How companies drive change processes forward with targeted development of employees

Driving change in companies through development

The “Spinning Jenny” was developed in 1764. The steam engine followed in 1769. The result: Companies no longer needed weavers to operate the loom. The machine took over. Many weavers lost their jobs and companies bought expensive coal from abroad because they did not develop their own coal reserves in time. What would have happened if the companies had restructured their own weavers in good time and ensured the supply of coal at an early stage? What if they had given their own workers opportunities to continuously develop and break new ground? Major transformations such as the Industrial Revolution demand a lot from people. Compared to back then, however, changes are progressing faster today. Just reacting is no longer enough. Instead, companies should proactively prepare for change processes. But this requires the appropriate strategy. Staff development, managers and management are equally in demand here — as enablers, pioneers and transformation coaches.

Development as a key factor of (digital) transformation

Unlike in times of industrialization, there are now personnel developers and managers who know that continuous development supports a company through important change processes and that this in turn ensures competitiveness. While it is part of the task of talent management to find the right people with the right skills for an organization and to retain them in the long term, it is the task of management to create the appropriate framework conditions for the associated development measures. This means establishing an open learning culture in the company and providing the right digital tools.

Then as now, companies are facing major changes. It is true that today it is not a steam engine that rolls coal through the tenth floor of an office building. But digitization and automation are no less revolutionary. The seemingly endless possibilities of artificial intelligence are currently presenting our world with unprecedented challenges. Competitive pressure is increasing. Companies must adapt to keep up. But that is only possible with the right skills. We need people who can handle ChatGPT, Google Bard and Co., the “Spinning Jennies” of the 21st century. We need people who use their (digital) skills to prepare today's companies for tomorrow's challenges.

But these abilities don't just fall from the sky. They are also barely available on the market at present. The responsibility to provide urgently needed skills internally falls on the shoulders of corporate management. It is they who create the appropriate framework for both personnel development and managers so that they can continuously drive the development of their employees. This requires major investments, especially at the beginning. But once employees are trained, they complete new tasks more effectively and also tie themselves to their organization more sustainably. As a result, vacancy costs and fluctuation rates are reduced and the initial investment costs of continuing education measures pay off. And that is decisive, because an unfilled job costs a company an average of 38,000 euros. [1]

Corporate management and executives as pioneers

Corporate management and managers are important pioneers for continuous development in the company. While the former ensures the basic framework for an open learning culture with various development opportunities, for example by actively investing in continuing education, approving budgets quickly or giving personnel development freedom of action, it is the task of managers to secure and demonstrate these paths and to encourage their own employees to take action. If employees are certain of the commitment of their managers, they are much more likely to unlock the door to their development. And in turn, the entire company benefits from this when those employees contribute their new skills and competencies to the digital transformation.

Such a learning culture is supported by digital learning solutions. These enable efficient and flexible learning for employees and thus ensure the greatest possible individuality in personal development. Digital learning solutions offer learners in companies a central point of contact for their development as well as attractive learning content that they can consume independently and flexibly anywhere. For companies, they offer valuable insights into the learning behavior of their employees by collecting and analyzing data on learning progress, usage behavior, and training programs. In this way, those responsible close knowledge gaps in the organization and continuously develop their own development offerings.

HR development: enablers & transformation coaches

Implementing development measures within a learning culture is the responsibility of personnel development. Finally, it strategically develops employees of a company in accordance with their strengths and based on the skills required in the future. As a result, personnel developers not only ensure that the right people with the right skills are in the right place at the right time, but also retain talent to the organization in times of a shortage of skilled workers by signaling: “We believe in you and your abilities! You're important to us!”

Personnel development is therefore not only a door opener, but also a transformation coach in times of omnipresent change. Personnel developers open doors for employees who they didn't even know were open to them. They show individual development paths and assist employees as coaches when they are uncertain. But employees must finally go through the door themselves. Then as now, it is the workers, the weavers, who must acquire the new skills — under guidance but still independently. Personnel development is looking for the right key to personal development and passes it on to talents.

Crossing the threshold thanks to the right learning and corporate culture

In order for employees to walk through the door of their personal development with motivation, what they suspect behind the threshold should be attractive and make them want to develop. For the weavers from back then, this could have meant fewer working hours with the same pay and less physically demanding tasks. For today's talents, these include new impulses, promotions, creative perspectives or the individual development of unexpected potential. The important thing is: Everyone needs their own door, as everyone has different strengths, weaknesses, goals and ideas about their own development.

It is important that company management, managers and personnel development work together to ensure that employees are happy and motivated to walk through these doors. In addition to the room and its offerings behind the door, the general environment should also be inviting. If crossing the threshold involves risks, it is immediately less attractive. Is continuing education seen as a luxury and disapproves of mistakes? Then employees would rather not walk through the development door; after all, they know the associated risks and would rather remain in their safe space. However, if company management places development at the top of the agenda, managers and personnel developers also feel encouraged to send their own employees on individual development paths. Management receives additional support from transformation managers. They analyse the market and requirements and from this derive the digitization requirements for their company. As a result, they know which competencies a company needs for a specific change process — and thus support personnel development in identifying the necessary continuing education measures.

Conclusion: Development measures not only bring new skills to light

When corporate management, managers and personnel developers work together and lay the foundations for a corporate culture that promotes development and continuing education, everyone benefits equally. After all, in times of (digital) transformation, development is no longer just about carrying out legally required training courses. Rather, it is about ensuring that companies become and remain fit for the future by having the right people with the right skills on board at the right time. Because then, thanks to the appropriate skills of their employees, companies will meet the increasing demands of the changing world of work. That makes them competitive. At the same time, they retain their employees in the organization for the long term through regular investments in continuous education and training. They feel connected through the expression of loyalty and remain. Turnover rates and vacancy costs are falling. It's a win-win situation.

As a personnel developer or manager, you too can open new doors for your employees and enable individual development paths that advance not only their talents but also your company. This is made possible by learning environments that not only provide attractive learning opportunities behind the threshold, but also support the development of a beneficial learning culture in the company.

About Digital Suite

The Digital Suite is the product family for digital learning of the Haufe Akademie. This is where decades of experience from the leading provider of continuing education in German-speaking countries meet innovative technologies and exceptional content.

With individual combinations of modern learning environments and a variety of digital learning content, the Digital Suite adapts to the specific challenges in companies. For employees who are motivated and happy to work on their development — and for companies that help them transform their potential into long-term success.

sources

[1] StepStone, 2022, “Vacancy Expenses.” https://www.stepstone.de/e-recruiting/blog/vakanzkosten-unbesetzter-arbeitsplatz.