23

Best Approaches to Developing Employees

Warren Bennis, organizational consultant and author said, “You need people who can walk their companies into the future rather than back them into the future.”¹ This highlights the need for making a real effort to be constantly providing opportunities for employees to learn and grow. Otherwise, organizations won’t be positioned for growth and will not produce the value required to succeed in today’s increasingly competitive marketplace—whether it is to add value for shareholders or for members.

Not only is employee development critical for organizational growth, it is even more crucial for attracting, engaging, and retaining the talent your organization has or wants to hire!

If you did a needs assessment as outlined in Chapter 22 of this book, you know what new skills and abilities your current and/or future employees need to develop their talents and abilities, it is time to put a plan into place to address what is needed. Before you consider the next step, consider that, whatever you decide to do, it is critical that any training, development, or organizational development process or initiative have support from the top of the organization. Any program that doesn’t have top management understanding and commitment will be severely limited in the basic change it can effect. In fact, every level of the organization should be committed to employee development, and HR plays a key role in this by providing expertise and resources, and sponsoring and supporting all training events. That being said, it is also critical that employees know they are responsible for their own development. Certainly, the organization can help them by providing opportunities to learn and grow, but they must constantly be striving to improve their own skill set.

All employee development programs must be linked to your organization’s strategic plan and your workforce plan so that the end result of any employee development is to move the organization closer to its stated goals and objectives. Any training program should be integrated with a comprehensive development program to reinforce the organizational culture. The responsibilities for an effective employee development program are shared by the organization’s top level of management, HR, the organizational development (OD) function (if applicable), the employee’s manager, and the employee, with the greatest responsibility on the employee to take advantage of what is available within the context of his or her job.

Employees need to recognize that it is essential for them to continue to learn so that they will be effective in their current jobs and able to move into other positions as their skills increase. Career development supports continuous learning. Remember: Do not ever make any promises in this process. For example, never say, “If you take this class, you will be promoted.” All discussions should be around skill-set improvement—not how to get a promotion!

Sometimes there is confusion about some of the terms used. For example, what is training and what is OD? Training usually refers to instruction provided for a current position and has a relatively narrow focus, whereas organization development usually is broader in scope and may or may not be focused on the employee’s current position; however, it may be necessary for organizational success.

And what is organizational development? OD focuses on the overall improvement of an organization—its policies, procedures, structure, and culture. OD has a large component of change management to it: How and why does the organization need to change to move forward, and what will be the impact of those changes on the employees and the culture? These are the types of issues tackled by OD experts.

Once you’ve collected information (by completing a needs assessment, from the performance appraisal process, individual development plans (IDPs), or other sources) about what your employee development needs are, what options do you have to provide development opportunities for your employees? The possibilities include:

    Training.

    Coaching.

    See Chapter 24 (Coaching as an Employee Development Strategy).

    Mentoring.

    On-the-job training.

    Job rotation.

Training

If you decide training is the way to go, be sure you develop objectives that tie to the strategic goals of your organization. It is important to note that training doesn’t miraculously lead to results. Managers play a critical role in making sure investments in learning and development pay off.

It used to be so simple. If you wanted to train employees, you put together an instructor-led class, and many training and development experts feel that the classroom is still the best way to deliver training. When we gather people into a classroom to learn together, to collaborate on new ideas, to problem-solve, or to help each other—the classroom becomes a place to practice what it takes to succeed at work. But now, there are so many other ways to deliver training:

    In-house programs conducted in a classroom setting. This type of training can be costly and labor-intensive. The program has to be developed. The participants need to be scheduled. You need a space and equipment, and it is harder and harder to get managers to allow their employees to take time from the busy workday to attend training programs. On the plus side, this type of training has some real benefits, as employees learn not only from the instructor but from each other, and they get the opportunity to meet and interact with coworkers from other departments. Also, any in-house training program is by definition, specific to your organization; therefore, case studies and examples can be taken right from the workplace with no fear of confidentiality issues. If you decide in-house training is the way to go to provide development opportunities for your employees, the next decision is whether to use your own staff to deliver the programs or to bring in outside resources.

Instructor-led training has greatly diminished as employers realize that employees want more control over their own development. They want to learn on their own and when they want to learn—not when you want to schedule a class.

    Public workshops/seminars (you send a person or group) are readily available and can be cost-effective. Keep in mind the content will be generic and your employees will lose the specificity of in-house training. On the plus side, professional trainers will present the material and the content is typically well prepared. Another benefit is your employees will be able to expand their professional network with other participants.

    Online training, or e-learning, is a popular and effective way to provide training experiences for your employees depending on your workforce. In today’s world, few people aren’t computer-literate, but don’t go down this path without considering whether this is totally true of your employees. You can develop your own training programs, video them, and put them on your intranet for employees to watch when they have time. You can buy programs from reputable vendors to put on your intranet or to be housed on the vendor’s server and accessed with a password assigned by your company. There are many platforms available for creating and hosting live meetings, webinars, and distance learning. This way they participate along with others around the country or world, and have an opportunity to ask questions and get answers online. Technology advances appear almost daily in the training and development world. You just have to decide what will work best for your employees and your budget. Just like you would for any solution, do your research, ask your network for recommendations, and try out what’s available before signing any contracts.

Consider making any training program you offer available on any mobile device. This is extremely important for today’s worker who wants to access development opportunities when and how he or she wants. Providing training in a way that is easy to access should increase participation and help your organization attract, engage, and retain your talent.

    Massive Open Online Courses (MOOCs) are online courses for an unlimited number of people and provide open access to the courses on the web. Many MOOCs are produced by major colleges and universities; others are conducted by nonprofits, including the American Council on Education and the Bill and Melinda Gates Foundation, and still others by major providers such as Coursera. Some are free to the participant whereas others are fee-based. The value of MOOCs is that the learner has access to world-class information that might not be otherwise available.

    Universities and colleges offer development programs that can either be brought inhouse to your organization or you can send your employees to a public offering. These programs tend to be more effective for management-level staff. One of the benefits of sending your employees to these programs is the networking opportunities they present. If your organization has an educational assistance program where employees can take classes or training at local universities or colleges, you will want to develop a policy that outlines what classes are accepted and what the payment limit is. You also will need to determine whether you want to tie the payment to a grade received in the class and whether you will reimburse employees for degree programs. You also should have an approval process whereby the employee gets the class approved prior to taking it, and many organizations have clauses that require repaying the tuition if the employee leaves the organization within a certain time.

    Appendix: Sample Tuition Reimbursement Request Form.

    Some organizations have started their own training facilities, commonly called a corporate university, to provide training and development opportunities to their own employees. This is not an easy process, and it takes resources to pull it off, but it can be rewarding. What differentiates a corporate university from a traditional training program? Training departments tend to deliver training in a fragmented, decentralized way, and often it is in reaction to something (needs identified on performance reviews, for example). Training departments offer open enrollment courses with people participating as needed.

Corporate universities pull together all learning in a managed way by seeing employee education as a business initiative. Corporate universities have clear goals and strategic plans, and are typically proactive with activities linked to business goals.

    For additional information on starting a corporate university, see www.corpu.com.

The Motley Fool has a corporate university. According to Tom Gardner, CEO, “The highest priority is to develop people.”² He founded the company and teaches in the university. He says that their training costs have not gone up and that all their senior executives teach something. Motley Fool started the university as an investment in their employees after an employee survey showed that employees felt the company didn’t give them opportunities for growth.

Motley Fool shared some tips for organizations that might be considering using the corporate university model³:

    Focus on high-potential employees.

    Give them real-world problems.

    Use your own employees to teach classes.

    Must have top management support.

    Think of it not as training but as lifelong learning.

According to James Bailey, Ave Tucker Professorial Fellow of Leadership and director of executive development programs in the department of management of the George Washington University, as reported in the Washington Business Journal, “It’s [corporate universities] is not that new of a phenomenon…back in the 1950s, IBM was among the first organizations to put a university concept in place.”⁴ He said that putting a corporate university together “is a struggle between doing something in-house versus outsourcing. The problem with doing it internally is, if it isn’t a core competency [of your firm], you’re not going to do it well.”⁵

Mentoring

“My mentor gave me confidence in my first teaching job for a class of special needs students. He provided technical assistance through lesson plans and management techniques, emotional support by validating what I already knew and he acknowledged my fears and anxieties without letting me wallow in them. He used humor to diffuse tension. All that and more in just one week—I don’t know what I would have done without him.”

—from a first-year teacher in Prince William County Schools, Virginia

Mentoring is a no- or low-cost development process that can pay huge dividends for the individual and the organization. Mentoring can be an asset in the hiring process; it helps the prospective employee see that the organization will invest in his or her future development, and it can be a retention tool as well, because it can help a new hire quickly assimilate into the organization. The mentoring process creates cross-organizational connections and builds channels of communication—often between people who might not have worked together other than through a mentoring relationship.

When designing a mentor program, take these things into consideration:

    Goals—must link to the organization’s strategic goals or a specific development goal.

    Leadership support—must have resources to support the program.

    Customization to organizational strategy and culture.

    Have clear definitions and criteria for success.

    Include guidelines, structure, and chain of command.

    Provide training for mentors—provide resources for them to use when mentoring.

    Include an evaluation process—how to know whether goals are met.

Mentoring programs can be formal or informal; each has its value. Informal mentoring happens all the time without a lot of effort on the part of the leadership and can last for as long as needed. Social networking tools, such as LinkedIn, can facilitate informal mentoring relationships outside the organization. Formal programs usually involve a highly developed selection process where mentors apply, are evaluated, and then are carefully matched with people who want or require a mentor.

Some of the most powerful mentor relationships occur when an employee is mentored by someone outside his or her current department. For example, an HR manager may decide to seek a mentor in the finance department to expand his or her knowledge of that function and explore the linkages between HR and finance.

A broad definition of a mentor is anyone who has knowledge or experience the other person doesn’t have. Mentors don’t have to be high up in the organization, so don’t overlook anyone in your organization as a potential mentor. For example, ask a Millennial to mentor Baby Boomers in maximizing use of technology. Mentors can provide information or knowledge that isn’t found in any book or other resource. If you use mentoring, be sure to do mentor training and, if possible, have coaches for mentors so that they have someone to go to for information they need to help their mentee.

On-the-Job Training (OJT)

OJT is how many people learn new skills or take their abilities to a new level. However, there is some risk in putting people into jobs for which they aren’t fully trained. Before you take this route, consider the impact on others in the organization, as well as the amount of time a manager or lead person in the organization will need to devote to providing oversight to the employee being trained. OJT should be combined with other forms of development, including training, mentoring, and coaching, to allow the person to learn as quickly as possible.

Job Rotation

When you’ve identified a skill or development need, consider where else in the organization the person could improve that particular skill. Is there a manager who is particularly good at this and could the employee be assigned there for a period of time to gain valuable experience? Job rotation requires collaboration and cooperation among departments, but can be highly effective and is certainly cost-effective.

Management Role in Employee Development

Lack of managerial involvement is the most common reason that employee development initiatives fail to produce improved performance. Training can’t work miracles, and rarely alone does it improve performance. Managers need to follow up after training to ensure that learning is reinforced. Developing people is one of the greatest joys of managing others. It is a wonderful experience to help move a good employee to another level of performance. Being known as a manager who develops people will greatly enhance your reputation and will encourage others to want to work in your department.

Managers can provide direction and create learning opportunities, but remember that it is still up to the employee to learn and grow. Managers also help to set goals and can assist employees in recognizing areas in which their skills are lacking. Managers can provide valuable insight into opportunities for growth and development, can serve as mentors, and can offer employees cross-training experiences to build skill sets.

Some managers hesitate to provide growth opportunities for talented staffers because they fear they will lose them to another position or department. It must be noted that this is a strategy that almost always backfires. A talented employee who is not offered development opportunities will find ways to get them—even at the risk of leaving your company—so it is always smarter to actively participate in the development of your team.

Evaluating Employee Development

“The true impact of a training program will be best predicted by the work environment participants return to after the event. More specifically, this refers to the type of leader they work with and report to after their respective training.”⁷ Before you start any development initiative, consider how you will measure results. Every training class should include an evaluation to measure what the participants learned and to help you evaluate the effectiveness of particular trainers. At a minimum, do a yearly summary of training effectiveness prior to planning your next year’s development schedule. Don’t get caught up in a numbers game of how many people attended classes; you want to know what the impact was on the people who participated. You can also follow up any development opportunity with a quick, online survey asking a few questions to gather data about what the participants learned. You can use on-line surveys such as Survey Monkey in a very cost-effective way to gather this data.

    Appendix: Sample Training Evaluation Form.

Bottom line: The real measure of employee development effectiveness is the success and growth of the organization!

Training and development cost money and time. In today’s fast-paced business climate, sometimes time is even more difficult to come by than money, as managers don’t want to allow their employees to take time away from their assigned tasks to attend training, or meet with a mentor, or whatever. Organizations constantly ask themselves how much training is worthwhile. Before you embark on a needs assessment, we highly recommend you investigate what resources you will have so that expectations aren’t set too high. Some organizations set their training budget as a percentage of their overall budget (for example, allocating 1 percent of revenue to employee development), whereas other organizations set their budget based on what they think that particular year’s budget will allow. It is sad to see that training and development budgets are usually one of the first line items to be cut when budgets are tight—especially because Millennials and I-Gen are looking for more and more development to increase their skill sets. This is a trend organizations can’t afford to ignore if they want to attract and retain younger workers to balance out the aging workforce.

It is possible to train and develop with minimal cost impact to the organization by using resources you already have on hand. For example, consider videotaping a lecture by your CEO on leadership and using that at a “lunch and learn,” where employees bring their lunch and spend their lunch hour watching the DVD. A member of the HR or training department could facilitate the session, take questions back to the CEO, and distribute the responses via email. This is a no-cost way to get information out to employees.

Consider using subject matter experts from your organization to share their knowledge with others in your firm. Asking a subject matter expert (SME) can provide a real morale boost for that person and also help his/her own professional development. Also consider “borrowing” SMEs you admire from companies in your area. We are not suggesting you call your competitors to ask for their marketing manager to come to talk to your sales department, but what about asking someone from a successful company in your town in a totally different field from your firm? You could reciprocate by sending one of your superstars to speak at their company someday. This is a highly effective way to expose your employees to new ideas with minimal cost impact—and also may increase your firm’s standing in the community.

Discussion Questions

1.    Discuss the difference between training and development.

2.    What are some low- or no-cost ways to develop employees?

3.    Why is it important to have top management support for training and development?

4.    What are some cost-effective training methods?

5.    When might job rotation be an effective training tool?

6.    Name three to four ways mentoring can impact an organization.