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In the cutthroat world of business, complacency is a death sentence.
To stay competitive, companies must constantly strive for growth and innovation. Chief Human Resources Officers (CHROs) have found that a relentless focus on development can revolutionize the workplace, boosting employee engagement and retention and propelling the entire organization to new heights.
There is a clear demand signal for organizations to pay careful attention to this. According to Gallup’s 2024 State of Global Workplace report, only 23% of employees are engaged, 15% are actively disengaged, and a staggering 62% are not engaged. The situation isn’t much better in the United States, with 33% engaged, 16% actively disengaged, and 51% not engaged.
The importance of a culture of development
A culture of development is essential for the long-term success of any organization. In an age of technological advancements and constantly changing market dynamics, employees must be equipped with the skills and knowledge to adapt quickly and confidently.
Consider the case of Best Buy, which managed to avoid the fate of competitor Circuit City. Under the leadership of CEO Hubert Joly, Best Buy implemented a turnaround strategy called “Renew Blue” that focused on investing in their employees, especially in supporting their continuous development. This strategy and Joly’s leadership style of empowering workers and creating what he calls “human magic” helped Best Buy avoid obsolescence and achieve a stunning turnaround.
Or take Microsoft, which rediscovered its relevance under the leadership of CEO Satya Nadella and avoided a fate similar to BlackBerry. Nadella’s leadership style emphasized a growth mindset, collaboration, and a relentless focus on innovation. He also initiated a strategic shift in the company’s business, emphasizing a 'Mobile-First and Cloud-First’ approach, focusing on expanding the cloud business. To support these efforts, Microsoft made several decisions that empowered their employees to have the autonomy and resources they needed to deliver bold new products and services.
Moreover, a strong development culture can help address talent retention challenges. According to a LinkedIn Learning report, 94% of employees say they would stay at a company longer if it invested in their career development. This statistic underscores the critical importance of embedding development into the core of organizational culture.
1. Leadership commitment and role modeling
A culture of development begins at the top. Leadership commitment is essential for embedding development into the organization's DNA. Leaders must not only endorse developmental initiatives but also actively participate in them. For instance, Reed Hastings, CEO of Netflix, showcased his commitment to change by actively participating in the company’s transformation towards agile methodologies.
When executives and managers demonstrate a genuine commitment to their growth, it sets a powerful example for the rest of the organization. This can be achieved through transparent communication about personal development goals, participation in training sessions, and regular feedback loops.
A culture of development begins at the top. Leadership commitment is essential for embedding development into the organization's DNA
2. Personalized development plans
Every employee's developmental needs and career aspirations are unique. Implementing personalized development plans ensures that everyone receives tailored opportunities for growth. Employees and their managers should collaboratively design these plans, focusing on short-term and long-term goals. Regular check-ins and updates ensure that these plans remain relevant and aligned with the needs of the organization and its employees. In fact, per Gallup research, 80% of employees who received meaningful feedback last week are fully engaged, no matter how often they worked in the office.
3. Continuous learning opportunities
To sustain a culture of development, organizations must provide a diverse array of continuous learning opportunities. This includes traditional training programs, online courses, mentorship arrangements, and experiential learning projects. Industry titan Amazon invested $1.2 billion into upskilling programs in 2021 to ensure their workforce could keep pace with the ever-changing business environment.
Encouraging cross-functional projects and job rotations can also broaden employees' skill sets and expose them to different aspects of the business. Leveraging technology to offer flexible learning options can accommodate various learning styles and schedules.
4. Recognition and reward systems
Recognizing and rewarding employees' development efforts reinforces the importance of continuous growth. Implementing a robust recognition system that celebrates both milestones and incremental progress can motivate employees to pursue further development.
Rewards can range from public acknowledgment and certifications to monetary incentives and career advancement opportunities. Research has shown that leveraging more intrinsic rewards leads to longer-term employee satisfaction while extrinsic rewards, like money, can actually diminish motivation. Creating a culture where development is celebrated helps to embed it into the organizational fabric.
5. Fostering a growth mindset
A growth mindset, as popularized by psychologist Carol Dweck, is the belief that abilities and intelligence can be developed through dedication and hard work. Cultivating this mindset within the organization encourages employees to embrace challenges, learn from feedback, and persist in facing setbacks.
Providing training on the principles of a growth mindset and integrating these concepts into everyday interactions can drive a culture of continuous improvement.
6. Inclusive and collaborative environment
An inclusive environment where diverse perspectives are valued enhances the culture of development. Employees should feel safe expressing their ideas, asking questions, and seeking feedback without fear of judgment.
Collaboration across departments and levels can foster innovation and shared learning experiences. Creating knowledge-sharing forums, such as internal conferences, workshops, and collaborative platforms, can facilitate the exchange of ideas and best practices. This is a cornerstone of Pixar’s ethos, with the practice of team members providing feedback to each other to help improve each other’s ideas. As Ed Catmull shared, "At Pixar, daily animation work is shown in an incomplete state to the whole crew. This process helps people get over any embarrassment about sharing unfinished work, so they become even more creative."
7. Leveraging data and analytics
Data and analytics play a crucial role in sustaining a culture of development. By tracking and analyzing developmental metrics, organizations can identify trends, measure the impact of development programs, and make data-driven decisions.
Key metrics might include participation rates, skills acquisition, career progression, and employee engagement. Regularly reviewing this data allows for continuous improvement of development initiatives.
Creating knowledge-sharing forums, such as internal conferences, workshops, and collaborative platforms, can facilitate the exchange of ideas and best practices
8. External partnerships and resources
Building partnerships with external organizations, educational institutions, and industry experts can provide additional development resources and opportunities. These partnerships can offer access to specialized training, certifications, and industry insights.
Encouraging employees to participate in external conferences, webinars, and networking events can broaden their knowledge and professional networks.
9. Employee wellbeing
Employee wellbeing is increasingly recognized as a critical factor in organizational development. The reports that employees in good health are more likely to deliver optimal workplace performance. When you support your people’s abilities to effectively manage their life stressors, you enable them to achieve their highest levels of performance for your team and organization.
A marathon, not a sprint
Sustaining a culture of development is an ongoing commitment that requires dedication, resources, and a strategic approach. Our most significant investment is in our employees' growth and development.
By promoting a culture that values continuous learning, personalized development, and a growth mindset, we can create a thriving, adaptive, and resilient organization ready to meet future challenges.
The journey to sustaining a culture of development is continuous, requiring regular reassessment and adaptation to the changing needs of the workforce and the business environment.
However, the rewards of a well-developed workforce – increased innovation, higher employee satisfaction, and a stronger competitive edge – make this investment worthwhile and essential for long-term success.
Adam Hickman PhD, is the VP of L&D and Organizational Development at Partners Federal Credit Union, a Walt Disney company affiliate. Brent Yonk is the Assistant Section Chief of Technology and Data Innovation at FBI’s Counterterrorism Division.
