Career plateauing: Implications for career development specialists

Career Plateauing: Implications for Career Development Specialists

A n d r e w Weiner R o r y Remer Pam Remer

University of Kentucky

Roger is a 33 year old department supervisor in a large midwestern insur- ance and financial services company. He has been a supervisor for five years, prior to which he was a senior financial analyst for three years. Before his analyst position, Roger worked as a financial services representative for two years, his initial job following college graduation. During that two year period Roger earned his MBA degree through an evening program and thus was promoted to the senior analyst position.

Until now, Roger's career development has been somewhat rapid with relatively short periods of time in a succession of positions, each change resulting in a promotion. However, Roger has been in his present position for five years with no sign of promotion forthcoming. Repeated inquiries made of his manager concerning the next promotion have resulted in a mixture of responses best described as evasive or non-committal.

Given that Roger comes from a high achieving, middle-class family in which his father climbed to upper management without having a college degree, Roger feels a certain pressure to advance.

Roger conjectures that the MBA degree and consistently excellent performance appraisals received throughout his tenure at the company would certainly pay off in a promotion. The fast track that he has been on is surely a sign that the company views him as management material; why else would they have encouraged him to earn an advanced degree and put in 60 hour work weeks? Still, the lack of positive feedback from his manager concerning the necessary ingredients to obtain the next promotion has filled Roger with anger and self doubt. He continually questions himself and wonders about the future. This uncertainty about the future has left him confused and anx- ious.

Address correspondence to Dr. Andrew Weiner, Depar tment of HPR, 114 Seaton Building, Univers i ty of Kentucky, Lexington, KY 40506-0219.

Journal of Career Development. Vol, 19(1), Fall 1992 © 1992 Human Sciences Press, Inc. 37

38 Journal of Career Development

Career Plateauing: Multiple Problems

Structural Plateauing

Roger is facing a problem that is difficult to accept for many high achieving baby boomers like himself. He is suffering from Structural Plateauing, i.e. in the perception of his employer, he is no longer promotable (Bardwick, 1986). While the concept of plateauing or leveling off in a career path is not new, the magnitude of the problem and the relatively early age at which it is now occurring is unique and pre- sents a major management challenge to modern organizations. How does one keep a large pool of highly qualified, achievement-oriented employees motivated without using promotion as an incentive? Such a question touches the core of the American work ethic. The purpose of this article is to describe the causes, types, and effects of career plateauing as well as some potential solutions to the problem.

Several historical factors have contributed to the emergence of plateauing as a personnel problem. Following World War II, the U.S. economy experienced an unprecedented expansion characterized by a 56 percent increase in the number of corporations and a concomitant increase in management level jobs (Vogel, 1985). Veterans returning to this economy faced virtually no competition for these jobs because: (a) the majority of women worked in the home; (b) programs to facilitate minority employment were nonexistent; and (c) the birth rate was relatively low just prior to and during WWII. Many of the veterans who began college found they did not need a degree to advance, thus a large number of managers rose to upper level management positions without a college education.

The progeny of these WWII veterans born between 1945 and 1960, typically referred to as "baby boomers" and numbering over 56 mil- lion (Bardwick, 1986), represented an unusually large age cohort. Born during prosperous times, they were infected with a sense of opti- mism and values which promoted beliefs such as "hard work pays off, .... education is the ticket to the future," "the sky is the limit for those who are willing to work for it," and "loyalty to the company will result in career longevity" (Bardwick, 1986).

Baby boomers believed. Since 1960, the percentage of undergradu- ate degrees earned has increased by 91% (Slocum, Cron, & Yows, 1987). Similarly, the number of MBA's awarded has significantly increased. In 1960 graduate schools awarded only 4,500 MBA degrees, but by 1986, those same schools awarded more than 71,000 degrees (Bardwick, 1986).

A n d r e w Weiner et al. 39

Economic opportunities, however, did not keep pace. By the mid to late 70's, economic expansion had halted; by the early 80's the U.S. economy was experiencing a recession. The recession led to a trend in corporate downsizing typically reflected in restructuring, mergers, buyouts and other reorganizations, all of which contributed to the elimination of numerous management positions. Intense competition from Japan and other countries prompted U.S. industry to refocus its attention on regaining the competitive edge through a "lean and mean" mentality. Such a mentality required a value shift. Values such as flexibility and competitiveness replaced loyalty and longevity as salient corporate values (Bardwick, 1986). Consistent with the value shift, organizations restructured along flatter patterns thus, many first and mid-level management positions were eliminated and spans of control increased (Leibowitz, Kaye & Farren, 1990).

Accompanying these major economic, value, and organizational changes were significant demographic changes. Women--especially professional women--were entering the job market at a rapid rate as were minority group members, thus, competition became more intense. Armed with middle class values, higher education and great expectations, the oldest baby boomers were reaching the age at which many managers are typically selected for mid-level management positions.

Some have labelled the confluence of the above conditions as the worse case scenario--a large number of highly educated, talented, potential management level people facing a drastically reduced number of management opportunities (Bardwick, 1986). The most obvious and immediate outcome appears to be the creation of a large pool of qualified, underemployed, and potentially frustrated individuals, poorly prepared to cope with these unforeseen contingencies.

Content Plateauing

Despite the fact that plateauing is the result of impersonal, uncon- trollable factors such as demographics, and economic and business conditions, such explanations seem insufficient comfort to those who have sacrificed personal gratification (e.g., delay in marriage and family), in pursuit of "expected" professional advancement. Attempts to explain structural plateauing or (lack of promotability) as an emo- tionally neutral phenomenon by noting that only one percent of the workforce rises to the top of the organizational pyramid, while the other 99% plateau at some point prior to the apex of the pyramid, simply illustrates another potential problem labelled Content Pla-

40 Journa l of Career Development

teauing (Bardwick, 1986). Content plateauing occurs as a result of a decreasing rate of promotions which forces talented employees to remain in the same positions for a considerable number of years without a significant change in job responsibilities. Assuming the employee has mastered the job but has no promotion to work toward, a logical consequence would be a loss of motivation and subsequent de- cline in productivity. Perhaps, even personnel problems within the organization such as absenteeism and interpersonal conflict, might result (Bardwick, 1986). Since American industry has been slow to accept the notions of restructuring the organization into a "flatter format" (where lateral rather than vertical mobility is emphasized) or adopting job enrichment programs, content rather than structural plateauing may present the greatest problem in the next decade.

Empirical Evidence

Of the plateauing related research reviewed, none of the studies utilized any of the major career theories as a framework for their investigations. Thus, a major flaw in the research on plateauing is its atheoretical base. Most of the plateauing literature focused primar- ily on methods for classifying plateaued employees rather than on testing hypotheses related to causes and effects of plateauing. Ac- cordingly, for review purposes, literature related to plateauing was grouped into three sub-areas: (a) types of plateauing, (b) effects of plateauing on selected work related behaviors, and (c) problems associated with conducting research on organizational plateauing.

Classifying Plateaued Employees

Although plateauing has a negative connotation, it need not be a negative experience. Perhaps the earliest attempt to distinguish between negative and positive plateauing via a model of managerial careers was conducted by Ference, Stoner and Warren (1977). In classifying managerial careers as a function of current performance and likelihood of promotion, Ference et al. (1977) distinguished between effectively plateaued employees referred to as "solid citizens" and ineffectively plateaued employees, referred to as "deadwood." Veiga (1981) used this model to study plateauing among 1,733 managers from three large manufacturing companies and found that "deadwood" managers were more likely to change companies than solid cit-


izens or non-plateaued managers. They were also less satisfied with their career advancement and sense of value to the organization. Also noted was "deadwood" managers occupied positions that were not very visible on top management, perhaps a partial cause of their plateauing.

Leibowitz, Kaye and Farren (1990) developed a model of plateaued performers based on employee and organizational actions. Employee actions referred to behaviors initiated by the individual in support of his/her career development, (e.g., stating of goals and interests), while organizational actions referred to a range of interventions spon- sored by the organization which might include job enrichment and training programs. Given the parameters of the model, plateaued employees may be classified as productively plateaued (satisfied and pro- ductive), partially plateaued (special interest or expertise but no organizational support), pleasantly plateaued (organizational support for new opportunities, but employee is content with present job) and passively plateaued (depressed and unhappy with no organizational support for change). Differences among these types of plateauing became more obvious as specific characteristics, consequences and interventions were described.

Bardwick (1986) classified plateaued employees using a continuous model consistent with the previously noted definitions and causes of structural and content plateauing. While structural plateauing may be inevitable, content plateauing is avoidable and correctable. How~ ever, if an employee experiences first structural and then content plateauing there is a good chance Life Plateauing will follow. Life plateauing signifies a state of malaise or a significant case of mid-life crisis. Quite often when a fast track employee pursues rapid career advancement, personal and family matters are neglected. When such an employee experiences structural and content plateauing, the support systems previously neglected are unavailable leaving the employee with an emotional void or a life plateau.

Effects of Plateauing

Whether an employee experiences the extremes of a life plateau or something less serious, involuntary plateauing results in stress. Elsass and Ralston (1989) developed a model of career plateau stress which examines various types of responses to the stress of career plateauing as a function of selected moderating variables. Variables such as career concept, career appraisal, life stage, organizational

42 Journa l of Career Development

support and commitment, and career-role alternatives contributed to defining the type of coping response to career plateau stress selected by the employee. Transition (change) and reappraisal (reevaluation) represented two response modes which may be classified as either positive, (e.g. learning new skills and finding reward in task success, respectively) or negative (e.g. leaving the organization and blaming the plateau on the organization, respectively). The third response mode was defense which was classified as a negative mode (e.g. absenteeism, alcoholism). Thus, the amount of stress experienced with a plateau depends largely on personal and organizational factors which may mitigate or exacerbate stressful effects.

Despite the existence of classification models for examining the effects of plateauing on the individual and organization, much of the research was conducted in an isolated fashion and with inconsistent results. Assertions that plateaued employees are less satisfied with their jobs, and organizations and are absent more frequently than non-plateaued employees have appeared in the literature (Dawson, 1983; Facts & Figures, 1989; Near, 1985). However, perhaps due to a failure to distinguish between effectively and ineffectively plateaued employees, findings were inconsistent.

Veiga (1981) studied plateaued and non-plateaued managers in three large manufacturing firms and found no difference in overall job satisfaction between the two groups. However, plateaued managers were more willing to leave the organization for another job than were their non-plateaued peers. Near (1985) found in a study of plateaued managers that this group was more likely to rate their su- pervisors unfavorably as well as be absent more frequently than non- plateaued managers. Weiner and Jeffiers (1991) studied perceptions of plateauing within a rural electric cooperative and found few differences between those who perceived themselves as promotable and nonpromotable. No differences were found with respect to absenteeism, perceived health status, patterns in leisure usage, orientation to retirement planning, and overall satisfaction with the organization. Minor differences were found in job satisfaction levels and perceptions of factors necessary for promotion. Those employees perceiving themselves as promotable reported slightly higher levels of job satisfaction and were more likely to identify skills as opposed to experience and politics as factors most important for promotions.

Slocum, Cron and Yows (1987) studied the sales force of a large chemical-agricultural firm and found that plateaued employees pro- vided different reasons for leaving the firm than their non-plateaued


peers. Typically, non-plateaued employees listed increased salary and new opportunities as reasons for leaving while plateaued employees were likely to indicate company policy, reorganization and personal reasons (e.g. health problems) for leaving.

While classification systems differed and reported effects of plateauing were inconsistent, one common implication was shared by most; plateauing is not necessarily a negative experience nor does it uniformly produce negative consequences (Near, 1984). Much of what determines whether plateaued employees experience plateauing neg- atively depends upon certain personal characteristics (e.g. attitudes, orientations, coping skills, career goals) (Elsass & Ralston, 1989), and organizational supports and interventions (Leibowitz, et al., 1990). Given that plateauing is a phenomenon that has differential effects, research efforts should focus on differentiating effectively from ineffectively plateaued employees in an effort to design interventions. However, problems in doing so exist.

Research Problems

One of the major problems in investigating the concept of effectively and ineffectively plateaued employees lies in the methods used for discriminating between the two groups on a priori. The most logical method would appear to be the performance appraisal system. However, many companies do not use the system objectively for a variety of reasons (e.g. fear of various types of discrimination-based lawsuits). In fact, fear of age discrimination suits appears to be a major reason most organizations do not inform the employee that she or he is plateaued. If an employee does not receive a less than satisfac- tory performance rating, labeling the employee as ineffectively plateaued is difficult.

Some researchers have used other criteria to identify a plateaued employee. Veiga (1981) used length of time in position, age, and pre- vious year's salary increase as criteria to distinguish between effectively and ineffectively plateaued managers. Other methods using objective criteria could not be found.

Since no adequate research results on the extent of plateauing are available, progressive organizations are presented with a major management problem. In spite of this lack and while structural plateauing seems somewhat unavoidable, many of the problems associated with it and content plateauing appear to be correctable on a proactive and reactive basis. Some of the more proactive interventions would


occur early in the career development process and thus would be a concern for career development specialists working in educational in- stitutions (Elsass & Ralston, 1989).

Career Counse l ing Impl icat ions

Elsass and Ralston (1989) examined stress reactions to career plateauing and noted that a holistic view of career positively influences stress response mode. They viewed career concept as a dimension of career orientation which integrated the abilities, values, and needs into a holistic perspective of what an individual wanted from a career. This individualized, internal career map was based upon the individual's notion of what a career should be. If one's career motives were closely aligned to organizational advancement, then plateauing would create a stronger degree of career discrepancy in that individual than if needs other than career advancement were primary mo- tivators. This finding has implications for school-based career counselors since these professionals can encourage students to develop a well integrated and diversified concept of career and thus avoid the negative consequences of plateauing associated with being too closely aligned with the organization.

Within secondary schools and throughout college, students should be taught the value of an integrated lifestyle, one which emphasizes the contribution of numerous activities other than work, to the fulfill- ment of psychological needs. Career counselors can facilitate this process via student counseling sessions. Other school-based strategies used by career counselors might include training seminars which focus on proactive approaches to life planning. Such an approach en- compassing goal setting, contingency planning, creative problem solv- ing, values clarification, decision making, anticipating and planning for ongoing change would be constructive.

Other proactive and reactive strategies for responding to the plateauing problem exist, however, many of them typically are used in later stages of career development. In addition, the worksite rather than the school becomes the site of these interventions. Career development specialists employed within the organization or hired as con- sultants from outside the workplace can assist in the identification and implementation of these later stage strategies.

An overview of potential strategies for dealing with the plateauing problem in the work site appear in Table 1. Responses may be classi-


Table 1 Plateauing Response Matrix

Proactive Reactive

Organizational

Managerial

-Redesign the organization

-Change organizational climate through education

-Change personnel policies

-P lan for career and retirement

-Develop job loading and cross training strategies

-Observe and assess employee attitudes/ opinions

-Develop honest and equitable performance appraisal recognition and feedback

-Present positive models of plateaued employee

-Manage by walking around

-Develop special projects, events

-Offer awards, dinners -Present courses,

seminars workshops (to include exercise/ recreation program)

-Provide discharge/ outplacement services

-Develop recognition programs

-Provide counseling for the plateaued employee

-Refer to Employee Assistance Programs

fled as either proactive (prevention oriented) or reactive (remediation oriented). Both are necessary as are the two levels of responses, organizational, meaning a commitment from the top level down and/or managerial, an intervention on a departmental level.

While not all of the strategies in Table 1 fall within the domain of career counseling, a few in particular are worth noting. Within the quadrant labelled "proactive organizational" are strategies which have the support of the entire organization--meaning that the Chief Executive Officer (CEO) has given approval and support for these interventions. Career and planning programs as well as job loading and

46 J o u r n a l of Career Development

cross training programs are certainly areas where career counselors can assume a leadership role. Career planning systems which focus not only on goal exploration and skill development, but on educating employees about plateauing, what it means and how it can be dealt with are valuable topics to be presented in a career education/development program.

Retirement planning may be construed as another phase of the career planning process insofar as it involves preparation for another phase of life and demands early planning if the employee is to be satisfied with retirement. Another advantage of sponsoring a retirement planning program is that older plateaued employees are motivated to think seriously about retirement, not because they perceive themselves as being coerced into retirement, but because they may have the knowledge and skills to plan for and thus, face retirement more positively. When older employees retire, because of an optimis- tic attitude as well as an exit incentive, they open up clogged promotion channels for younger structurally plateaued workers.

The area of job loading and cross training are not new. Historically, they have received mixed responses from industry partly because of differences regarding job loading methodology and in part due to the amount of work involved in altering organizational structure to ac- commodate restructured or enriched jobs. Still, when the reality of large scale content plateauing is recognized, job enrichment programs certainly appear to represent a viable solution. Career counselors are among the most knowledgeable professionals in most organizations with respect to job enrichment, considering their knowledge of job and career satisfaction. Therefore, any job enrichment program would certainly benefit from their involvement.

The last program area where career counselors could be quite valuable lies in the quadrant defined by organizational reactive strategies. Discharge or outplacement counseling, although not the most pleasant job responsibility a counselor could have, is nevertheless quite valuable to a plateaued employee who has opted to leave the organization or to an employee who has been terminated because of poor performance brought on by a protracted plateau. Helping an employee redefine criteria for success, future goals, and opportunities for skill development may cause the employee not only to find another more suitable position, but, to gain a more integrated perspective on life.

Career counselors can do more than counsel employees, they can provide training and development activities as well. This is especially


true in coordinating career development seminars which focus on the plateauing problem. Additional opportunities are available if career counselors can work jointly with training and development specialists to train managers in more effective and equitable ways to administer performance appraisals. Since plateaued employees often question the fairness and equity of the performance evaluation system (Near, 1984), the evaluation area is a sensitive one for plateaued employees and therefore, an area that merits attention.

Conclusion

While career plateauing is a major challenge facing contemporary organizations, possible solutions are available. The career development specialist possessing a variety of skills geared toward both pro- action and reaction can be instrumental in designing interventions which minimize the negative impact of plateauing. While career plateauing can be a devastating problem for many high achieving, self-sacrificing baby boomers, for others it may present an opportunity to escape the internal pressures for "success." Much of what happens to a plateaued employee is determined by the resources pos- sessed by the employee as well as the organization's response to the employee. The activities of the career development specialist consti- tute much of what is considered the organization's response. A career plateau may mark the beginning of a period characterized by frustra- tion and depression or it may present the opportunity for a new challenge or reappraisal of life direction and goals.

References

Bardwick, J. (1986). The plateauing trap: How to avoid it in your career. New York, NY: Amacom.

Dawson, C. (1983). Will career plateauing become a bigger problem? Personnel Jour- nal, 78-81.

Elsass, P.M., & D.A. Ralston. (1989). Individual responses to the stress of career plateauing. Journal of Management, 15(1), 35-47.

Facts & Figures, (1989). Plateaued and obsolescent employees. Training, 69. Ference, T.P., Stoner, J.A., & Warren, E.K. (1977). Managing the career plateau.

Academy of Management Review, 2, 602-612. Leibowitz, Z.B., Kaye, B.L., & Farren, C. (1990). What to do about career gridlock.

Training & Development Journal, 44(4), 29-35. Near, J. (1984). Reactions to the career plateau. Business Horizons, 75-79. Near, J. (1985). A discriminant analysis of plateaued versus nonplateaued managers.

Journal of Vocational Behavior, 26, 77-188.


Slocum, J.W., Cron, W., Hansen, R.W., & Rawlings, S. (1985). Business strategy, the management of plateaued employees. Academy of Management Journal, 28, 133-154.

Slocum, J.W., Cron, W., & Yows, L. (1987). Whose career is likely to plateau? Business Horizons, 31-38.

Sonnenfield, J., & Kotter, J. (1982). The maturation of career theory. Human Rela- tions, 35, 19-465.

Veiga, J. (1981). Plateaued versus nonplateaued managers: Career patterns, attitudes and path potential. Academy of Management Journal, 24, 566-578.

Vogel, T. (1985). Business fails to fulfill dreams of baby boomers. The Dallas Morning News, December 10, Section D.

Weiner, A. & Jeffiers, M. (Winter 1990/91). Analysis of the quality of work life at East Kentucky Power Cooperative. Management Quarterly, 3•(4), 8-17.

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Career plateauing: Implications for career development specialists