What’s it: Employee development is a human resource program to prepare employees to perform better and be ready to occupy higher positions or careers. It may not only be necessary for succession but also for developing a professional career.
Through development, your company invests in and provides opportunities for your employees to improve their abilities and skills over time. Of course, it costs money.
However, the investment is expected to yield higher returns: your employees’ performance improves, and your company is more competitive in the long run. So, you get more revenue than you spend on development.
Why is employee development important?
Employee development is important to get the greatest economic benefit from your human resources. Human resources are different from other assets such as machinery, equipment, and other fixed assets. The economic benefits of fixed assets decline over time. So, when using them, your company gets less output over time as they wear out.
On the other hand, human resources can flow higher economic benefits over time. Your company can do this by enhancing their capabilities and skills through training and development. Thus, their productivity and performance increase, and your company gets more output.
What are the types of employee development?
Employee development can include career development or professional development. Both are important to achieve higher productivity. In addition, through both, companies can increase employee morale and motivation.
Career development. It aims to prepare your employees for higher administrative positions. In other words, you prepare them to be better managers or leaders in the future. Your company needs to ensure they have the required qualifications to get there. Development areas may include:
- Conflict management
- Stress management
Professional development. It aims to prepare your employees to become professionals in their fields. Thus, they become proficient in their position. For example, say you give an employee in the finance division the opportunity to acquire a professional certification such as a Certified Public Accountant (CPA) or Chartered Financial Analyst (CFA).
Professional development may be part of administrative career development, but it may not be. For example, your company promotes employees not only based on performance and years of service. But, it was also based on their professional skills.
What are the benefits of employee development?
Employee development benefits both parties: your company and your employees. In addition to enabling your company to achieve its goals by making employees more productive, your employees can be more motivated and loyal because your company allows them to develop their careers and professionalism.
Benefits for employees
Development enables your employees to move up to higher positions. In other words, it gives them the opportunity to earn higher salaries and benefits at your company.
Furthermore, development helps your company grow. For example, by occupying a higher position, they can build contacts with colleagues. For example, they have close relationships with colleagues at the customer or supplier company. So, your company can create synergies along the supply chain.
In addition, developing employees allows them to improve their careers. If your company does not allow for a higher position – for example, because it has been filled by someone else – it provides an opportunity to pursue a higher career in another company through their network of contacts.
Another benefit is gaining recognition for professional qualifications. Being a professional is a matter of pride for your employees. The public will consider them to be experts in the related field. Moreover, it increases their bargaining position at their current job or elsewhere.
Benefits for the company
Some companies view employee development as a long-term investment. Through it, they prepare and ensure the best talents occupy strategic positions. In addition, they also benefit from increased productivity and motivation.
Motivation. Employees are more motivated if your company provides adequate training and development programs. They feel valued. As a result, it increases their motivation to work better and become more loyal, reducing turnover.
Productivity. Development programs enable your employees to improve their skills and abilities, both technical and non-technical. As a result, they become more effective in carrying out their roles. So, your company can acquire their full potential.
Competitiveness. Competitive advantage requires quality human resources. And your company can achieve this through training and development programs. When you have qualified employees, they can perform well, even exceed expectations, in meeting the demands of your company. In addition, your company is more flexible and ready to adapt to a changing business environment and unexpected situations.
Innovation. Your company can also pursue innovation better because it adequately builds the skills and capabilities of human resources. After all, innovation is developed not by machines or computers but by the individuals in your company.
Saving money. The development program allows your company to earn a higher return than the money spent. For example, increased retention reduces hiring and training costs for new employees, which are more expensive than training and developing existing employees.
Moreover, more talents are out there queuing up to work for your company. A good development program creates a positive image. The public perceives your company as a promising place to work, encouraging the best talents to want to work for your company. As a result, it lets you put in less effort to attract the best talent out there.
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