Career Path Ratio

Meaning & Definition

The Career Path Ratio (CPR) is a human resources metric that illustrates an organisation’s balance between promoting employees upward, advancing them laterally, or through different roles. It enables organisations to measure the evolution of employee careers by assessing whether employees tend to advance primarily through traditional hierarchical promotions or through job skills.

Important features of the Career Path Ratio

• Assists human resources in assessing the internal career development trends.
• Facilitates strategic workforce planning and succession planning.
• Promotes systematic approaches to career development that aren’t only based on promotions.
• Decreases employee turnover by providing multiple pathways for career advancement and development.
• Aligns employee development with the capacity requirements of the organization.

Legal Compliance / Policy / Regulation

While there are no specific definitions of a Career Path Ratio under Indian Labour Laws, companies use it as part of their internal HR Analytics, Talent Management practices, and career path development metrics. 

However, when considering a Supervisor’s or Employee’s next step in their career path, the Company needs to be mindful of using its documented HR Policies and Appraisal System as criteria for promotion and Role Movement decisions, and should also ensure that the Company’s Career Path Framework adheres to the principles of Equity and Fairness.

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