Career Ladder: Types of Career Ladders

A career ladder is a summary of a position’s succession within a company or organization. It provides employees with a clear description of the promotions, salary raises, and job responsibilities that lead to senior placement. While the beginning of the career ladder outlines entry-level jobs, the top of the career ladder includes high-level positions that involve increasing authority. As employees demonstrate their skills and meet performance expectations, they have the opportunity to move up the career ladder.

Both employees and employers benefit from a career ladder. Establishing a career ladder provides employees with a clear path for growth and advancement to the next level. It demonstrates that employers value the work of their employees, motivating workers to stay at the company or organization long term. Career ladders also provide training programs to support employee improvement, which benefits individual employees and the entire organization.

There are three types of career ladders that companies adopt depending on the career opportunities available:

1. 1. Individualized: Designed for director-level roles or higher, this type of career ladder does not present a uniform track for anyone within the same job family. Instead, human resources evaluates employees on a case-by-case basis to decide whether an employee should advance.
2. 2. In-range: In situations where an established career ladder is not in place, companies and organizations can adopt an in-range career ladder to advance employees. Like an individualized career ladder, HR reviews each situation on an individual basis to determine whether an employee should receive a promotion. This type of career ladder advances the employee’s job responsibilities without changing their title.
3. 3. Predefined: As a defined hierarchy of progression, predefined career ladders distinguish different positions according to job grade. This type of career ladder establishes a clear set of skills and knowledge employees must acquire to advance within the organization. Predefined career ladders also differentiate job titles with numerical indications, labeling an entry-level position as “Assistant I” and a second level position as “Assistant II.”

An effective career ladder program should outline how an employee can transition from their current position to a higher-level job.

• Evaluation rubric: Career ladders should include a performance evaluation the human resources department can use to review employees. The rubric should outline the performance metrics and benchmarks employees must reach in order to progress to the next position.
• Individual levels: As a job progression tool, the career ladder should also include each individual level that forms a job family within the company. Organize the positions from entry-level roles to senior level positions to visually display the job progression over time.
• Job descriptions: After outlining the chronological succession, write job descriptions describing each role. Include the education and experience requirements, daily responsibilities, new skills, and pay grade each position level entails.
• Timeline: Promotion speed is another important aspect to include in your career ladder because it allows employees to view their growth within the company on a long-term scale. Outline how quickly the company expects employees to transition from one position to the next, so employees have a clear idea of the promotion process and timeframe.

Consider the below strategy for developing a career ladder that reflects the needs of your organization and employees.

1. 1. Define a job family’s main purpose. Select a department within the company or organization and outline that job family’s main objective. For example, the marketing department’s purpose is to promote a company’s brand or service. Consider the main responsibilities of employees within a given department.
2. 2. Divide the career path into tiers. After outlining the different skills and competencies associated with a job family, divide the career path into tiers. Entry-level positions should consist of the most basic set of skills while higher levels should require a certain level of experience. As you divide and create roles, consult with current managers and supervisors for advice on which types of positions should be low and high level.
   
3. 3. Set salary ranges. Set a meeting with higher management to determine the pay grade for each job level. Salary advances should reflect employee’s career goals and the new skills they acquired.
4. 4. Create a visual display. Develop an organizational chart to outline the career progression. Consider using a software tool to structure the career development paths into a vertical diagram. Make it easy to follow and include the basic requirements for each position.

All you need is a MasterClass Annual Membership and our exclusive video lessons from the likes of Elaine Welteroth (the former editor in chief of Teen Vogue and host of CBS’ The Talk), Issa Rae (the powerhouse multihyphenate behind HBO’s Insecure), Robin Arzón (the lawyer-turned-head instructor of Peloton), and other luminaries who have have embraced the twists and turns on the path to professional success. With their guidance, you’ll learn how to lean into your strengths, follow your heart, and build the career of your dreams.