What is Employee Training and Development?

Last updated: 2025-08-05

Employee development includes all planned activities aimed at improving employees' knowledge, skills, abilities, and motivation. Employee development isn’t a one-time event; it’s an ongoing process. In small businesses, it often happens informally, while in growing and mid-sized companies, it’s more structured and guided by employee development plans.

What does employee development look like in practice for small and growing businesses?

  • Employee training: professional development beyond mandatory requirements, including specialized training (e.g., compliance, software, technology), soft skills (communication, time management, leadership), and cybersecurity
  • Talent development: identifying high-potential employees and supporting their growth
  • Career advancement and promotions: opportunities for experienced and qualified employees to move up, supported by clear career paths
  • Regular performance reviews: setting goals, providing feedback, and creating development plans (e.g., annually or quarterly)
  • On-the-job learning: job rotation, participation in projects, shadowing colleagues

How Is Employee Development Handled in Small and Medium-Sized Businesses?

Small Business (10–50 employees)

  • Informal and reactive approach
  • Development usually addresses immediate needs (e.g., training on new software or tools)
  • Managed by the owner, office manager, or team lead
  • No dedicated HR department, only HR-related tasks handled
  • Lack of centralized tracking on completed training
  • Refresher training often overlooked
  • Poor onboarding leading to higher employee turnover

Typical employee development in small businesses

  • Focus mainly on mandatory trainings (OSHA, data privacy, IT security)
  • Job-specific courses as required (e.g., bookkeeping, software applications)
  • Onboarding and training through "peer handoff"
  • Learning on the job (hands-on experience)

Tools and tracking methods commonly used

  • Excel spreadsheets, paper files, or email threads
  • Bulletin boards, notes in Google Calendar
  • Occasionally simple platforms (e.g., Aptien, Sloneek, Factorial) mainly for record-keeping

Medium Business (50–250 employees)

  • More structured approach with development plans tied to performance and career goals
  • Development overseen by HR or department managers
  • Performance tracking, regular reviews, and personalized development plans
  • Training tailored to job roles and career paths (e.g., different programs for technicians vs. sales staff)
  • Increased emphasis on compliance (training documentation, certifications, licenses)

Common employee development practices in medium businesses

  • Formal onboarding programs (including guides and checklists)
  • Regular performance evaluations with KPIs
  • Career development and talent management initiatives

Tools and tracking they use

  • HR management software (e.g., Aptien, BambooHR, Deel, Personio)
  • Learning management systems (LMS) or online courses (LinkedIn Learning, Seduo)
  • Training records, reports, and automated reminders

How Small Businesses Effectively Manage Employee Development and What They Need

1. Employee Development and Career Plans

  • Clear skills and qualifications required for each position
  • List of required training and development activities for employees

2. Training Records and Progress Tracking

  • Tracking who completed which training and who still needs it
  • Training dates and renewal schedules
  • Storage of training materials, certificates, and diplomas

3. Training Budget and Cost Management

  • Training budgets and approval workflows
  • Monitoring development expenses per employee

4. Person Responsible for Employee Development

  • HR manager, office manager, or business owner
  • Direct supervisor or team lead

What Tools Do Small and Medium Businesses Use to Manage Employee Development?

In small and medium-sized businesses, employee development is often managed in simple or informal ways:

  • Using spreadsheets and paper: tracking training with Excel, emails, or physical records
  • Basic HR software: tools like BambooHR, Gusto, or Zoho People to track training, schedule sessions, and assign tasks
  • Outsourcing training: hiring outside vendors for programs such as workplace safety or IT skills
  • Custom software: in-house onboarding and employee development systems built specifically for the company