What is an employee development plan?

An employee development plan is a structured framework designed to enhance an employee's skills, knowledge, and abilities to improve their performance and achieve their career goals. It outlines specific actions and training needed to bridge the gap between current competencies and desired future competencies.

What is the purpose of an employee development plan?

The primary purpose of an employee development plan is to align employees' growth and development with the organization's strategic goals. It aims to bridge the gap between current competencies and future needs, ensuring that employees are well-prepared to meet upcoming challenges. This can improve job performance, increase employee satisfaction, and increase retention rates.

What are the key elements of a development plan?

• Assessment of current skills and competencies: Identify the employee’s strengths and areas for improvement through self-assessments, performance reviews, and feedback from managers and peers
• Development goals: The short-term and long-term objectives the employee aims to achieve
• Action plan: Specific steps and activities required to achieve the career goals, including training programs, workshops, mentoring, and on-the-job learning
• Timeline: A detailed schedule outlining the timeframe for completing each activity and achieving the development goals
• Resources and support: Training materials, courses, and support from mentors or coaches are necessary to implement the development plan
• Progress tracking and evaluation: Regular checkpoints and reviews to monitor progress, provide feedback, and adjust the plan as needed

What are the benefits of an employee development plan?

Implementing effective employee development plans benefits both employees and organizations significantly. Employees gain clarity, skills, and satisfaction in their roles, while organizations enjoy improved performance, retention, and alignment with strategic goals.

Employee perspective

Career growth and advancement

Development plans provide a clear path for career progression, helping employees to achieve their professional goals.

Example: An employee aiming for a managerial position can follow a structured plan with leadership training and mentorship.

Skill enhancement

Employees gain new skills and improve existing ones, making them more competent in their current roles and preparing them for future opportunities.

Example: A marketing specialist learns advanced data analytics, which enhances their ability to create effective marketing strategies.

Increased job satisfaction

Opportunities for growth and development lead to higher job satisfaction and motivation. Employees feel valued and appreciated when their employer invests in their professional development.

Improved employee performance

With clear goals and access to resources, employees can perform better in their roles.

Example: An employee who receives training in project management can handle their projects more efficiently and effectively.

Enhanced engagement

Development plans foster a sense of engagement and commitment to the organization. Employees who see a future within the company are more likely to be engaged and dedicated.

Organizational perspective

Increased productivity

Employees who develop their skills and knowledge contribute to higher productivity and efficiency.

Example: A well-trained sales team can improve their sales techniques, leading to increased revenue.

Improved employee retention

Offering development opportunities reduces turnover as employees are more likely to stay with an organization that supports their growth.

Succession planning

Development plans prepare employees for future leadership roles, ensuring a smooth transition when key positions become vacant.

Example: A senior manager nearing retirement can mentor a successor groomed through a development plan.

Enhanced organizational agility

Organizations with skilled and adaptable employees can respond more quickly to changes in the market or industry.

Example: When new technology is introduced, employees continuously developing their tech skills can adapt faster.

Alignment with strategic goals

Development plans align employee growth with organizational objectives, ensuring that the workforce evolves in line with business needs.

Example: An organization focusing on digital transformation ensures employees are proficient in digital tools and platforms.

Positive organizational culture

A focus on employee development fosters a culture of learning and improvement. Employees feel encouraged to innovate and take on new challenges, contributing to a dynamic and progressive work environment.

How do you create an effective employee development plan?

Creating an effective employee development plan involves a series of well-defined steps. By following these steps, organizations can create effective employee development plans that drive personal and professional growth, ensuring their workforce is well-equipped to meet current and future business needs.

Assess organizational goals and needs

Identify the organization’s strategic objectives and determine the skills and competencies required to achieve these goals.

Example: If a company’s goal is to expand its digital marketing efforts, it will need employees with advanced SEO, content marketing, and data analytics skills.

Evaluate employee skills and performance

Use performance reviews, skills matrices, feedback, or training needs assessments to identify an employee’s strengths and areas for improvement.

You can also conduct a skills gap analysis to compare current employee capabilities with the skills needed to meet organizational goals.

Complimentary resources:

• How to Perform a Skills Gap Analysis: An Actionable Step-by-Step Guide (+ Template)
• How to Measure Employee Performance: Effective Tools and Techniques
• How to Conduct a Training Needs Assessment in 9 Steps

Set specific, measurable goals

Define clear, achievable, and time-bound objectives for each employee, aligning them with personal career aspirations and organizational needs.

Example: Instead of a vague goal like “improve communication skills,” set a specific goal such as “complete a public speaking course and give a presentation at the next quarterly meeting.”

Complimentary resources:

• Inspiring Development Goals Examples and Steps to Achieve Them
• SMART Leadership Goals Examples to Inspire and Motivate Growth

Identify development activities

Select appropriate training programs and resources to help employees achieve their development goals. Some examples include:

• Training courses:
• Mentoring: one-on-one mentoring is one of the easiest ways to transfer knowledge directly within your company and can help both the mentor and the mentee
• Job rotation: if you prepare your employees to make a lateral move, allow them to take a set of entirely different responsibilities
• Job succession planning: make a detailed outline of an employee’s career path should they stay in your company for a prolonged time.
• Coaching: hire an external coach or have someone within your team who can help your employee(s) learn new skills
• Online resources: quizzes, ebooks, guides, courses, podcasts, communities, and much more

Create a timeline for development

Outline a schedule with deadlines for completing each development activity, ensuring regular progress reviews.

Example: Establish milestones such as “complete online course by Q2,” “attend workshop in Q3,” and “apply new skills in a project by Q4.”

Provide resources and support

Ensure that employees have the tools, resources, and support to effectively pursue their development plans.

Example: Offer access to e-learning platforms, allocate budget for external training, and ensure managers can provide guidance and feedback.

Document the development plan

Record all details of the development plan, including goals, timelines, resources, and support mechanisms, in a centralized document or system. Use a shared online document or an HR software platform to track the development plan.

Free template: 70-20-10 Employee Development Plan Template

Use Deel Engage’s career development module if you’re looking for a more streamlined experience.

Monitor progress and provide feedback

Implement a system for regular feedback and evaluation to track the effectiveness of the development plan and make necessary adjustments.

Example: Schedule monthly check-ins to discuss progress, address any challenges, and adjust the plan as needed.

Evaluate and adjust the plan

Periodically assess the development plan's outcomes and refine them to ensure continuous improvement and alignment with evolving organizational goals.

Example: After six months, review the employee’s progress and overall impact on their performance and the organization’s goals. Make changes to the plan based on this evaluation.

What role do managers play in employee development plans?

Managers play a crucial role in employee development plans by:

• Identifying needs: Assessing the skills and development needs of their team members
• Setting goals: Collaborating with employees to set realistic and achievable development goals
• Providing resources: Ensuring employees have access to the necessary tools, training, and resources
• Offering support: Providing ongoing support, encouragement, and constructive feedback
• Monitoring progress: Regularly reviewing progress and making adjustments to the plan as needed

How can the success of an employee development plan be measured?

The success of an employee development plan can be measured using several key metrics:

• Performance metrics: Assess improvements in job performance and productivity
• Skill acquisition: Evaluate the acquisition of new skills and competencies
• Employee feedback: Gather feedback from employees regarding their satisfaction with the development process
• Career progression: Track career advancement and promotions within the organization
• Retention rates: Monitor changes in employee retention and turnover rates

What are some common challenges in implementing employee development plans?

1. Lack of time: Employees and managers may struggle to find the time to participate in development activities due to heavy workloads and competing priorities
2. Insufficient resources: Limited access to training materials, courses, and financial resources can hinder the implementation of development plans
3. Lack of managerial support: Without active support and encouragement from managers, employees may not be motivated to pursue their development plans
4. Inconsistent follow-up: Failure to regularly review and update the development plan can result in a lack of progress and achievement of goals
5. Employee resistance: Employees may resist development activities due to a lack of interest, fear of change, or discomfort with new challenges
6. Alignment with organizational goals: Ensuring that individual development plans align with the broader goals of the organization can be challenging, particularly in larger organizations with diverse objectives
7. Unclear goals: Development plans with vague or undefined goals can lead to confusion and lack of direction. Clear, specific, and measurable goals are essential for motivating employees and tracking progress effectively

Plan for your workers’ development with Deel Engage

Once you are managing employee development for a significant number of people, the process can become unmanageable:

• Employee development plans are dispersed across various formats, whether in Excel, PDFs, or PowerPoint presentations
• There is no centralized method for tracking progress
• A lack of centralized competency models for each role can lead to confusion and misalignment
• Daily work pressures can cause important development activities to be overlooked

With Deel Engage, you can manage your development strategy in one centralized location and automate the process. Transform your static spreadsheets into dynamic tools by:

• Engaging all participants with clear guidance and motivational messages
• Assigning learning journeys from the extensive external learning library
• Ensuring the relevance of development plans by linking them to career frameworks and feedback systems

Additionally, Deel HR, our truly global HRIS solution, is always included for free.

Watch our webinar showcasing the power of Deel Engage: Connecting Performance, Learning, and Career Development with Deel Engage.

Or book a demo to see how our solutions will help you build a high-performance workforce.