Traditional career progression that large employers can offer is much more difficult to put in place for SMEs, however what SMEs offer is far more variety within existing roles. But how do you retain your employees when they’re ready for that growth and recognition?
Background
Client: A 35-person creative agency
Issue: One of their high-performing employees repeatedly raised concerns about career progression. The SME had no formal career framework, limited management layers, and struggled to offer traditional “promotion” opportunities. Leadership worried about losing talent but felt constrained by their size.
Challenge
- Employee expectations: The individual wanted clarity on “next steps” and felt stalled.
- SME limitations: With a flat structure, there were few managerial roles to offer.
- Risk: Without intervention, the employee could disengage or leave, taking valuable skills and client relationships with them.
Our Approach
We worked with the client to design alternative progression strategies that didn’t rely on hierarchy but still met the employee’s need for growth.
Step 1: Career Development Conversations
- Facilitated structured 1:1 discussions to explore the employee’s motivations (learning, responsibility, recognition).
- Shifted focus from “promotion” to development opportunities.
Step 2: Role Enrichment
- Introduced stretch projects (leading a client pitch, looking at operation business projects, mentoring juniors).
- Created specialist tracks (e.g., “Creative Lead” recognition without formal line management, for a product or industry). This can introduce cross departmental working forming a business matrix.
Step 3: Transparent Communication
- Documented a development roadmap with milestones (skills, projects, visibility).
- Clarified that progression in SMEs often means breadth of responsibility rather than title changes.
Step 4: Recognition & Retention
- Built in non-financial recognition: spotlighting achievements in team meetings, client-facing visibility.
- Adjusted reward structure to include development-linked bonuses.
Outcome
- The employee reported feeling valued and motivated, despite no formal “promotion.”
- The SME retained a key team member and avoided recruitment replacement costs.
- The agency adopted a development framework for all staff, balancing ambition with SME realities.
Key takeaways
- Consider the growth of your employees likes to the growth of your business. Think about what Henry Ford said: “What if we train them and they leave? What if we don’t and they stay?”
- Avoid disengagement by having regular development conversations, don’t wait for the employee to ask. Get to know your team.
- If you have a flat structure, then consider projects, skill development and recognition
- SMEs will have cost and admin restraints so include career path development along side your business plans – you need the “How” to do the “What”
In summary: SMEs can’t always offer traditional promotions, but they can provide meaningful development through enriched roles, recognition, and transparent communication. This reframes progression as growth in skills and influence, not just titles. KeystoneHR can help you develop what could work for your business and you industry, don’t forget if you’re a regulated business like law or accountancy then then will be existing standards and frameworks will can use as well.
