Government data showed that, in 2024, nearly half of businesses reported skills shortages, especially in technical areas. It may seem that a straightforward solution would be to invest in employee development, but research from the University of Campania suggests it might not be quite as clear-cut as we like to think.
A common fear among HR departments is that if they invest in their people, that then makes them more attractive in the marketplace, and they’re more likely to jump ship to greener pastures, with the new employer gaining the fruits of that investment. The researchers explored whether this is really the case and how this likelihood can hamper training plans.
Boosting employability
The issue of employee development has been so pressing in recent years that even the most senior politicians have taken note, with no less than Mario Draghi highlighting the challenge in his recent report for the European Union. The report complains about the uneven distribution of investment in employee development, especially in terms of the basic managerial practices that underpin employee development.
The Campania research highlights how development plans are often implemented inconsistently and sparsely throughout the organization, undermining their likelihood of success.
Similarly, the so-called “Great Resignation” that gained force during the COVID-19 pandemic helped to underline the power employees had in the labor market and their general willingness to move in order to get a better deal.
Taking a risk
Of course, while employers worry about employees jumping ship once they’ve developed new skills, from an employee perspective, it’s well-documented that investing in employee development is a great way to boost retention. This is because it not only provides people with new skills but also shows that the organization values them.
The researchers explored both how the employability of employees could be enhanced, and also how organizations fare when they adopt a more boundaryless attitude to this improvement.
They conducted a survey of employees in an Italian firm to understand the different ways in which training and development are deployed. They first focused on the so-called employability culture in the organization. This refers to the way in which employees feel their organization is devoted to boosting their employability, whether through training or other initiatives.
They then analyzed the sense employees had about their organizations commitment to developing their general competency. This was measured through something referred to as “differentiated and complementary developmental initiatives”, which basically looks at how integrated employee development programs are.
Integration matters
The results show that the way employee development is integrated into the organization matters, as when employability was a key part of the culture, then employability tended to rise. In other words, while a culture that values employability is important, employees feel more employable only when they receive actual support for developing their competencies.
The researchers also analyzed the willingness of employees to actually move around within their current organization. For instance, how open were they to move to a different department or territory? They did this by measuring their social and professional networks both inside and outside the organization.
Perhaps unsurprisingly, the study found that this played a big role in how employees perceived the amount of support their employer gave them in their careers. For instance, when employees had less of a career mobility attitude, they needed more support from their employer to increase a sense of employability.
Perceptions matter
The key takeaway from the research is that employability is hugely supported when employees perceive that their employer supports them in their desire to develop their skills. Investing in employees’ growth fully explains the connection between an employability-focused culture and actual employability.
While a culture of employability is important, however, it’s not enough on its own. Instead, managers should also strive to ensure that employees have enough opportunities to develop their skills. It’s crucial that promises of employee development are delivered upon and a supportive work environment is created.
It’s also important that these efforts are tailored to the specific desires of each employee. For instance, the research found that whereas some employees are happy to develop within the organization, others tend to look for opportunities beyond it. Both are valid, but they do require different approaches.
The researchers provide a number of key lessons for HR managers:
- Encourage a growth mindset – When the workplace culture encourages continuous learning and development, it helps to emphasize the importance of developing one’s skills.
- Take meaningful action – Managers should strive to create programs and mentoring opportunities to help employees shape their roles to better align with their strengths and aspirations.
- Recognize individual differences – Each employee has a different pathway for growth, so it’s important that their development plans are adjusted accordingly.
- Build trust and communication – Strive to encourage a more open dialogue between managers and employees so that ownership of their development is more commonplace.
In short, to boost employability, organizations need to align their values with real actions and consider the unique career attitudes of their employees. By creating a supportive culture and offering targeted support, HR managers can help employees grow, succeed, and contribute to the organization’s success.
