In today’s competitive business landscape, employee development is no longer a luxury—it’s a necessity. For employers, prioritising the growth and skills of their workforce not only enhances business performance, but also ensures long-term sustainability.
In this blog, we explore why investing in employee development is essential and how it benefits businesses and employees alike.
What is employee development?
Employee development refers to initiatives that help employees enhance their skills, knowledge, and capabilities. This can include training programmes, mentorship and coaching opportunities, upskilling workshops, webinars, and access to resources like e-learning platforms. Development isn’t just about technical skills, it also includes soft skills such as leadership, communication, and problem-solving.
Valamis defines the term employee development as “a process of improving employees’ existing competencies and skills and developing newer ones to support the organisation’s goals”.
Investing in employee development isn’t just an expense – it’s a strategic move. According to a study by The Learning and Work Institute, UK businesses could see a return of £6 for every £1 spent on training. Additionally, organisations with strong learning cultures are 92% more likely to innovate.
The alignment of employee development with organisational goals is crucial otherwise time and money spent on development will be wasted as employees will be learning new ideas and skills that they won’t be required to deploy in their roles.
The benefits of employee development for employers
Employers who prioritise employee development will not only see benefits for each individual employees career growth, but they’ll also see it contributes towards the overall success of the business as we explore below in more detail.
Enhanced productivity
A well-trained workforce is a productive workforce. Employees equipped with up-to-date skills can complete tasks more efficiently and with greater accuracy. According to a study by IBM Training, organisations see a 37% increase in productivity when training is delivered, so there is clear evidence of this benefit for a business which invests in training.
Increased retention rates
High turnover is costly for businesses. Investing in employee development shows employees that their growth matters, and this creates loyalty and buy in from staff. A LinkedIn Workplace Learning Report found that 94% of employees would stay at a company longer if the company invested in their careers.
Enhanced employer branding
Employers that prioritise employee development become attractive to top talent. Job seekers are increasingly looking for roles where there are clear career pathways and growth opportunities. In fact, a survey by Glassdoor revealed that 57% of employees value professional development opportunities when considering a job offer. It is therefore vital that employers openly promote the development opportunities they offer to staff in order to help them stand out among their competitors in a challenging recruitment environment.
Benefits of employee development for employees
As we’ve mentioned above, employee development can result in a number of benefits for employers and employees alike. Below are some of the benefits employees can expect.
Career progression
Development initiatives help employees build career pathways within the company. This reduces the likelihood of them seeking opportunities elsewhere and ensures their expertise benefits your organisation over the long term.
Increased job satisfaction
Engaged employees are also happy employees. Providing opportunities for personal and professional growth increases job satisfaction, reducing absenteeism, and creating a positive work culture.
Adaptability in a changing workplace
In an era of rapid technological advancements, roles and responsibilities are constantly evolving. Continuous learning ensures employees remain relevant and confident in navigating industry changes. Employers who fail to move with the times and invest in up-to-date training risk being quickly left behind.
Key strategies for successful employee development
As we can see, employee development is crucial for the growth and success of any organisation. But you may be wondering how you can implement employee development in your organisation. Here are some ways to successfully implement employee development strategies:
Identify skill gaps
Conduct regular assessments to understand where training is needed. Consider conducting a skills gap analysis to help pinpoint areas requiring attention and your business can then develop a training matrix so that you can clearly see who needs training in which areas.
Provide personalised learning paths
Every employee is unique and wants to develop in different ways. Offering customised training plans, such as one-to-one coaching, professional qualifications or online courses, makes employee development much more effective.
Utilise technology
E-learning platforms are excellent resources for delivering flexible, on-demand training and they can be highly cost effective and offer outstanding value for money. Staff can use these platforms to learn in real time on the job and applying learning practically is a great way to reinforce newly acquired skills and knowledge.
Offer mentorship opportunities
Pairing junior employees with more experienced mentors or team members not only enhances learning, but also strengthens workplace relationships and collaboration.
Did you know HRX can help with employee development?
For employers, the importance of employee development cannot be overstated. It enhances productivity, improves retention, and positions businesses as leaders in their industries. By embracing a culture of continuous learning and leveraging available resources, employers can ensure their workforce remains competitive and motivated. As Benjamin Franklin once famously said, “An investment in knowledge pays the best interest”.
Our HR system is a great way to keep a record of all your staff training. Each of your team members have their own employee record on HRX and you can attach a training log as well as training certificates to their record so that all training related information is held in one place. If you’d like to find out more about HRX and it can help with your employee development, book a demo today or sign up for our FREE 30 day trial.
