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