Why Career Development Deserves a Place at the Center of Total Rewards
When considering your organization’s total reward strategy and planning, it’s important to envision where you see your organization in the next 1 to 3 years. How do you plan to attract and retain top talent to drive success and ensure your workforce is motivated to deliver their best performance?
In today’s workplace, competitive pay and benefits are expected, but they’re no longer enough to retain top talent. Employees are looking for more than a paycheck. They want growth, purpose, and a future with the organization.
That’s why it’s time to recognize career development as a critical part of Total Rewards not just a standalone initiative.
What is Total Rewards?
Total Rewards is a comprehensive approach to engaging employees through five key elements:
- Compensation – Salary, bonuses, incentives
- Benefits – Health, retirement, paid time off
- Well-being – Mental, emotional, and physical support
- Recognition – Formal and informal acknowledgment
- Development & Growth – Opportunities to learn, advance, and evolve
While compensation and benefits are essential, the development & growth component is often overlooked even though it plays a major role in employee retention and engagement.
Think about your career goals or your colleagues’ concerns
What’s one thing that consistently comes up?
“I’m not sure how I can grow here.”
“There’s no clear path forward.”
“I need more development opportunities.”
Career development directly influences an employee’s sense of value, growth potential, and long-term commitment. When this need isn’t met, disengagement follows, and often, so does turnover.
The psychology behind career growth
Two well-known theories help explain why development matters:
- Expectancy Theory (Vroom) suggests that people are motivated when they believe effort leads to performance and performance leads to meaningful rewards. If growth isn’t part of that reward, motivation can drop.
- Maslow’s Hierarchy of Needs shows that once basic needs (like pay and safety) are met, people naturally seek growth and fulfillment. Career development addresses this higher-level need and supports long-term engagement.
Development as a tangible reward
To integrate development into Total Rewards, organizations can offer:
- Tuition reimbursement or learning stipends
- Personalized development plans during reviews (Keyword: personalized)
- Mentorship and leadership programs
- Online learning tools and certifications
- Internal mobility or job rotation programs
These aren’t just perks; they are rewards that employees value deeply.
Career development should not be treated as an optional program or HR extra. It is a strategic reward that directly impacts retention, engagement, and business performance.
By formally including development in Total Rewards strategies, organizations can meet the needs of today’s workforce and build stronger, more future-ready teams.
Let’s stop asking employees to stay loyal while offering no clear path forward.
Instead, let’s reward them with what they truly value: opportunity, growth, and a future.
About the Author
Dr. Jaquelle Outlaw is a SHRM-certified HR professional and workforce development expert with a passion for creating data-driven, people-centric strategies. With years of experience in human resources, she specializes in leadership development, team dynamics, and employee well-being. Jaquelle has a PhD in Industrial-Organizational Psychology, where she deepens her expertise in the science of work and human behavior. Her research and work focus on leveraging psychological principles to drive workplace efficiency and employee satisfaction. Through this platform, Jaquelle aims to share valuable insights and practical strategies to help organizations build stronger, more engaged teams.