Career advancement in organisations is one of the key enablers of employees’ productivity and it has a dual positive impact on both individual employees and the organisation. It enables the employees to enhance their skills, increase and sustain their earnings potential and as well improve overall job satisfaction, while also helping organizations to attract and retain talent, boost productivity, and achieve their corporate goals. Globally, employees are regarded as major assets and components which all forward looking organisations will not toy with because their collective performance or non-performance ultimately determines the fortunes of the organisation. The reward system of organisations is seen as one of the most effective strategies which organisations use to retain top performing employees and maintains a motivated workforce to sustain productivity. This study aims to highlight the impact of career advancement of employees as it affects their productivity on their job. Survey research design were employed where 150 copies of the research instruments were administered to purposively selected respondents who were senior, middle level and lower management employees of the selected hotels. The effective follow up on the distributed copies of the questionnaire ensured that we achieved a response rate 124 copies representing 82.66% of the instruments distributed. The data were processed using Statistical Package for Social Sciences. The study found that career advancement had a significant effect on employee productivity of selected hotels in Lagos State, Nigeria (β = 0.501, t = 8.271, p < 0.05). The study concluded that career advancement played a significant role in employee productivity of selected hotels in Lagos State, Nigeria. The study therefore recommended that organisations should institute robust employee career advancement management in their compensation packages so that they will be able to recruit, train and retain talented employees in order to improve and sustain individual employee performance as well as overall organisational productivity.