Promoting employee development to keep your people happy

According to research by Gallup, organizations that invest in employee development see 11 percent higher profitability and twice as high employee retention levels. What does it take to come up with a development strategy that benefits your employees and organization? 

In this article, we’ll go over best practices and benefits of having a solid development program. We’ll also share some case studies that bring these ideas to life. Finally, we’ll explore the important role managers play in the growth of your people and the organization. 

An overview of employee development 

Employee development is all about helping your people explore their full potential. This means providing tools and resources to help them grow, whether in their current role or in another capacity within the organization.  

Employee training vs. employee development 

Training and development call for different approaches, and it’s important for HR professionals to use the right terms to manage expectations. Here’s where their differences lie: 

• Approach: Employee development takes a holistic view in helping the employee advance in their career. Employee training, meanwhile, fulfills more immediate needs. It is concerned with equipping employees with the right tools and skills to do their job 

• Duration: Employee development is long term – it responds to the needs of the employee as they grow in their role. Employee training is for the short term, designed to address learning needs quickly 

• Outcome: The desired outcome for a professional development plan is expansion - the employee continues to grow in their role. With training, the expected result is action, an improvement in the way the employee works 

Employee development is a long-term strategy, not just a one-off solution. It’s also an effective way to retain employees.  

Formal vs. informal development paths 

HR teams can use different strategies when designing development programs. Some examples include structured learning approaches like classroom type sessions or e-learning for certification programs.  

Non-traditional strategies are another option. Long-term job shadow or mentorship opportunities help with building and strengthening skills and competencies. It also helps foster ties among your workforce.   

Development program vs. development plan 

When we talk about development programs in this article, we refer to the overarching framework drafted by HR to support business goals. This is to be followed by all teams in the organization. 

A development plan is a blueprint that each employee follows. This is drafted by the individual and their manager, guided by the employee development program and business strategy. Each plan will look different because everyone has different skills and needs.  

How to create an effective employee development program 

Here's a set of best practices that you can use to build and refine your organization’s policies on personal development: 

1. Set goals that align with business strategy 
2. Gather input from employees 
3. Allow for some flexibility 
4. Be clear about expectations 
5. Make the right tools and opportunities available 
6. Seek regular feedback   

Let’s go over them in more detail: 

1. Set goals that align with the business strategy  

As Stephen Covey says, begin with the end in mind. Take a close look at desired business outcomes and overall strategy, then work from there. This means asking: 

• What are the organization’s strategic priorities over the next three years? 
• What talent capabilities are needed to support those goals? 
• How can learning and development programs help close that gap? 

Consider incorporating training programs that reflect emerging trends and needs. Offering learning opportunities in automation and AI, for example, will help boost the skills of your workforce. It also encourages innovation in the workplace.  

2. Gather input from employees 

Once the business strategy has been shared with managers and their teams, seek input from them on what their learning needs are. This will give you a more detailed view of what skills they possess and where some gaps might be.  

Their input will help you come up with training options targeting specific skills and needs.  

3. Allow for some flexibility 

A good employee development program operates within a framework yet adjusts to different learning styles. Managers and their teams should have some leeway in choosing which employee development activities work best.  

Having options to accommodate accessibility needs and other learning preferences should be available as well.  

4. Be clear about expectations 

When rolling out your company’s employee development program, outline rules clearly: 

• Does the organization pay training fees outright, or are they reimbursed? Is voluntary training covered? 

• What does the application or bid process entail? 

• What forms do employees need to complete? 

• What action is expected of employees during or after the learning activities? 

Be clear in stating the scope and requirements of the program. Update the policy based on feedback from employees. 

5. Make the right tools and opportunities available 

Employees’ individual development plans need not look the same. Drawing from the situational leadership model, HR teams and managers should tailor tools and learning experiences based on the employee’s skill level, confidence, and experience: 

• New hires or early career employees would benefit from structured learning focused on skills related to their work. This helps build a good foundation for your new joiners 

• Mid-career or high-performing employees need more opportunities to stretch and challenge themselves. Cross-functional projects, working groups/committees, and shadowing opportunities will help drive growth and keep employees engaged 

• Tenured and highly skilled employees would be perfect for mentorship or coaching opportunities and leadership training. These strengthen their expertise and help with succession planning 

Work with managers and team leaders to help them identify the right approach for their team members. This will change over time as employees grow and expand their skillsets.  

6. Seek regular feedback  

Encourage everyone to share feedback on the overall program, their individual employee development plans, and specific activities. If there are frequently asked questions, that’s a signal to fine-tune relevant sections of the policy.  

Benefits of an employee development program 

Investing time, energy, and resources in preparing a policy supporting professional development will help your employees and the wider organization. Here are some ways you can all benefit: 

Higher retention = lower turnover rates 

According to a LinkedIn study, 94 percent would stay in their jobs if their employers invested in their development. Think of it this way: you could be spending money to support an employee’s development, or use it to hire, recruit, and train their replacement. What would you rather spend money on? 

Turnover rates could range anywhere from 20 percent to 150 percent of an employee’s salary. Read this CHRR+ special report on the cost of turnover for more.  

Higher employee satisfaction 

Employees feel valued when companies invest in their learning and development. This motivates them to work better and use their new skills to improve processes. This feeling of being able to contribute – of making a difference – leads to a high level of satisfaction.  

More resilient workforce 

When things change fast – whether it’s new technology, shifting customer needs, or staffing shortages – teams that are used to learning and growing can handle it better. They don’t get stuck. They adapt. 

Employees who have been trained in multiple areas of the business lead to a more resilient workforce. Talent shortages can be better addressed, and the employee has more promotion opportunities to look forward to. 

Better engagement 

Employees are more engaged when they see a clear career path and know there’s a long-term plan for their growth. It helps them feel valued and connected to the organization, which strengthens relationships with both leaders and peers. 

Case studies: 5 successful programs to inspire you 

After looking at some suggestions for drafting an employee development program and its benefits, let’s look at how that works in real life. We’ve listed five organizations with successful programs.  See if you can pick up some best practices from their examples: 

CAAT Pension Plan 

CAAT Pension Plan is a Canadian benefit pension provider based in Toronto, serving more than 100,000 members across over 440 employers. Its CAAT Academy gives employees access to thousands of online courses, while Leaders Mindset develops foundational leadership skills in potential leaders.  

These initiatives are designed to promote continuous learning and support internal mobility across the organization. 

CASA Mental Health 

CASA Mental Health is a non-profit organization based in Alberta, delivering mental health services for children and young people.  

CASA dedicates 2 percent of its payroll (around $750,000 yearly) to employee development. Staff receive external training tailored to their clinical roles, with no obligation to stay. This approach strengthens retention and benefits the wider community. 

Cognition+ 

Cognition+ is a Canadian software company that provides cloud-based solutions for the mutual insurance industry.  

Employee development is at the heart of the company’s strategy. Team members can access these learning opportunities: 

• paid courses from the Insurance Institute of Canada 
• over 20,000+ online courses via Udemy 
• training from the National Association of Mutual Insurance Companies 

These resources ensure employees stay current with both technical skills and emerging insurance trends. 

CAAT Pension Plan, CASA Mental Health, and Cognition+ are part of Canadian HR Reporter’s best companies to work for. Read about them and other awardees in our special report. 

Chipotle 

Mexican fast food chain Chipotle operates over 3,700 restaurants worldwide, including a growing presence in Canada.  

Employee development is a priority in its corporate strategy. The company offers tuition reimbursement to employees after four months of continuous service. They also launched a Debt-Free Degree program in 2019 where they cover full tuition fees for qualified employees. 

Chipotle’s focus on personal development has led to a high internal promotion rate of 87 percent. Crew members have the opportunity to get promoted to general manager within three years. 

Motion 

Motion, a provider of mobility and accessibility services, is investing in the growth of its leaders through a structured, in-house leadership development series. The program equips managers with tools in performance coaching and onboarding, mental health support and leadership.  

For this and other initiatives, Motion was recognized with having one of the most innovative HR teams in Canada.  

The manager’s role in supporting employee growth and learning 

For your employee development program to succeed, make sure that your managers are on board. They serve as a vital link in: 

• making teams aware of the development program and the business strategy it supports 

• guiding individuals in drafting and implementing their personal development plans 

• sharing relevant feedback with HR and leaders  

Here’s how your managers can ensure the success of employee development at your company: 

From boss to coach 

Managers’ roles are no longer directive or transactional. Managers and team leaders are seen as advocates for their team members. They support and give feedback in constructive ways to guarantee the success of their employees.  

Weekly check-ins vs. yearly reviews 

Frequent and meaningful conversations between managers and employees are helpful in many ways. Aside from building rapport, these casual check-ins help bring out areas for development that employees need help with.  

The ability to give and receive feedback is the mark of a workplace that values growth and development. And having a good manager is key. As a Gallup study says, “managers are central to a high-development culture.”  

Creating a culture of trust 

Building rapport also helps create a safe space for employees to try new things and make mistakes. Eventually, that leads to growth and success. None of that would be possible unless the employee feels safe enough to take risks. Managers, supported by the organization, help create that environment.  

Why investing in talent development is worth it 

A well-designed employee development program is more than a perk — it’s a long-term investment in your people and your business. When learning is embedded into your culture, it becomes a driver of engagement, retention, and employee satisfaction. And as we’ve seen from leading organizations, it pays off. 

HR professionals who stay proactive and intentional about growth will help their teams — and their organizations — stay resilient, competitive, and ready for the future. 

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