Quick Guide to Creating Employee Development Plans

Employee development plans are structured plans that outline how businesses will help employees enhance their skills while staying aligned with the strategic goals of the organization. When implemented effectively, these plans help HR teams support employee growth, which can lead to increased engagement, improved performance and higher retention rates.

But if your HR team doesn’t prioritize employee development, the organization may face critical challenges like:

• High turnover rates: Employees often leave due to a lack of growth opportunities.
• Skill gaps: Misalignment between employee capabilities and organizational needs can hinder productivity.
• Inconsistent feedback: Without regular performance discussions, employees may feel unsupported in their development.
• Difficulty measuring success: Organizations often struggle to quantify the impact of development initiatives.

By creating well-structured employee development plans, companies can cultivate a culture of progress and inspire a more skilled and motivated workforce. This guide will walk you through the key steps to create and implement an employee development plan within your organization.

Step-by-Step Guide to Creating an Effective Employee Development Plan

A good employee development plan is methodical and structured, yet adaptable — enabling teams to follow and modify it as needed to support each employee.

It should also adhere to these core principles:

• Align with business goals: This helps to ensure that development initiatives result in organizational ROI.
• Adaptability for each employee’s aspirations: Employee development shouldn’t be one-size-fits-all. Personalization encourages employees to engage with their own professional development.
• Measurability: Tying the development plan to a time-bound schedule and KPIs allows you to track effectiveness over time and modify the plan accordingly.
• Continuous feedback: For employees, this helps them develop skills more effectively. And for HR, feedback can be used to refine the development plan and ultimately improve the HR function as a whole.
• Leadership buy-in: When leadership supports and prioritizes employee development, it promotes a commitment to continuous improvement.

By keeping these principles in mind, you’ll be better equipped to create development plans that are valuable both to employees and to the organization.

Step 1: Conduct a Skills Gap Analysis

This process involves assessing employees’ current skills and identifying areas where they might not meet the requirements for their roles or the organization’s future goals.

A common mistake organizations make is conducting this analysis without involving employees. When managers rely solely on their own observations, they may overlook specific strengths or weaknesses that employees are aware of.

This exclusion can lead to inaccurate assessments and disengagement, as employees may feel undervalued and less motivated to participate in their own development.

Methods for conducting a skills gap analysis include surveys, interviews, and performance data reviews.

Prioritize skills based on current and future organizational needs, as well as the employee’s career aspirations, to ensure the analysis is both relevant and actionable.

Best Practice: Actively involve employees in the skills assessment. Use self-assessments alongside manager evaluations to create a comprehensive view of strengths and areas for improvement. This helps align development activities with both individual aspirations and organizational goals.

Step 2: Set SMART Goals Aligned with Organizational Objectives

Setting clear, achievable goals is crucial for the success of any employee development plan. Goals should be SMART (specific, measurable, achievable, relevant and time-bound) to provide clarity and direction.

Setting vague or unrealistic goals can lead to confusion and frustration. When goals lack specificity, employees may struggle to understand what is expected of them, resulting in disengagement and missed opportunities for growth.

For example, instead of a goal like “improve communication skills,” a SMART goal would be “complete a communication skills workshop and apply techniques in team meetings over the next three months.”

Best Practice: Ensure goals are clear, attainable, and aligned with both employee aspirations and organizational needs. This encourages motivation and accountability, helping employees stay focused on their development.

Step 3: Identify Potential Learning and Development Opportunities

It’s not enough to assess skills and set goals. You also need to ensure that the right development opportunities are available to each employee. This could include on-the-job training, mentoring, workshops and online courses. A diverse catalog of resources can improve employee development by catering to different interests, roles and learning styles more effectively.

A common pitfall is limiting employees to formal training only. This narrow approach can restrict growth and fail to engage employees, as they may benefit from various learning methods that suit their preferences. It may also be difficult for departments to organize, especially if formal training is strictly scheduled and time-intensive.

Best Practice: Provide a mix of learning opportunities to enhance engagement and skill acquisition, including outside-of-the-box ideas like microlearning. This approach not only supports individual growth but also nurtures a mindset of continuous learning within the organization.

Step 4: Create an Action Plan with Timelines

An action plan brings structure and ownership to an employee development plan by outlining who is responsible for what, and associated deadlines and outcomes.

This helps spark progress and keep momentum going over time. Without clear milestones or deadlines, employees may lack direction and struggle to stay on track, leading to delays in their development.

Best Practice: Break down goals into actionable steps with specific timelines. This structured approach ensures steady progress and accountability, allowing employees to see their advancements clearly.

Step 5: Establish Regular Check-ins and Progress Reviews

Regular check-ins keep the development plan on track and enable you to make necessary adjustments in the moment. These meetings provide an opportunity to assess progress, identify and resolve challenges and celebrate achievements.

When organizations neglect ongoing communication, they risk stagnation and disengagement. This leaves employees feeling unsupported in their development journey.

Best Practice: Schedule regular follow-ups to assess progress and adjust as needed. An ongoing conversation supports continuous growth and shows the organization’s dedication to employee development.

Measuring the Success of Employee Development Plans

To gauge the effectiveness of your development plans, track key performance indicators (KPIs) that reflect employee growth, engagement, and organizational impact. Regular assessment of these metrics allows for data-driven adjustments to your development strategies.

Consider tracking the following KPIs:

• Completed training programs: This KPI reflects employee engagement in development initiatives. Tracking completion rates can identify participation trends and areas needing additional support or resources.
• Skill acquisition and application: Measure the acquisition of new skills and their application in daily work. This directly links training efforts to practical outcomes and job performance improvements.
• Career progression rates: Track internal promotions and lateral moves resulting from development efforts. This metric indicates how well your programs prepare employees for growth within the organization.
• Employee satisfaction with development opportunities: Regularly survey employees about the quality and relevance of development programs. This feedback can guide improvements in your offerings.
• Return on investment (ROI) of training initiatives: Calculate the financial impact of development programs by comparing costs to improvements in productivity, quality, or revenue.

To gather even more valuable insights, implement a structured feedback process. Conduct brief surveys after each training session, hold quarterly focus groups to discuss development needs, and include questions about growth opportunities in your annual employee engagement survey.

Use what you learn to refine program content, delivery methods, and overall development strategy. Additionally, encourage managers to discuss development progress during regular one-on-ones, ensuring ongoing alignment between employee goals and organizational needs.

Foster Employee and Organizational Success with James Moore

HR occupies a unique position in an organization, responsible for balancing the needs of individual contributors with those of the entire organization. A healthy employee development program enables you to bring those two priorities together holistically. But to do that, you need a clear view not only of your organization’s needs and priorities, but also of each employee’s strengths, weaknesses and aspirations.

If you need support in establishing or improving your employee development strategy, James Moore HR Solutions can help. Our team brings a wealth of HR experience and can help you design skills assessments, create training programs and more. To get started, contact your advisor today.

All content provided in this article is for informational purposes only. Matters discussed in this article are subject to change. For up-to-date information on this subject please contact a James Moore professional. James Moore will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.