last among 10 industries on inclusion, while Delta Partners, which tracks female representation on boards of directors, and Bloomberg’s Gender-equality Index both give telcos low marks relative to other types of companies.
Yet as telco CEOs look to improve their companies’ DEI records, they face a tough question: What really works?
It’s increasingly clear that transparency is critical: the companies that do best at retaining and advancing diverse talent report their talent management outcomes and consistently demonstrate that their processes are fair and equitable. And one specific way executives can build a culture of transparency is to clearly articulate the skills- and competency-based career paths by which talent can move from entry-level to higher-wage roles.
A recent report by Bain & Company and Grads of Life found that communicating these career pathways is among the 10 most effective actions companies can take to advance DEI goals.
That opportunity to advance and earn higher wages is a key factor in employee satisfaction and an indicator of job quality. By determining the skills and competencies needed to reach various roles or career stages, identifying available training and professional development resources for employees to gain those skills and then clearly and consistently communicating that information, leaders can help their employees make informed decisions and pursue growth opportunities.
Clear career paths are particularly important for diverse and underrepresented workers, who disproportionately feel isolated and uncertain at work. When an organization documents its career paths and the skills employees need to advance, making the information transparent to all, there is less room for racial or gender bias to inform promotion decisions.
Many employers believe they offer strong career paths and are proud of the growth opportunities available to their employees. But very few companies make this information explicit and transparent. In a survey of more than 500 companies, Bain and Grads of Life observed that only 28% said they communicate pathways for promotions and salary increases and that they hold managers accountable to conduct career progression discussions with direct reports regularly. And only 35% of young adult workers, most of whom were Black or Latinx, said their employer provides information about career advancement and promotion opportunities.
Senior employees—who, in most companies, tend to be white—implicitly hold much of the knowledge about how to advance in their organization, and there’s a risk that similarity bias will make them inclined to offer their guidance and sponsorship to people who resemble them. Although managers play a critical role in coaching and supporting their direct reports in career growth, clear documentation of pathways can help mitigate the inequitable distribution of information and also ensure that managers are not the only available resource for advancement.
For example, in response to employee desire for more career development resources and opportunities, and to give employees more control over their own careers, Verizon launched Talent GPS in 2021. Talent GPS is a comprehensive tool that provides visibility into available jobs at Verizon, along with the skills and competencies needed for each role. The tool makes career information universally available to all employees, and skills-based role requirements ensure that growth opportunities are equitable. Verizon plans to roll out Talent GPS in phases over several years, with the initial phase focusing on a market-driven job architecture with consistent job families and titles.
When Talent GPS is fully rolled out, Verizon employees will be able to determine how their role fits into a broader career path at Verizon and the most effective paths to work their way up, while also offering options for pursuing new career directions.
Christy Pambianchi, chief human resources officer at Verizon, said, “We really want to empower employees so they can realize their greatest ambitions, and Talent GPS will put them in the driver's seat to own and build their future at Verizon.”
Clear career paths are just one of many effective DEI practices and are most effective when used in concert with other efforts to advance DEI. But they can play a key role in encouraging underrepresented employees to stay and advance—and, ultimately, creating greater diversity among the decision makers in the company.