low wage earner

Report: Low-wage earners are stuck in a ‘trap’

A call for stakeholders’ participation to build an equitable career navigation ecosystem
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A new report – Unlocking Economic Prosperity: Career navigation in a time of rapid change – states, “Over the past several decades, the United States has witnessed gradual but undeniable rising income inequality.”

Authored by scholars from the Harvard Business School and The Project on Workforce at Harvard University’s Malcolm Wiener Center for Social Policy, the report says our system has failed the 44% of U.S. workers who identify as low-wage earners.

The report – which is led by Joseph B. Fuller, professor of management practice and co-head of Managing the Future of Work Project at Harvard Business School – explains, “Many entered the workforce through low-wage jobs and became ensnared in the ‘low-wage trap,’ cycling in and out of low-wage jobs that provide neither valuable credentials nor a path to advancement.”

Women and people of color are overrepresented in this population; and the majority of individuals have less than a college degree. For these workers, wage growth has largely stagnated since the 1980s.”

Successful Career Navigation

The report identifies five drivers of success in career navigation, including:

  • information accuracy and access
  • skills and credentials
  • social capital
  • wraparound resources and supports
  • social structures and ecosystems

“Many learners and workers from under-resourced communities do not have access to these drivers,” according to the paper.

The research examines the career pathways of groups facing advancement challenges – “young people entering the labor market for the first time, adults in low-mobility jobs, and individuals re-entering the workforce after a period of absence.”

The report identifies a dozen types of career navigation services, tools, programs, and structures that support career journeys. Services include coaching, mentoring, and networking, while tools include those that support exploration and pathway mapping and self-assessment.

Programs include career navigation courses and intensive, experiential programs. The structures examined include stackable pathways and public and private sector policies and practices that are intended to improve career navigation.

The report states, “The career navigation supports with the strongest evidence behind them–including career coaching and intensive, experiential programs–address multiple drivers, including access to information, social capital, skills, and resources.”

Calls to Action

All stakeholders have “a role in building a career navigation ecosystem.” These community members include policymakers, employers, educators, workforce intermediaries and organizations, and philanthropy.”

The report names 10 principles that should guide the development of any career navigation system or program. Among them:

  • Integrate opportunities for career exposure and social capital development
  • Design culturally relevant approaches
  • Use high-touch services that meet individuals where they are
  •  Provide financial and wraparound support
  • Leverage artificial intelligence to personalize pathways
  • Center equity by recruiting and elevating individuals from under-resourced communities
More Research Needed to Achieve Equitable Navigation

This report notes, “[It] lays the groundwork for the development of an evidence-based, field-informed strategy that will give every learner and worker the agency to pursue fulfilling careers and build a more prosperous economy.”

“Career navigation is a new field, and several major knowledge gaps persist,” points out the report. “To better understand and support equitable navigation, we need additional research.”

“We conclude by laying out an agenda for the future. We need more disaggregated, longitudinal research on career outcomes, including on the impacts of individuals’ career choices, to inform decision-making.”

Read the full report Unlocking Economic Prosperity: Career navigation in a time of rapid change here.

Dana Beth Ardi

Executive Committee

Dana Beth Ardi, PhD, Executive Committee, is a thought leader and expert in the fields of executive search, talent management, organizational design, assessment, leadership and coaching. As an innovator in the human capital movement, Ardi creates enhanced value in companies by matching the most sought after talent with the best opportunities. Ardi coaches boards and investors on the art and science of building high caliber management teams. She provides them with the necessary skills to seek out and attract top-level management, to design the ideal organizational architectures and to deploy people against strategy. Ardi unearths the way a business works and the most effective way for people to work in them.

Ardi is an experienced business executive and senior consultant who leverages business organizational transformation through talent strategies. She uses her knowledge and experience to develop talent strategies to enhance revenue and profit contributions. She has a deep expertise in change management and organizational effectiveness and has designed and built high performance cultures. Ardi has significant experience in mergers, acquisitions, divestitures, IPO’s and turnarounds.

Ardi is an expert on the multi-generational workforce. She understands the four intersecting generations of workers coming together in contemporary companies, each with their own mindsets, leadership and communications styles, values and motivations. Ardi is sought after to assist companies manage and thrive by bringing the generations together. Her book, Fall of the Alphas: How Beta Leaders Win Through Connection, Collaboration and Influence, will be published by St. Martin’s Press. The book reflects Ardi’s deep expertise in understanding organizations and our changing society. It focuses on building a winning culture, how companies must grow and evolve, and how talent influences and shapes communities of work. This is what she has coined “Corporate Anthropology.” It is a playbook on how modern companies must meet challenges – culturally, globally, digitally, across genders and generations.

Ardi is currently the Managing Director and Founder of Corporate Anthropology Advisors, LLC, a consulting company that provides human capital advisory and innovative solutions to companies building value through people. Corporate Anthropology works with organizations, their cultures, the way they grow and develop, and the people who are responsible for forming their communities of work.

Prior to her position at Corporate Anthropology Advisors, Ardi served as a Partner/Managing Director at the private equity firms CCMP Capital and JPMorgan Partners. She was a partner at Flatiron Partners, a venture capital firm working with early state companies where she pioneered the human capital role within an investment portfolio.

Ardi holds a BS from the State University of New York at Buffalo as well as a Masters degree and PhD from Boston College. She started her career as professor at the Graduate Center at Fordham University in New York.