What is employee development and why is it so important?  

In personnel and employee development, the focus is on measures for operational qualification and development processes for employees. This can be organized internally (internally), externally (externally) and inter-company (in cooperation with others).

Various measures will be taken to:

• identifies the development potential of employees,
• determines the necessary direction and scope of development,
• planned, initiated and implemented the measures, and
• monitors development progress.

Employee development — a big word. The consequences behind this: even greater. Operated professionally and purposefully, employee development forms the basis for a company's success. One reason for this: At 30 to 40 percent, personnel costs account for a significant proportion of total costs.¹ But an economy in crisis, a shortage of skilled workers and transformative processes are the order of the day for many companies and require action. Knowing that employees are the basis of a company's success, their development and satisfaction should be a priority. The benefits for both employees and the company are obvious: Qualified and evolving employees are happier, more motivated and, above all, more competent. They move the company forward, increase its value and stay with the company longer. If only because they have the opportunity to develop further and achieve higher positions.

There are plenty of reasons for the continuous development of skills among the workforce, also from the point of view that every second company in the DACH region is confronted with current skills gaps.² Closing these skills gaps in a targeted manner is the primary challenge of vocational training in the coming years. The majority of companies have already realized the seriousness of the situation.

Closing skill gaps with strategic employee development

Deciding to close skill gaps is an important first step, but everything is nothing without a plan, without strategy. This is essential because requirements are constantly changing in an increasingly complex and dynamic competitive environment, and personnel planning is an important factor that companies can control.

In order to know where to start, it is first necessary to determine which skill gaps need to be closed at individual and team level. And furthermore, which competencies are already available and which may remain unused. These analyses then result in the choice of measures to effectively combat competency gaps. After all, 45.3 percent of companies consider this to be relevant. The 2022 eLearning BENCHMARKING study has shown that the demand for development offers for the entire workforce is the highest at 61.8 percent.

Staff development methods

You might think that the only measure you need is recruiting: hire competent specialists and the problem is solved. But the reality is different — applications remain unanswered, as there is a shortage of trained personnel in almost all sectors and there is currently no question of a flourishing economy. But the situation is anything but hopeless, as most companies can look back on a well-trained and well-trained workforce that can be prepared for the future with targeted continuing education.

Individual development plans include learning objectives and content, the way in which personnel development measures are carried out (at work or outside), times and deadlines, and learning methods and media. On-the-job, near-the-job or off-the-job training are available as instruments and measures for personnel development, but also opportunities for self-directed learning.

On the job:

This may involve expanding tasks (job enlargement) or decision-making skills (job enrichment), or it may also be possible to broaden the box through rotation. Projects also offer a good opportunity, for example through exchange with partners from other hierarchical levels and areas.

Near-the-Job

Funding through coaching or mentoring is just as practical. The principle of helping people to help themselves is paramount. Learning sponsorships with colleagues can also be beneficial in ensuring an internal transfer of knowledge and exchange of experience.

Off-the-job

The most established measures to train employees in a group or individually are seminars, distance learning courses or, to an extraordinary extent, distance learning. These formats focus on refreshing or updating knowledge in an area.

HR trend: closing skills gaps with digital learning

Or maybe a mix of learning while working or away from work? The methods mentioned have proven effective. However, it is worthwhile to break new ground. With the growing spread of e-learning, learning is possible on, off or near-the-job, as continuing education is becoming easier anywhere, at any time and as needed. While initially only large companies had the resources to provide appropriate online learning offers across the board via an internal learning platform, small and medium-sized companies are now also able to further develop their workforce thanks to inter-company offerings such as online academies.

For example, online learning is no longer a trend for some, as the pandemic in particular has caused a digital acceleration. The change to an expansion of online learning offerings is also being triggered by the opportunity to save on the L&D budget. ILT is, after all, the most expensive component of the L&D budget. So it's no surprise that figures from LinkedIn's 2021 Workplace Report confirm that 73 percent of L&D professionals expect to spend less on ILT and 79 percent expect to spend more on online learning.³

The variety of formats of online learning content is also decisive. They cater to different learning preferences and are a proven remedy against forgetting. Research shows that 75 percent of new information that is not used is forgotten after just 6 days. Online learning responds to this effect. With the help of microlearnings, podcasts, longer learning content, texts or visual learning units and a final put-it-to-practice, learning content remains present in the long term and serves to close skill gaps.

Focus on core competencies: It's the mix that counts

One is correct and the other is “out.” As always, not everything in the world of development is just black and white. The most important thing is: Companies should continue to focus on continuous and professionally designed, internal development. Workforce development is increasingly proving to be the most important lever for closing skill gaps sustainably. And the most sensible solution usually proves to be the happy medium: the mix of digital learning opportunities and on, off or near-the-job measures. But whatever the decision may be, the development plan should also be effective. Development plans should therefore be adjusted in line with changes in corporate goals and requirements. Overall, the right balance between internal growth and successful recruiting creates a dynamic and sustainable work environment that promotes the company's success in the long term. Through a fusion of performance-oriented personnel development, which draws its strength from individual competencies.

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^{1 Federal Statistical Office.}

^{2 eLearning BENCHMARKING study 2022.}

^{3 LinkedIn Workplace Learning Report 2021, p.19.}