A fast-changing world requires a labor force with a wide range of skills, just as it requires businesses to adapt to changing demands and technological advancements. Employee skill development programs are something that businesses need to invest in to stay relevant and thrive in the long term. Without it, they risk facing labor shortages that prevent them from completing vital business operations. This can cost them money and people.
On the other hand, integrating employee development as part of a well-rounded mentoring program can have the opposite effect. According to a recent McKinsey report, organizations that prioritize learning and development are more likely to attract, advance and retain talented employees.
In this article, learn how you can incorporate employee development as part of your company’s employee development programming.
What is Skill Development?
At its core, employee skill development refers to a practice where companies actively invest in upskilling and training their employees, particularly in areas of weakness. The purpose is having an agile and adaptable workforce that can transition seamlessly between roles and responsibilities in accordance with the company’s evolving needs.
Flexible and Tailored Employee Development Programs
Investing in employee development programs can take many forms, such as classroom training, workshops, e-learning platforms and virtual training sessions. These flexible learning opportunities can be tailored to individual needs and schedules. On-the-job training and mentorship programs also play significant roles, providing immediate application of new knowledge and guidance from experienced colleagues.
Cross-training employees
Cross-training employees in different functions within the company creates a versatile and resilient workforce. Employees with cross-functional knowledge can collaborate better, innovate and solve problems creatively. Performance reviews and personalized development plans are also crucial. By regularly assessing performance and identifying areas for improvement, companies can tailor training programs to address specific needs.
When companies commit to employee growth, it shows employees that they are valued and recognized, which drives organizational success and promotes a positive, engaging work environment.
Benefits of Skill Development
Companies that invest in employee development can expect to reap the rewards in multiple ways. Below are five ways that both company and employee can benefit from employee skill development programs.
Improve DEIB and company culture
Companies who commit to DEIB (Diversity, Equity, Inclusion and Belonging) attract and retain top talent by fostering a supportive and inclusive work environment. This investment enhances their reputation while also making the company desirable employers to work for. According to Fortune and Deloitte’s 2021 survey, inclusive teams outperform their peers by 80% in team-based assessments, and diverse companies enjoy 2.3 times higher cash flow per employee. These statistics showcase the tangible benefits of prioritizing diversity, equity, inclusion and belonging in the workplace.
Reduce turnover
High turnover is costly due to recruiting, hiring and training expenses. Plus, research shows that 94% of employees would stay longer if offered development opportunities. To save money, companies can invest in upskilling or reskilling their current employees.
Future-proof with upskilling and reskilling
According to McKinsey & Company, a key reason people quit their jobs is a lack of career advancement opportunities. Investing in upskilling and reskilling addresses skill shortages and shows a commitment to employee growth. This approach helps companies adapt to industry changes, while employees with advancement opportunities are more likely to stay, reducing turnover and enhancing company culture.
Ensure succession planning
Harvard Business Review highlights that poor leadership development is a major reason why top organizations often struggle with new CEO appointments. Succession planning can address this by offering employees growth opportunities, helping to retain talent and create future leaders. By training and mentoring employees for key roles, organizations ensure leadership continuity and promote from within. This approach also boosts employee engagement and morale by recognizing and rewarding hard work.
Increase employee engagement
A Gallup study reveals that 68% of workers consider employer-provided upskilling crucial when evaluating new job opportunities, while 48% would switch jobs for better skills training. Employee development programs offer growth and advancement opportunities, which empower employees and improve their job satisfaction and confidence. Investing in these development programs leads to a more motivated workforce, better performance and higher retention rates.
Examples of Skills That Can Be Developed
Every company will have different skill needs; their employee skill development plan should reflect that. There are, however, some common strategies that will benefit most employees and companies. Most companies will benefit from developing leadership skills among their employees. Training programs can be customized to address specific organizational goals and employee needs.
- Becoming a Manager – Many individual contributors become managers by being good at their jobs, but with little to no experience managing people, facilitating difficult conversations or delegating work. Developing these skills can help new managers transition smoothly into their roles and lead their teams effectively.
- Upskilling to Keep Pace with a Changing Industry – For industries like manufacturing and energy and utilities, developing skills in better integrating digital technology and automation into daily responsibilities can be a huge part of remaining a productive and competent worker. Upskilling ensures that employees stay current with industry advancements and maintain their competitive edge.
- Leadership Capabilities – In order to build a robust pipeline of leaders, organizations need to develop the right competencies and skills within their high-potential employees. This investment in leadership not only prepares future leaders but also inspires current employees to strive for growth and excellence.
- Goal Setting – Its important for employees to set goals because it provides direction, enhances motivation and improves performance. This can lead to increased productivity, personal growth and job satisfaction, ultimately benefiting both the individual and the organization.
- Time Management – Time management is an essential skill for improving productivity and ensuring that employees can manage their workload effectively. Training in this area can help employees prioritize tasks and use their time efficiently.
- Conflict Resolution – Equipping employees with conflict resolution skills can enhance workplace harmony and collaboration. This skill is crucial for maintaining team dynamics and ensuring that conflicts do not hinder productivity.
- Adaptability – The ability to adapt to new situations and challenges is invaluable, especially in today’s rapidly changing work environment. This prepares the workforce to handle transitions smoothly and maintain productivity despite disruptions.
- Collaboration & Communication – Effective collaboration and communication are vital for team success. Employees who communicate well are better at collaborating on projects and contributing to a cohesive team environment, which drives collective success.
Another way to approach employee skill development is to identify the skill shortages within each department and design a program around those gaps.
Development vs Training
Development and training serve distinct purposes in employee growth in the workplace. Here are the main differences between these two essential approaches.
Development is a holistic approach to employee growth, focusing on long-term career progression and personal growth. It encompasses a broad set of skills and knowledge, preparing employees to handle various challenges and responsibilities. Development often includes continuous learning opportunities, such as leadership programs, mentorship and comprehensive skill-building activities. This approach equips employees with a strong foundation to continue learning independently and adapt to future needs.
Training, on the other hand, is more specific and immediate, targeting particular skills or knowledge needed for a job. Employee training programs often consist of single courses or workshops designed to impart specific technical or soft skills. Training and development initiatives can include technical training, soft skills training and on-the-job training. This approach ensures employees have the necessary skills to perform their current roles effectively and can adapt to new tasks as required.
Development and training are essential for building a skilled and effective workforce. Development offers a broad approach to long-term growth, while training focuses on specific skills for immediate needs. Combining both strategies ensures employees are well-prepared for current and future challenges.
The Bond Between Mentoring and Skill Development
Skill development and mentoring can and should go hand-in-hand. Companies who want to maximize the benefits of skill development should consider how they fit within their overall mentoring strategy.
How Mentoring Can Aid in Skill Development
Mentoring encourages employees to build relationships and develop a growth mindset—fostering innovation and collaboration. That’s why the two practices work well together. Skill development as a focus within a mentoring relationship enables employees to learn desired skills, practice them and refine them.
Role of a Mentor in Skill Development
For example, a company may have a series of formal training covering leadership skills. Mentoring can allow employees to put those skills and knowledge into practice. An employee may attend a workshop on public speaking and facilitating meetings. They can practice those skills with their mentor in a role playing activity, by leading a mentoring circle or through a reverse mentoring relationship with a senior employee, discussing issues of innovation cultivation or diversity and inclusion.
Traditional one-on-one mentoring relationships can also help companies shape their skill development program in that mentors can help mentees identify talent and skills gaps the company needs to fill. Mentors can act as a support system for the employees as they progress through the company, which can significantly help an employee’s professional and personal growth. According to a 2023 Harvard Business Review article, a whole-person approach to leadership development leads to better organizational outcomes and provides more value to the employee.
Tips for Effective Mentoring for Employee Skill Development
Of course, companies have to be intentional in designing mentoring practices to encourage skill development. The following practices are good guidelines to follow to get positive results:
Set clear goals and expectations
Any mentoring relationship should start with expectation settings, no matter the format. For example, in one-on-one mentoring relationships, the mentor and mentees should discuss expectations around time commitments, degree of support and what specific skills the mentor can realistically help the mentee with. For group mentoring and issue-based mentoring circles, the participants should be clear about the goals and objectives for every session and be practical about what they can learn and accomplish together.
Provide regular feedback and constructive criticism
Any new skill takes a little bit of time to learn, and if an employee is putting a new skill to practice, they probably won’t get it right the first time. That’s where regular feedback and constructive criticism from mentors come in. Without it, it can be difficult for the mentee to identify what they’re doing right, and what they need to work on.
Encourage self-reflection and self-evaluation
In addition to constructive criticism and feedback, part of what makes mentoring so valuable to skill development is the opportunity to reflect and pause on their progress. As Dov Seidman, an entrepreneur and founder of a not-for-profit that aims to cultivate a culture of moral leadership tells Harvard Business Review, encouraging people to pause gives them a chance “to reflect, rethink assumptions, and think of a better path.”
Empower experimentation and innovation
Not everyone learns the same way, and any skill development policies should reflect that. While it can be helpful to provide structure and guidelines, companies should leave room for experimentation and innovation. An effective learning environment should allow employees to try new things in a low-stakes environment.
Build trust and maintain confidentiality
Lastly, people develop and learn best in an environment of trust. Any mentor-mentee relationship should be based on trust and honesty and with the expectation that they can maintain confidentiality.
Challenges in Mentoring for Skill Development
Some companies may be reluctant to introduce a mentoring program because of potential challenges. Here are the potential issues that companies can face in implementing a mentorship program for skill development:
Incentivizing senior employees to be mentors
Becoming a mentor is an additional time commitment that many senior employees may be hesitant to make, especially if there aren’t any incentives for them to do so. While mentoring should always be voluntary, companies must be creative about cultivating an environment where senior employees want to be mentors, such as incorporating it into an employee’s performance review or making it part of an (optional) leadership development program.
Matching mentees with suitable mentors
A mentor/mentee relationship only works if both parties align in their goals and expectations. But matching the right participants can be long and arduous, particularly in a large company. However, there are multiple ways to streamline the process through company-wide surveys and technological tools.
Designing a program that works for all employees
No one-size-fits-all program will suit every employee, so companies may face the challenge of creating a framework that doesn’t serve everyone’s purposes and goals. However, they can make a framework that allows mentors and mentees to amend and adopt as they see fit, provided they have an accurate understanding of their employees’ goals and aspirations.
Getting support and buy-in from senior leaders
Plenty of research backs up the benefits of mentoring and skill development, but the rewards aren’t immediate and often take time to materialize. As a result, getting buy-in and support from senior leaders can be challenging. To combat this, companies must continuously track the ROI of any mentoring or skill development initiative.
Managing a mentorship program
A mentorship program can also take a great deal of time to manage. Without the right resources and support, it can be an overwhelming endeavor for a person to take on, particularly if they’re doing so on top of their day jobs. An approach that provides a system and accountability allows the program manager to take a more hands-off approach.
These challenges should not deter companies from instituting a mentoring and skill development program. Utilizing mentoring software to manage, track and design an effective program can alleviate many of these burdens.
Easily Develop Your Employees’ Skill with Mentoring Software
Chronus mentoring software can help companies save the administrative and logistical work that goes into developing and implementing a skill development mentorship program. From matching participants through the platform’s AI-powered matching technology or using customizable reporting and dashboards to demonstrate the progress made in skill development across an organization, the software gives you the freedom to focus on the company’s bigger picture and purpose.
Having talented employees with a wide range of skills is an asset to any company, especially in a competitive labor market. Take the first step to ensure that your company is in a position to attract and retain these employees for many years to come.
