Guiding Career Journeys Unveils Paths to Economic Advancement
Matt Sigelman, President of Burning Glass Institute, a labor market analytics firm, says, "You don't need a degree to succeed, but you do need a plan." This sentiment is shared by most Americans, who are looking for ways to secure good jobs and build a career, according to the Career Optimism Index 2024.
This survey, conducted by the University of Phoenix Career Institute, revealed that the majority of working individuals need assistance in setting career goals (51%) and identifying job opportunities that align with their skills and interests (53%). There's a 25% disparity between employers and workers regarding the availability of career development supports, such as regular conversations with managers about career advancement. For instance, 67% of employers believe such discussions are available, while only 42% of employees agree.
The best solution to meet this current workforce need is through career guidance systems. These systems help individuals create a roadmap to better job opportunities. To be effective, these systems must rely on reliable information about genuine career paths. Let's explore the crucial elements of robust career guidance systems and the methods organizations employ to provide dependable career and job information.
What Career Guidance Systems Do
Career guidance combines job education, training, support services, and professional networking to empower individuals to pursue economic opportunities. Comprising three components, according to a Harvard University Project on Workforce analysis, these elements include:
- Career information: gathering information about one's abilities, goals, and education or training options.
- Career pathways: making informed decisions and crafting a strategy to reach a desired career.
- Career development: staying informed about industry changes and taking steps to further career growth.
In practice, career guidance encompasses:
- Support services like coaching, mentoring, and networking opportunities;
- Tools to evaluate progress and set goals;
- Knowledge and learning opportunities through courses and programs; and
- Structures and organizations, such as career centers with clear benchmarks for success.
These components can be tailored to individual needs, depending on whether career guidance is intended for new labor market entrants, workers seeking better job opportunities, or individuals returning to the workforce.
Further analyses of career guidance programs may highlight specific aspects, such as the role of career counselors. These professionals provide advice and support as individuals explore learning options and career pathways, aiding in the creation of personalized career maps.
Another area of growing interest is how technology platforms are utilized by organizations to collect and aggregate data that aids in the navigation process. This includes exploring the use of artificial intelligence in career mapping and integrating digital learning and employment records into guidance systems.
Quality Job and Career Information
Reliable employment info forms the foundation of any effective career guidance system. This includes detailing the required knowledge, skills, and competencies for success in a particular field. Without this strong foundation, career guidance systems cannot help individuals develop career maps with well-defined paths to good jobs and careers.
Several methods can be employed to develop dependable employment information. Six examples each offer valuable insights:
Quality job opportunities: Research conducted by the Federal Reserve Banks of Cleveland, Atlanta, and Philadelphia found that 22% of jobs pay the national median wage, irrespective of a bachelor's degree, in 121 metro areas covering 70% of U.S. employment. An Occupational Mobility Explorer Tool, which includes 2023 wage data for over 500 regions and nearly 600 job titles, is available to demonstrate how skills for one job can translate to higher-paying jobs within the same geographical area.
First-time career opportunities: A report by Burning Glass Institute and American Student Assistance reveals the importance of a first job in shaping an individual's future career trajectory. For example, hotel housekeepers and restaurant hosts often start out making similar salaries. However, 20 years later, former hotel housekeepers earn an average of $37,000, while restaurant hosts typically make over $80,000 annually. The report identifies over 70 "first-step" jobs for individuals with a high school diploma, offering the potential for earnings of $70,000 or more by age 40, such as bank teller, pharmacy aid, restaurant host, telemarketer, computer support specialist, software developer, flight attendant, procurement clerk, product tester, commercial diver, and quarry rock splitter.
Performance scorecards: Burning Glass Institute, Harvard Business School, and the Schultz Family Foundation collaborated on the American Opportunity Index, a corporate performance scorecard evaluating how well large U.S. corporations promote employee economic mobility and career advancement, especially for those without a college degree. Companies are ranked based on hiring, promotion, retention, and pay practices. For example, the top 100 employers in hiring are 180% more likely to hire workers without a college degree, creating opportunities for entry-level workers. The report highlights best practices and provides guidance for companies looking to improve their policies and practices.
Underemployment findings: The Burning Glass Institute and Strada Education Foundation looked into the employment success of bachelor's degree holders within their initial decade in the job market.Generally, around 52% of graduates with a terminal degree end up in jobs that don't necessitate a college education.Even ten years later, 45% of these graduates remain underemployed (with variations based on degree field and work experience such as internships).The underemployed face financial consequences.Although they usually earn around 25% more than high school graduates, those with a degree who land college-level jobs earn about 88% more than a high school graduate.
College-to-job disconnect study: Harvard University’s Project on Workforce through its College-to-Jobs Initiative explores the mismatch between higher education and the U.S. labor market.This includes a unique tool called the College-to-Jobs Map which compares regional college and employment trends, providing insights on economic mobility and graduation rates.An accompanying tool called the College-to-Jobs Playbook highlights the effectiveness of 12 program interventions like career coaching, internships, and apprenticeships that bridge the gap between college students and high-earning employment opportunities.
Education pathway projections: This report from Georgetown University Center on Education and Workforce forecasts the percentage and quantity of good jobs for individuals aged 25–64 in 2031, categorized by 22 occupational groups and three educational pathways—bachelor's, middle-skills, and high school.The report defines a good job as one that pays a minimum of $43,000 to workers ages 25–44, $55,000 to workers ages 45–64, and a median of $82,000 for all good jobs, each adjusted for cost of living disparities.Many of the jobs described in this report exceed the minimum earnings threshold with potential for elevated earnings over time.
Embracing Opportunity Variety
Career navigation systems cater to American workers looking to build a blueprint outlining specific career goals and education/training routes to good jobs and careers.Accurate employment data is essential for these systems promoting paths to increased economic and social opportunity.
Providing this data to American workers fosters opportunity variety, an approach that advocates for multiple routes to employment, careers, and opportunities.Opportunity variety aims to ensure that every individual—regardless of background—has access to the knowledge, connections, and personal power required for career success.
This helps broaden the nation’s opportunity spectrum, enabling individuals to pursue opportunities through various channels linked to labor-market demands.Career navigation systems play a vital role in helping individuals reap the economic and social rewards of work, thrive in life, and realize their full potential.
- To effectively utilize career guidance systems, they need to provide reliable information about genuine career paths, such as opportunity jobs and potential career pathways.
- The American Opportunity Index, a collaboration between Burning Glass Institute, Harvard Business School, and the Schultz Family Foundation, uses a performance scorecard to evaluate how well large U.S. corporations promote employee economic mobility and career advancement, particularly for individuals without a college degree.
- The Career Optimism Index 2024 revealed that underemployment is a common concern among working individuals, who are looking for ways to secure better job opportunities and advance their careers.
- There's a 25% disparity between employers and workers regarding the availability of career development supports, like opportunity jobs responsible for launching careers and regular conversations with managers about career advancement.
