The World Economic Forum is calling the 2020s “a decade of upskilling.” Mercer envisions a “skills-powered future,” while Harvard Business Review advises candidates on how to thrive in a “skills economy.” Nearly half of learning and development (L&D) professionals agree that there’s a “skills crisis” at their organizations, with employees lacking the skills needed to reach business goals.
The message is loud and clear: businesses that want to grow will need to ensure their employees are growing first. With those skills gaps looming in nearly every industry, employee growth is a top priority for those of us in HR and L&D.
No company can afford to ignore the growing demand for employee skill-building, including yours. Meeting this challenge requires L&D programs that deliver measurable results, along with the right tools to support them.
Investing in your employees’ skills has immediate benefits and creates long-term benefits for your organization. Keep reading to learn how to identify the skills your employees need most and build effective training and development programs.
The real risk isn’t the skills gap itself — it’s failing to close it.
What Is Skill Development?
Employee skill development is the ongoing process of enabling your people to improve their knowledge, expertise, or competencies. Development, which can include everything from training programs and workshops to mentorship programs and continuing education, helps improve performance and productivity.
You can see why that’s a good thing for your business and your people, and the research backs it up. According to Deloitte, L&D is a top priority for Gen Z and Millennials in deciding where to work, second only to work-life balance.
Continuous learning and skills development are like upgrading the software on your devices. If you don’t stay on top of software updates, your phone will lack functionality, miss out on critical bug fixes or security upgrades, and eventually become obsolete. If you don’t create opportunities for your employees to learn new skills, your team risks falling behind, struggling to adapt to new challenges, and ultimately, losing their competitive edge. You’d be leaving your business to run on outdated software in a world that demands cutting-edge solutions.
On the other hand, improving employee development helps every team member thrive. Need your sales team to adapt to a changing market? Develop advanced negotiation skills. Want your managers to level up their leadership game? Teach them the art of effective communication.
Development plans are the software updates that keep your employees sharp and your company ahead of its competition.
6 Benefits of Investing in Employee Skill Development
Today, employees see work differently. They’re not just looking for a job — they want a career. They’re not just looking for a role in their field — they want to find a sense of purpose in their work. The majority of the workforce today, especially among younger generations, wants an employer that invests in them.
That’s why you shouldn’t underestimate the importance of developing employees’ skills. It’s not a learning and development trend but the ultimate investment in your people; a clear sign that you want them to stay at your organization as long as possible.
Let’s dig deeper into a few of these big benefits.
1. Boost Productivity
When employees know what they’re doing (and feel confident doing it), they naturally work smarter, not harder. Just like a software update might add more tools to your phone, developing your people equips them with skills and knowledge so they can accomplish more with less effort.
2. Recruit More Growth-Minded Candidates
Did you know that just 17% of employees strongly agree that their employer is investing in the skills they need to advance in their careers? But when they do feel their growth is being supported, employees are almost six times more likely to recommend their company as a great place to work. It goes to show that the benefits of employee skills development are far-reaching.
With solid L&D strategy and investments, you’ll stand out from employers who are just paying lip service to employee learning. You can include L&D opportunities as a benefit in your job descriptions, design career paths as part of the onboarding process, and start an employee referral program to encourage and reward your brand ambassadors.
3. Retain More Employees
While gaining new skills is great for employees’ resumes, ironically, it makes them far less likely to polish up those resumes. 76% of employees would stay at their companies longer if they had access to continuous learning opportunities. That means all of their knowledge — their historical knowledge of the company, expertise gained in their roles, and the new skills you teach them — continues to add value to your company.
Skill-building shows you’re investing in them, and no one wants to leave when they’re climbing the career ladder.
4. Reduce Staffing Costs
Investing in employee development now can lead to reduced hiring costs down the road. It’s expensive to find, hire, and onboard employees — estimates range from $1,500 for hourly workers to as much as 213% of the salary for a C-suite executive. It’s also time-consuming, not just for HR teams but also for the hiring teams and managers interviewing and onboarding new hires.
Save time and money spent replacing employees or hiring outside experts and invest in your L&D programs instead. Modern tools like learning management system (LMS) software help you offer personalized training at scale and increase engagement with gamification and bite-sized courses. Giving learners a mix of in-person and online courses and creating custom career paths shows them you want to ensure real skills growth and retention.
5. Make Customers Happier
Employee skill development improves internal operations, which has a ripple effect on your customer relationships. When your team hones their communication and problem-solving skills, they can create a better customer experience. Investing in your employee experience with improved L&D is also an investment in customer satisfaction and loyalty.
6. Shape Your Company’s Future
What’s better than a company that’s prepared for tomorrow? One that’s shaping tomorrow. When you support employee growth, you equip your workforce with the tools to innovate and adapt. Your company will be empowered to face unexpected challenges, leading the way with engaged employees who are continuously learning.
Future-proof your business with L&D, ensuring it stays as dynamic and forward-thinking as the people driving it. With the right skills in play, you’ll set the stage for long-term success — and maybe even change the game entirely.
Which Skills Should You Develop? Aligning Growth and Goals
Encouraging employees to learn and grow is great — but when it’s done strategically, that’s when you see the impact on your bottom line. While your L&D initiatives should definitely let team members explore their interests and capitalize on their strengths, a strategic approach ensures that their growth aligns with your business objectives. Identify the specific skills your business needs to hit its targets, and you can create a win-win scenario where individual development and company success go hand in hand.
For example, imagine your company needs advanced technical skills to operate new cutting-edge machinery. Instead of signing everyone up for training sessions en masse, you can zero in on employees who’ve already shown a knack for tech or expressed an interest in machinery. These team members get targeted, hands-on training, equipping them to run the equipment and become go-to experts.
Or, maybe communication skills are the focus as your company prepares for a merger or expands into new markets. You might have noticed team members eager to grow into leadership roles but needing a boost in soft skills. Create a specialized communication program with interactive workshops and real-time feedback targeted at those employees to sharpen their ability to lead while fostering collaboration and connection. You’ll create a pipeline of highly engaged talent and increase internal mobility.
In both cases, business needs are met, and employees feel empowered in their careers.
With these examples in mind, let’s break down a few actionable steps you can take to identify your company’s skills gaps.
- Align With Business Goals: No great L&D program starts with closing your eyes and pointing at random skills. Identify the skills that gel with your company’s strategic objectives.
- Gather Feedback from Employees: Ask employees what skills they think will help them shine. You might discover talents and goals you didn’t know you had available.
- Analyze Performance Gaps: Where is your team consistently falling short? Use performance reviews, goals, and manager feedback to pinpoint the skills that need a little TLC (tender learning care).
- Look Beyond Hard Skills: While technical skills matter, don’t sell soft skills short. Emotional intelligence, collaboration, and problem-solving are an asset to both individual performance and team dynamics.
How to Build an Effective Skills Development Program
A development program that helps further business objectives is a purposeful initiative. Even if your employees are top performers who seek out their own learning opportunities, it won’t happen by chance. Here’s how to set up an effective L&D plan that gets results.
1. Set Clear Objectives
Decide what you want your program to achieve. More leadership-ready employees? A stronger tech team? Better collaboration between departments?
Defining your endgame gives your program direction and enables you to create roadmaps for achieving those goals.
2. Tailor Training to Individual Needs
One-size-fits-all doesn’t really apply to much, and certainly not to employee skill development. Tailor learning opportunities to suit different roles, levels, and career aspirations.
3. Use a Mix of Learning Methods
Not everyone learns the same way, so mix it up. From online courses and hands-on training to mentor-led sessions, variety is the spice of skill-building success.
4. Integrate Learning Into Daily Routines
Learning shouldn’t feel like a chore or an afterthought. Encourage microlearning — quick, bite-sized sessions that employees can tackle on the go, like a snack (but for their brains).
5. Measure and Adjust
L&D is not a “set it and forget it” strategy. Track HR metrics like employee satisfaction, performance improvements, and retention rates alongside learning metrics like course completion and skills growth. That can help you understand how L&D is impacting overall employee engagement and productivity — and how that impacts business success.
6. Invest in an LMS
When your team uses an LMS for skill-building, every facet of managing an L&D strategy is simplified. It’s a centralized hub for your skill development efforts, streamlining everything from tracking progress and organizing training materials to measuring outcomes. An LMS gives your team access to learning resources anytime, anywhere, so they can learn when it works for them.
With an LMS, skill-building becomes more efficient, scalable, and impactful, ensuring your L&D strategy stays organized and aligned with your goals.
Unlock the Future With Employee Skill Building
Support your employees’ growth and position your team to adapt, innovate, and thrive. From longer employee tenure to a future-ready company, the benefits are far-reaching and undeniable.
Now is the time to take action. Start creating an employee skills development program that sets your workforce — and your business — apart. With the right strategy and resources, you’ll build a team equipped to meet today’s challenges and shape tomorrow's successes.
Don’t wait for the future to catch up with you. Start building a workforce that’s ready for anything with ClearCompany Learning. Sign up for a demo today.
