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Companies today are facing a major challenge. The world of work is changing rapidly and employees need to continuously expand their skills. This is precisely where employee skills development comes in. It is not just a trend, but a strategic necessity for long-term success. KIROI Step 8 offers a structured way to organise employee skills development effectively and sustainably. In this article, you will learn how you can successfully implement this method in your company and which practical tools are available to you[1][2].
What is employee skills development and why it is important
Employee competence development describes the targeted process of improving knowledge, skills and abilities. The aim is to build on existing strengths and develop new competences[1]. This process combines knowledge and skills in such a way that job-related tasks can be completed independently and in line with requirements[3].
The importance of this development is often underestimated. But the fact is: more competent employees lead to increased efficiency and better quality. They show more motivation and less fluctuation. For companies, this means fewer staff changes and more stable teams. This is a great advantage, especially in fast-moving industries[3].
Employee skills development is based on different levels. These work together and complement each other. This creates a comprehensive development process that is truly sustainable[3].
The three levels of employee skills development
Level 1: Practical learning and learning by doing
The first level stands for learning by doing. Here, employees learn directly on the job through practical application[3]. This is particularly effective because what has been learnt is immediately put into practice and does not get stuck in theory.
Typical methods at this level are job rotation, project work and on-the-job training.[3] In on-the-job training, employees acquire new skills during their daily tasks. Experienced colleagues or superiors are available as contact persons[5].
In the mechanical engineering sector, companies use this method in a targeted manner. In the retail sector, managers are increasingly relying on job rotation to provide a wide range of experience.[4] In logistics companies, systematic coaching combined with job rotation positions accompany young managers through various departments, which expands their skills in the long term.
Level 2: Coaching and individual support
The coaching level focuses on personal support and mentoring programmes.[3] An experienced mentor accompanies the employee over a longer period of time. This method not only promotes technical skills, but also soft skills and career development[5].
In the financial sector, managers specifically promote talent through individual coaching sessions[2], helping them to better master complex decision-making processes. In the IT sector, large companies are establishing structured mentoring systems to prepare junior staff for management roles.[2] One healthcare team leader is introducing monthly feedback sessions to respond to requests and challenges at an early stage.
BEST PRACTICE with one customer (name hidden due to NDA contract) A peer feedback system was established in a service company with the help of structured support. This enabled employees to provide each other with targeted support. Collaboration improved noticeably and employee loyalty became much stronger. Such systems show how important regular communication and feedback are for sustainable development.
Level 3: Theoretical knowledge and formal training
The training level expands theoretical knowledge in a structured manner[3] and is where workshops, seminars and training courses are held. They train specific skills and impart technical competences or soft skills[3].
E-learning uses digital platforms to impart skills[5]. Employees can learn flexibly and independently, regardless of time and place. This method offers videos, interactive exercises or webinars.[5] In the IT sector, the integration of artificial intelligence is becoming increasingly important. AI systems automatically recognise deficits and recommend personalised learning content[4].
KIROI step 8: Structured support for skills development
KIROI step 8 focuses on the structured support of competence development[2][8] This step is crucial to the effective organisation of employee competence development. It identifies methods and procedures that help companies to provide targeted support for their employees' skills development[6].
Various learning formats are combined here. Technical, methodological and social skills can thus be expanded in a variety of ways[6]. The mix of different learning formats, such as on-the-job and off-the-job training, promotes targeted learning in the workplace and externally[4].
The five steps of employee competence development according to KIROI Step 8
There are numerous tools and methods for the targeted development of employee competences.[1] A structured process helps to ensure sustainable development. The five steps form the foundation of this structure.
The first step is to analyse requirements. Here, existing and future skills required are compared with the organisation's strategic objectives[1], resulting in a need that can be met either through personnel development or recruitment.
The second step involves identifying employees with the greatest and relevant potential[1] and then considering where and how they could develop further. The third step is to agree on specific development measures. The fourth step implements these measures. The fifth step evaluates success and makes adjustments where necessary.
Proven tools and methods for employee skills development
Coaching as a catalyst for personal development
Coaching is one of the most valuable tools. Managers in the financial sector specifically promote talent through individual coaching sessions[2], helping them to better master complex decision-making processes. This intensive support leads to faster learning progress and more stable knowledge.
Professional coaches offer targeted feedback and support in overcoming challenges[3]. They help to develop personal strengths and find new solutions. This makes coaching an effective method for sustainable development.
Job enrichment and job rotation for versatile experience
Job enrichment and job rotation are particularly effective tools.[2] In the mechanical engineering industry, these tools give teams the opportunity to acquire new skills.[2] They broaden the field of work and open up new perspectives. This practical experience is often more valuable than pure theory.
Job rotation is common in retail, where employees rotate through different departments[4], gaining varied experience and developing key competences beyond their original area of responsibility. This practical learning promotes flexibility and prepares employees for broader responsibilities.
Target agreement meetings for measurable progress
In retail, managers are increasingly focussing on specific target agreements with quantifiable results[2], making personal development measurable and verifiable. Clear goals motivate and provide orientation for employee skills development.
These discussions should take place regularly and document progress. This allows developments to be tracked and adjusted if necessary. Transparency creates trust between managers and employees.
Mentoring programmes as knowledge transfer
Large IT companies establish structured mentoring systems to prepare junior staff for management roles[2]. Mentoring is a timeless tool for knowledge transfer and personal development. Experienced employees pass on their knowledge to younger colleagues.
In production technology companies, experienced employees are deployed as mentors[4] and pass on their knowledge directly at the workplace. At the same time, company-internal seminars are held to provide a sound theoretical basis. This is an ideal combination of theory and practice.
BEST PRACTICE with one customer (name hidden due to NDA contract) A medium-sized technology company combined on-the-job training with structured mentoring. The employees reported that this direct support significantly improved their methodological skills. They were able to work on complex assignments more independently and made faster progress in their professional development.
Project work as a practical learning field
In project work, employees take on tasks outside their regular area of activity[5] and work on challenging projects that expand their competences. This method not only promotes technical skills, but also project management skills, teamwork and problem-solving expertise[5].
Employees gain new perspectives and learn to take on responsibility.[5] Project work offers real challenges and therefore real learning effects. This is much more motivating than theoretical tasks.
Practical implementation of employee skills development in various sectors
Mechanical engineering and industry
Further training programmes for industrial foremen are standard in mechanical engineering[4]. These programmes prepare specialists specifically for management roles. They consist of academic courses, accompanied by practical learning workshops and coaching sessions.[4] Such measures support individually tailored employee skills development and help to secure the next generation of managers in the long term.
Manufacturing companies often rely on mentoring programmes in which experienced colleagues pass on their knowledge directly in the workplace.[6] In-house seminars are held in parallel. In addition, external workshops and e-learning courses serve to broaden horizons and provide new learning impulses[6].
IT and technology
The integration of artificial intelligence is becoming increasingly important in the IT sector.[4] AI systems automatically recognise deficits and recommend personalised learning content. In this way, employees can use AI-supported platforms to expand their skills in programming languages in a targeted manner and remain marketable[4].
Large IT companies are establishing structured mentoring systems to prepare junior staff for management tasks.[2] One software company uses digital tools that simplify continuous dialogue and document learning progress.[2] This increases transparency and enables better tracking of development.
Trade and services
Job rotation is common in retail, where employees rotate through different departments[4], gaining varied experience and developing key competences beyond their original area of responsibility. This practical learning promotes flexibility and prepares employees for broader responsibilities.















