Employee development against skill gaps

What is employee development and why is it so important?  

Personnel and employee development focuses on measures for the operational qualification and development processes of employees. This can be organized within the company (internally), outside the company (externally) and externally (in cooperation with others).

Various measures are being discussed:

• the development potential of employees is identified,
• the necessary direction and scope of development,
• the measures are planned, initiated and implemented and
• monitors the progress of development.

Employee development - a big word. The effects behind it: even bigger. Professional and targeted employee development is the foundation of a company's success. One reason for this: at 30 to 40 percent, personnel costs account for a significant proportion of total costs^.1 However, 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 foundation 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 developing employees are happier, more motivated and, above all, more competent. They drive the company forward, increase its value and remain with the company for longer. If only because they have the opportunity to develop further and attain higher positions.

There are plenty of reasons for continuous skills development in the workforce, not least in view of the fact that every second company in the DACH region is currently confronted with skills gaps^.2 Closing these skills gaps in a targeted manner will be the primary challenge for in-company training in the coming years. The majority of companies have already recognized the seriousness of the situation.

Closing skill gaps with strategic employee development

The decision to close skill gaps is an important first step, but it is nothing without a plan, without a strategy. This is essential, as requirements are constantly changing in an increasingly complex and dynamic competitive environment, and workforce planning is an important tool 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 skills are already available and which may remain unused. The choice of measures to effectively combat skills gaps then results from these analyses. As many as 45.3 percent of companies consider this to be relevant. The eLearning BENCHMARKING Study 2022 showed that the need for development opportunities for the entire workforce is the highest at 61.8 percent.

Employee development methods

You might think that the only measure you need is recruiting: hire competent specialists and the problem is solved. But the reality paints a different picture - there are no applications because there is a shortage of trained staff in almost all sectors and there is currently no sign of a flourishing economy. However, the situation is anything but hopeless, as most companies can look back on a well-trained and well-versed workforce that can be equipped for the future with the help of targeted further training.

Individual development plans contain learning objectives and content, the type of implementation of personnel development measures (on or off the job), times and dates as well as learning methods and media. On-the-job, near-the-job and off-the-job training are available as personnel development tools and measures, as are opportunities for self-directed learning.

Development on the job:

This may involve the expansion of tasks (job enlargement) or decision-making competencies (job enrichment) or, through rotation, it may also be possible to think outside the box. Projects also offer a good opportunity, for example through exchanges with partners from other hierarchical levels and areas.

Development near-the-job:

Support through coaching or mentoring is just as practical. The focus here is on the principle of helping people to help themselves. Learning sponsorships with colleagues can be just as beneficial in order to ensure an internal transfer of knowledge and exchange of experience.

Development off-the-job:

Probably the most established measures for training 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 a particular area.

HR trend: closing skills gaps with digital learning

Or perhaps a mixture of learning on and off the job? The methods mentioned have proven their worth. Nevertheless, it is worth exploring new avenues. With the growing spread of e-learning, on-the-job, off-the-job and near-the-job learning is now possible, as further training is easier anywhere, at any time and in line with requirements. While initially only large companies had the resources to provide online learning opportunities 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.

Online learning is no longer a trend for some, as the pandemic in particular has led to a digital acceleration. The shift towards an increase in online learning provision is also driven by the opportunity to make savings in the L&D budget. After all, ILT is 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% of L&D professionals expect to spend less on ILT and 79% expect to spend more on online learning^.3

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

Focus on core competencies: it's all in the mix

One is right and the other is "out". As always, not everything is black and white in the world of further development. The most important thing is that companies should continue to focus on continuous and professionally organized internal development. The development of the workforce is increasingly proving to be the most important lever for closing skill gaps in the long term. And the golden mean usually proves to be the most sensible solution: a mixture of digital learning opportunities and on-the-job, off-the-job or near-the-job measures. But whatever the decision, the development plan should also be effective. Therefore, development plans should be adapted according to changes in company goals and requirements. Overall, the right balance between internal growth and successful recruiting creates a dynamic and sustainable work environment that promotes the long-term success of the company. Through a fusion of performance-oriented personnel development that 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.}