What Is Professional Development and Why Is It Important?

With remote work, advances in technology, and challenges in hiring and retaining talent, the business world has irrevocably changed over the past few years. To keep pace, business leaders need to think strategically about how to nurture their most valuable assets: their employees. They might look to professional development programs to help them do that.

Companies that foster a culture of learning and growth can boost their employees’ competencies and help them gain confidence. These companies may be better equipped to retain talent as well.

Professional development is a key strategic initiative in today’s workplace, allowing staffers to build on their skill sets, take on fresh challenges, hone professional development goals, and reach the next rung on the career ladder. In the long run, these measures make for happier, more productive employees whose improved capabilities can positively impact a company’s bottom line.

How Professional Development Helps Businesses

What is professional development?

Typically, it’s a company-led program that expands a staff’s horizons by cultivating career growth through learning hard skills, such as technical know-how and management strategies, as well as soft skills, like effective communication and collaboration.

Comprised of a variety of formal and informal offerings, such as lunch-and-learn sessions, educational courses, and certifications, professional development can provide employees with pathways to career advancement – and ultimately to assuming leadership roles. Whereas employee training allows companies to meet an immediate need, professional development is more forward-looking, focusing on expertise employees need to support their future growth. 

Informal learning programs might include:

• Webinars and podcasts. Employees can hop online at their desks to learn about a variety of topics, from resolving workplace conflicts to effectively managing teams.
• Lunch-and-learn sessions. A rotating roster of outside advisers and internal team members can impart expertise on a particular subject while employees share a meal together.
• Workshops. Groups of employees can improve their critical thinking and develop problem-solving acumen by completing particular tasks, such as boosting their writing skills or practicing public speaking.
• Conferences, seminars, and volunteer programs. Professionals can attend events to update their skills and network with experts, colleagues, and influencers within a given field.
• Shadowing a colleague. An employee can gauge interest in a new role or department by observing a fellow co-worker's typical day.
• Microlearning. Employees can take advantage of a variety of brief content modules, including short videos and quizzes delivered through digital media, which are often designed to supplement or strengthen their capabilities.
• Mentors. Internal mentorship programs can help employees forge bonds with experienced workers, who can provide guidance with setting goals, networking, and exploring future career possibilities.

Formal learning programs often require more time and might include:

• Certifications. Employees can obtain professional certifications, licenses, or accreditations in particular fields, such as accounting and finance, technology, health care, and legal services. Certifications expand employees’ expertise, potentially leading to taking on new roles.
• Classes. Employees may consider refresher courses on various subjects, often led by professional organizations, to keep up with the rapid pace of the business world.
• Higher degrees. Earning a higher degree, such as a master of business administration (MBA), can significantly boost employees’ knowledge in a particular field and improve their eligibility for promotions to more senior positions.

Why Professional Development Can Help Companies Thrive

In many ways, professional development can help businesses stay relevant, allowing employees to keep up with the latest skills and tools to remain competitive. 

At a time when many organizations are grappling with quiet quitting, many are hoping to retain employees by providing them more opportunities to grow. According to software review site Capterra, which surveyed 294 HR leaders at U.S. companies with at least six employees in January 2022, 49% of companies reported that they’re pouring more money into learning and development initiatives, an increase from 41% in 2021. Remote businesses are figuring out new ways of supporting workers, with many investing more money in learning and training technology that can be done from anywhere.

Professional development isn’t solely for deep-pocketed corporations. While the Capterra survey shows small businesses lag behind larger ones in investing in professional development, firms with more limited budgets can take advantage of free and open-source online learning management systems. Doing so may be a worthwhile investment of employees' time, since professional development can help increase productivity at businesses of all sizes.

In many ways, professional development can help businesses stay relevant, allowing employees to keep up with the latest skills and tools to remain competitive.

How to Encourage Professional Development 

To be effective, professional development must fulfill modern workplace priorities. About 44% of human resources leaders believe their companies are not providing compelling career paths for their employees, according to "Top 5 HR Trends and Priorities For 2023," a 2022 survey by research and consulting firm Gartner, which surveyed more than 850 HR leaders.

To gain a clear picture of any skill gaps in the workforce, business leaders can enlist their management teams to analyze the current capabilities of each team and determine areas that could benefit from additional training. Company leaders can provide support, feedback, and guidance as workers test the waters beyond their current skill levels.

The Gartner study found that employing a more human dynamic that supports authenticity, empathy, and flexibility in leadership development is critical. A collaborative discussion of job performance, careers, and areas of improvement can be mutually beneficial to employees and companies. An intuitive, stimulating, and interactive professional development program can also make employees feel more confident in their abilities and increase morale, creating higher job satisfaction. Given the chance to lean into professional development programs, they may be more likely to share ideas, welcome new projects, and shine, providing them with greater potential to grow into leadership roles.

Support doesn’t end with webinars and courses. It’s wise to periodically follow up with teams that have completed professional development initiatives to ensure they're using the tools and skills they learned.

The Takeaway

Professional development is often a company-backed initiative that allows staff to cultivate both hard and soft skills through formal and informal programs, from webinars and podcasts to educational courses and certifications – ultimately providing pathways to advancement. Candid, collaborative discussions between managers and direct reports about job performance, career opportunities, and areas of improvement can help foster an environment of learning and growth. By providing professional development to help employees flourish, companies may be able to alleviate turnover and retain a happier, more productive staff.

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