When thinking of employee experience, people leaders tend to primarily think of the outcomes, whether it is performance reports or survey results. However, when companies strive to improve the overall experience, focusing on the process of achieving the outcomes can significantly improve the results. Culture Amp recently conducted a study to understand the key drivers of employee engagement and retention, as well as business performance. A significant finding from the study was that employee growth and development were the key drivers of these outcomes.
The following are a few other findings and best practices for employee development that can lead to improved engagement, retention, and performance.
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Employee Development Is the Most Cited Reason for Quitting
According to the study, lack of growth and development was the most cited reason by employees who quit, with 37% citing it. Further, the study also found that an employee’s dissatisfaction with development would show in engagement survey responses months before leaving. This shows how important growth is according to employees and how improving it can better attract and retain talent.
Top reasons for leaving a company
Source: Culture Amp reportOpens a new window
The study also showed that employees who do not feel they have access to learning and development are two times more likely to leave in a year. According to Kenneth Matos, director, people science, Culture Amp, a quick takeaway is that if you want to retain employees longer, give them something to look forward to in their career as a result of being in that role.
Another finding from the study was that if a manager does not show interest in an employee’s career, the person is 2x more likely to leave in a year. When managers think of employee development, 3 E’s can be a good learning framework: experience, exposure, and education.
Companies can also have thoughtful coaching conversations to better support employees’ interests, goals, and the path forward. A GROW coaching model is aligned to such conversations:
- Goal (G) – What are you trying to achieve? Why is it important for you?
- Reality (R) – What’s your current situation? What obstacles are you facing?
- Options (O) – What options do you have? What are the pros and cons of each option?
- Way forward (W) – What option works best for you now? How will you measure success?
Employees who quit were less likely to believe they had good career opportunities in the company, according to the study. Companies need to make their vision clear to their employees so that the latter can picture potential avenues for career advancement. Hence, they should identify their organizational and team needs. This requires setting criteria for when new roles will be opened or expanded in scope. Companies should then share these needs regularly with employees. This is important because communication helps people know opportunities that may be opening up.
Development Is a Top Driver of Employee Enthusiasm
The study found that employees are 46% more engaged when they can develop their skills pertaining to their interests. This indicates that development is a key driver of the level of connection, enthusiasm, and commitment employees have to a company. A company thinking of employee engagement should also think about how to support the employees working toward their growth goals. The entire company benefits as employees become more skilled and innovative.
The study further found that companies that have managers showing interest in their reportees’ career aspirations have employees that are 15% more likely to recommend the company and 21% more motivated. These employees are also 15% less likely to think about looking for a new job and 13% more proud to work in the organization.
According to Dany Holbrook, senior people scientist, Culture Amp, “Development should be guided through regular manager-employee collaboration, conversation, and coaching.â€
Companies Focusing on Development Have Better Business Outcomes
Data from the study showed that organizations that focused on employee development had better business outcomes in terms of headcount, funding, and stock price. The data also showed that focus on development preceded these outcomes. According to the study, companies that created a culture of development grew an average of 24.3% more in terms of headcount than those that did not. They also received 41.6% more funding than those who did not. On average, they received $77,000 more per employee. This may be because employees who develop their skills play to their strengths and are more innovative than those who are not fired up about their work. This helps the company excel in the market, attracting more investors.Â
Getting Started
To create a culture of employee development, the efforts should come from the top management. Paying lip service or claiming the necessity of development does not empower people to incorporate it into their work experience. To convert employee development from a nice-to-have to a successful program, companies should ensure that a development mindset is embedded into their DNA. Organization leaders should empower themselves with data such as from this study to prioritize a formal development plan and process, as well as a starting point to determine what the process may look like. Having a strong development culture will help organizations reap the benefits both in terms of employee retention and better business performance.
What steps have you taken to create a culture of development in your organization? Let us know on FacebookOpens a new window , TwitterOpens a new window , and LinkedInOpens a new window .
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