Learn about workforce development and how it can help your small business remain agile in the face of competition and a changing economy.
What is Workforce Development?
Key Takeaways:
- Workforce development is a strategy that helps workers improve their capabilities and career opportunities through training, education, and community support.
- Investing in workforce development helps your organization enhance productivity, improve retention, increase adaptability to industry changes, and strengthen competitive advantage by attracting top talent.
- Effective workforce development requires partnering with institutions, offering internships, investing in employee upskilling, and supporting community initiatives.
Workforce development definition
Workforce development is all about helping employees improve their skills, education, and overall capabilities to meet the evolving demands of the job market. For small businesses like yours, this means providing current employees and jobseekers access to practical training, upskilling programs, certifications, and mentorship opportunities that can help your team grow and stay competitive.
By investing in workforce development, you are not only strengthening your business but also ensuring that you have capable and adaptable people ready to tackle all sorts of challenges. Plus, when small businesses thrive, local communities and economies benefit, too, with more job opportunities, lower unemployment, and improved job satisfaction across the board.
Benefits of workforce development
Workforce development is a win-win for everybody. Here’s how employees, businesses, and communities can benefit from this program:
Key components of workforce development
The key components of workforce development enhance both individual and organizational growth. These include:
This involves improving your employees’ technical (hard) and interpersonal (soft) skills through various educational programs and training initiatives. Through these, they gain the knowledge they need to perform tasks efficiently and stay competitive in the job market.
Skills and training education
You can support your employees through skills and training education, such as:
- On-the-job training: Provide hands-on learning experience for your employees to develop their skills while working with an experienced mentor or trainer to ensure they gain practical knowledge for your business operations.
- Online courses: Give your teams access to online courses on platforms such as Coursera, Udemy, or LinkedIn Learning to develop skills that are relevant to their roles.
- Technical training: Facilitate your employees’ training to learn specific tools or software that you use in your business, such as Asana or Trello for project management or Excel and Tableau for data analysis.
- Industry-specific certifications: Support your team members in obtaining certifications like Microsoft Certified Professional (MCP), Certified Nursing Assistant (CNA), or AWS Certified Solutions Architect.
- Soft skills development: Initiate training programs focused on improving your employees’ communication, teamwork, problem-solving, and customer service skills.
- Workshops and seminars: Encourage or sponsor employees to join hands-on workshops or industry seminars to learn new skills or stay updated with trends (e.g., digital marketing workshops, leadership training).
Career pathways and advancements
A Zippia study revealed that 58% of workers say that professional development is a big factor in their job satisfaction. As such, helping your employees have a clearer vision of their career path within your organization can help your retention rates. Workforce development is one of the key programs that provide mentorship and skill-building opportunities to advance your employees’ careers so they can realize their goals.
A simple yet clear sales career pathway in a small business may look like this:
- Entry-level: Sales Associate (assisting customers, handling transactions)
- Mid-level: Store Supervisor (managing daily operations, training new employees)
- Advanced: Store Manager or Operations Manager (overseeing staff, handling inventory, and driving business growth)
When employees see a clear route for growth, they are more likely to invest in their roles, enhance their skills, and remain committed to the organization. In fact, 94% of employees choose to remain in their organization if they’re offered training and development opportunities.
Employment services and support
The job market is evolving fast, and this brings opportunities and challenges to business owners and employees alike. To stay ahead, you can tap into various private and public employment services to help you adapt and grow.
These resources provide support for hiring, training, and workforce development, ensuring businesses and workers can thrive despite market shifts. In fact, the International Labor Organization (ILO) also considers employment services and support as the foundation of an inclusive, well-functioning labor market.
Employment services and support include:
- Professional Employer Organizations (PEOs): PEO services such as ADP TotalSource and Justworks help small businesses with HR, employee training, benefits management, and compliance assistance.
- Workforce Innovation and Opportunity Act (WIOA): Small businesses can also apply for a WIOA grant, which provides you with funds to train your employees through formula grants. This covers on-the-job training, incumbent worker training, and apprenticeship programs.
Workforce diversity and inclusion
Championing workforce diversity and inclusion is both the right thing to do and a smart business move. When all your employees from different backgrounds, races, genders, and abilities feel welcomed and valued at work, they bring creativity to the table. This gives everyone equal chances to succeed, and you also create a fairer and more inclusive work culture.
An effective workforce diversity and inclusion initiative includes several factors:
- Use diverse job boards and community partnerships to reach underrepresented groups.
- Implement blind resume reviews and structured interviews to minimize unconscious bias.
- Provide training on cultural competency, unconscious bias, and inclusive leadership to educate employees and management.
- Offer targeted training programs to support underrepresented groups in acquiring skills needed for advancement.
- Establish mentorship opportunities that pair employees from diverse backgrounds with experienced leaders to support career growth.
- Create employee resource groups (ERGs) to provide a platform for employees to share experiences, seek support, and foster a sense of community.
- Offer flexible working arrangements to accommodate diverse needs, such as those of parents or individuals with disabilities.
- Ensure policies are in place to promote fairness in hiring, promotions, and compensation.
- Track diversity metrics to assess the effectiveness of initiatives and identify areas for improvement.
- Encourage feedback from employees to understand their experiences and make adjustments to inclusion strategies as needed.
- Ensure top management actively supports and champions diversity and inclusion initiatives.
- Strive for diversity at all levels, especially in leadership, to reflect the organization’s commitment to inclusion.
Recent policy shifts, including the current administration’s pushback against Diversity, Equity, and Inclusion (DEI) efforts, have raised concerns for businesses that prioritize inclusive work environments. However, it’s important to remember that ERGs and mentoring programs are designed for all employees—not just specific demographics. For small businesses, investing in these initiatives can still drive innovation, employee engagement, and retention even as the policy landscape changes.
How businesses can support workforce development
By taking steps to help employees develop their skills, businesses not only improve their own success but also contribute to the broader community. Here are a few ways your business can support workforce development.
Create personalized training courses
Being a small business is not a hindrance to developing effective workplace training programs. You can create a personalized workforce development program that upskills your employees efficiently by customizing your training to your specific industry, needs, tools, and company culture.
You will need to start by identifying skills gaps and aligning your programs with your business goals. For example, a small retail shop may need customer service and POS system training, while a local marketing agency may focus on graphic design and digital ads. Alternatively, a small restaurant may use internal knowledge and industry best practices to develop food safety training videos.
However, you need to remember that employees may have different learning styles. Offering a mix of learning formats—such as workshops, online courses, and in-house training sessions—ensures comprehensive skill acquisition. And lastly, don’t forget to provide opportunities for employees to apply their new skills on the job.
Another effective strategy is to encourage a mentorship culture, where experienced employees share their knowledge with others, fostering a supportive environment. Regularly reviewing and updating the development programs ensures they remain relevant and impactful.
With the help of a learning management system (LMS), it can become easier for you to create, deliver, and track employee training. For instance, platforms such as TalentLMS and Connecteam offer free plans to help you create and customize training materials.
See how these LMS platforms compare and browse for more alternatives here.
Partner with educational and training providers
By collaborating with schools, universities, and training providers, you not only create workforce-ready graduates but also ensure that the talent entering your organization has the exact skills and knowledge they need to thrive.
This is also a great opportunity to provide industry insights to educational institutions so they can adjust their curricula accordingly. In exchange, educational institutions can stay current with industry trends, secure external funding, and improve their programs with input from experienced employers.
Here are some real-world examples of these partnerships:
- IBM and P-Tech: IBM partnered with high schools and community colleges to create Pathways in Technology Early College High School (P-TECH). This program combines high school, college, and work experience, allowing students to earn a high school diploma and an associate degree, as well as gain hands-on experience at IBM.
- Starbucks and the University of Arizona: Starbucks has partnered with the University of Arizona, through which employees can pursue a degree in fields such as business and communications. In addition, Starbucks offers financial support and flexibility for those balancing work and education.
- Walmart’s Live Better U Initiative: Walmart’s Live Better U offers flexible, online learning options that allow employees to continue working while pursuing their education. This initiative helps employees improve their qualifications, increase job satisfaction, and advance within the company. It also strengthens Walmart’s workforce by fostering a more skilled and loyal employee base, which, in turn, benefits the business’s long-term success.
Offer internships, apprenticeships, and on-the-job training
Having internships, apprenticeships, and on-the-job training grants your business the following:
- Access to a pool of fresh talent
- Opportunity to evaluate potential hires before making permanent commitments
- The ability to shape employees’ skills to meet your company’s specific needs
Internships and apprenticeships allow you to introduce young or inexperienced workers to your industry, while on-the-job training helps existing employees improve and expand their skill sets.
To implement these programs effectively, you should:
- Provide mentors and adequate resources, such as access to training materials, tools, and technology
- Assign meaningful tasks
- Offer regular feedback to help participants develop their skills
- Create a structured onboarding process to ensure trainees understand the company culture and expectations
Support workforce development initiatives in the community
To effectively support community workforce development, identify specific community needs and align your efforts with those priorities. You can do this by collaborating with local non-profits, workforce development boards, and community organizations that have a deep understanding of the area’s employment challenges. Your business can also offer funding, resources, and expertise to support these initiatives, such as sponsoring vocational training programs or providing technology and equipment for training centers.
Other valuable strategies include:
- Creating volunteer opportunities for employees to mentor or coach local job seekers that aid community members and enrich the employees’ professional development
- Hosting community job fairs and career workshops can help connect local talent with employment opportunities
- Offering scholarships or grants for vocational education can make a direct impact on individual career prospects
Challenges in workforce development
Workplace development has its share of challenges, and addressing them is essential to ensure the initiatives remain effective and inclusive.
Skills gaps and mismatches
Skills gaps occur when the workforce lacks the necessary skills to meet job requirements, while mismatches arise when employees’ skills do not align with industry demands. These gaps can limit productivity and growth, emphasizing the need for targeted training and education programs.
Funding and resource allocation
Successful workplace development depends on adequate funding and proper resource allocation. Limited financial resources, especially in small businesses like yours, can restrict the availability of training programs and development initiatives, making it difficult to upskill your employees and stay competitive.
Access and equity issues
Ensuring access and equity in workplace development is a significant challenge. Disparities in access to training opportunities often affect marginalized groups, leading to unequal career advancement and widening the gap in workforce diversity.
Rapid technology changes
The fast pace of technological advancement poses a continuous challenge for workplace development. You must regularly update training programs to keep up with new technologies, ensuring that employees possess the latest skills to remain relevant in the evolving job market.
