KEY POINTS:
As New Zealand businesses operate with flatter management structures, employers need to build sideways careers to attract and retain recognition-hungry, Gen Y professionals, according to global psychometric assessment leader, SHL.
"Since the 90s, New Zealand businesses have been moving away from hierarchies that contain several layers of management through which a talented professional could be promoted," says Dr Ray Glennon, SHL director of professional services in New Zealand and Australia.
"The corporate ladder has become redundant. Vertical promotions are now less frequent and management positions more demanding.
"The size of the New Zealand market means many professionals are 'generalists' working across various functions. Therefore vertical promotion is not necessarily available, let alone sought-after. However, employees' appetites for promotion and reward have not been reduced," he says.
According to SHL, employers need to feature 'sideways promotions', such as moving staff into another department or expanding an existing role, in their talent management programs.
"Sideways promotions help retain and motivate the employee while preparing them to step into a broader senior management role in the future," he says.
