I think the more accurately stated question is: Is it better for my company if I create a career path for my employees?

Everyone's knee-jerk reaction to using the word "owe" will be no. But I think the question is an interesting one that I, at least, don't know the answer to. On the yes side, there is the possibility of long-term retention and providing more benefit to employees as a recruitment tool. On the no side, the potential for these employees to then leave for better jobs, the resource drain in creating such a program, the difficulty placing these people within a small company, etc.

So I'm curious to hear what people who've had this experience think -- is it better for the company?