Employee development plan: Template, examples, and guide

Workplaces today are more dynamic than ever, with new responsibilities, technologies, and industry changes emerging that can make it difficult to keep employee growth front and center. Without a solid employee development strategy, companies may struggle to retain top talent, close skill gaps, and support employees in achieving their career goals.

That’s where an employee development plan comes in. By mapping out clear steps for growth, these plans provide a framework to build skills and meet objectives.

In this guide, we cover everything you need to know about building an effective employee development plan. From identifying clear development goals and mapping out skill-building opportunities to addressing common challenges, we walk you through the steps to create plans that support both individual and organizational growth.

What is an employee development plan?

An employee development plan is a strategic document designed to support and guide an employee's growth within the company. It maps out specific development goals and provides a clear path for achieving them. A well thought out professional development plan goes beyond immediate job tasks by encouraging employees to build new competencies, refine current skills, and ultimately work toward their career goals.

The purpose of an employee development plan is multifaceted. While it helps close skill gaps that may be holding employees back, it also aligns their personal growth objectives with the company's long-term goals. In many cases, managers tie these plans to performance reviews, creating a structured way to track progress and ensure accountability.

By identifying and addressing areas where employee skills can improve, an employee development plan contributes to a skilled, motivated, and prepared workforce that's in a strong position to meet evolving industry demands.

Types of employee development plans

Here are some common types of employee development plans, each tailored to address specific needs and goals within a company: 

• Skill development plan: Focuses on building or improving specific skills related to an employee’s current role. This plan is suitable for employees aiming to refine job-related competencies or adapt to new technologies.
• Performance improvement plan (PIP): Targets specific areas where an employee’s performance doesn’t meet expectations. PIPs include clear, measurable objectives and frequent check-ins to help employees achieve required performance standards.
• Career development plan: Focuses on long-term career goals and aspirations, guiding employees to gain skills and experiences for potential advancement within the company or in new roles.
• Succession planning development plan: Prepares employees for future leadership or key roles, ensuring they develop the skills needed to take on critical responsibilities over time.
• Personal development plan: Centers on the employee’s personal interests, strengths, or growth areas that might not directly relate to their current job. This plan supports broader personal goals, like improving public speaking or learning new problem-solving techniques.

Why is employee development important? 

Creating and implementing an effective employee development plan is essential for driving workplace productivity and achieving company goals. Development plans help employees identify their career goals, strengthen aptitudes, and close skill gaps, aligning personal growth with organizational objectives.

By setting clear development goals and providing structured training programs, companies can ensure they equip their teams to meet the developing demands of their roles, ultimately boosting overall organizational performance and growth.

Benefits of employee development plans

Employee development plans bring a wide range of benefits to both employees and organizations. Here are some key advantages:

Increased employee engagement

Development plans give employees a sense of direction and purpose by outlining clear, personalized goals and concrete steps to achieve them. With defined milestones and targeted training programs, employees can see a tangible path to growth, skill development, and career advancement. 

When employees understand exactly how their efforts contribute to both their personal goals and the organization’s success, they can feel more motivated and committed to their role, leading to higher engagement and satisfaction.

Improved employee retention rates

Access to career development opportunities encourages employees to stay with the company long term, as they see clear and structured pathways for advancement. By providing specific goals, ongoing training, and growth-oriented feedback, companies help employees envision a future with the organization that aligns with their personal ambitions. 

This proactive approach to development reduces turnover and helps companies retain valuable, skilled talent capable of taking on future challenges.

Improved employee satisfaction and loyalty

When companies prioritize employee growth, they can build a supportive and empowering work culture that goes beyond just retention. Employees who see genuine investment in their development feel valued not just for their current contributions, but also for their potential. This creates a workplace where employees are likely to feel seen and appreciated, encouraging deeper loyalty and engagement. 

Unlike simple career progression, this approach builds a sense of belonging and pride in the organization, as employees recognize that their growth is integral to the company’s values and long-term vision. This results in greater job satisfaction and a strong mutual commitment between the employee and the organization.

Enhanced succession planning

Employee development plans play a significant role in succession planning by systematically preparing team members for future roles. By identifying high-potential employees early and providing them with targeted training, mentorship, and leadership development opportunities, companies can cultivate a strong pipeline of ready talent. 

This proactive approach helps facilitate smooth transitions when key positions open and fosters organizational stability, as internal candidates bring a deep understanding of the company’s culture and goals. Developing internal talent can also reduce the costs and risks associated with external hiring, as promoted employees are typically already in alignment with the organization’s values and operational standards.

How to create a development plan for employees: 5 steps

Creating a structured employee development plan requires actionable steps to ensure both individual and company goals align. Here’s a guide to help you create an effective employee development plan:

Step 1: Assess employee strengths and development needs

Start by assessing the employee’s current skills, strengths, and areas needing improvement. Consider both role-specific skills and broader competencies needed for career growth. You can use self-assessments, manager feedback, and performance reviews to gather insights.

Example: During the assessment, a manager identifies that an employee excels in client communication but needs to improve project management skills to handle more complex accounts. This area becomes a key focus in the professional development plan.

Step 2: Set specific, measurable goals

Once you identify strengths and development needs, outline clear and achievable goals. Make these goals specific, measurable, attainable, relevant, and time-bound (SMART). Breaking down goals into smaller, manageable objectives can help you track progress effectively.

Example: For the employee focusing on project management, set a goal like, “Complete a project management certification course within six months and manage a small project by year-end.”

Step 3: Identify important resources

Determine the resources the employee needs to reach their development goals. Resources may include training programs, mentorship, online courses, or tools for skill-building. Clearly identifying these resources creates a roadmap that outlines the support necessary for success.

Example: For the employee aiming to enhance project management skills, provide resources like access to an online learning platform, project management software, or a mentor with expertise in this area.

Step 4: Schedule regular check-ins and feedback

Consistent feedback and guidance are essential for staying on track. Schedule regular check-ins between the employee and manager to review progress, address challenges, and adjust the plan as needed. These meetings can help keep the employee motivated and provide a clear sense of direction.

Example: Set up monthly check-ins to discuss the employee’s progress on the certification course, troubleshoot any obstacles, and offer feedback on new project management tasks.

Step 5: Evaluate progress and adjust the plan

As development is ongoing, regularly evaluate the employee’s progress and adjust the plan based on new insights or role changes. If the employee achieves certain milestones sooner than expected or encounters challenges, update the plan accordingly.

Example: After six months, the employee completes the certification but feels they need more hands-on experience. The manager updates the plan to include managing a larger project with additional support before moving toward full independence.

Employee development plan examples

Below are examples of employee development plans tailored to different use cases:

Mentorship-driven development plans

A mentorship-driven development plan pairs an employee with a mentor to guide them in building skills, gaining insights, and achieving career goals. To create this plan, identify the employee’s development goals and select a mentor with relevant experience. Set up regular meetings where the mentor provides feedback, shares experiences, and helps the employee work toward specific objectives.

Example: A marketing coordinator wants to advance into a strategic marketing role. The company assigns them a senior marketing manager as a mentor. Together, they outline a plan that includes monthly meetings, shadowing sessions during campaign planning, and specific goals like creating a mock campaign. Over six months, the mentor helps the coordinator develop strategic thinking skills and confidence in making high-level marketing decisions.

Succession planning development plans

Succession planning development focuses on preparing employees for future leadership or critical roles as part of the company’s workforce planning strategy. This type of plan identifies high-potential employees and progressively builds their skills and competencies to ensure they’re ready to step into key positions when needed, supporting smooth transitions and continuity within the organization.

Example: A mid-level manager with strong leadership potential works toward a director role. Their professional development plan includes completing a leadership course, leading cross-departmental projects, and shadowing the current director in strategy meetings. These activities give the manager insight into high-level responsibilities, preparing them as a qualified successor.

Skill development plans

A skill development plan aims to build or refine the specific skills needed for an employee’s current role or future responsibilities. To create this plan, identify the skills required, set specific learning goals, and outline steps for skill acquisition, such as workshops, courses, or hands-on practice.

Example: A data analyst wants to strengthen their skills in advanced data visualization. Their employee development plan includes enrolling in a data visualization course, creating weekly data visualizations for team presentations, and receiving feedback from senior analysts. Over three months, the employee builds confidence and proficiency in presenting data-driven insights.

Performance development plan

A performance development plan focuses on helping an employee meet performance standards or improve in areas where they may be underperforming. To create this plan, identify performance gaps, set measurable goals, and schedule regular check-ins to monitor progress and provide support.

Example: An employee struggles with meeting project deadlines. The performance development plan sets goals to improve time management and prioritization. The employee attends a time management workshop, uses project tracking software, and meets with their manager weekly to review progress and discuss challenges. Over time, the employee shows improvement in handling workloads effectively.

Employee development plan template

Here's a general template to create a structured and effective employee development plan. This template includes key sections to guide both employees and managers in setting clear goals, tracking progress, and ensuring accountability:

5 challenges with employee development plans 

Creating and implementing employee development plans can present several specific challenges. Here are some common obstacles companies face and insights into how each affects the development process:

Resource constraints

Budget and time limitations can hinder the effectiveness of development plans. Without sufficient resources, companies may struggle to offer necessary training, mentorship, or tools that employees need to reach their development goals. For example, a company may want to provide advanced technical training but lacks the budget for high-quality courses, which can limit the plan’s impact.

Balancing individualization with scalability

Tailoring development plans to individual employees is essential, but it can become challenging to scale when managing a large team. Personalizing plans requires understanding each employee’s goals and strengths, which takes time and effort. In a large organization, managers might feel stretched thin trying to meet these individual needs, making it hard to deliver a meaningful plan for every team member.

Maintaining engagement and motivation

Keeping employees engaged throughout the development process can be difficult, especially for long-term plans. Employees may lose interest if they don’t see immediate results or if the plan lacks consistent check-ins and support. For example, if a technical employee is working toward a new certification but doesn’t receive feedback or encouragement along the way, they may feel disconnected from the development goals and lose motivation.

Managing performance-related setbacks

Not every employee will progress as planned, and unexpected performance issues can disrupt a development plan. When an employee struggles to meet milestones, managers may need to reevaluate the plan and adjust goals, which can be time-consuming and require extra resources. For example, if an employee misses key project deadlines, the manager may need to shift the focus from skill-building to time management training, adding a layer of complexity to the original plan.

Lack of alignment with organizational goals

When employee development plans don't align with company objectives, they can create gaps between individual progress and business needs. For example, an employee might focus on skill-building that isn’t essential to the company’s current projects. Ensuring each professional development plan ties into broader company goals can help employees contribute more effectively, but it requires careful planning and communication from the outset.

Automate employee development and management with Rippling

Rippling is an all-in-one HR platform, built on a single source of truth, that combines a learning management system (LMS) and performance management capabilities for seamless employee development and management.

With Rippling’s LMS, businesses can easily create, assign, and track training programs, ensuring employees receive relevant and timely learning opportunities. Rippling’s performance management simplifies the setup and maintenance of review cycles, goal alignment, and continuous feedback, all within one system.

By uniting these capabilities, Rippling streamlines workforce management, boosts employee engagement and retention with clear development pathways, and drives performance by aligning training and evaluations to organizational goals, making it a powerful tool for HR and development.

Employee development plan FAQs

What is included in an employee development plan?

An effective employee development plan includes an outline of specific goals, competencies, and steps an employee will focus on to advance their skills and achieve professional growth. Key components typically include an assessment of current skills, clear development goals, relevant training programs, and scheduled check-ins for progress tracking.

Some plans, like a career development plan, may also include resources, such as mentorship opportunities or certifications. 

What are the benefits of employee development plans for employers?

Employee development plans can provide significant advantages for employers by enhancing employee engagement, boosting retention, and aligning personal growth with company objectives. By offering structured learning and development opportunities, companies can foster a culture that values professional growth. For HR departments, well-designed development plans make it easier to manage skill-building, address competencies, and support succession planning. 

Development plans also help employees stay motivated and prepared to take on future roles within the organization, adding long-term value.

How do I write a development plan for work?

To write an effective development plan for work, start by identifying the employee's strengths and growth areas. Set specific, measurable goals that align with both personal and organizational objectives. Choose training programs or skill-building activities that help bridge skill gaps and encourage professional growth. Include a timeline and milestones to track progress, and schedule regular feedback sessions. 

Using a development plan template can simplify the process and ensure clear, actionable definitions for all critical areas, such as skills, goals, and resources.

How does new employee orientation relate to employee development plans?

New employee orientation is a foundational step in an employee’s development journey. A well-designed orientation familiarizes new hires with the company’s culture, policies, and expectations, and sets the stage for ongoing growth and professional development. Integrating an initial development plan during orientation allows employees to start with clear objectives and a pathway to achieving their career goals within the company.

This blog is based on information available to Rippling as of November 8, 2024.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.