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Employee Development: How the Best Companies Develop Better Employees

If you want to develop great employees and retain them long term, check out these five strategies top businesses use.

Written by: Melissa Powell, Senior WriterUpdated Jul 18, 2025
Shari Weiss,Senior Editor
Business.com earns commissions from some listed providers. Editorial Guidelines.
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Every company is ultimately a group of people working toward a shared goal. Whether that goal is met or exceeded depends largely on the quality and motivation of its employees. Building a team that is both skilled and driven begins with a strong hiring process and thoughtful onboarding, but it doesn’t end there. Helping employees reach their full potential requires ongoing investment in their development. The business case for doing so has never been stronger, as organizations are seeing impressive returns on learning and development initiatives. We’ll share tips for developing employees at your business and highlight employee development trends and strategies from some top companies.

Employee development strategies

Developing great employees is a multifaceted task. However, much of this endeavor starts by addressing your team’s personal and professional development. In any industry, professional development opportunities and personal fulfillment are crucial elements of career satisfaction. Any organization that works hard to foster these elements will enjoy the rewards of motivated, self-starting, hardworking employees.

Here are five ways to start developing your employees and creating the best workforce possible.

1. Prioritize professional growth and development.

Offering professional development opportunities is one of the most significant factors in developing a great workforce. These opportunities can take many forms:

  • Training seminars and workshops
  • Continuing education classes
  • Professional certification courses
  • Conferences and networking events
  • Mentorship programs
  • Cross-training in different departments

Workplace-based development programs are particularly effective for engaging employees. Additionally, research shows that employees who lack development opportunities often feel they aren’t reaching their full potential, highlighting the critical need for structured learning programs.

Prioritizing professional growth will help you earn employee loyalty and boost retention. If workers feel their professional goals are being supported, they’re likely to stay around longer and accomplish more while they’re with your business. Employees may quit when they feel boxed in and stifled. In contrast, consciously embracing employee professional development will benefit your team and your operation.

Did You Know?Did you know
According to research from Better Buys, offering employee development opportunities can lead to a 34 percent higher retention rate and 15 percent higher employee engagement.

2. Encourage autonomy and decision-making.

If you want to develop excellent employees and retain them long term, you must believe in them — and that means giving them the autonomy to make their own decisions. Instead of micromanaging your team, build an empowered employee culture where team members have all the tools and support they need to handle their responsibilities. Of course, they must still follow your general business rules and guidelines, but they should be able to manage their projects and daily tasks their way.

Challenging employees with new projects and encouraging autonomy can help your workers build their skills and expertise. This is crucial for fostering innovation and developing business leaders. Encouraging employee autonomy can also help you improve employee retention because your staff will know their talents are valued and respected.

3. Support employee well-being and work-life balance.

Sustaining an excellent workforce requires supporting your employees’ mental and physical health and well-being. Your employee benefits package should go beyond health insurance and retirement plans. Consider the following ways to support your team:

FYIDid you know
Current workplace stress statistics underscore the urgency of well-being initiatives. Around 83 percent of U.S. workers experience work-related stress, and Gallup estimates that low employee engagement costs the global economy $8.9 trillion, or 9 percent of global GDP.

3. Implement creative perks and benefits.

In addition to fostering a culture of individual growth and support, many businesses supplement employee development efforts with extra perks and fringe benefits to stand out. Such benefits will make your workplace a more desirable destination — a place where team members feel supported and develop a sense of belonging. As a bonus, offering creative perks will boost your recruitment efforts and help you stand out when vying for top talent.

Some businesses focus on perks that help reduce productivity-killing workplace stress, which is becoming an epidemic. Businesses can address workplace stress by focusing on dedicated spaces for employees to relax, refocus and re-energize. For example, meditation rooms are a holistic way for employers to provide a wellness-based workday. Other health perks like standing desks, ergonomic workstations, yoga classes and access to athletic facilities can encourage an atmosphere where wellness is a priority. These perks help foster healthier employees and characterize your workplace as a place where worker happiness is valued.

5. Create recognition and feedback systems.

While perks will help your team thrive and attract talent, your business must provide a solid foundational ethos of growth and teamwork to truly develop better employees. Implementing employee recognition plans is an excellent way to accomplish this while encouraging stellar performance and increasing retention.

Everyone likes to know when they do something well, but too many of today’s employees feel unappreciated. The best businesses implement employee recognition plans to reward staff for excellent performance and important milestones. These efforts show employees that you notice and appreciate their work.

Feedback is another crucial method of employee recognition. Foster a company culture of clear, consistent feedback and regular one-on-ones to ensure your staff is on track to meet their goals. Providing informal feedback at random intervals and implementing continuous performance management are other ways to recognize employee performance and encourage good behavior.

Did You Know?Did you know
When an organization has an integrated recognition culture, both employee and leader emotional intelligence (EQ) improves significantly – employees are nine times more likely to demonstrate higher EQ, and leaders are 16 times more likely, according to the 2025 Global Culture Report by the O.C. Tanner Institute.

How the best companies prioritize employee growth and development

What the best companies do to develop and retain great employees isn’t rocket science; it can be emulated by companies of any size in any industry. It takes dedication, conscientiousness and creativity.

Here are a few examples of how top companies invest in employee growth and development:

  • Amazon: Amazon has several employee training programs, including the A2Tech program, where frontline employees undergo technical training. The program aims to allow lower-level staff members to hold higher-paying technical roles they wouldn’t typically be hired for without a college degree. This is an excellent example of upskilling your employees to retain them long term.
  • Chipotle: Chipotle’s Cultivate Education program offers comprehensive educational benefits to employees, including debt-free college degrees in fields like agriculture, culinary and hospitality through partnerships with accredited universities. After just 120 days of employment, eligible employees can pursue undergraduate and graduate degrees with 100 percent tuition coverage for select programs, or receive up to $5,250 annually in tuition reimbursement for other qualifying programs through their partnership with Guild Education.
  • Paychex: This company uses a multifaceted approach to ensure employees can learn throughout their careers. It offers a combination of training options, including virtual and in-person training, more than 300 training videos and gamified learning. It uses AI to provide personalized course recommendations based on each employee’s job, interests and learning course history.
  • Hilton: Hilton’s LAUNCH program takes promising new employees and provides them with 24 months of immersive training, hands-on exposure to all aspects of the business and mentorship. With training in general hospitality, technology and key corporate functions, the program aims to develop the company’s future leaders from within its employee ranks.
  • Cisco: This tech company takes an innovative, skills-based approach to employee development that emphasizes internal mobility and experiential learning. Through rotational programs, job swaps, and internal postings, employees are encouraged to explore roles beyond their day-to-day work and align their careers with their strengths. Cisco follows the 70-20-10 development model, which consists of 70 percent experiential learning, 20 percent peer interactions and 10 percent formal education.

The best way to develop your employees will be unique to your business, but these ideas will help you get started. A great workforce stems from thoughtful, purposeful leaders who prioritize employee well-being. It’s up to you to make your own workplace a great one, but it all begins with purpose.

FYIDid you know
According to the LinkedIn Workplace Learning Report 2024, seventy percent of employees say that learning opportunities strengthen their connection to their organization.

Employee development FAQs

There’s no one-size-fits-all answer to budgeting for employee development, but many companies allocate around one to five percent of their payroll toward training and development. The ideal amount depends on factors like company size, industry and strategic goals. High-growth or tech-driven companies may invest more to stay competitive, while others may prioritize cost-effective methods like internal mentoring or digital learning platforms. Ultimately, the budget should align with the organization’s talent goals and be viewed as a long-term investment in workforce performance.
The most effective training formats for modern employees are those that offer flexibility, engagement and relevance. For example, microlearning caters to busy schedules and short attention spans, while on-demand e-learning platforms allow employees to learn at their own pace. Interactive formats like simulations, scenario-based training, and gamified content increase engagement and retention. Live virtual training and hybrid models that blend in-person and online learning provide structure while accommodating remote or hybrid work environments. Additionally, mentoring, coaching and peer-to-peer learning foster collaboration and personalized growth, making them highly effective components of a well-rounded training strategy.
Organizations can measure the ROI of employee development by tracking key performance indicators (KPIs) that connect learning initiatives to business outcomes. Common metrics include employee retention rates, productivity improvements, promotion and internal mobility rates, and reductions in skills gaps. Pre- and post-training assessments can quantify knowledge gains, while performance reviews and 360-degree feedback offer insight into behavioral and skill improvements. Organizations can analyze the financial impact by comparing training costs to gains in output, efficiency or revenue growth. Linking employee development efforts to these measurable outcomes helps justify investment and guide future learning strategies.
The biggest challenges in implementing development programs include limited budgets, lack of time and low employee engagement. Many organizations struggle to balance training with day-to-day responsibilities, and without clear goals or leadership support, programs can lose momentum. Additionally, outdated content and one-size-fits-all approaches often fail to meet diverse learner needs.
Manager development is critical for organizational success. Gallup research demonstrates a strong association between engagement, the quality of managers and critical business outcomes. Organizations with effective manager training see substantial improvements in both management performance and team engagement.

Jennifer Dublino contributed to this article.

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Written by: Melissa Powell, Senior Writer
Melissa Powell is the COO (Chief Operating Officer) of The Allure Group. A dedicated healthcare professional, hands-on leader, and consummate innovator, Melissa has nearly 20 years of experience coordinating, assessing, and improving senior care in New Jersey and New York City.