What is Employee Development?

Employee development has become a critical aspect of organisational growth and success; however it can be challenging for organisations to get employee training and development right. A lack of buy-in from stakeholders, missing or ineffective utilisation of resources, resistance to change and perceived limitations around time and budget can often contribute to a reluctance to invest in employee training and development initiatives.

One of the main barriers to effective employee development within organisations is a misalignment between the value employees bring in terms of knowledge, skills, capabilities and thinking and the business strategy. In this situation an organisation is unable to make the most of their key competitive advantage – their people. Building effective employee training and development programs is essential for organisations that want to stay competitive and retain top talent.

In this guide, we’ll explore what employee development is, its importance for organisational success, and the practical steps organisations can take to enable them to meet their strategic objectives – which are delivered by their people!

What is Employee Development?

Employee development is the process of providing employees with opportunities to acquire new skills, knowledge, and experience, which enables them to improve their performance and contribute to the growth and success of the organisation.

It’s more than simply rolling out mandatory compliance and safety training and holding an annual performance management conversation to highlight gaps and training needs.

When done well, employee training and development acts as a strategic tool for an organisation’s continuing growth, productivity and ability to attract and retain talent. An organisation that provides employees with ongoing development opportunities strengthen their talent pool by increasing the likelihood that those employees develop expertise in the skills they need now and for the future.

Employee development can often be associated with cultural change in an organisation with programs that are focussed on the development of behaviour and improving connections/communication between people.

Another example is the rapid development and uptake of AI which is likely to have an impact on the vast majority of roles. Organisations have an opportunity to prepare for this transition by upskilling employees, rather than recruiting in new talent, thereby avoiding the associated costs (advertising, hiring, training, lost productivity etc.) and impact on organisational culture.

What Are the Benefits of Employee Development?

Having an effective employee development strategy in place can provide many benefits to both employees and the organisation as a whole. Research has shown that employee training and development can lead to a number of positive outcomes, including those shown below.

Improved employee performance:

Employee development programs provide employees with the necessary tools and resources to enhance their job performance. This helps them to work more efficiently, make better decisions, and improve their productivity. When employees have a clear understanding of their roles and responsibilities, they can better manage their time, prioritise tasks, and meet deadlines. This benefits the employee and the organisation as a whole, as it helps to increase overall productivity and therefore profitability.

Increased employee engagement:

When employees feel that their professional growth is a priority for their employer, it creates a sense of belonging and ownership, which in turn leads to increased employee engagement and motivation.

Engaged and motivated employees are more likely to be committed to their work, have a positive attitude, and be more productive. This, in turn, means that employees are more likely to stay with the organisation and contribute to its success. In fact, organisations that incorporate employee learning and development into their business strategy, planning and culture, report an average attrition rate of 14%, compared to almost 25% (1.8 times higher) in organisations that do not (DeakinCo and Deloitte Access Economics report).

Attraction and Retention of talent

Talented individuals are drawn to organisations that offer opportunities for growth, continuous learning, and skill development. By investing in employee training and development, organisations position themselves as employers of choice, attracting and retaining high-performing individuals.

Prioritising employee learning and development plays a vital role in retaining high performers, as it enables them to continually acquire new skills, expand their knowledge, and develop competencies that can lead to career progression within the organisation. This helps satisfy aspirations for career growth and sends a message - to all employees - that loyalty and effort are rewarded.

Promoting from within also means organisations retain someone who knows the business and the culture, creating a robust talent pipeline that ensures a smooth transition when key employees retire, or move on to other roles.

Increased innovation:

In rapidly evolving industries and markets, organisations must stay agile and adaptable to remain competitive. By promoting a learning culture and investing in employee training and development, organisations encourage employees to stay updated with emerging trends, technologies, and best practices.

By investing in training and development initiatives, organisations equip employees with the tools and capabilities needed to think critically, solve complex problems, and adapt to new technologies and methodologies. These enhanced skills empower employees to contribute to innovation by bringing fresh ideas, insights, and perspectives to the table.

In addition, employee learning and development initiatives often provide opportunities to work together, exchange ideas, and learn from one another's experiences. These collaborative interactions create an environment that fosters innovation, as employees from different backgrounds and disciplines can share their expertise and contribute diverse perspectives to problem-solving and innovation efforts.

What Types of Employee Development Exist?

Let’s explore the various types of employee development that exist in organisations today. There are a wide variety of avenues through which employees can acquire new skills, expand their capabilities, and contribute to their organisations' success.

Some of the most common include:

Technical Training:

Technical training is designed to help employees acquire and practice the specific skills and knowledge needed to perform their job functions. It is based on a technical task or product, such as following a manufacturing process or office procedure, using an IT system, or learning the features and benefits of a specific product.

Essential Skills Training:

Historically referred to as ‘soft’ skills (as opposed to ‘hard’ technical skills), essential skills relate to more human-centred skills, such as problem-solving, emotional intelligence, leadership, communication, teamwork, influencing, career management and critical thinking. They encapsulate the essential skills for a rapidly evolving workplace and have become crucial success factors. While technical activities are increasingly becoming automated, DeakinCo report that "soft skill-intensive occupations will account for two-thirds of all jobs by 2030".

Onboarding:

Having a structured onboarding experience is vital for new employees. It provides a smooth transition into their new role, helping to alleviate the stress and anxiety that can come with starting a new job by familiarising new employees with the organisation's culture, values, mission, and expectations. This smooth transition enables them to more quickly acclimate to their new work environment, reducing the time it takes for them to become productive contributors.

Compliance Training:

Compliance training is designed to ensure that employees understand and comply with relevant laws, regulations, and policies. This type of training is particularly important in industries such as healthcare, finance, and manufacturing, where compliance with regulations is critical. Compliance training can cover a wide range of topics, including data privacy, workplace safety, and anti-discrimination laws.

Management Development:

Management development programs are designed to enhance the skills and capabilities of individuals in managerial roles. These programs typically target employees who are responsible for overseeing and coordinating the work of a team or department. The primary focus of management development is to equip managers with the necessary skills to effectively handle day-to-day operations, drive performance, manage resources, and ensure organisational goals are met. The goal is to improve managerial effectiveness, operational efficiency, and the ability to execute tasks and processes within a specific functional area.

Leadership Development:

Leadership development focuses on developing the qualities, behaviours, and skills necessary to inspire and influence others towards a common vision or goal. It goes beyond managerial responsibilities and targets individuals who have the potential to lead at various levels of an organisation. Leadership development programs aim to cultivate the attributes and competencies that enable individuals to motivate, empower, and guide others. These programs often emphasise self-awareness, emotional intelligence, strategic thinking, influencing, decision-making, coaching, and fostering innovation. Leadership development aims to create visionary and transformative leaders who can drive organisational change, shape the culture, and inspire high-performance teams.

Executive Development:

Executive development is a specialised form of employee learning and development that specifically targets senior leaders and executives who hold significant decision-making authority and are responsible for shaping the overall direction of the organisation. It specifically caters to individuals who operate at the strategic level and have a broad organisational impact. While management and leadership development programs often concentrate on operational and tactical aspects, executive development places a strong emphasis on strategic thinking and vision. It aims to enhance executives' ability to formulate and execute strategies, align the organisation with its goals, anticipate market trends, drive innovation, and make critical decisions that impact the long-term success of the organisation.

Sales Enablement:

Sales enablement training is designed to equip sales professionals with the knowledge, skills, and resources necessary to effectively engage with customers and close deals. It focuses on enhancing the sales team's ability to identify and understand customer needs, communicate the value of products or services, and navigate the sales process. Sales enablement training typically covers areas such as product knowledge, sales techniques, objection handling, negotiation, relationship building, and utilising sales tools and technology. The goal of sales enablement training is to enable the sales team to generate leads, build customer relationships, and ultimately drive revenue for the organisation.

Customer Service Training:

Customer service training is aimed at equipping employees who interact directly with customers to provide excellent service and support. It focuses on developing the skills, attitudes, and behaviours necessary to meet customer needs, resolve issues, and deliver a positive customer experience. Customer service training typically covers areas such as effective communication, active listening, empathy, problem-solving, conflict resolution, and customer relationship management. The goal of customer service training is to ensure that employees have the skills and knowledge to provide exceptional service, build customer loyalty, and contribute to customer satisfaction.

What Are the Different Methods of Employee Development?

Some methods of employee development occur on the job, with a more experienced colleague or with the manager. Other development methods involve more formal, structured training that takes place away from the context of the employee’s daily role.

On-the-Job Training:

On-the-job training is the most common form of employee development. This method involves providing employees with the necessary skills and knowledge to perform their job effectively through hands-on experience. This approach is highly effective, as it allows employees to learn in a real-world setting, enabling them to apply what they learn immediately.

Mentoring:

Mentoring is a relationship-based approach in which a more experienced individual (the mentor) provides guidance, support, and advice to a less experienced individual (the mentee). Mentoring focuses on the mentee's overall professional and personal growth and development. The mentor acts as a trusted advisor and role model, sharing their knowledge, experiences, and insights to help the mentee navigate their career, gain new perspectives, and overcome challenges. Mentoring relationships often involve a long-term commitment and regular meetings or interactions between the mentor and mentee. The mentor provides guidance, offers advice, and shares their expertise to help the mentee develop specific skills, broaden their network, and advance their career

Coaching:

Coaching, on the other hand, is a goal-oriented and performance-focused approach aimed at helping individuals improve specific skills, achieve their objectives, and maximise their potential. In coaching, the coach works with an individual (the coachee) to identify their goals, assess their strengths and weaknesses, and create a development plan. The coach supports the coachee in exploring new perspectives, identifying solutions, and taking action to overcome obstacles and achieve desired outcomes. Coaching is typically conducted in a series of focused sessions, where the coach asks thought-provoking questions, provides feedback, and helps the coachee develop self-awareness, clarify their goals, and enhance their performance.

E-learning:

E-learning, or electronic learning, refers to the use of technology and digital platforms to deliver educational and training materials. It involves the use of online courses, modules, videos, webinars, and interactive learning resources to facilitate learning and development. E-learning is a cost effective, flexible, scalable and accessible method of training that allows individuals to learn at their own pace and convenience, regardless of their geographical location. It enables organisations to provide continuous learning opportunities to employees and allows learners to access training materials whenever they need to refresh their knowledge, acquire new skills, or address specific challenges.

In-person Training:

In-person training involves providing employees with formal training sessions in a classroom setting. Trainers or facilitators deliver the content and engage participants through presentations, group discussions, activities, and exercises. This approach allows for direct personal interaction between trainers and participants. Participants can ask questions, seek clarification, and engage in real-time discussions with the facilitator and other participants. They can also share experiences, exchange ideas, and expand their professional network. This level of interaction promotes engagement, collaboration, and the exchange of ideas. The structured setting, away from distractions, allows participants to immerse themselves in the learning experience, reducing the likelihood of interruptions and multitasking.

Virtual Instructor-Led Training (VILT):

Virtual instructor-led training, also known as VILT or online live training, takes place in a virtual setting where trainers and participants connect remotely through video conferencing or webinar platforms. Trainers deliver the content, facilitate discussions, and conduct interactive activities virtually. VILT offers flexibility as participants can join the training sessions from anywhere with an internet connection. Participants can engage in training while working remotely or from different geographical locations, enabling organisations to reach a wider audience. VILT sessions can also be recorded and made available for on-demand viewing after the session.

Blended Learning:

Blended learning is an instructional approach that combines the benefits of in-person interaction and online flexibility to create a comprehensive and engaging learning experience. Online components can include multimedia resources, quizzes, simulations, and collaborative tools that encourage active participation and knowledge application. In-person sessions can focus on discussion, hands-on activities, and real-life case studies, providing opportunities for deeper engagement and peer interaction. By leveraging a blended approach, organisations can deliver effective and impactful training that meets the diverse needs of learners while optimising resources and promoting continuous learning and development.

Microlearning:

Microlearning is a method of employee learning and development that involves delivering training in small, bite-sized chunks. This approach is designed to help individuals learn and retain information more effectively by breaking down complex concepts into smaller, more manageable pieces. Microlearning can be delivered through a variety of formats, such as short videos, quizzes, or podcasts.

Self-Directed Learning:

Self-directed learning involves providing employees with the opportunity to develop their own learning and development plans. This approach is effective as it allows employees to take ownership of their development and focus on areas that are most relevant to their career goals. Self-directed learning can include reading books and articles, attending webinars, or participating in online forums.

Simulations:

Simulations are immersive activities that replicate real-life business scenarios or work situations in a controlled environment. Participants are placed in simulated situations where they are required to collaborate, make decisions, solve problems, or perform tasks that reflect their actual job responsibilities. Simulations aim to replicate real-world situations as closely as possible, providing a high degree of realism. Participants are often given realistic scenarios, tools, and resources to simulate the challenges they would encounter in their roles. This realistic environment helps assess their ability to handle complex situations effectively.

Assessment Centres

Assessment centres are structured evaluation processes that involve a series of exercises and tasks, designed to assess individuals' capabilities for a specific role or position, enabling organisations to make informed decisions about hiring, promotion, and development opportunities. Assessment centres also provide participants with valuable feedback on their strengths and areas for improvement, supporting their professional development and growth. Assessment centres typically involve multiple participants and assess various competencies across different activities and scenarios. Multiple evaluators are usually involved, often including assessors from different departments or disciplines. These evaluators assess participants' performance across different exercises, providing a more comprehensive and balanced evaluation.

Job Shadowing:

Job shadowing involves following a skilled employee and observing how they perform their job. It provides an opportunity for the person shadowing to gain insight into the responsibilities, tasks, and skills required for a particular role or job. By shadowing an experienced employee, they can observe firsthand how tasks are performed, how decisions are made, and how challenges are handled. This allows the person shadowing to observe and learn specific skills required for a job, ask questions, network, build relationships, gain valuable insights into various career paths and assess whether the role aligns with their own interests, strengths, and career aspirations.

Job Rotation:

Job rotation is a development strategy that involves temporarily or permanently moving employees across different roles or departments within an organisation. It provides employees with opportunities to gain new skills, experiences, and perspectives by exposing them to diverse job responsibilities. Through job rotation, employees gain exposure to different parts of the organisation and interact with diverse teams and stakeholders. This exposure helps them understand the interconnectedness of different functions and departments. It fosters cross-functional collaboration and encourages the exchange of ideas, leading to innovative solutions and improved organisational performance. Job rotation also helps create a pool of talent with diverse experiences and a deep understanding of the organisation, ensuring a strong talent pipeline for key positions.

Conferences and Workshops:

Conferences and workshops provide employees with the opportunity to learn from industry experts and network with peers. This approach is effective as it exposes employees to new ideas and best practices, which can be applied in their work. Conferences and workshops can cover a wide range of topics, from industry trends to leadership development.

How Can Organisations Align Employee Development and Business Strategy?

Aligning employee training and development with the organisation's business strategy and goals is crucial for maximising the effectiveness and impact of development initiatives. Here are some best practices associated with this alignment:

Conduct a Training Needs Analysis:

Begin by conducting a comprehensive training needs analysis to identify the skills and competencies required to achieve the organisation's strategic objectives. This involves identifying the skills and knowledge that employees need to perform their job functions effectively, as well as any skills gaps that may exist. This assessment can be conducted through surveys, interviews, and/or performance reviews.

Set Clear Objectives:

Clearly define the objectives and expected outcomes of employee development programs. This involves defining what employees are expected to learn and how this knowledge will be applied in the workplace. This will help ensure that the program is aligned with the organisation's overall strategy and that employees understand what is expected of them.  

Involve Stakeholders:

Engage key stakeholders, such as executives, managers, and department heads, in the development planning process. Gather their input and insights to ensure that employee training and development initiatives align with the organisation's strategic priorities and meet the specific needs of different departments or teams.

Create Individual Development Plans:

Work with employees to create individual development plans that align their growth and learning objectives with the organisation's strategic goals. Tailor development activities to their specific roles, responsibilities, and career aspirations. Regularly review and update these plans to track progress and make adjustments as needed.

Offer a Mix of Development Opportunities:

Provide a diverse range of development opportunities that align with the organisation's business strategy. This can include internal training programs, external workshops, certifications, coaching and mentoring programs, job rotations, stretch assignments, and online learning resources. Offer options that cater to different learning preferences and accommodate various employee schedules and availability.

Foster a Learning Culture:

Cultivate a culture of continuous learning and development within the organisation. According to research, retention rates rise 30-50% for companies with strong learning cultures. An organisation’s learning culture is heavily influenced by the attitudes and behaviours of leaders, who must lead by example. Encourage employees to take ownership of their development and provide resources and support for their growth. Promote knowledge sharing, collaboration, and the exchange of best practices across teams and departments.

Regularly Evaluate and Measure Impact:

Continuously evaluate the effectiveness and impact of employee learning and development initiatives. Establish key performance indicators (KPIs) and metrics to assess the outcomes and ROI of training programs. These could include participation rates, assessment results, employee engagement survey results, employee retention, customer satisfaction, increased productivity, improved quality, or increased sales. Use feedback mechanisms, such as surveys and assessments, to gather insights from participants and stakeholders. Adjust and refine development initiatives based on the evaluation results to ensure ongoing alignment with the organisation's goals.

Embed the Learning:

If it is to translate into results, employee training and development cannot be viewed as a one-off activity or regarded as the sole responsibility of the HR / learning and development function. Making practice part of the formal learning experience is the gold standard, but it’s easy for people to slip back into old habits soon after training. So, to make learning stick, participants must have the opportunity and motivation to apply their new skills and knowledge back in the workplace. Clarifying the benefits of applying the skills immediately and providing participants with guidance on how to do so is key, as is the support of their managers in receiving coaching, feedback on results and recognition of progress.

Integrate Development with Performance Management:

Integrate employee development with the performance management process. Link individual development goals with performance goals and provide ongoing feedback and coaching to support employees' growth. Use performance reviews and discussions as opportunities to discuss development progress, identify additional development needs, and align performance and development plans.

Monitor Industry Trends and Emerging Skills:

 Stay abreast of industry trends, technological advancements, and emerging skills that are relevant to the organisation's business strategy. Incorporate these insights into the design of employee training and development initiatives to ensure employees are equipped with the necessary skills and knowledge to drive innovation and adapt to evolving market demands.

Seek Continuous Improvement:

Continuously review and improve employee development practices to maintain alignment with the organisation's business strategy. Regularly gather feedback from participants, managers, and other stakeholders to identify areas for enhancement and make necessary adjustments to training programs, content, and delivery methods.

By following these best practices, organisations can ensure that employee development efforts are strategically aligned, impactful, and contribute to the achievement of business goals.

How Neural Networks Can Help You With Employee Development

Since 2000, Neural Networks has partnered with organisations to facilitate organisational culture change through customised employee development programs. As one of Australia’s leading professional development providers, we deliver innovative learning development programs in leadership, sales, customer service and culture change.