What is People Development? Examples in the Workplace

People development is a key factor in organizational success. In fact, more than 8 in 10 HR managers believe that people development initiatives, such as training, help attract (83%) and retain (86%) talent.

Despite this, many companies face challenges. A study found that 74% of millennial and Gen Z employees may leave their jobs within a year due to a lack of skills development. Research also shows that 90% of organizations expect a major skills gap in the future.

So, how can companies address this?

This article explains what people development is—a possible solution organizations can opt for to address skill gaps—why it matters, and answers common questions. You’ll also find a practical solution to strengthen your employee development strategy.

What do you mean by people development?

People development, or employee development, refers to the continuous process of equipping employees with the skills, knowledge, and mindset needed to perform effectively in their current roles and prepare for future development opportunities. This process promotes personal and professional growth while supporting long-term organizational success.

A few examples of people development include:

• Training

• Mentoring

• Coaching

• Leadership training

Organizations can provide professional development opportunities for their teams through Salary.com's Skills Library. This AI-powered tool supports HR, learning and development, and talent management by offering a shared language and clear objectives for employee growth.

Why is people development important in an organization?

Investing in employee development helps both the organization and its employees grow and succeed. Here are some key benefits of people development:

1. Better employee performance and productivity: Equipping employees with the right skills leads to higher quality work, better efficiency, and improved overall output.

2. Higher employee retention and employee engagement: Investing in employee growth makes them feel valued, creates career advancement opportunities, and boosts loyalty, reducing turnover. Engaged employees are more motivated and productive.

3. Attracting skilled and talented workers: A strong focus on employee development makes an organization more appealing to potential employees seeking growth. In fact, 48% of employees say development opportunities influenced their decision to join their company.

4. Encouraging innovation and flexibility: Continuous learning through training and development programs promotes a more creative and adaptable workforce that can respond to change.

5. Creating a stronger workplace culture: Employee development helps create a positive work environment where employees feel supported, can grow, and build trust and teamwork, contributing to a positive company culture.

People development examples in the workplace

Now that you know why employee development matters and its benefits, here are some examples:

1. Mentoring and coaching

Mentoring and coaching help employees grow by offering personalized support. Mentors provide career advice and share their experiences, while coaches focus on developing specific skills, overcoming challenges, and improving performance. This promotes a learning culture and encourages personal growth.

2. Leadership training

Leadership training helps employees improve their leadership skills, including decision-making, communication, conflict resolution, critical thinking, and strategic planning. Those who complete the training are better prepared for managerial roles and to lead teams effectively.

3. Job rotation and cross-training

Job rotation involves employees switching roles or departments, while cross-training lets them learn skills from different positions. These practices broaden skills, reduce monotony, and create a more flexible workforce.

4. Tuition support and development funds

Tuition support and development funds are financial programs that help employees pursue further education or training. They encourage a growth mindset by enabling employees to gain new qualifications or certifications, which improve their skills and contribute to both personal and organizational growth.

5. Skills workshops and seminars

Skills workshops and seminars are structured sessions that help employees learn new technical or soft skills. These events focus on areas like communication, project management, or software skills, which help employees stay up to date or develop new abilities.

For organizations focused on improving employee skills development, Salary.com’s Skills Library helps identify key skills and close the skills gap. Industry frameworks, like Manufacturing and Production Operations, and job family frameworks guide these efforts by defining the skills needed for each role.

6. Development plans (IDPs)

Individual Development Plans (IDPs) are personalized plans that align employees' career goals with the company's objectives. They outline skills to develop, set goals, and provide a clear growth path, ensuring employees get the support they need to advance.

7. On-the-job training and new tasks

On-the-job training lets employees learn by doing their work. New tasks or challenges help improve their skills and provide real-world learning opportunities. Methods like job shadowing offer practical knowledge and help employees solve problems on the spot.

8. Performance reviews with a growth focus

Performance reviews focused on growth help identify strengths, areas for improvement, and development opportunities. They encourage employees to set career development goals and get feedback to support their career growth.

9. Online learning and e-learning

Online learning and e-learning are digital courses that let employees develop new skills at their own pace. These flexible programs allow learning at convenient times and cover various topics, from technical skills to leadership.

10. Team-building and collaboration

Team-building activities improve teamwork, communication, and problem-solving. Collaboration training helps employees work better with colleagues, creating a unified and cohesive work environment. This strengthens relationships and enhances interpersonal skills within teams.

How to build an effective people development strategy

While there’s no one-size-fits-all approach to employee development, businesses can follow these key steps to create a strategy that supports employees’ professional growth and company goals:

1. Identify company objectives and needed skills: Align talent development with company goals, like growth or innovation. For example, if the focus is on soft skills, prioritize leadership, business, and communication. Your organization can use Salary.com’s Job Skills Model to identify and develop these skills.

2. Evaluate current skills and areas for growth: Conduct a skills gap analysis to compare what employees currently know with what they need to learn. Use surveys and performance reviews to identify specific gaps and create targeted training programs to close them.

3. Set clear learning goals and choose people development programs: Set clear learning goals based on skill gaps, aligned with company needs and employee growth—for example, preparing three managers for senior roles. Use effective people development methods such as mentorship programs, courses, or workshops to achieve these goals and keep employees engaged.

4. Implement programs and provide resources: After selecting the right employee development programs, roll them out in an accessible way, such as through training sessions, online platforms, or peer learning. Provide resources like tools, mentors, and clear communication on the program's benefits.

5. Measure results and adjust as needed: Once development programs are in place, measure their success using KPIs such as performance, job satisfaction, and retention. Gather feedback through surveys or discussions and make adjustments to keep the programs aligned with company goals.

FAQs

Here are some common questions about employee development:

What is a people development plan?

A people development plan is a structured guide that helps employees build skills and grow in their careers while supporting team and company goals. It usually includes clear learning goals, personal development activities like training or mentoring, timelines, and ways to track progress.

Is people development a skill?

Yes, people development is considered a skill because it involves identifying growth needs, coaching, giving feedback, creating learning opportunities, supporting employees, and clearly communicating development plans.

Equip your HR team to strengthen this skill using the Salary.com Skills Library. With access to current skills and competency data, they can hire, assess, and develop top talent, accelerate employee development, and close skills gaps.