Create winning employee development plans | Templates

What is an employee development plan?

An employee development plan is a strategic roadmap that outlines an individual's professional growth objectives, skills to acquire, and actions to take. It aligns personal career goals with organizational needs, fostering continuous learning and improvement to enhance job performance and satisfaction.

For many employees, onboarding is the only training they get. And even then, 88% of organizations don’t onboard well.³

Why do employee development plans matter?

Employee development plans are crucial with the rapid advancement of new technologies and the shift to flexible working arrangements. With 70% of companies¹ reporting skills gaps that hinder growth, service delivery, and competitiveness, these plans are no longer optional—they're essential.

By focusing on developing existing talent, businesses can address skills shortages more efficiently than relying solely on new hires. This approach not only saves time and reduces recruitment costs but also leverages the knowledge and loyalty of proven team members. Ultimately, well-crafted development plans boost innovation, improve performance, and increase employee retention, giving companies a competitive edge.

You retain top talent by helping employees achieve their potential and ambitions. This approach benefits both the individual and the company: employees see a clear career path and understand their valuable contributions, fostering a sense of loyalty and reducing turnover.

Goal-oriented individuals are motivated to carve out their niche within the organization, often aspiring to senior management roles. As a result, employee development plans naturally facilitate succession planning, ensuring a pipeline of skilled leaders for the future.

Challenging times require a shift in mindset

Old habits die hard, and under pressure, it's tempting to revert to what worked in the past. While it’s great to learn from experience, it’s equally important to adapt to emerging trends of changing times. 

The global economic crisis has flipped hiring from an employee-driven to an employer-driven market², so many qualified people are looking for a job. Filling gaps by recruiting new employees from a sea of skills seems like a great option.

But the talent surplus comes with a caveat!

Many candidates are in crisis mode because they’ve either lost their jobs or fear they will. Their selection criteria have become blurred, and they’ll take what they get. That means they don’t necessarily “want” your offer but accept. 

As soon as the economy improves, they’ll be off to someplace they want to work. Facing a high turnover rate just as your business starts to recover will directly impact your business growth, budget, and future planning.    

You want to mitigate future resignations

While you can never eliminate resignations and the need to recruit new hires, you can reduce the impact of unfilled positions on your business. The solution isn’t new—it’s what organizations should’ve been doing for decades: employee development and succession planning.

By identifying employee potential beyond their current skills and experience early on, you can start developing talent to prepare them for future roles. A well-structured performance management process implemented across the organization and integrated with all HR systems will identify potential. (We’re not discussing obsolete annual performance appraisals; we’re discussing ongoing engagement between employees and management.)

How do you get serious about talent development?

Employee development was previously mostly a sideline function of HR in conjunction with line managers. Your first step in getting serious about it is establishing a dedicated role (or division) within HR solely responsible for talent development processes and initiatives. Although this requires investment, you’ll reap the rewards in the long run.

The decision to incorporate talent development as one of the core pillars of the company’s culture must be initiated from the top down and written into the mission statement. It’s essential that C-suite executives not only sanction the idea but also actively participate. 

This will allow executives to engage more with staff and give them insight into how their decisions impact the workforce. From an employee’s perspective, getting recognition and guidance from top management and executives is an excellent motivator.

From the boardroom to the supervisor level, there must be a clear understanding that talent development isn’t a nice thing to have. It’s essential to creating a high-performing, sustainable business that meets strategic goals and objectives. The intention is to attract, develop, inspire, and retain top performers at every level of the organization.

6 steps to creating an effective employee development plan

Each industry has its requirements, so build your strategy around that and utilize every available option. Some ideas include:

• Contact your trade association and ask for referrals to specific training bodies. 
• Subscribe to industry publications and pay applicable membership fees for employees. 
• Offer employees access to books via subscriptions to sites like Amazon Prime. 
• Allow staff to attend trade shows, lectures, and talks by industry experts. 
• Also, a mentorship program, job shadowing, and job rotation should be introduced. 

Get creative!

There are, however, six steps that form the foundation of a successful talent development strategy.

1 - Run employee development as a fully-fledged department

Depending on the size of your company, it can be the responsibility of a single senior employee development manager or a fully functional and independent sub-division of HR. Name the department and list it separately on all internal communications. If it’s never mentioned, it’s unlikely that anyone will take it seriously. 

Also, it must have its own budget and full authority to act. If the budget is included in that of HR, there’s always the temptation to use it for other expenses, mainly when cash flow is tight. 

The functions must be outlined clearly and accepted by the board and C-suite executives. The department’s performance needs to be evaluated separately from HR; in the same way, all departments get assessed.

2 - Invest in the best technology: assess skills and identify gaps

Engagement is critical to the success of an employee development program. Investing in internal communication systems, performance management and people analytics will ensure sound management and success. 

Ensure that these can be integrated with existing systems, that employees can access company-generated information, and that they can actively participate. Transparency is essential to the success of any employee development program. Allow staff to give feedback privately, in groups, or to the broader organization. Honest feedback allows you to identify what works and what doesn’t. 

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3 - Cultivate ways of giving recognition

Give recognition where it’s due. We’re not only referring to outstanding achievements or long service awards. Mention small milestones and encourage employees to congratulate one another. 

As an organization, regularly post things reinforcing that every job is vital to business success. Emphasize that each employee is a contributor. Feeling appreciated will encourage people to speak up if they’d like to gain skills or mention that they have skills that their managers are unaware of.

4 - Accentuate the value of learning

Encourage people to develop themselves by gaining or improving work-related skills or self-development. Your workforce will build resilience to workplace changes and challenges.

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5 - Don’t lose touch with HR and line managers

Managing an employee development program involves continuous communication with all staff, including HR and line managers. Monitor the progress of top achievers as much as the slow learners. 

Find out if training interventions have had an impact. Also, potential talent for different roles should be identified. Whether it’s a promotion or a transfer to another division, don’t overlook anyone.

6 - Assess and audit the success of the program

Use data and analytics monthly to evaluate individuals' success and the overall impact of the employee development program. This is much like quality control at the end of a production line. 

The ROI must be in the form of high productivity and retention. Investigate areas of poor performance and implement change right away. As the workplace evolves, so must the program. Also, always stay aware of employee expectations through regular engagement.

Types of employee development plans

Employee development plans come in various forms, each tailored to specific needs and goals:

1. Performance Improvement Plans: Address specific skill gaps or behavioral issues to enhance job performance.
2. Career Advancement Plans: Focus on preparing employees for future organizational roles or promotions.
3. Succession Planning: Identify and develop high-potential employees to fill key leadership positions in the future.
4. Cross-functional Development Plans: Broaden an employee's skill set across different departments, fostering versatility and organizational understanding.

Each type serves a unique purpose, contributing to overall employee growth and organizational success. By implementing a mix of these plans, companies can create a comprehensive development strategy that addresses various aspects of talent management and future-proofing the workforce.

Ready-to-use employee development plan templates

Jumpstart your employee development initiatives with these ready-to-use templates:

• Personal Development Plan Template: Easily identify areas for improvement, create an action plan, and track progress metrics in one place.
• Employee Development Plan Template: Your team will develop new skills and boost employee performance.
• 30-60-90 Day Development Plan Template: Use this template to help your new hires complete the required onboarding tasks and get up to speed quickly.

These customizable templates save time and ensure you cover all essential aspects of employee development. Whether you're developing leaders, enhancing technical prowess, or onboarding new talent, these tools provide a solid foundation for creating effective, personalized development plans.

Companies that give back will be the leaders of the future

More than ever, people are looking for security and recognition in these trying times. At the same time, companies need to recover, recoup their losses, and become profitable again. Employee development is the way to align these needs.

The last thing an organization operating under financial restraints (or even in the red) needs is high employee churn. Expensive recruitment and re-training costs, loss of productivity, and brand damage are avoidable.

Appointing an employee development manager might seem unnecessary, but the opposite is true. By implementing appropriate development strategies and programs, your workforce will feel appreciated, motivated, and committed to performing at their best. 

Happy and engaged employees are less likely to leave when the job market improves because they see a future for themselves at your company.

Finally, with social media, employees can play a huge role in a business’s brand reputation. The more brand love they give, the better your organization looks in the public sphere. Companies that care about their employees and are willing to give back will be the future leaders of their industry.