“Career Path Ratio”

What is Career Path Ratio?

Career path ratio is a metric used to measure the ratio of promotion-based job mobility within an organization. It is calculated by taking the number of jobs an employee has held within a company and dividing it by the number of years in the organization. By looking at the ratio, companies are able to track the frequency of employee promotion, understand the job opportunities offered to their team, and use the data to improve job satisfaction.

How is the Career Path Ratio Calculated?

The Career Path Ratio is calculated by first determining the number of positions an individual has held within the company and then dividing that number by the total number of years the person has been with the company. The result gives an indication of the number of jobs the individual has taken up in comparison to the number of years they have worked.

For example, if an employee has held four positions within the company over a span of five years, their Career Path Ratio would be 0.8, indicating they have changed jobs during their employment eight times over those five years.

FAQs

How is the Career Path Ratio Measured?

The Career Path Ratio is measured by taking the total number of positions held within the company and dividing it by the total number of years in employment.

How Does This Ratio Differ Between Professions?

The Career Path Ratio may vary between professions for various reasons. Human resource roles may have a higher ratio due to more opportunities for advancement within the organization, and positions in management may have a higher ratio due to the requirement to take on additional roles as a leader. On the other hand, roles in engineering and other technical fields may have a lower ratio since advancement often hinges upon expertise and experience.