Almost all leaders will agree on the importance of employee development in the workplace. Yet, when it comes to implementing a meaningful and results-driven employee development strategy, many organizations fall short. Nearly 50% of employees aren’t happy with their employer’s learning and development programs. And even 44% of HR leaders don’t think their organization offers compelling career paths.

But what's the real cost of neglecting employee development? Spoiler alert: It's a big one. 

In this article, we'll explore why a human-centered approach to employee development—one that prioritizes mentorship and social-based learning alongside more traditional methods – is essential for building a thriving workforce and driving business success.

What is employee development? 

Broadly speaking, employee development is the overall process of upskilling and building knowledge in the workplace. When employees are provided with opportunities to learn new skills and gain more knowledge about their roles or industry, this helps them advance in their careers. It also benefits the company by driving better business outcomes. 

When you think about traditional approaches to employee learning and development (L&D), you might think of autonomous online learning modules, company retreats for in-person training, or performance reviews and feedback. While those do play a role, employee development is much more than that.

Professional development is essential for empowering and motivating employees to thrive in their roles. From opportunities for internal mobility, mentorship, or leadership development, most organizations have unique resources they can leverage to help employees grow in their careers, with the goal of benefiting the business, too.

Why employee development really matters

Despite arguments for the contrary, most employees don’t want to sit around, do the bare minimum, and collect a salary. Your employees are looking for opportunities to grow and make a meaningful contribution—both in their current roles and throughout their careers. 

A 2022 survey by The Conference Board reported that 96 percent of respondents believe that it’s important or very important for them to continuously develop their work-related skills.

Fostering employee growth expands employees’ skills and networks, leading to increased engagement, organizational agility, and a stronger, more adaptable workforce. And employees who make internal moves are significantly more likely to stay with the company (75% vs. 56%). 

Prioritizing employee development is also critical for your organization’s ongoing success. By providing opportunities for continuous learning, you empower employees to excel in their current roles while also preparing them to adapt to future challenges. This fosters a culture of innovation, agility, and growth, enabling a more resilient organization.

Let's explore the ripple effect of career development and how it transforms not just individual careers, but your entire organization.

1. Improves employee retention

Employers in the US spend not millions or billions, but trillions of dollars every year fighting employee turnover. So it’s no surprise that 93% of organizations are concerned about employee retention.

Employees expect a level of commitment to their own growth from you as their employers. So if they feel like there’s no room for advancement, they’re likely to look for a new job elsewhere. Realistically, if investing in employee development isn’t a priority, you’re also going to struggle to attract top talent to fill those empty seats left by departing employees.

Employee development is a time and resource commitment, but when replacing an employee costs as much as 3-4x the position’s salary, it’s usually worth it to retain your top performers.

2. Drives employee engagement

Employee engagement is a measure of how enthusiastic and connected your employees are to their work and your organization,  impacting everything from job satisfaction to employee turnover. While there's no single definitive method for measuring employee engagement, engagement scores and surveys are common tools that provide valuable insights into the employee experience.

According to Gallup, organizations with engaged employees experience 17% higher productivity and 21% higher profitability.

You want your employees to come to work with a positive attitude. But the responsibility can’t just fall squarely on their shoulders.

By providing upskilling and development opportunities, you can help your team feel more confident in their work. The feeling of accomplishment can unlock a sense of pride and ownership. And when your employees feel like you’re on the same team, they’ll be more motivated to deliver positive results and align themselves with your company goals.

3. Builds employee satisfaction

It’s no secret that employee job satisfaction has been a bit touch and go over the last few years. From mass layoffs to major organizational shifts, it’s not entirely surprising that employees are feeling a little burnt out.

Giving an already-tired team more learning tasks and development to-dos might sound counterintuitive. But career development is extremely underrated when it comes to employee happiness.

Employees who feel supported in their roles through mentorship, coaching, and other growth opportunities, are usually happier and more loyal to their jobs. In fact, employees who spend more than 5 hours a week learning are almost 50% less likely to be stressed and 23% more likely to take on additional responsibilities.

 4. Increases employee (and business) performance

Investing in career and employee development empowers your team to reach their full potential. 

Employees who are constantly learning are more likely to stay up-to-date on the latest trends and sharpen the skills they need to do their jobs.

And when employees are good at their jobs, your business benefits. 

But as a recent Deloitte analysis highlights, true performance improvement hinges on the human factor. Are employees engaged, supported, and growing? Incorporating more human-centric approaches within development, like mentorship, that can directly address these needs and foster a more motivated and skilled workforce.

‍70/20/10 Learning Model: Employee development isn’t limited to traditional training programs. Only 10% of learning tends to come from formal training. The rest comes from new on-the-job experiences (70%) and interactions with others (20%). Organizations can boost employee performance by offering solutions for building connections and creating informal learning opportunities in their day-to-day.

5. Supports strategic planning

Long-term strategic planning should always include talent management. This includes putting plans in place for filling future (and current) skills gaps and increasing bench strength so you have the resources in place to achieve your business goals.

‍87% of organizations admit they’re experiencing skills gaps or expect to in the next 5 years. Similar talent gap challenges exist even in the public sector. And with rapidly changing technology and job hopping becoming the norm, planning your talent pipeline becomes even more critical. 

Strategically implementing employee development is one of the best ways for you to future-proof your talent pool. Identifying and upskilling high-potential talent creates a steady pipeline of future senior leaders. Meanwhile, investing in early talent means that you’ll nurture a loyal workforce that is more likely to stick around.

6. Scales revenue and profitability

They say you need to spend money to earn money—and that holds true for employee development. Investing in your employees’ growth and learning can pay off in spades.

If you look at all the areas that are impacted by career development—from employee engagement to employee retention and beyond, everything comes together to help your organization save money and be more efficient.

For example, engaged employees are more productive and creative. They’ll get more done in the same time or less, so you’re paying the same for more output and higher-quality work.

Or when you upskill your employees, you’ll have a strong talent pipeline for future roles. On average, it’s 1.7x more expensive to hire and onboard external candidates than internal ones. If you have several roles to fill, those costs can really add up, making internal mobility financially beneficial.

Traditional approaches and challenges with employee development 

Traditional approaches to employee development have long served as valuable tools for fostering growth within organizations. Methods like on-the-job training, in-person workshops, and online learning modules all play a role in upskilling employees, supporting career journeys, and driving performance. 

However,  these traditional approaches may not be enough on their own to drive truly meaningful impact, maximize ROI, and meet the evolving expectations of employees. Let's explore some common challenges associated with these methods. 

On-the-job learning 

What is it? Learning by doing, through observation, shadowing, or hands-on experience under the guidance of a supervisor or experienced colleague.

‍Challenges:

• Inconsistent quality: Heavily reliant on the supervisor’s skills and willingness to teach.
• Lack of structure: Often lacks clear learning objectives, feedback mechanisms, and structure. 
• Limited exposure: Employees may miss out on learning from leaders outside their immediate team.
• Potential for overload: Can overwhelm less experienced employees without adequate support.

In person training 

What is it? Formal training events that bring employees together for intensive learning experiences, often involving lectures, group discussions, and activities. These are often reserved for high-potential talent and leaders.

‍Challenges:

• Costly and time-consuming: Requires significant resources to organize and may take employees away from their core responsibilities.
• Limited accessibility: May not be feasible for all employees, potentially creating inequities.
• Transfer of learning: Difficult to ensure that learning is effectively applied back in the workplace.

Self-directed online learning modules

What is it? Digital learning materials that employees can access at their own pace, often covering specific topics or skills.

Challenges:

• Generic content: Often one-size-fits-all and disconnected from an organization's specific needs.
• Lack of engagement: Can be isolating and requires significant self-discipline.
• Limited interaction: Misses opportunities for feedback, discussion, and connection with colleagues.
• Quality concerns: Content can vary greatly in quality and may become outdated quickly.

Job rotations and stretch assignments

What is it? Providing employees with opportunities to work in different roles or take on challenging projects outside their normal responsibilities.

Challenges:

• Disruptive to workflow: Requires careful planning and coordination to minimize disruption and can create temporary gaps in teams or departments.
• Limited applicability: May not be suitable for all employees or roles.
• Requires significant oversight: Needs clear goals, expectations, and ongoing support to be effective.

Performance reviews and feedback

What is it? Formal assessments of employee performance, providing feedback, and setting goals for future development or promotion. 

Challenges:

• Infrequent and backward-looking: Often occurs only a few times a year and focuses heavily on past performance rather than future potential.
• Limited scope: Most effective as part of a larger, more intentional development effort, not a stand-alone solution.
• Potential for negativity: Can be stressful and demotivating if not handled constructively.

The power of mentorship and connection-building for employee development 

With the rise of lattice-style career paths and constantly shifting work environments, the traditional ways of employee development just aren't enough on their own. Generic training sessions fail to meet the needs of today's employees, who are craving dynamic, engaging, and personalized learning experiences.

Gallup's State of the Global Workplace: 2024 Report confirms what many leaders already know: engaged employees are more productive, more profitable, and far more likely to stay with your organization. Strong engagement is also linked to "hope for the future," a critical factor in driving both resilience, motivation, and retention. 

To truly thrive, your employees need a more human-centered approach to development—one that fosters continuous learning through social interaction and knowledge sharing. This means creating a culture where mentorship, both formal and informal, is encouraged, and employees have opportunities to connect and learn from each other.

Here are some examples of approaches to employee development that meet the needs of today’s talent while driving business outcomes:

Mentoring for early talent

From day one, mentorship can be a game-changer for early-career employees. Recent grads often face significant skills gaps and the daunting task of navigating a brand new professional landscape. Mentorship provides the guidance and support needed to bridge those gaps, accelerate their development, and build confidence as they embark on their careers.

Think of early-career mentorship like a long-term investment. The sooner you start, the greater the potential for growth. By providing mentorship opportunities from the outset, you empower employees to build valuable skills, expand their networks, and gain the insights they need to thrive. 

Tips for effective early talent mentoring programs: 

• Start with a structured onboarding program: Integrate mentorship into your onboarding process to provide new hires with immediate support and guidance.

• Create clear learning paths: Outline the skills and experiences that early-career employees need to advance in their careers.

• Facilitate cross-company connections: Provide opportunities for early talent to interact with and learn from leaders, experts, and peers, outside of just their immediate teams. 

• Offer diverse mentorship opportunities: Consider peer cohorts, group mentoring, and 1:1 to provide a variety of perspectives and support systems.

• Provide training for mentors: Equip mentors with the skills and guidance they need to effectively support their mentees.

➡️ READ MORE: How 10KC & EY Power Meaningful Connections for Early Talent

Mentoring for leadership development

Effective management and leadership is the backbone of any successful organization. Mentorship plays a crucial role in cultivating leaders at all levels, ensuring a strong pipeline of talent that can guide your company into the future. Here's how mentorship can benefit leaders at different stages of their journey:

High-potential employees: Mentorship is essential for identifying and nurturing future leaders. By connecting high-potential employees with experienced mentors, you can accelerate their development, provide valuable insights, and prepare them to step into leadership roles when the time is right.

New and emerging leaders: Mentorship provides a safe space for people managers to hone their skills, gain confidence, and navigate the challenges of leadership. Experienced mentors can offer guidance on communication, delegation, decision-making, and building trust with their teams.

Established leaders: Even seasoned leaders can benefit from mentorship. Mentoring relationships provide opportunities for senior leaders to refine their strategic thinking, enhance their change management skills, and gain fresh perspectives from peers. 

‍Tips for effective leadership mentoring programs: 

• Define leadership competencies: Clearly articulate the skills and behaviors that define successful leadership within your organization.

• Develop targeted programs: Create learning pathways tailored to the distinct needs of new, established, and high-potential leaders.

• Encourage reverse mentoring: Pair senior leaders with junior employees to gain fresh perspectives, insights into different generations and work styles, and a better understanding of challenges faced by those earlier in their careers.

• Incorporate peer mentoring: Facilitate connections between leaders at the same level to encourage collaboration, shared learning, and mutual support.

• Foster a culture of learning: Encourage a culture where continuous learning and mentorship is valued and supported at all levels of the organization, including at the top. 

Intentional networking and connection-building for career development 

The workplace is increasingly dispersed and behind a screen. An employees network alone is a 5x better predictor of performance than personality, experience, cognitive ability, or education. So—needless to say—connection is more crucial than ever for career development. 

Intentional networking and connection-building initiatives should go beyond casual water-cooler conversations. Create a deliberate framework for employees to build meaningful relationships that drive engagement, knowledge sharing, and fuel growth. 

Here's why prioritizing connection is essential for modern employee development:

Enhances internal mobility: Connection fuels social learning, allowing employees to tap into the collective knowledge and experience of their peers. This accelerates skill development and opens doors to new opportunities across the organization.

Facilitates knowledge transfer: By breaking down silos and fostering collaboration, you create pathways for institutional knowledge to flow freely. This ensures that valuable insights and expertise are shared, not trapped within individuals or teams.

Strengthens organizational culture: A culture of connection fosters collaboration, innovation, and a shared sense of purpose. When employees feel connected to their colleagues and the organization's mission, they are more likely to work together effectively and contribute to overall success.

➡️ READ MORE: Building a Connected Workplace: The Role of Strategy and Data

Tips for effective networking and connection-building initiatives: 

• Facilitate meaningful matches: Don't just throw people together randomly. Use smart matching technology and thoughtful criteria to connect employees based on shared interests, goals, skills, or backgrounds. This increases the likelihood of forming strong, valuable connections.
  
  
• Create intentional conversations: Provide prompts, discussion guides, or icebreakers to spark engaging and productive interactions. Encourage conversations that focus on professional development, knowledge sharing, or even shared personal interests to build rapport.

• Facilitate cross-functional collaboration: Encourage employees from different departments and teams to work together on projects or initiatives.

• Organize social events and team-building activities: Host events that allow employees to connect on a personal level and build camaraderie.

• Recognize and reward collaboration: Acknowledge and celebrate employees who actively contribute to a culture of connection and knowledge sharing.

How to create a strong employee development plan 

Creating a solid employee development plan is so much more than just a checklist exercise. It's a strategic investment in your employees' growth and your organization's success. 

Here's how to create a plan that truly delivers:

1. Align development with business goals

Begin by identifying the skills and competencies that are critical to achieving your organization's strategic objectives. Ensure that individual development plans align with these priorities, creating a clear link between employee growth and business impact. This ensures that your development efforts directly contribute to the company's success.

2. Identify skills gaps

While skills aren't everything, they are a critical factor in determining what roles an employee can take on and how effective they'll be. By assessing employee skills gaps and taking steps to address them, you have a much better chance of upskilling your talent and preparing them for future challenges.

3. Embrace career lattices

Career paths are no longer linear. Employees often feel that moving up is the only way to advance, but that's simply not true. Challenge this perception by celebrating lateral moves. Encourage employees to explore diverse roles and develop a variety of skills, even if those paths don't follow a traditional upward trajectory.  By fostering a culture that values growth in all directions, you'll empower employees to reach their full potential.

4. Cultivate human-centered learning ecosystem 

Recognize that employee development thrives on connection, engagement, and a sense of belonging. Establish a foundation that prioritizes:

• Mentorship: Integrate mentorship into your employee development efforts and company culture, connecting employees with experienced colleagues who can provide guidance, support, and open doors to new opportunities.

• Social learning: Encourage employees to learn from each other through peer-to-peer mentoring, group learning sessions, and knowledge-sharing efforts.

• Networking: Facilitate opportunities for employees to build relationships across departments and seniority levels, fostering collaboration and a sense of community.

5. Equip employees with tools for success

It's not enough to simply tell employees what they need to learn. To truly empower their growth, you need to provide them with the resources and support they need to excel across all types of learning experiences. 

Think of it as creating a well-stocked toolkit for development, filled with a variety of resources that cater to different learning styles and preferences. This goes beyond simply offering a list of recommended courses or books. 

Consider the following when building your development toolkit:

• Embrace the 70/20/10 model: Ensure your resources can support experiential, social, and formal learning.
  
  
• Give access to online learning platforms: Provide access to platforms like LinkedIn Learning so employees can explore on-demand courses on a wide range of topics.
  
  
• Offer an employee development stipend: Offer a set amount of money that employees can use to pursue learning opportunities like conferences, workshops, online courses, or certifications.
  
  
• Develop an internal "gig" marketplace: Create a platform where employees can share their skills and interests, and find opportunities to contribute to cross-functional projects or initiatives.
  
  
• Curate learning pathways: Create structured development pathways that guide employees through a series of learning experiences, resources, and connections tailored to their specific goals and your organization's needs.
  
  
• Provide expert-informed content and discussion guides for learning programs: Offer access to the highest-quality learning materials developed by subject matter experts. For mentorship programs, facilitate engaging discussions and knowledge sharing through thoughtfully designed discussion guides that prompt reflection, encourage collaboration, and deepen understanding.

7. Provide regular feedback and recognition 

Offer ongoing feedback and recognition to keep employees motivated and engaged in their development. Celebrate their successes and provide constructive guidance to help them continuously improve.

8. Measure, analyze, adapt

Employee development is an ongoing journey. To ensure your plan is hitting the mark, regularly measure its impact and make adjustments as needed. This means:

• Track progress towards your initial goals: Are you seeing improvements in the skills, knowledge, or behaviors you set out to develop?

• Gather both quantitative and qualitative data: Combine metrics with employee feedback to get a complete picture.

• Analyze the data to identify trends and areas for improvement: What's working well? What needs to be adjusted?

• Use your findings to optimize your plan: Adjust your strategies, reallocate resources, or introduce new initiatives based on your analysis.

By consistently measuring, analyzing, and adapting, you'll ensure your employee development plan remains relevant, effective, and aligned with your organization's evolving needs.

Talent development ROI and metrics to track

We all know impactful employee development can require a lot of time and resources. So it’s important to know that your efforts aren’t in vain. 

Think about it. No enterprise would invest thousands of dollars in ads and not expect to track the results. Employee development should be treated the same way. It arguably has an equal (if not bigger) impact on your overall business strategy.

But tracking talent development ROI can get a little murky. There are a lot of moving pieces. And unfortunately, there’s no exact dollar-in-dollar-out formula that can accurately compare your expenses and return. This is particularly true when it comes to more informal learning experiences. 

But there are ways to collect data points that can help you build your talent development success story and measure employee development at scale with the same rigor as more traditional training programs through:

• Regularly evaluating program-level metrics to ensure your development programs are effectively engaging employees. 

• Gathering qualitative feedback to gauge sediments on growth. 

• Analyze data over a longer period to reveal impact on business metrics and KPIs like performance, promotions, and profitability.

➡️ READ MORE: How to Measure the Business Impact of Corporate Mentorship Programs

Here are some KPIs and metrics that can help ensure your talent development is headed in the right direction.

• Learning/development participation rates: If you have mentorship programs or other career development initiatives, the percentage of your employees who participate and their levels of engagement can be a leading indicator of effectiveness.

• Employee performance: The metrics used to measure employee performance will vary depending on the role. However, better productivity, higher customer satisfaction, or an increase in targets being hit are all ways to gauge improved performance.

• Internal mobility rates: This is the percentage of employees who have moved into different roles within your organization. It doesn’t always have to be promotions. Even lateral moves can be a positive sign of employee development.

• Employee retention rates: If the percentage of employees who stay with the company over a period of time is increasing, that’s a positive indication of successful employee development. Alternatively, you can look for a decrease in employee turnover rates.

• Employee engagement and satisfaction rates: This is a measure of how happy your employees are in their roles. This can be measured by a survey or even qualitative employee feedback.

Accelerate talent and business goals with employee development 

We’ve said it once and we’ll say it again: employee development delivers. It not only creates a more skilled and adaptable workforce, but it also drives measurable improvements in retention, engagement, and overall business performance. Invest in your employees, and they'll invest in your success.