A flat-structured company we’re going to talk about is us, your humble servant, Valor Software. In this article, we want to share with you our direct experience in building a continuous growth system based on a tool called Career Path and implementing it in both our company and Renaizant—the app we developed. But let’s start with the backstory of why we decided to delve into building the career growth management system.
We’re still a growing company of less than 100 employees but have the ambition to be proactive and want to escape “growing pains,” especially related to our main value—people and their development:
While the company is small (up to 50 employees), you can try to manage these issues “manually,” with everything in plain sight. With the growth of the organization, there’s an increasing need for some kind of objective tool which will help you speed up and refine the processes.
We consider the emerging challenges as a call to create a “dashboard" available to all members of the organization while keeping the beloved teal approach. Let’s see how it can be done.
We started to work in this direction four years ago. First, we introduced the practice of regular Performance Reviews with the main focus on the employees’ development. With each employee, we agree on goals for the upcoming period, usually a half a year, and discuss a review of their compensation, taking into account the achievement of these goals. In parallel, from review to review, we formed and filled in our Competency Matrix, which describes our actual technological stack. However, these tools were rather isolated, cumbersome to use, and, most importantly, they didn’t give us a clear visual picture as a result.
We wanted to have a tool to help each employee simulate their career path in the organization and get a road map of movement along this path in a few clicks. We needed a tool that combines a system of bands and grades with a Competency Matrix. And, since we didn’t find such existing tools on the market, we decided to create it ourselves :)
For starters, we grouped all available and planned positions “from top to bottom”:
Then we needed to put everything in one system. How could we put different-type positions from all job families together? Of course, we used the data from the labor market. Also, we referred to the point job evaluation method to rank and order all jobs considering the specifics of all jobs in our company.
The point method helped to dig deeper into the job evaluation. When using this method, the content of jobs can be described in terms of the key qualities of a job. Each factor is assigned points according to the extent to which that particular factor is presented in the job. The more points you assign to a job, the more worth the job has to the organization, thus, compensated more. There may be a group of factors for all jobs, various jobs separately, or a combination of companywide and position-specific factors. The most popular point method is the Hay system.
Having evaluated the jobs, we placed all the chains in a single table:
As a result, we got a “skeleton” of our system in the form of bands and grades.
The system of bands and grades is mainly used to manage compensation. For now, we leave this aspect beyond the Renaizant functionality and focus on our goal—using Renaizant to manage development and career.
The next step was adding the info on the required experience and open seats for each job, so each employee could see their place in the overall picture, along with the nearest available positions and a possible endpoint to visualize their career.
Finally, for now, we identified and attached the required skills to each position. Now, this is not just a linear diagram but a full-fledged roadmap showing:
Now that employees plan their career path, they can see who has their desired position and ask these colleagues for information and advice, find out what goals they set for improving skills, how long it took, who was their mentor, and so on.
While small and medium-sized companies (up to 250 employees) may still try to juggle processes (but shouldn’t!), for big companies it’s even more crucial to automate the processes. Automatization tools can’t replace humans in making decisions but can help you gather the required information and assist everyone in the company: employees, managers, HR, and even CEOs.
It’s only the beginning of our automatization path. We haven’t measured the satisfaction with updated processes yet but we do see the directions to track profit for every role:
You likely started a similar journey earlier than us, and your organization already has an established hierarchy of positions and associated tools. Then you just need to dust them off and improve your flow :) We hope our tool will make your journey smoother and welcome you to managing your company’s Career Path with Renaizant.
Let's discuss how Valor Software can help with your development needs!