Employee development: How important is it for your company?

In today’s corporate landscape, employee development is more than merely a buzzword. 

We all want to have more, and that doesn’t necessarily mean more money. A modern worker wants more knowledge, better skills, more advanced tasks, refined experience, and improved well-being—all at once.  

It means everyone is expected to opt out of the comfort zone of the regular employer-employee cycle. That context is old and no longer applicable. 

Employee development is vital in today’s highly competitive market as it reduces turnover, attracts top talents, and positively impacts overall employee engagement and job satisfaction.

Employee development definition

Employee development is much more than just one training or workshop. It refers to the set of actions that both an employee and a company take with an aim to improve the employee’s skills, knowledge, and abilities. These actions should be conducted regularly and adapted to specific workplace culture. 

From an employee’s perspective, skill development matters because it may lead to a better role and a higher position in the future. From a company’s perspective, a more competent employee leads to more efficient teams and better results on the company level for learning organizations as a whole. 

The main benefits of employee development for a company

1. Build on innovation and productivity

By investing in your workforce, you’ll create a more skilled and engaged team without the cost of new hires.

The team becomes not only more skilled but more adaptable, too. This is definitely an edge in today’s competitive market and it drives innovation and productivity. 

2. Improves employee engagement and job satisfaction

Furthermore, there is a tight connection between employee engagement and their job satisfaction.

Employee engagement is the emotional connection with the company. They feel passionate about the job, they are committed to the organization and they care about the quality of their work.

The more engaged a person is, the more likely they are to be more loyal to a workplace.

On the other hand, job satisfaction is when an employee actually enjoys the work they do. An engaged worker will care more about the work: they will be happier and more satisfied.

3. Increase retention

Creating a learning culture will  help you retain employees longer. Especially if you manage to convert the company to learning organization as a whole and enable learnings to be transferred from individual to team to whole organization and vice versa.

That way you’ll provide the ambitious workers opportunities for career advancement so that they won’t have to look elsewhere.

4. Attracts top talent

According to Gallup, 59% of millennials, as job seekers, are often drawn to companies that offer opportunities for growth and development. 

How can you enable employee development?

There are many ways a company can invest in employee development, but let’s talk about core ones: 

1. Training and skills enhancement

Employee development often begins with training programs focused on specific skills or knowledge relevant to the employee’s current role.

You can make a pathway of trainings that centre arround technical skills, like using particular software, handling specific guidelines etc. And, on soft skills,choose something relatable to juniors – assertive communication, time management etc.

2. Education and learning opportunities

Employee development may include workshops, seminars, or degree programs.

These activities help employees deepen their expertise and broaden their knowledge, so make sure you set aside a budget for those activities for your top-performing employees. In some states, you can even get deals with universities where you can offer internships for their students while they can cut the tuition costs for studies your employees are involved with.

3. Career coaching and mentoring

Mentors and career coaches are vital for employee growth because they offer valuable support, advice, and insights.

They help employees become aware of their strengths and weaknesses, and learn how to make better career choices.

You can point coaches and mentors within existing senior employees, and/or you can find specialized ones and hire them externally as a benefit. 

4. Job rotations and stretch assignments

Hands-on experience is invaluable and getting out of the comfort zone is a great way to learn and grow. Job rotations and stretch assignments can be excellent for doing that.

This practice impulse you rotate, for example, people from marketing to customer service, or from sales to QA testing team, etc.  

Being in someone else’s shoes gives everyone an opportunity to explore their skills and see where their talents lie.  Stretch assignments are tasks that push you beyond your current abilities. When an employee gets to do something they have never done before, it can help them learn a lot about themselves.

5. Feedback and performance reviews

Regular feedback and performance reviews are vital for employee growth. Constructive feedback tells them where their strengths lie and which areas need improvement.

By providing clear feedback on the employee’s performance, you guide them toward specific development goals. 

6. Professional networking

Development includes building a network inside and outside the organization. Networking exposes employees to new ideas and opportunities. It can also connect them with mentors. This helps their professional growth and makes them feel more connected with the company.

How does investing in employee training and development influence your business?

Prioritizing training and development can boost engagement and productivity and help you build a skilled and flexible workforce. It’s a strategic choice that can benefit many areas of your business in the long run. 

Here’s how it can help your organization:

Increase employee engagement

Employee engagement is vital for a company’s success. However, according to Gallup, only 23% of employees worldwide and 33% in the U.S. fall in the “engaged” category.

Engaged employees are more committed, motivated, and enthusiastic. Training and development help employees learn new skills, grow, and feel valued. This investment in their growth boosts engagement. It increases job satisfaction and morale in the workforce. 

Improve retention

More than 86% of employees say they’d switch jobs for one with more chances to grow. High turnover rates can be costly and disruptive to business operations. 

Investing in training shows a commitment to employees’ careers and success. Regular development opportunities make employees more likely to stay. 

This reduces turnover and the costs of recruiting, hiring, and training new staff.

Create competitive advantage

In today’s competitive market, firms must stand out to attract and keep top talent. A strong training program can give a competitive edge. It equips employees with the latest skills and knowledge, and it lets the organization innovate and adapt so that it can outpace competitors who don’t invest in their employees’ growth.

Better company culture

A positive company culture is built on trust, collaboration, and continuous improvement. Training and development create a supportive workplace and enable peer-to-peer recognition. 

Employees feel valued and respected. As employees grow, they boost the company culture. They foster camaraderie and a sense of achievement.

Reduce turnover rates

Employee turnover can be detrimental to business continuity and morale. Investing in training shows employees that their development and growth are priorities. 

This investment builds loyalty and commitment among employees. It reduces turnover and preserves the company’s knowledge.

Improve workforce skills

A skilled workforce is essential for achieving organizational goals and staying competitive. Training and development programs help employees learn new skills, improve old ones, and stay current with industry trends. 

If the organizational learning flow and implementation are done correctly, the benefits will multiply across the organization.

Increase productivity

In 2022, businesses that invested in employee development saw a 58% boost in retention and a 24% rise in productivity. 

Investing in employee training and development directly correlates with increased productivity within organizations. Training programs improve existing and help gain new skills, knowledge, and resources they need. This equips them to work more effectively and efficiently. Enhanced proficiency leads to streamlined processes, reduced errors, and improved operational efficiency.

 Also, a culture of learning encourages employees to innovate, collaborate, and solve problems. This approach boosts productivity and helps the organization succeed. It helps teams adapt to challenges and seize opportunities in a fast-changing business world.

Attract top talent

Last but not least, if you build a reputation as a company that promotes learning and growth, top talent will be attracted to you. They are go-getters, so you need to let them get something within your organization. 

How to identify employee development needs?

Many HR managers and team leaders know employee development is important and that it can work wonders for teams and companies. However, they often don’t know where to start. How can a company meet employee development needs, if they don’t know what they are?

It’s important to understand the needs of your team and build a tailored career growth plan. Sure, there are some common areas for improvement. But, the key to success is to listen to your workforce’s specific needs. 

Some of the best ways to feel the pulse of the team include:

Surveys

Employee surveys are an excellent way to learn what your team needs. They can provide valuable insights from employees about their skills and aspirations. They also highlight areas where they feel they need more training or support. Surveys can ask about skills, career goals, and preferred development opportunities. Analyzing survey responses should help you improve training programs and maybe give you ideas for some new ones.

With employee experience software like HeartCount, you can gain valuable insights into your employees’ aspirations through pulse checks and custom surveys.

Interviews

Conducting one-on-one interviews with employees is a great personalized approach to finding out about their needs regarding career growth. These stay conversations let managers or HR explore individual career goals and discuss other important points like strengths, weaknesses, and areas for improvement. 

Observations

Watching employees at work gives insights into their performance and needs. It’s a good way to assess their skills and abilities. Pay attention to things like problem-solving, teamwork, and adherence to company standards. That will show you where more training could boost employee performance. 

Performance reviews

Regular performance reviews are very useful for assessing employee performance and discussing development goals. Make sure they cover accomplishments, challenges, and growth areas from the review period. 

Based on the findings, you can create targeted plans that meet individual and organizational goals. Investing in employee development based on the insights obtained directly from the employee is the only way to ensure you will give your team the opportunities they want.

Ways to support employee career growth

As we understood by this moment, supporting employee career growth is the key to building and keeping a skilled, motivated workforce. 

To help you out, we’ve singled out eight core approaches you can take and combine mapping out employee development programs: 

1. Clear career path

A clear career path is key to guiding employees’ growth in the organization. Clear roles and responsibilities help employees see how to advance in their careers. This clarity promotes goal-setting. It motivates employees to achieve more.

For example, you can use employee surveys to understand career aspirations and align them with available opportunities. Regularly review and update these pathways to reflect changes in organizational goals and industry trends.

2. Continuous performance management

Continuous performance management is ongoing feedback and coaching. It includes development talks between managers and employees. 

Regular check-ins allow for timely recognition of achievements. They help identify areas for improvement and align individual goals with organizational objectives. This process fosters transparency and supports employee growth by addressing performance issues proactively.

A great way to do that is to have regular one-on-one meetings between managers and employees to discuss progress and set goals. You can use performance management tools and feedback platforms to streamline the entire process. 

3. Encourage career development

Organizations can boost career development by valuing learning and growth. Encouraging employees to pursue further education fosters continuous learning. It keeps their skills current. 

Create a budget for employee education and development and promote available resources such as training programs and professional memberships. Encourage employees to set personal development goals and provide support for their pursuit of relevant courses and certifications. 

4. Coaching and mentorship programs

Coaching and mentorship programs pair employees with experienced mentors. They provide guidance and advice based on their own careers. These relationships provide insights, advice, and networking. They help employees navigate challenges, learn new skills, and reach their career goals.

What you can do is organize formal coaching and mentorship programs within your company. Match employees with mentors based on their career goals and developmental needs. Make sure to regularly evaluate the effectiveness of these programs and listen to the feedback from participants to make any adjustments that might be needed.

5. Challenging tasks

Giving tough tasks and projects helps employees grow and gain experience. These opportunities allow employees to demonstrate initiative, problem-solving skills, and leadership potential. 

Challenging assignments improve skills, confidence, and motivation, and they are important for understanding where their strengths and weaknesses lie. It’s useful not only for an employee but for the organization as a whole.

6. Cross-functional projects

Cross-functional projects expose employees to different departments and views. Team collaboration boosts innovation, builds relationships, and enhances business knowledge. Such projects broaden employees’ skills. They prepare them for roles that need teamwork and a mix of knowledge.

You’ll need to provide training and support to help employees adapt to new roles and responsibilities. This type of project will help you build a more versatile workforce.

7. Recognition and rewards

Recognizing employees’ contributions boosts their value and motivates them.  Rewards recognize effort and success. They encourage employees to grow and excel in their roles.

Recognition can take many forms. These include verbal praise, awards, bonuses, and special project opportunities.  Regularly celebrate achievements and provide rewards that align with employees’ preferences and contributions (feel free to go beyond a pizza party).

These strategies support employee career growth and also strengthen the organization’s talent and competitiveness. Investing in career development initiatives builds a skilled, engaged workforce. They can drive innovation, meet goals, and adapt to a fast-changing world.

8. Employee development plans

Employee development plans outline specific goals and activities. They are tailored to individual career aspirations and have set timelines. These plans may include training, skill-building, certifications, and new experiences. Investing in personal development shows employees that organizations care about their happiness.

Creating an employee development plan

Solid and well thought out employee development plans can do wonders for any work organization. They need to be tailored to your company’s and your workforce’s needs to support talent, enhance skills, address weak points, and align with company goals. 

An employee development plan (EDP) is a structured way to improve an employee’s work. It outlines their goals, finds growth areas, and defines steps for career advancement. It’s a roadmap that aligns individual goals with the organization’s needs., whose goal is continuous learning and skill development.

Stages of an employee development plan

In order to create an effective employee development plan, you need to be methodical. It’s important to understand that employee development is a process, and you want to do best at every step of that process.

1. Assess the situation and set goals: First, evaluate the employee’s skills and career goals. Also, find their strengths and weaknesses. This assessment may include performance evaluations, feedback from supervisors, and self-assessment tools. Based on this, you need to set clear and measurable goals. 
2. Identify opportunities: After setting goals, think about the ways to achieve them. Development opportunities should close skill gaps, boost competencies and support the employee’s career path. Some of the most common activities companies implement are training, workshops, seminars, mentoring, job rotations, and stretch assignments.
3. Create an action plan: An action plan outlines the steps and timelines to achieve development goals. It breaks down large goals into smaller, manageable tasks. It specifies who is responsible for each task and how to monitor and evaluate progress. 
4. Implementation and monitoring: This stage involves executing the action plan. It also requires active participation in selected development activities. As a manager or HR professional, you’ll need to support the employees and provide feedback throughout this process.
5. Reviews and changes: From time to time,  you need to reassess the development plan to be sure you are on the right track. You can use periodic reviews, feedback sessions, and tests to measure progress and deal with any problems. Keep in mind you might also need to adjust the plan based on feedback. 

Tips on how to create a successful development plan

When a company decides to actively participate in employee development, it creates a workplace where learning, innovation, and improvement. A good employee development plan will be tailored to your company and your staff, and it will help employees be happier at work and motivate them.  Here is some advice on how to create a development plan that is going to work for your company:

1. Set clear, measurable goals: Make goals SMART: specific, measurable, achievable, relevant, and time-bound. Clear goals motivate and guide the employee and stakeholders in the development process.

2. Align with organizational goals: Development plans must support the organization’s strategic goals. Aligning personal goals with company priorities helps both. It ensures employee growth and contributes to the company’s success.

3. Encourage collaboration and support: The plan will improve with input from the employee, manager, HR, and mentors. Encourage open communication, constructive feedback, and support from all parties involved.

4. Offer diverse development opportunities: Provide varied options for different learning styles. This may include training, on-the-job learning, coaching, and mentoring. It may also include work on projects or committees.

5. Promote continuous learning: Emphasize the importance of lifelong learning and continuous improvement. Encourage employees to own their development. They should seek new challenges, acquire new skills, and stay updated on industry trends.

6. Monitor progress and adapt: Regularly review and assess progress towards development goals. Be ready to adjust the plan for new circumstances, feedback, or opportunities.

Conclusion

Team leaders and HR managers are starting to realize the importance of employee development. There is no denying it: employee development is the investment that can make your company ready for anything that the future brings. To build a resilient and adaptable workforce, reduce turnover, and attract top talent, a company must invest in employee development and career growth. 

If you embrace development as a continuous journey, you’ll see your team transform into a powerhouse of talent and creativity, ready to tackle the challenges of tomorrow.

This will keep good workers for years and make them better. We are all one big family platitude really starts to make sense, doesn’t it? (Me applying to dozens of other families this week). Ready to start building a future-ready team? Book a demo with our team!