Career development consistently ranks as a top priority for employees, but less than half of workers feel that their employer supports their professional ambitions. Leaders can better nurture their employees’ aspirations with the help of employee development plans, which chart a pathway for growth within the organization.
What Is an Employee Development Plan?
An employee development plan is an employee’s personalized guide to career advancement. Collaboratively developed by a manager and an employee, the plan outlines actionable steps an employee can take to reach a career goal.
By prioritizing employee development, leaders can build a skilled workforce that is more productive, engaged and likely to grow with the organization over time.
What Is an Employee Development Plan?
An employee development plan is a structured and personalized strategy to help an employee grow within an organization. It’s a road map that guides an employee on their career journey, ensuring they are headed in the right direction and have the resources to arrive at their destination — whether that’s a promotion within their career path, a switch to a different career track within the organization or upskilling within their current position.
While employees should take responsibility for their own career development, they might have trouble determining what steps they can take to grow their skillset or earn a promotion. They may not know what the next leg of their career path could look like, requiring someone more experienced to show them a potential career trajectory.
A manager can help an employee identify career goals within the organization, lay out actionable steps to reaching those goals and provide the support and accountability the employee needs in each step of the journey.
“Being able to create those measurable next steps for that person to target is incredibly important, both for the manager but also for the employee,” Chessa Eskandanian-Yee, co-founder of HR consulting firm AdvisorEY, told Built In. “That way, they’re not shooting in the dark. It has to be something that’s quantifiable, that they can work on every day, that they can show up and be able to accomplish.”
Why Are Employee Development Plans Important?
Employee development plans allow organizations to build a workforce equipped for their business needs, while also meeting their workforce’s desire for growth and development.
Spurs Productivity and Innovation
An employee development plan can provide employees with the direction and resources they need to efficiently advance their skills, which leads to increased productivity and innovation. It can also help companies understand how their employees’ current competencies can be translated to new, reimagined roles — and the skills they need to grow into those roles.
“Companies now need to be more agile in terms of creating their workforce for the future,” Marissa Andrada, chief transformation officer at WUF World, told Built In. “It’s so critical to map that out instead of landing your way into it.”
Boosts Employee Engagement
Employees feel more fulfilled and engaged in their work when learning new skills and growing within the company. They also feel motivated when they have a manager who takes a proactive role in nurturing their professional development.
“I think professional development, meaningful work and purpose really drives employees,” Andrada said.
Improves Employee Retention
When workers don’t see a clear path to advancement in their organization, they often leave for an opportunity offering more growth potential. In fact, a lack of career development is the leading motivation for employees to quit their job, according to a McKinsey study.
An employee development plan shows employees they don’t have to hop between jobs to get ahead. If companies can retain and grow their employees, they can eliminate the time, expense and disruption of hiring another employee.
“When people can see their growth path at a company, they’re more enticed to stay, instead of going and seeking that growth at another firm or going and applying for promotion at another company,” Eskandanian-Yee said.
Attracts Ambitious Talent
Employees are eager to join companies that take seriously the professional growth of their workforce. According to a Gallup report, 59 percent of Millennials prioritize career development when applying for jobs.
“This next generation,” Andrada said, “is really pursuing development over any kind of extrinsic motivating factor.”
By mentioning employee development plans in job advertisements and the interview process, applicants will see that the company’s commitment to internal mobility is more than just lip service.
How to Create an Employee Development Plan
Here are a few best practices to develop an effective employee development plan.
1. Forecast the Needs of the Organization
An employee development plan should try to anticipate the future personnel needs of the organization. If the organization is planning to pursue a specific business strategy or pivot to an emerging industry, an employee development plan might incorporate employee training to make that happen. If the company is expecting to grow, an employee development plan might prepare an individual contributor for the responsibilities of managing a newly created team.
“The best employee development plans are anchored to the company’s strategic objectives or KPIs and also take into account the employee’s goals and personal values,” said Josh Millet, founder and CEO at Criteria Corp., a recruiting and talent development software company.
2. Consider the Employees’ Interests
An employee development plan should also be tailored to an individual employees’ strengths, interests and career goals.
The last thing you want to do is force an employee down a path they’re not interested in. Leaders often assume that high-performing employees aspire to become a manager, for example, but in actuality, the employee may enjoy the work of their current role or the work-life balance that it offers.
When drafting an employee development plan, start by asking the employee about their professional interests and which skills they would like to develop. An employee may need training on their weaknesses, but Andrada said their career trajectory should be rooted in their strengths. A Gallup study found employees are nearly six times more engaged when they are allowed to focus on their strengths.
“The development plan is taking the employee’s purpose and tying it to the company’s purpose, but it’s also taking the employee’s strengths and tying it to how they’re going to help the company grow,” Andrada said.
3. Collaboratively Develop an Action Plan
To help employees decide their potential career trajectory in the organization, create a job leveling matrix. This is a document that outlines the necessary skills required for each role and shows employees their potential career trajectory.
A manager should also collaborate with an employee to develop specific action steps needed to advance to the next level. Involving an employee in the creation of their development plan makes the plan more relevant and ensures the employee feels invested in its success.
“If the employee had a role in creating [the goal], they feel ownership of it,” Millet said. “So there will be less resentment later on if they don’t hit that goal.”
4. Set Specific, Measurable Goals
A career goal may seem daunting if it’s not broken into smaller steps. An employee development plan can make the goal more manageable by breaking it into specific, measurable actions tied to a timeline. This will clarify what is expected of the employee, and it makes it easier for a manager to track the employee’s progress.
5. Provide Resources and Support
An employee development plan should also provide resources that will help the employee reach their goals. These resources could include online coursework, a mentorship program or special “stretch” projects that grow their skills and experiences. Some companies offer financial assistance to cover tuition, conference fees and other expenses the employee might incur.
6. Monitor the Employee’s Progress
A manager and employee should have regular check-ins about the status of the employee development plan. Employees should provide updates on the progress they have made toward each of their short-term goals, and they should discuss any challenges they’ve experienced along the way. These conversations can ensure that the employee adheres to the agreed-upon timeline and that the employee and manager are aligned on expectations.
“If [a check-in discussion] happens once every six months or once every year and the employee hasn’t met the manager’s expectations, that’s incredibly disheartening — and it can probably feel very unfair to the person that thinks they’ve been putting in the work,” Eskandanian-Yee said.
Employee Development Plan Template
Date: [Today’s Date]
Name: [Employee’s Name]
Job Title: [Employee’s Title]
Professional Goals:
- [Goal #1]
- [Goal #2]
- [Goal #3]
Current Strengths:
- [Strength #1]
- [Strength #2]
- [Strength #3]
Action Steps:
- Step 1: [Step and Timeline #1]
- Step 2: [Step and Timeline #2]
- Step 3: [Step and Timeline #3]
- Step 4: [Step and Timeline #4]
Employee Development Plan Example
Date: 10/1/2024
Name: John Doe
Job Title: Marketing Coordinator
Professional Goals:
- Develop digital marketing skills with the goal of becoming a digital marketing specialist in one year
Current Strengths:
- Communication
- Project management
- Social media management
Development Needs:
- Improved knowledge of SEO and data analytics
Action Steps:
- Step 1: Complete SEO certification program (Deadline: 2/1/2025)
- Step 2: Complete data analytics certification program (Deadline: 6/1/2025
- Step 3: Prepare an analytics report and present your findings to the team (Deadline 7/1/2025)
- Step 4: Assist Jane in developing a digital marketing campaign for a client (Deadline: 9/1/2025)
Frequently Asked Questions
What is an employee development plan?
An employee development plan details the education, training and experience an employee will need to reach a career goal, and it provides them with the resources and oversight they need along the way.
What should I include in my employee development plan?
An employee development plan should include the employee’s name, job title and strengths, as well as their professional goal and the areas that need to be developed to reach that goal. The plan should also list specific steps the employee should take to reach their goal.
