Your best employees want to be part of a company that is evolving, expanding, and investing. Growth isn’t just a buzzword — it has measurable impacts on retention, engagement, and career satisfaction. Just as importantly, growth drives innovation and business acceleration.
To grow, you need to keep your best people. And to keep your best people, you need to grow. It’s a cycle as old as business itself, but one that’s never been more critical. In growing companies, where clear career paths, promotions, and stretch opportunities are more common, employees feel their careers are organized, supported, and achievable. For high performers, that matters.
The Career Development Gap
A recent 2024 Gartner study of 3,500 employees revealed:
- Only 46% feel satisfied with their career development opportunities.
- Employees are 45% more likely to feel supported when organizations provide clear paths, resources, and regular feedback.
This illustrates a stark reality: when growth isn’t present — either for the company or for employees — engagement declines, and turnover rises.
High-Growth Firms = Job Creation + Innovation
For employees, working at a growth-oriented company means exposure to new opportunities, scaling teams, and meaningful impact. Yet, these firms are becoming increasingly rare.
- U.S. Census Bureau (BDS-HG) data shows that high-growth firms, though a small share of all businesses, create a disproportionate share of new jobs.
- At the same time, the share of high-growth firms has declined steadily over the past four decades, especially among young and small businesses.
This scarcity makes true growth companies highly attractive to ambitious talent.
Engagement & Retention Flourish with Growth
When growth is lacking, employees leave. High-growth firms, by contrast, foster engagement and retention through continuous innovation, new product launches, and faster adoption of new technologies.
- Research shows that firms with higher R&D intensity consistently outperform peers on financial metrics.
- Growth also creates economies of scale, stronger resource access, and resilience to market shifts — all of which enhance both company performance and employee experience.
The Risk of Staying “Stable”
Stability without growth may feel safe, but it can be a hidden risk. The decline in the number of high-growth firms across sectors shows that stagnation leads to reduced innovation, fewer career opportunities, and lower attractiveness for top talent.
Companies that stay static risk being left behind — not just in the market, but also in the war for talent.
What This Means for Employers and Employees
For employers wanting to attract and retain the best, growth must be both real and visible:
- Communicate your growth trajectory clearly — share where you’ve been and where you’re headed.
- Invest in career development — through stretch assignments, mentorship, and leadership pathways.
- Show your progress with metrics — employees value proof, not just promises.
For employees, the takeaway is equally clear: seek out companies that are scaling, innovating, and investing in the future.
Growth isn’t just a company goal — it’s a magnet for talent, a driver of engagement, and a pathway to long-term success.
To accelerate your business, and ensure you retain your top talent, or for questions on this First Principles Brief, please contact:
Brent.Teiken@teikengramer.com
Phone: 701-306-5525
We’ve been through it. We’ll help you prepare for it.