Employee Development Plans: Why They Matter and How to Build One

An employee development plan is more than a professional growth tool. It’s an integral part of your business growth strategy. You can build a stronger, more resilient organization by helping employees develop their skills and envision a future with your company.

Employee development plans offer a proactive approach to boost retention and close skill gaps. They can also help create leaders from within your workforce. Let's explore why employee development programs matter and how to create an effective plan for your business.

What is an Employee Development Plan?

An employee development plan is a personalized roadmap that outlines how an employee develops skills and takes on more responsibilities. It also shows how they can advance in their career within your organization. These plans typically include:

• Clear Goals: These help align your employees' goals with business needs.

• Skill Assessments: These are a candid assessment of your employees' skills and identification of any existing gaps.

• Development Activities: These include training, mentorship, stretch projects, job shadowing, and certifications.

• Timelines and Milestones: These are realistic timelines that include checkpoints to monitor progress.

• Ongoing Manager Support: This provides guidance and regular performance check-ins to ensure ongoing support.

These components, when combined, create a clear and motivating employee growth plan that transforms abstract ambitions into actionable goals.

Why Employee Development Plans are Essential for Business Growth

Your business evolves as your employees grow and develop new skills. An employee development plan ensures that growth happens intentionally. These programs give your team direction and support, providing a clear path forward. Here are some additional benefits:

• Scalable Skills: As your business grows, so do the skills required to keep up. Employee growth plans help you build capabilities from within, enabling your team to rise to new challenges and meet them effectively.

• Improved Retention: When employees see your interest in their future, they’re more likely to invest in yours. Employee development programs help build loyalty and reduce turnover.

• Enhanced Engagement and Morale: Employees tend to become more engaged when they feel like they’re learning and taking on more responsibilities.

In short, employee development plans benefit not only individual employees but also the organization as a whole. They help create a culture of continuous improvement that keeps your business competitive and resilient.

How to Build an Effective Employee Development Plan

A successful employee development plan starts with intention. The goal is to align individual growth with business needs, while providing your employees with a clear and motivating path forward. Here’s how you can build a development plan that works:

1) Start With a Conversation

Sit down with each employee to understand their career interests and current skill levels. Discover where they’d like to grow. These conversations set the foundation for a meaningful plan.

2) Define SMART Goals

SMART stands for goals that are specific, measurable, achievable, relevant, and time-bound. These goals should align with the employee’s ambitions and your company’s objectives. They give structure to employee development plans and make progress easy to track.

3) Map Out a Career Path

Identify potential roles or responsibilities and outline the steps required to achieve them. Steps may include upskilling, obtaining certifications, going through cross-training, or participating in leadership development.

4) Offer Upskilling Activities

Once goals are set, focus on experiences that help your employees build the right skills in practical ways. Common upskilling programs include mentorships, job shadowing, formal training, stretch assignments, or cross-functional projects. The key is to tailor employee upskilling activities to their specific career path.

5) Schedule Regular Check-ins

Establish consistent, structured touch points to discuss what’s working and where your employees are struggling. Use these discussions to adjust the plan, if needed. One of the best ways to encourage employee development is by creating a thoughtful plan that fosters growth alongside your business, ensuring employees evolve with the company rather than apart from it.

Measuring the Success of Your Employee Development Plans

Creating an employee development program is a significant first step, but proving its effectiveness is just as important. Tracking the right success metrics can help you fine-tune your approach and demonstrate ROI, ensuring the program continues to support your employees and your business. Here’s what to track:

• Goal Progression: Are your employees meeting their development milestones? SMART goals are an easy way to evaluate the success of your program over time. They can also help you identify roadblocks at an early stage.

• Internal Mobility Rates: How often are your employees moving into new roles or stepping into leadership? High internal mobility typically indicates a healthy development pipeline.

• Employee Retention: Monitor retention over time, especially after rolling out or improving your employee development plan. Increased retention is a strong indicator that employees feel supported and engaged.

• Skill Improvements: Utilize manager feedback or performance reviews to track measurable gains in targeted areas. Setting up a strong performance review process is another effective way to encourage employee development, as it allows you to track and assess your employees’ progress over time.

• Employee Feedback: Maximize the value of qualitative data. Use pulse surveys and one-on-one check-ins to understand how supported your employees feel and uncover opportunities to improve the development program.

Measuring the success of your employee development program helps ensure it’s not just a feel-good initiative, but a business strategy that drives results.

How Justworks Can Help Manage Your Employee Development Programs

An employee development plan can become a powerful tool for building a more resilient business. By investing in your employees' growth, you foster a workplace where their potential can truly flourish. Justworks’ PEO offers you tools and insights to support employee development at every level, along with payroll and HR support. Get started with Justworks today and transform your employee development programs into concrete, impactful outcomes.