By Jonathan H. Westover, PhD
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Abstract: In today's disruptive business environment where entire job categories are emerging and transforming rapidly, traditional career path models centered on predefined vertical progression no longer adequately equip organizations with the workforce mobility and strategic resilience needed to dynamically deploy talent as work evolves. This article explores how progressive companies like global banking giant HSBC and humanitarian relief leader World Vision have overcome these challenges through transitioning to career portfolio-based talent systems that empower employees to curate diverse experiences through roles, projects, assignments and skills development opportunities. A shift from narrow career paths to emphasis on capability and experience building strengthens organizational agility through a multi-skilled workforce while providing strategic benefits to talent retention, succession planning and futureproofing the business in uncertainty. Perhaps most importantly, the career portfolio approach also empowers individual contributors with the versatility and lifelong learning critical for navigating today's fluid labor market landscape - futureproofing both their employability and work fulfillment in the new world of work.
Traditionally, organizations have encouraged employees to follow a linear “career path” where progression occurs upwards or laterally through predefined job roles and positions. However, in today’s dynamic and ever-changing business environment, a strict career path no longer adequately prepares employees for navigating their careers successfully. Research shows that the modern workforce now transitions between ten to fourteen jobs over the course of their working lives (Martin, 2021). Rather than viewing career progression narrowly through predefined roles, organizations and employees would be better served focusing on developing a diverse “career portfolio” that builds a broad set of relevant and transferable skills.
Today we will explore why organizations should encourage employees to build career portfolios instead of focusing solely on predefined career paths.
Building Career Portfolios Aligns with Workforce Mobility Trends
Research Indicates several key trends in today’s workforce that highlight the need for career portfolios over rigid career paths. Firstly, jobs and industries are experiencing more disruption than ever due to technological advances and globalization (World Economic Forum, 2018). Entire job categories are emerging and disappearing rapidly as the nature of work changes. For example, roles in cybersecurity, data analytics, and renewable energy have grown exponentially in recent years, while traditional manufacturing jobs have declined. Secondly, employees are changing jobs more frequently, no longer staying in one role or organization for life (Martin, 2021). This mobility allows workers to gain diverse experiences, but also means career paths are less linear. Building a broad career portfolio rather than focusing narrowly on predefined career paths helps employees stay relevant and employable as industries transform rapidly. Lastly, soft skills like collaboration, adaptability, and lifelong learning are increasingly valued alongside technical proficiency (World Economic Forum, 2020). A career portfolio approach emphasizing multi-dimensional skill-building aligns well with these trends.
Benefits to Employees of Building Career Portfolios
Building a diverse career portfolio provides several key benefits to employees. First, it makes them more resilient and adaptable to changing market conditions (World Economic Forum, 2018). With a portfolio showcasing a variety of relevant experiences, skills, accomplishments and competencies, employees can more easily transition between roles, industries and organizations. This gives them more employment options and helps future-proof their careers. Second, career portfolios support lifelong learning and skill development (Coff & Raffiee, 2015). Employees can gain exposure to new areas and continuously upgrade their skillsets through projects, lateral moves, training opportunities and learning on the job. Lastly, career portfolios enhance employee satisfaction and work meaningfulness (Pryce-Jones, 2019). Having a multi-faceted, interesting portfolio allows employees to pursue diversity, challenge themselves with new experiences, and find passion in different aspects of their work over time. Overall, the career portfolio approach empowers employees to actively manage their employability and work fulfillment.
Benefits to Organizations of Encouraging Career Portfolios
For organizations, encouraging employees to build career portfolios provides several strategic benefits. It supports talent mobility within the organization which is crucial for retaining top performers (Coff & Raffiee, 2015). With a portfolio demonstrating versatility, high-potential employees can be identified and challenged through lateral moves, special projects or stretch assignments without necessarily leaving the organization altogether. This reduces turnover costs. Career portfolios also strengthen organizational agility (Bassi & McMurrer, 2008). With a multi-skilled, cross-trained workforce holding diverse experiences, companies can more flexibly deploy talent as market conditions evolve. This is especially important during disruptive periods. Lastly, organizations benefit from developing a talent pipeline and ensuring work is matched to employees' evolving interests (Pryce-Jones, 2019). By emphasizing portfolio-building over rigid paths, firms can potentially identify future leaders earlier based on demonstrated skills. Employees also stay engaged and productive when their portfolios allow continuous development and meaningful work.
Banking Industry Example
To illustrate a successful career portfolio approach in practice, consider talent management strategies used by major banks. Traditionally, career paths in banking were highly structured around predefined job families like retail, commercial, or investment banking. However, as digital disruption transformed the industry, many banks recognized the need for a more dynamic talent model. HSBC is one such bank that overhauled its approach, moving from focusing solely on vertical career progression to developing horizontal career portfolios (Pryce-Jones, 2019). Under this new system, employees build career portfolios through a mix of permanent roles, short-term assignments, projects, job shadowing opportunities, training and international exposures across different banking functions. This has created a more nimble, cross-trained workforce. Not only are employees benefiting from diverse challenging experiences on their portfolios, but HSBC gains strategic business advantages. The bank can now more flexibly deploy multi-skilled employees where needed, retain top performers with interesting portfolio-building opportunities, and develop a pipeline of future leaders through exposure to varied parts of the organization. Other major banks like Citi and Barclays have since followed HSBC’s lead in transitioning to portfolio-based talent systems for similar competitive reasons.
Non-Profit Sector Example
While career portfolios are valuable in for-profit sectors, the concept is equally important for non-profit organizations focused on social impact. Consider national non-profits conducting humanitarian relief work globally. Careers in relief have traditionally centered on linear paths within specialized functional areas like logistics, health, or water/sanitation. However, with complex emergencies often requiring multi-faceted responses, relief agencies now recognize the need for versatile generalists over narrowly-focused specialists. World Vision is a leader in implementing portfolio-based career models focused on capability and experience-building (Collins, 2016). Rather than permanent roles, employees undertake 6-12 month assignments in different program areas, countries and partner organizations. This allows building a portfolio encompassing logistics, community engagement, nutrition and other relevant capabilities. Not only does this make relief workers nimbler and adaptable to changing aid contexts, it also benefits World Vision by strengthening organizational integration, knowledge sharing and succession planning. The portfolio approach ensures a talent pipeline prepared to take on leadership roles requiring a strategic multi-dimensional view of complex emergencies.
Conclusion
In today’s VUCA environment, strictly defined career paths are less effective for both organizations and individuals compared to building diverse career portfolios. A review of literature and practical industry case studies demonstrate how focusing on experience and capability building through projects, lateral moves and international assignments better prepares employees and employers for today’s disruptive and fluid workplace. As technology transforms entire job categories, careers will continue diversifying beyond traditional vertical progression structures. By using a portfolio mindset that emphasizes versatility over rigid paths, both employees and organizations can future-proof themselves, strengthen workforce mobility, and build the strategic resilience needed to thrive in today’s uncertainty. Overall, the benefits of career portfolios make a compelling case for organizations to overhaul outdated talent systems and instead support employees to curate experiences, skills and accomplishments that will meaningfully guide their careers in the new world of work.
References
Bassi, L. J., & McMurrer, D. P. (2008). Maximizing your return on people. Harvard Business Review, 85(3), 115-123.
Coff, R., & Raffiee, J. (2015). Toward a theory of perceived firm-specific human capital. Academy of Management Perspectives, 29(3), 326-341. https://doi.org/10.5465/amp.2014.0112
Collins, C. (2016). Building versatile leaders: World Vision's experience-based career development model. Journal of Nonprofit Education and Leadership, 6(2). https://doi.org/10.18666/JNEL-2016-V6-I2-7521
Martin, C. (2021, July 15). You'll have over 10 jobs in your lifetime. Are you ready? LinkedIn. https://www.linkedin.com/business/marketing/insights/content/you-ll-have-over-10-jobs-in-your-lifetime-are-you-ready
Pryce-Jones, J. (2019). Future proof: Preparing for the jobs that don't yet exist. Kogan Page.
World Economic Forum. (2018, January 16). The future of jobs report 2018. https://www.weforum.org/reports/the-future-of-jobs-report-2018
World Economic Forum. (2020, January 15). The future of jobs report 2020. https://www.weforum.org/reports/the-future-of-jobs-report-2020
Jonathan H. Westover, PhD is Chief Academic & Learning Officer (HCI Academy); Chair/Professor, Organizational Leadership (UVU); OD Consultant (Human Capital Innovations). Read Jonathan Westover's executive profile here.
Suggested Citation: Westover, J. H. (2024). Building a Talent Portfolio: A Modern Approach to Career Development. Human Capital Leadership Review, 12(4). doi.org/10.70175/hclreview.2020.12.4.7
