What Is Career Development? And Why It Matters for Your Business

Key takeaways

Investing in career development is mutually beneficial for the success of your organization, as well as your employees.

• One in four employees reports a lack of advancement opportunities in their workplace [1].

• Types of career development opportunities include mentorship programs, in-house training, workshops, and tuition reimbursement.

• You can support the development of your workforce by creating individual career development plans based on the needs and goals of your employees.

Explore career development and the advantages it presents, not only for creating future leaders of your organization, but also encouraging a more motivated workplace. If you’re ready to start upskilling your employees, Coursera for Business can provide access to high-quality learning programs to develop your staff.

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What is career development?

Career development refers to the processes organizations implement to support employees and encourage their career progression. Careers are rarely static. Skills, circumstances, desires, and motivations change over time and impact what people want out of their professional lives. Employees may start their job excited to learn about a new role and responsibilities, and over time, their motivations change, and they start to look at what they can do to move on to a more senior position.

As an employer, you can facilitate a career development plan to ensure you retain ambitious staff who want to learn and progress to more senior roles, motivate your team by allowing them to learn new skills, and keep your business competitive. Career development initiatives could support people strategically by helping them set goals and offering in-house training, mentoring, coaching, and accelerator programs.

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What are the types of career development?

Career development takes many forms. It can be something employees do personally or something you support your employees in doing. Upskilling staff and keeping them motivated to develop is in your best interest.

Types of career development opportunities that you may consider include:

• Appraisals and reviews 

• Mentoring programs

• Shadowing

• Coaching

• In-house training

• Training grants or bursaries

• Networking

• Workshops and conferences 

• Tuition reimbursement for degree programs

What is career development used for?

Organizations can use career development to support employees, help them discover what they want from their careers, and guide them through defined goals to achieve success. It may involve one or more approaches, such as:

• Obtaining certifications

• Gaining a degree or other credentials

• Progressing to a more senior role

• Reaching leadership positions

• Learning new skills

• Expanding professional networks

• Keeping up to date with trends

• Developing a career plan

Which industries should offer career development opportunities?

Career development is something to consider, no matter your industry. Some industries require continuing education, which can be a form of professional development. In these cases, you’ll see logical steps to take, such as an accountant earning a Certified Public Accountant (CPA) certification or a licensed practical nurse earning a degree to become a registered nurse..

Aside from these, career development is common in all industries, with employers recognizing the benefits of helping staff to grow professionally. Nurturing talent, developing employees internally, and taking an interest in your staff’s goals and motivations benefits all industries.

What are the types of career development?

Career development takes many forms. It can be something employees do personally or something you support your employees in doing. Upskilling staff and keeping them motivated to develop is in your best interest.

Types of career development opportunities that you may consider include:

• Appraisals and reviews 

• Mentoring programs

• Shadowing

• Coaching

• In-house training

• Training grants or bursaries

• Networking

• Workshops and conferences 

• Tuition reimbursement for degree programs

What is career development used for?

Organizations can use career development to support employees, help them discover what they want from their careers, and guide them through defined goals to achieve success. It may involve one or more approaches, such as:

• Obtaining certifications

• Gaining a degree or other credentials

• Progressing to a more senior role

• Reaching leadership positions

• Learning new skills

• Expanding professional networks

• Keeping up to date with trends

• Developing a career plan

Which industries should offer career development opportunities?

Career development is something to consider, no matter your industry. Some industries require continuing education, which can be a form of professional development. In these cases, you’ll see logical steps to take, such as an accountant earning a Certified Public Accountant (CPA) certification or a licensed practical nurse earning a degree to become a registered nurse..

Aside from these, career development is common in all industries, with employers recognizing the benefits of helping staff to grow professionally. Nurturing talent, developing employees internally, and taking an interest in your staff’s goals and motivations benefits all industries.

Why is career development important? Pros and cons

Setting career development goals can help employees reach more senior positions, learn new skills, plan for the future, earn more money, and enjoy their jobs.

Career development also benefits employers in many ways. Explore these advantages in more detail while also considering any cons. 

Pros of career development for an employer

Retaining staff: Investing in employees, inspiring them to achieve, and allowing them to feel supported improves motivation, job satisfaction, and productivity. In turn, this leads to lower staff turnover, as they are happier and less likely to look to move elsewhere. Your business saves the time, money, and resources you would otherwise spend on recruiting and training new employees.

Leading on industry trends and innovation: Supporting staff to improve at their jobs and on top of industry trends and developments has direct benefits for you as their employer. The better your workforce performs, the more knowledgeable and competitive you can become as a company.

Attracting top talent: Most employees want career development opportunities, and the top talent will seek them out as part of their role. According to a recent survey, 25 percent of employees feel that their workplace lacks advancement opportunities [1].

Developing leaders: Getting to know your employees, nurturing their talent, and shaping them as leaders from the inside means you grow talent that understands your company and remains committed. 

Read more: 8 Tips for Developing Your Leadership Skills

Cons of career development for an employer

Upfront cost: Training and reskilling employees can be expensive, especially if hiring external trainers. Some smaller companies may need help with these upfront fees, even if the overall benefits are apparent. More affordable career development initiatives can include internal mentoring, peer-to-peer coaching, apprenticeships, in-house training and workshops, local guest speakers, and state-funded grants

Reduced time on the job: While taking a course, workshop, or development program, employees might be out of the workplace, causing a temporary dip in productivity. It may be especially problematic for a long course or program.

Employee may leave: It is possible that staff may choose to work for a different company after you have invested in their training. However, providing opportunities for advancement by supporting their career development is a critical factor in retaining staff.

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How to get started with career development

Enhance career development opportunities for your organization's staff by considering the following options and adapting them to your budget, staff needs, and industry.

Offer a career development plan.

Work with employees to understand their ambitions, strengths, and weaknesses, and put a plan in place for their career development. It will be unique to each individual. Meet with them regularly to monitor their progress and see how you can continue to support them.

Offer a mentoring program.

Mentoring is a fantastic, cost-effective way of allowing employees to learn from each other. Mentoring programs work by pairing new employees with more seasoned staff members who are above them on the career trajectory they wish to take. They can offer advice, support, and shadowing opportunities.

Offer in-house training.

In-house training is a cost-effective way to nurture employee talents and prepare them for career progression. It allows your team to identify training needs and utilize the expertise of existing staff members rather than paying for external services.

Use a rewards system.

To encourage and motivate employees, operate a rewards system to recognize and celebrate staff contributions and achievements.

Support external training.

You may pay for an external course provider to come into your organization, offer to pay for individual training programs, or reimburse training costs for degrees or certifications. How you do this is unique to your organization, budget, and staff development needs.

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With Coursera for Business, you can give your employees access to learning content from over 350 top companies and universities to gain industry-recognized credentials. Our customizable platform provides opportunities across various skill tracks so you can choose what your team needs, whether that’s skills in data, IT, generative AI, or more.

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