Staff development is a critical issue for middle market companies. A growing so-called middle skills jobs gap leaves companies in all industries at a strategic disadvantage as they scramble to find talent that is not readily available. Finding people with the proper leadership skills for the future is also difficult and leaves businesses in danger of not obtaining the management they need to grow and thrive. Companies also have the need to develop in-house talent for additional responsibilities and to help support a succession plan.
The answer is developing staff at all levels of the company. But where do you start? You could bring in professional development groups to offer education, but that can be pricey and can pull people away from regular responsibilities. Or you could set up in-house programs, but someone still needs to have the expertise and time to teach in the first place. Realistically, you will need a mix of methods to bring everyone up to speed where they most need it. Here are three steps to develop your own approach.
1. Recognize Weaknesses
There is no such thing as general staff development. You put the effort in where it will most benefit the business. Recognize where the organization is weak and where giving particular individuals broader strength and experience could help. This, however, is easier said than done, particularly when trying to identify weaknesses. One of the problems with a shortcoming in a given area is that you may not even be aware of an issue.
Although weaknesses can sometimes be observed, you may need to obtain comparative industry figures for various functions in your company and compare. Where do things come up short? In any area that doesn't make the grade, do the people involved really not know better, or do processes and culture keep change from happening? Development is a waste if it either isn't needed or won't be allowed to work. In some cases, you may find it useful to hire an expert for a given area to help pinpoint the source of weakness.
2. Prioritize
You will likely find areas where employees and managers could benefit from development, or even where broadening someone's skills and knowledge could help prepare them for future. But resources in a middle market company aren't limitless. There are only so many areas you can work on without pulling money, people, and time away from other aspects of the business.
You must establish the strategic priority of your development needs. For some companies, giving management exposure to some new tools and theories might be most important because of an upcoming entry into a new market. Others might most need workers trained in advanced manufacturing to satisfy demands from potential clients.
Once you have established an absolutely strategic priority, apply an approximate financial weighting to each. How big an impact will each have on the bottom line now and in the long run? How much does each cost? You might find that a combination of lower-priority items would, in combination, provide a greater return at a lower cost than your top choice. Or it could be that the choice is so overwhelmingly important that it's worth temporarily ignoring everything else on the list.
3. Identify Approaches
Each aspect of development will benefit from the best approach. Approaches, however, can vary greatly. On the manufacturing front, sending a few people to a community college course and then having them train co-workers might make the most sense. Or an equipment vendor might offer online materials that will provide most of the educational base, with a short supervised practice session or two rounding out the experience. An executive who needs a crash course in a particular type of marketing or customer segment might need to attend a university program. Bringing new employees up to speed on corporate culture and practices could be done through on-site mentorship programs.
Identifying approaches works with the previous step in a chicken-and-egg fashion. Approximate the cost of the specific approach you'd use for each development imperative and then set priorities. Then, you can refine the strategies into specific plans and budgets.
Development for any middle market company is necessary to remain competitive and grow. But staff development doesn't have to mean automatic enrollment of personnel in formal courses. Understand how strategy drives your development needs and then use tools for advancement that make the most sense and offer the best return on investment.
How are you developing your staff within your resources?
Erik Sherman is an NCMM contributor and author whose work has appeared in such publications as The Wall Street Journal, The New York Times Magazine, Newsweek, the Financial Times, Chief Executive, Inc., and Fortune. He also blogs for CBS MoneyWatch. Sherman has extensive experience in corporate communications consulting and is the author or co-author of 10 books. Follow him on Twitter.