Retailing is the largest industry in the United States, employing roughly 18 percent of the total labor force. However, high turnover resulting from low wages in entry-level positions and the perceptions of retail workers that job security is far from certain and that advancement potential is limited have resulted in low levels of employee retention and advancement. Career ladder models that help workers develop sets of highly transferable skills and tie their skill development to increased wages and greater opportunity for advancement may result in benefits to both employers and the workforce. Design principles and guidelines of effective career ladders are as follows: (1) a demand-driven workforce intermediary plays a leadership role; (2) career ladders acknowledge the needs of employers as the central determinant of required skills and training and build relationships among firms and providers of workforce development services; (3) career ladders demonstrate clear pathways entry-level, to intermediate level, to professional within a single firm or through a network of participating employers; and (4) career ladders provide pathways or structures for employers to "grow" or find workers that meet their business needs. (Examples of career ladders in the retail industry are given throughout the document. An appendix contains a scenario for creating a retail industry career ladder. Contains 39 references.) (MO)