Why staff development must finally count

Staff development requires strategic clarity

“In real life, managers are not judged on which employees they develop. What counts are numerous KPIs such as turnover figures, speed, adherence to service levels and customer satisfaction. These are the metrics by which managers are typically assessed.” [1]

This statement comes from a LinkedIn post by Veronika Birkheim. As an HR consultant, she highlights a tension that repeatedly arises when working with managers. The disconnect between theory and practice is particularly evident in staff development.

There is broad consensus that employees are a vital resource that should be developed. But as is often the case with broad concepts, they provide a cosy umbrella under which quite a few people can find a place. Companies approach their staff development in very different ways. Some offer one-off training sessions, whilst others rely on long-term programmes for various career paths.

Managers are expected to operate within this landscape and ensure that – watch out for the buzzword – the talent pipeline is properly stocked. That is when reality comes into play, however. As soon as managerial performance is assessed, factors other than staff development often take precedence.

How can companies resolve this contradiction? And what options do managers have to prioritise staff development more effectively in their day-to-day work?

Staff development needs a more strategic approach

Staff development is always an investment in the future. No company would claim that it can do without it. Some companies are even proud of developing skilled staff and managers from within their own ranks.

To ensure we are all on the same page, it is worth starting with a simple definition. Staff development encompasses ‘… all measures relating to training, support and organisational development that are planned, implemented and evaluated by a person or organisation in a targeted, systematic and methodical manner to achieve specific objectives.’ [2]

In practice, staff development can be effectively conceptualised in terms of competencies. Two distinct groups can be identified:

• The first group addresses competency gaps. This includes, for example, vocational training, on-the-job training, retraining or further training, which are necessary to be able to carry out a task at all.
• The second group focuses on strategic and motivation-driven competence development. This includes leadership programmes, career planning and knowledge transfer.

Companies also utilise staff development to influence the labour market. They promote it in job advertisements, at career fairs and on their careers pages. However, staff development is not just a ‘fair-weather’ issue, nor is it a goodwill gesture designed to keep staff quiet for as long as possible. It is vital for the future viability of companies. Nobody needs a floppy disk expert these days; expertise in AI is far more in demand. Even in 2030, innovative machines featuring the latest technology will still need to be operated, monitored and repaired.

One aspect must not be overlooked: in many places, staff development is not treated as a strategic priority. Many companies invest in developing people simply because they see potential, true to the motto: ‘the more, the better’. At least there are companies that aim to safeguard critical roles through succession planning. It is not uncommon for numerous employees with development potential to end up on Excel spreadsheets or in talent pools. On paper, this looks like systematic staff development. In practice, however, there are too few concrete development steps and too few suitable target positions. This often leads to disappointment and, not infrequently, staff turnover. [3]

So, before we criticise the fact that development plays no role in key performance indicators, staff development needs to be given greater strategic relevance. Companies should have a clear understanding of which skills they are lacking, both now and in the future, in terms of both quality and quantity. This also includes an overview of which skills are already in place.

Staff development must be able to withstand contradictions

“Wash me, but don’t get me wet.” This is a good way to describe one of the biggest challenges in staff development.

Many companies assume that their managers understand how to develop other people. After all, they have experienced it themselves and could follow their own example. At the start of their role, many managers are told that they need to keep the business running. Nobody tells them, at first, that they also need to position their team strategically.

New managers often realise this very quickly. For example, when the ‘sales genius’ has only three years left until retirement, or the average age at the plant is approaching 50. Companies must empower their managers so that they can genuinely facilitate development. That, too, is part of staff development. Not everyone working in isolation, but rather the joint management of skills.

This issue of empowerment has wider implications. Companies want employees who take personal responsibility. However, this also requires a greater tolerance for mistakes. If a customer becomes impatient or a project escalates, action is taken. This is precisely where the key performance indicators mentioned in the introduction come into play. As soon as there is a risk that results will slip, action is taken.

The fact that learning also requires mistakes is not recognised in this context. And rightly so. The two simply must not be conflated. When customer satisfaction, turnover or project quality are at risk, a manager cannot simply stand by and hope for a learning outcome. That would be a contamination of key performance indicators.

Development, however, requires more than that. It requires dialogue, observation, feedback, reflection and, above all, patience. Many managers lack the time for this in their day-to-day work. They are swamped by day-to-day operations and are expected to carry out leadership duties on the side.

If an autonomous employee is on the verge of squandering ten per cent of the annual turnover, a manager must intervene. Not as the person who takes everything upon themselves and saves the company, but as a manager, coach or even a teacher, if a clearer approach is needed. The task is not to take the task away from the employee. The task is to enable them to solve it. Help them, support them, admonish them, reflect with them, believe in your employee.

The truth is also that some managers do not have the development aspect on their radar at all. Their contribution to staff development then consists of organising the odd training session. Similarly, there are managers who perceive development as a threat. When other people grow, the high-potential management programme quickly becomes a metaphorical saw at the feet of their own executive chair.

When staff development becomes a threat

In her LinkedIn post, Veronika Birkheim refers to an article by Nicola Chighine entitled: ‘The vanity trap in leadership roles: When managers consider themselves indispensable’ [3]. In it, Chighine describes how managers gradually come to believe that they are indispensable.

Typical statements then include: “If I don’t do it, nobody will” or “I have to be involved in everything.”

The reasons behind this behaviour are interesting and invite every manager to engage in a brief period of self-reflection. The first aspect is control. In uncertain situations, intervening feels safer than delegating. The second aspect is recognition. Managers, too, feel good when they are needed. The third aspect is one’s own identity. What remains of me as a manager if my staff work independently and take responsibility for their own tasks?

Above all, the desire for recognition shows how leadership is often reduced to a one-dimensional focus on day-to-day operations. Anyone who is always needed appears important. Anyone who intervenes everywhere appears capable of taking action. Anyone who solves problems themselves appears successful in the short term. However, staff development works differently. It does not render leadership superfluous, but it shifts its focus.

This highlights the ongoing transition towards a different form of leadership. In the past, tasks were assigned and staff were also told exactly how to carry them out. Today, the role is shifting more towards development, coaching and management. Managers motivate staff, convey purpose and objectives, provide direction and develop skills.

This makes traditional leadership tasks more important: conducting staff appraisals, delegating tasks, agreeing on objectives and facilitating development. At the same time, many managers are experiencing the same dilemma themselves. They, too, have superiors who allow little scope for decision-making. In such cases, leadership generally becomes an unreasonable burden. [4]

Why staff development is difficult to measure

When it comes to agreeing on development as a goal, many companies run out of steam. In Deloitte’s Global Human Capital Trends 2024, 74 per cent of respondents said they consider it important to use methods of performance measurement that go beyond traditional productivity. As many as 40 per cent of respondents are already actively taking steps to do so. [5] So there is still work to be done.

The problem is that KPIs have a short-term impact. They show relatively quickly whether you are on the right track. An employee whom you wish to develop into a manager does not follow this pattern. Development is rarely immediately apparent. HR can offer programmes, training and competency models. However, whether employees are truly growing is often decided behind the scenes.

Many HR departments are accused of having an aversion to key performance indicators. Apart from staff turnover or sickness absence rates, some departments do not manage to produce many measurable metrics. [6] Translating staff development into relevant key performance indicators is, however, no easy task. Whilst, when it comes to tracking turnover, one can simply print out a bank statement if in doubt, measuring development requires observation, shared criteria and a clear understanding of what actually constitutes progress.

This is no easy task. But it is a task that is well worth the effort. And one through which an HR department can greatly enhance its professionalism.

How to make staff development more measurable

Adopting a competence-based approach opens up concrete opportunities to make staff development more measurable. For example, a company can focus on closing a competence gap. Eight core competences are required for the sales department. Five of these are already sufficiently present within the team. Goals and strategies can now be formulated to develop the remaining three competences.

In the same way, the progress of individual employees in terms of competencies can be assessed. However, this requires an assessment framework. Managers and employees can use this framework in parallel and compare their assessments. This not only results in an evaluation but also provides a good starting point for a performance review.

A further step would be to measure the increase in responsibility. This includes, for example, a higher budget, greater decision-making scope or a higher turnover volume with the clients they manage. This also helps to identify whether employees are actually developing and taking on more responsibility.

Managers, too, should be assessed more closely on leadership-related topics. Possible approaches include, for example, regular performance reviews, specific development goals or actively discussed career paths. However, what matters is not whether a meeting is scheduled in the calendar or has been formally documented. What matters is whether managers are genuinely working to develop their staff.

This does not make staff development perfectly measurable. But it does make it more tangible. And that is exactly what is needed if it is to be more than just a good intention within the company.

Conclusion

Staff development rarely fails because companies consider it unimportant. Hardly any company would claim that employees should not be developed, skills not built up or talent not nurtured. The problem arises when this commitment is not reflected in day-to-day management practice.

Managers are expected to develop staff, strategically organise teams, empower them to take responsibility and build future-proof skills. At the same time, they are often assessed against key performance indicators that have a short-term impact and highlight operational results. Turnover, speed, service levels or customer satisfaction are easier to monitor than the development of an employee who is expected to take on a more significant role in two years’ time.

This is precisely why staff development needs greater strategic clarity. Companies should know which skills they are currently lacking, which they will need in the future, and which individuals they wish to develop specifically for this purpose. A ‘scattergun’ approach to staff development may seem generous at first glance. In practice, however, it often creates false expectations, unnecessary costs and disappointment amongst people who are hoping for concrete steps towards development.

Managers, too, need a clearer framework for this. Anyone expecting staff development must empower managers to deliver it, give them the time to do so, and make development visible in the assessment of managerial performance. Not every aspect of development can be measured perfectly. However, progress in skills, responsibility, development reviews and career paths can be monitored far more effectively than many companies currently do.

Staff development only becomes effective when it is more than just a hollow promise within the organisation. It must be embedded in strategy, leadership and key performance indicators. Only then does staff development truly count.

Notes (partly in German):

Do you want to improve collaboration within your team or your communication skills as a manager? Then visit Michael Zocholl’s website and arrange a meeting. It’s definitely worth it!

[1] Veronika Birkheim: Führungskräfte werden im echten Leben nicht daran gemessen, welche Mitarbeitenden sie entwickeln.
[2] Manfred Becker: Personalentwicklung: Bildung, Foerderung und Organisationsentwicklung in Theorie und Praxis
[3] Nicola Chighine: The trap of vanity in leadership: when managers believe themselves to be indispensable
[4] Michael Zocholl: Podcast Zuhoeren, Fragen, Fuehren – Folge 267: Fuehren als Zumutung
[5] Deloite: 2024 Global Human Capital Trends
[6] How is the employee turnover rate calculated?

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Michael Zocholl has published further posts on the t2informatik Blog, including: